RICS APC Property Law & UK Land Law — Questions and Answers
Question 1: What is the difference between freehold and leasehold ownership of property in England and Wales?
- Freehold ownership is absolute ownership of the land indefinitely; leasehold is ownership for a fixed term granted by the freeholder (Correct answer)
- Freehold applies only to commercial property; leasehold applies to residential property
- Freehold requires planning permission to sell; leasehold does not
- They are equivalent terms for full ownership used in different regions of the UK
Correct answer: Freehold ownership is absolute ownership of the land indefinitely; leasehold is ownership for a fixed term granted by the freeholder
Freehold (or 'fee simple absolute in possession') represents outright, indefinite ownership of land and any buildings on it. Leasehold is a time-limited right to occupy and use land, granted by the freeholder (landlord) under a lease. The leaseholder (tenant) has a proprietary interest but must comply with lease terms.
Question 2: What is an 'easement' in English land law?
- A right benefiting one piece of land (the dominant tenement) that burdens another piece of land (the servient tenement), such as a right of way (Correct answer)
- A charge registered against a property securing a mortgage
- A restriction preventing development of land
- A clause in a lease allowing the landlord to repossess the property
Correct answer: A right benefiting one piece of land (the dominant tenement) that burdens another piece of land (the servient tenement), such as a right of way
An easement is a legal right annexed to land that allows the owner of the dominant tenement to use the servient tenement in a specific way. Common examples include rights of way, rights of light, and rights to run services (drains, pipes) across neighbouring land. Easements can be express, implied, or acquired by prescription.
Question 3: Under the Land Registration Act 2002, what is the effect of first registration of a property at the Land Registry?
- The registered proprietor's title is guaranteed by the state — the Land Registry maintains an authoritative record of ownership (Correct answer)
- First registration creates a new lease over the property
- First registration removes all pre-existing easements and covenants
- First registration is only relevant to commercial property transactions
Correct answer: The registered proprietor's title is guaranteed by the state — the Land Registry maintains an authoritative record of ownership
The Land Registration Act 2002 introduced a system of state-guaranteed title. Once registered, the Land Registry's register is the definitive record of ownership, and the state indemnifies those who suffer loss due to mistakes in the register. This makes conveyancing more certain than the old unregistered system.
Question 4: What is a 'restrictive covenant' on land and how does it affect a surveyor advising on a purchase?
- A binding obligation preventing the landowner from carrying out certain activities on the land, which may restrict development or use — surveyors must advise purchasers of these burdens (Correct answer)
- A temporary planning condition attached to a development permission
- An agreement between neighbours that expires after 12 years
- A mortgage condition restricting re-mortgaging for 5 years
Correct answer: A binding obligation preventing the landowner from carrying out certain activities on the land, which may restrict development or use — surveyors must advise purchasers of these burdens
A restrictive covenant is an obligation not to do something on land that binds successors in title. Common examples include not building additional dwellings, not carrying out trade from the property, or maintaining a boundary structure. Surveyors must identify registered and unregistered covenants as they can significantly affect value and saleability.
Question 5: What is the significance of 'adverse possession' (squatter's rights) for a surveyor advising a property owner?
- A person who has occupied land without the owner's permission for the requisite period may be entitled to claim title to it — registered land requires 10 years of adverse possession before a claim can be made (Correct answer)
- Adverse possession is abolished for all land in England and Wales since 2002
- Adverse possession applies only to agricultural land in rural areas
- A squatter can claim ownership after only 2 years of occupation of any land
Correct answer: A person who has occupied land without the owner's permission for the requisite period may be entitled to claim title to it — registered land requires 10 years of adverse possession before a claim can be made
Under the Land Registration Act 2002, an adverse possessor of registered land can apply for registration after 10 years of adverse possession. The registered owner is notified and has the opportunity to object. For unregistered land, the old 12-year limitation period still applies. Surveyors advising on boundaries or disputed land should consider adverse possession claims.
Question 6: What does 'caveat emptor' mean in a property transaction and how has it been modified by statute?
- 'Let the buyer beware' — the buyer is responsible for discovering defects before purchase; modified by consumer protection legislation and seller disclosure requirements for certain defects (Correct answer)
- The seller is legally obliged to disclose all defects before exchange of contracts
- It is a term that applies only to commercial property sales
- It has been completely abolished by the Consumer Rights Act 2015
Correct answer: 'Let the buyer beware' — the buyer is responsible for discovering defects before purchase; modified by consumer protection legislation and seller disclosure requirements for certain defects
Caveat emptor historically placed the burden on buyers to investigate property condition thoroughly. While still applicable in principle, it has been modified by legislation including the Consumer Protection from Unfair Trading Regulations 2008 (requiring sellers to disclose material information that might affect a buyer's decision) and RICS Home Survey standards.
RICS APC Property Law & UK Land Law
What is the difference between freehold and leasehold ownership of property in England and Wales?