Case Law — FLK2 · Capítulo 1

Property Law and Practice

1. Extent of land ownership (Chapter 2 Freehold transactions)

Bernstein of Leigh (Baron) v Skyviews and General Ltd [1978] QB 479

A landowner's rights in the airspace above the land extend only to such height as is necessary for the ordinary use and enjoyment of the land and the structures on it; rights do not extend indefinitely up to the heavens. Aerial overflight at a reasonable height to take a photograph was therefore not a trespass.

Key point
Exam relevance: Defines the physical extent of what a buyer acquires, relevant when advising on rights over and under the surface in a freehold transaction.

2. Fixtures and chattels (Chapter 2 Freehold transactions)

Holland v Hodgson (1872) LR 7 CP 328

Whether an item is a fixture (part of the land) or a chattel is determined by a two-part test: the degree of annexation to the land and, more importantly, the purpose of annexation. Items affixed for the better enjoyment of the land tend to be fixtures.

Key point
Exam relevance: The foundational test for deciding which items pass automatically to the buyer on a sale of land, frequently tested via fixtures/fittings questions.
Elitestone Ltd v Morris [1997] 1 WLR 687

An object may be (a) a chattel, (b) a fixture or (c) part and parcel of the land itself. A structure (here a timber bungalow resting on concrete blocks by its own weight) can form part of the land where the object of bringing it onto the site was clearly to create a permanent structure, even without physical attachment to the soil.

Key point
Exam relevance: Shows that purpose of annexation can make even an unattached structure part of the realty, refining the degree/object-of-annexation analysis for items included in a sale.
Botham v TSB Bank plc (1996) 73 P&CR D1

Applying the degree-and-purpose test item by item, fitted carpets, curtains and white goods were held to be chattels (lacking the permanency expected of realty), whereas fitted kitchen units and bathroom fittings such as taps were fixtures.

Key point
Exam relevance: Provides the practical category-by-category guidance solicitors use when advising what stays with the property and what the seller may remove.

3. Formalities for contracts of sale (Chapter 4 Exchange of contracts)

Firstpost Homes Ltd v Johnson [1995] 1 WLR 1567

A contract for the sale or disposition of an interest in land under s.2 LP(MP)A 1989 must incorporate all agreed terms in one document (or in each part where contracts are exchanged) and must be signed by or on behalf of each party; a typed name is not a signature for these purposes.

Key point
Exam relevance: Sets the strict s.2 formality requirements without which a land contract is void, central to advising on validity of contracts and exchange.
Tootal Clothing Ltd v Guinea Properties Management Ltd (1992) 64 P&CR 452

Section 2 LP(MP)A 1989 applies only to executory land contracts; it does not prevent the parties from making a separate collateral agreement, and once the land contract has been completed (here by grant of the lease) a supplemental agreement is not caught by s.2 and remains enforceable.

Key point
Exam relevance: Clarifies that not every related agreement must satisfy s.2, important when terms are split between the land contract and a side agreement.

4. Investigation of title: overriding interests (Chapter 4 Investigation of title)

Williams & Glyn's Bank Ltd v Boland [1981] AC 487

The beneficial interest of a person in actual occupation of registered land can be an overriding interest taking priority over a later legal charge. 'Actual occupation' is an ordinary plain-English question of fact, not requiring the occupier to be the legal owner.

Key point
Exam relevance: Explains why a buyer or lender must investigate who is in occupation and obtain consents, a core conveyancing risk in title investigation.

5. Investigation of title: overreaching (Chapter 4 Investigation of title)

City of London Building Society v Flegg [1988] AC 54

Where capital money is paid to at least two trustees (or a trust corporation), the beneficial interests of occupiers are overreached and transferred to the proceeds of sale; an interest that has been overreached cannot also be an overriding interest by virtue of actual occupation.

Key point
Exam relevance: Establishes the two-trustee rule that lenders and buyers use to take free of beneficial interests, the practical counterpoint to Boland.

6. Investigation of title: actual occupation (Chapter 4 Investigation of title)

Abbey National Building Society v Cann [1991] 1 AC 56

Actual occupation requires a degree of permanence and continuity; the relevant date for an overriding interest is completion, not registration. Preparatory acts such as moving in furniture shortly before completion do not amount to actual occupation, and on an acquisition mortgage there is no scintilla temporis in which the borrower holds free of the charge.

Key point
Exam relevance: Fixes the timing of occupation and confirms an acquisition mortgagee's priority, key when advising lenders on title and occupiers.

7. Lease or licence (Chapter 6 Structure and content of a lease)

Street v Mountford [1985] AC 809

An agreement granting exclusive possession of premises for a term at a rent creates a tenancy regardless of the label the parties give it; the substance of the arrangement, not its description, determines whether it is a lease or a licence.

Key point
Exam relevance: The leading authority distinguishing leases from licences, determining whether occupiers enjoy leasehold rights and statutory protection.

8. Certainty of term (Chapter 6 Structure and content of a lease)

Lace v Chantler [1944] KB 368

A lease must have a certain or ascertainable maximum duration; a term granted 'for the duration of the war' was void for uncertainty because its maximum length could not be ascertained when the lease took effect.

Key point
Exam relevance: Establishes certainty of term as an essential requirement for a valid lease, a recurrent SQE1 lease-validity point.
Prudential Assurance Co Ltd v London Residuary Body [1992] 2 AC 386

A term that is not for a certain or ascertainable maximum duration cannot be a valid lease; an agreement to let land until needed for road-widening was void for uncertainty, although possession and payment of rent created an implied yearly periodic tenancy.

Key point
Exam relevance: Confirms and applies the certainty-of-term rule for fixed terms and shows how a void grant can give rise to an implied periodic tenancy.
Berrisford v Mexfield Housing Co-operative Ltd [2011] UKSC 52

An agreement granting occupation for an uncertain period to an individual, where the parties intended occupation for life, takes effect under s.149(6) LPA 1925 as a 90-year term determinable on death, so the certainty-of-term rule did not defeat the arrangement.

Key point
Exam relevance: Shows the modern statutory route by which an otherwise uncertain term to an individual can be saved as a 90-year lease, refining the certainty rule.

9. Termination of a lease (Chapter 9 Termination of a lease)

Hammersmith and Fulham London Borough Council v Monk [1992] 1 AC 478

A periodic tenancy held by joint tenants can be brought to an end by a notice to quit served by any one of the joint tenants, without the concurrence of the others, in the absence of any contrary contractual provision.

Key point
Exam relevance: Governs how joint periodic tenancies are validly determined, a practical point in advising on ending leases and possession.

10. Leasehold covenants: quiet enjoyment (Chapter 8 Leasehold covenants and remedies)

Southwark London Borough Council v Mills [2001] 1 AC 1

The covenant for quiet enjoyment is prospective and does not oblige the landlord to remedy defects (such as inadequate sound insulation) existing at the date of the grant; ordinary use of the premises by other tenants does not breach the covenant.

Key point
Exam relevance: Defines the scope and limits of the landlord's covenant for quiet enjoyment when tenants complain of disturbance.

11. Restrictive covenants affecting title (Chapter 4 Investigation of title)

Tulk v Moxhay (1848) 2 Ph 774, 41 ER 1143

The burden of a restrictive (negative) covenant can run with freehold land in equity and bind a successor who takes with notice, provided the covenant is negative, was intended to run with and benefit dominant land, and touches and concerns that land; the remedy is an injunction.

Key point
Exam relevance: Foundational authority for when restrictive covenants bind later owners, essential when investigating and advising on burdens on title.

12. Positive covenants affecting title (Chapter 4 Investigation of title)

Rhone v Stephens [1994] 2 AC 310

The burden of a positive covenant does not run with freehold land at common law or in equity; a successor in title cannot be compelled to perform a positive obligation (such as keeping a roof in repair) entered into by a predecessor.

Key point
Exam relevance: Confirms positive covenants do not bind successors, explaining why mechanisms such as chains of indemnity or estate rentcharges are needed in conveyancing.