FE-1 Law of Property flashcards

31 cards. Read the term and the definition here. The deck at the top of this page is optional.

Exchange of contracts

The point at which a binding contract for the sale of land is formed; the buyer acquires an equitable interest and the seller holds the legal estate on trust.

Section 2 formalities

A contract for the disposition of an interest in land must be in writing, contain all terms in one document, and be signed by or on behalf of each party, otherwise void.

Deposit as stakeholder

Money paid on exchange and held by the seller's solicitor for both parties; on the buyer's default the seller may forfeit it, otherwise it is returned or applied to the price.

Completion

The final step in a conveyancing transaction where the balance of the price is paid and the transfer deed and title documents are delivered to the buyer.

Caveat emptor

The principle that the buyer takes the property as found; the seller must disclose latent title defects but need not disclose physical defects in the property.

Time of the essence

A stipulation that a party must perform by a stated date, failing which the contract may be terminated; otherwise a notice making time of the essence is required.

Overreaching

The process by which a purchaser paying capital money to two trustees or a trust corporation takes free of beneficial interests behind a trust.

Joint tenancy

Co-ownership with no distinct shares and a right of survivorship, so that on the death of one joint tenant the interest passes to the survivors.

Tenancy in common

Co-ownership in undivided shares with no right of survivorship; each co-owner may dispose of their share by will or during life.

Severance of joint tenancy

Conversion of a joint tenancy into a tenancy in common by written notice, alienation, mutual agreement, or a course of dealing between the co-owners.

Legal estates

Only two legal estates exist: the fee simple absolute in possession and the term of years absolute; all other estates take effect in equity.

Easement essentials

A right must have a dominant and servient tenement, diversity of ownership or occupation, benefit the dominant land, and be capable of forming the subject of a grant.

Adverse possession

Occupation of land without the owner's permission; for registered land a squatter may apply for registration after ten years, subject to the owner's right to object.

Restrictive covenant burden

The burden of a restrictive covenant can run in equity against successors with notice, but not at law; the benefit must be annexed, assigned, or under a scheme.

Registered disposition

A transfer, lease over seven years, charge, or express easement that must be completed by registration to take legal effect in registered land.

Exclusive possession

The right to exclude all others, including the landlord; it distinguishes a lease from a licence, which merely confers personal permission to occupy.

Certainty of term

A lease must have a fixed maximum duration ascertainable at the start; a periodic tenancy satisfies this because it renews automatically until terminated.

Section 21 notice

A landlord's notice seeking possession of an assured shorthold tenancy after the fixed term, requiring compliance with deposit protection and prescribed information requirements.

Section 8 ground

A statutory ground on which a landlord may seek possession of an assured tenancy, such as rent arrears, breach of covenant, or redevelopment.

Deposit protection

An assured shorthold tenancy deposit must be protected in an approved scheme within fourteen days and prescribed information given, or section 21 possession is barred.

Forfeiture

A landlord's right to terminate a lease for breach of covenant, usually requiring a section 146 notice except for non-payment of rent, subject to relief.

Qualified covenant

A lease term prohibiting assignment or subletting without the landlord's consent, which may not be unreasonably withheld.

Repairing covenant

An obligation, implied by statute in dwellings, on the landlord to keep the structure, exterior, and service installations in repair.

Testamentary capacity

The testator must understand the nature of making a will, the extent of the property, and the claims of those reasonably expected to benefit.

Attestation of will

A will must be signed by the testator and witnessed by two witnesses present at the same time, who attest the signature; beneficiaries should not witness.

Revocation by marriage

Marriage or civil partnership revokes a prior will unless it was made in contemplation of that marriage and expressly says so.

Doctrine of lapse

A gift fails if the beneficiary dies before the testator, unless a substitutionary gift applies or the anti-lapse rule saves a gift to issue.

Ademption

A specific gift fails because the item no longer belongs to the testator at death, for example where it has been sold or given away.

Intestacy rules

Statutory distribution where there is no valid will; a spouse or civil partner takes chattels and a statutory legacy, with issue taking the residue on statutory trusts.

Grant of probate

The court's confirmation of the executors' authority to administer the estate; title to estate property vests in the personal representatives on death.

Family provision claim

An application by a dependant or certain relatives for reasonable financial provision from the estate, assessed by reference to needs and the beneficiaries' circumstances.