CILEx L3 Land Law Essentials — Questions and Answers
Question 1: What is the key distinction between a freehold and a leasehold estate in land?
- A freehold is registered; a leasehold is unregistered
- A freehold is of potentially infinite duration; a leasehold is for a fixed maximum term (Correct answer)
- A freehold can only be held by individuals; a leasehold can be held by companies
- A freehold requires a mortgage; a leasehold does not
Correct answer: A freehold is of potentially infinite duration; a leasehold is for a fixed maximum term
The fundamental distinction is duration. A freehold (fee simple absolute in possession) is an estate of potentially infinite duration — it does not expire. A leasehold (term of years absolute) is granted for a fixed maximum period, which can range from days to 999 years. Both are legal estates under s.1(1) of the Law of Property Act 1925.
Question 2: Under the Land Registration Act 2002, which of the following interests must be completed by registration to take effect as legal interests?
- Short leases of 7 years or less
- Equitable easements
- A transfer of freehold land (Correct answer)
- Beneficial interests under a trust
Correct answer: A transfer of freehold land
Under the Land Registration Act 2002, certain dispositions of registered land must be completed by registration to operate at law. These include transfers of freehold estates, grants of leases over 7 years, and express grants of legal charges. Until registration is completed, such interests take effect only in equity (s.27 LRA 2002).
Question 3: What is an easement in land law?
- A right to occupy someone else's land
- A right enjoyed by one piece of land over another, such as a right of way (Correct answer)
- A restriction preventing development on land
- A charge securing a debt against property
Correct answer: A right enjoyed by one piece of land over another, such as a right of way
An easement is a right that benefits one piece of land (the dominant tenement) over another piece of land (the servient tenement). Common examples include rights of way, rights of light, and rights of drainage. The four requirements from Re Ellenborough Park [1956] are: there must be a dominant and servient tenement, the easement must accommodate the dominant tenement, the dominant and servient owners must be different persons, and the right must be capable of forming the subject matter of a grant.
Question 4: What is the effect of a restrictive covenant on land?
- It requires the landowner to carry out specific works
- It restricts the use of the burdened land in some way for the benefit of neighbouring land (Correct answer)
- It grants the holder a right to enter the land
- It creates a lease over the land
Correct answer: It restricts the use of the burdened land in some way for the benefit of neighbouring land
A restrictive covenant is a promise by one landowner not to use their land in a specified way, for the benefit of neighbouring land. For the burden to pass to successors in equity, the covenant must be restrictive (negative) in nature, it must touch and concern the dominant land, and the original parties must have intended it to bind successors (Tulk v Moxhay [1848]). In registered land, it must be protected by a notice on the register.
Question 5: What are 'overriding interests' under the Land Registration Act 2002?
- Interests that must be registered to be enforceable
- Interests that bind a purchaser of registered land even though they do not appear on the register (Correct answer)
- Interests that are void against all purchasers
- Interests that override the terms of a mortgage
Correct answer: Interests that bind a purchaser of registered land even though they do not appear on the register
Overriding interests (listed in Schedules 1 and 3 of the LRA 2002) are interests that bind a purchaser of registered land despite not being entered on the register. They include short leases (7 years or less), interests of persons in actual occupation (subject to certain conditions), and legal easements. They represent an exception to the 'mirror principle' of land registration.
Question 6: In the context of co-ownership, what is the difference between a joint tenancy and a tenancy in common?
- Joint tenants can sell their share independently; tenants in common cannot
- Joint tenants have the right of survivorship; tenants in common have distinct shares that pass under their will or intestacy (Correct answer)
- There is no practical difference between them
- Joint tenancy is only for married couples
Correct answer: Joint tenants have the right of survivorship; tenants in common have distinct shares that pass under their will or intestacy
The key distinction is the right of survivorship (jus accrescendi). Under a joint tenancy, when one co-owner dies, their interest automatically passes to the surviving joint tenant(s), regardless of any will. Under a tenancy in common, each co-owner has a distinct share that forms part of their estate on death and passes under their will or the intestacy rules. At law, co-owners must hold as joint tenants (s.36 LPA 1925), but in equity they may hold as tenants in common.
What is the key distinction between a freehold and a leasehold estate in land?