14 January 2015 Level 3 LAND LAW Subject Code L3-4 THE CHARTERED INSTITUTE OF LEGAL EXECUTIVES UNIT 4 –LAND LAW* Time allowed: 1 hour and 30 minutes plus 15 minutes reading time Instructions to Candidates You have FIFTEEN minutes to read through this question paper before the start of the examination. It is strongly recommended that you use the reading time to read the question paper fully. However, you may make notes on the question paper or in your answer booklet during this time, if you wish. The question paper is divided into TWO sections. You must answer ALL the questions from Section A. There are three scenarios in Section B. You must answer the questions relating to ONE of the scenarios in Section B ONLY. Write in full sentences – a yes or no answer will earn no marks. Candidates must comply with the CILEx Examination Regulations. Full reasoning must be shown in answers. Statutory authorities, decided cases and examples should be used where appropriate. Information for Candidates The mark allocation for each question and part question is given and you are advised to take this into account in planning your work. Write in blue or black ink or ballpoint pen. Attention should be paid to clear, neat handwriting and tidy alterations. Complete all rough work in your answer booklet. Cross through any work you do not want marked. Do not turn over this page until instructed by the Invigilator. * This unit is a component of the CILEx LEVEL 3 PROFESSIONAL QUALIFICATIONS and LEVEL 3 LEGAL SERVICES KNOWLEDGE QUALIFICATIONS Page 1 of 12 BLANK PAGE Page 2 of 12 SECTION A (Answer ALL questions in Section A) 1. Explain in what circumstances a landowner could claim that a trespass has occurred in the airspace above his land. (4 marks) 2. Explain the meaning of the phrase ‘term of years absolute’. 3. Under the Land Registration Act 2002: (5 marks) (a) What types of lease must be registered with their own title number? (3 marks) (b) What are two other interests which can be registered with their own title number, apart from a term of years absolute and a fee simple absolute? (2 marks) (Total: 5 marks) 4. Explain what is meant by the ‘insurance principle’ in relation to the land register for registered land. (3 marks) 5. How does the class of ‘good leasehold title’ differ from that of ‘absolute leasehold title’? (2 marks) Explain: 6. (a) one method by which the joint tenancy of two co-owners can be severed in equity; (2 marks) and (b) the result of such severance. (3 marks) (Total: 5 marks) 7. Explain the importance of the decision in the case of Re Ellenborough Park (1956). (4 marks) 8. What is meant by a ‘profit a prendre’? (2 marks) 9. Outline one of the circumstances in which the Upper Tribunal (Lands Chamber) has statutory power to discharge a freehold covenant. (2 marks) 10. Explain the main features of an endowment mortgage. (4 marks) 11. Describe the conditions necessary for the benefit of a freehold covenant to pass at common law. (4 marks) (Total Marks for Section A: 40 marks) Turn over Page 3 of 12 SECTION B (There are three scenarios in Section B. Answer the questions relating to ONE of the scenarios ONLY) Scenario 1 Hassan recently bought a house with registered freehold title, 1 Oaktree Close, from Annette. It is one of three houses built on land which had once been part of the grounds of a very large mansion house, Oaktree Towers. This is still owned by Lord Kempston, who sold the land for building the three houses. When selling the land, Lord Kempston wanted to preserve the value of Oaktree Towers. Therefore in the sale document transferring ownership of 1 Oaktree Close to Annette, which she signed, the following clause was included: ‘For the benefit and protection of Oaktree Towers, I (Annette) agree to use 1 Oaktree Close as a private residence only.’ Annette told Hassan about the clause but said that it would not affect him as the agreement was only between herself and Lord Kempston. Hassan was reassured by this, as he had plans to start a part-time garden design business and to build a shed in the garden of 1 Oaktree Close to use in the business. When Hassan had first gone to see the house, he had seen some large paving stones set into the ground in the garden. He had thought that these would make a suitable flat base area for the shed. There were some other paving stones forming a path to the house. However, after moving into the house, Hassan was surprised to find that all the paving stones had been removed by Annette. She had said nothing to him about their removal before the sale. Hassan started advertising his garden design business but then Lord Kempston found out. He told Hassan that the agreement with Annette was also binding on all future owners of 1 Oaktree Close and that Hassan must stop his business activities immediately. Page 4 of 12 Scenario 1 Questions 1. Explain the nature of the agreement between Annette and Lord Kempston and the conditions which must be present for such an agreement to be binding on future owners of 1 Oaktree Close. (7 marks) 2. Explain whether or not those conditions are present in the scenario. (5 marks) 3. Explain in what ways such an agreement could be terminated. (6 marks) 4. Explain whether Annette was entitled to remove the paving stones. (7 marks) 5. Identify what document was needed to pass the legal ownership of 1 Oaktree Close from Annette to Hassan and explain the legal formalities required for it. (5 marks) (Total Marks for Scenario 1: 30 marks) Turn over Page 5 of 12 Scenario 2 Julia has agreed, subject to contract, to buy a freehold house at 17 The Avenue, Southbury. The owner, Florence, is 78 and has lived there for many years as it was her childhood home. When discussing her purchase with her lawyer, Julia told him that, on first visiting the property, Florence informed her that the owners of Number 17 had the legal right to use the driveway of the neighbouring property, 19 The Avenue, for parking a car. This legal right was apparently granted by deed five years ago by Paul, the owner of Number 19. Some weeks into the transaction Julia’s lawyer contacts her to say that: Florence’s conveyancer has sent him evidence of Florence’s title proving ownership and the physical extent of the property; the house has registered title. Julia’s lawyer says this is a good thing because as a result the transaction is likely to be less complicated. He will ensure that she obtains the best possible title; he will also check whether Florence is correct in what she said about the legal right to use the driveway; it seems that Florence’s younger brother Harold may have come to live in the property with Florence some years ago. Julia’s lawyer explains that, as a result, investigation is needed, before going ahead to a binding purchase, to find out what, if any, interest in the house Harold may have. There is no reference to him on the evidence of title Julia’s lawyer has received. Julia will be buying the house with the assistance of a loan from the Kempston Building Society, to be secured by a legal charge over Number 17. This is her first property purchase and she needs advice on her position. (A friend had recently been unable to keep up payments on a mortgage and this had been followed by serious consequences.) Page 6 of 12 Scenario 2 Questions 1. Explain why Julia’s lawyer said that her purchase transaction was likely to be less complicated. (5 marks) 2. Explain: (a) what class of registered title Julia should expect to buy and why; (3 marks) (b) what evidence of title Julia’s lawyer has received for Florence and how he could check from this whether Florence is correct about a legal right to use the driveway of Number 19. (3 marks) (Total: 6 marks) 3. Explain why it is necessary to check whether Florence’s brother Harold has any interest in the house before proceeding with the transaction. (7 marks) 4. Suppose that, after investigation, it is found that Harold only visits Florence from time to time, although he does give her some gifts of money to help with her living expenses and also does work in her garden. In the light of this information should Julia’s lawyer advise her that it is safe to proceed with the transaction? (4 marks) 5. Explain: (a) how, following Julia’s purchase, the Kempston Building Society would ensure that any future buyers of Julia’s house are aware of its loan to her; (2 marks) (b) the advice which should be given to Julia about the circumstances in which the Kempston Building Society would have the legal right to sell the property after her purchase. (6 marks) (Total: 8 marks) (Total Marks for Scenario 2: 30 marks) Turn over Page 7 of 12 Scenario 3 George and his wife Kate bought a freehold house together. The house ‘Greensleeves’ was registered in their names as ‘joint tenants in law and equity’. They bought the house with the assistance of a loan from the Kempston Bank plc secured by a legal charge on the house. Kate had an adult son, Marco, from a previous relationship. Marco lived abroad. George had a daughter, Alisa, aged 11, who lived with his ex-wife but often stayed with George and Kate. Soon after buying the house, Kate died. Her valid will left ‘all my property to my son Marco including my share in Greensleeves’. George remained in the house. Then he met Laura, an old friend. Laura said she was unable to pay the rent on her flat and would soon have to leave. She asked George if, as a temporary measure, she could stay with him. She offered to help with the household chores and cook some meals, so he agreed. She moved into Greensleeves on that basis. She did some cleaning in the house and, when Alisa came to stay, Laura helped to look after her. George soon saw that Laura was making no effort to find other accommodation. He meanwhile had become very friendly with a work colleague, Fiona. They planned to live together at Greensleeves, and George promised Fiona that she could regard the house as their joint home. George therefore told Laura to leave immediately and she did so. As a result of George’s promise, Fiona gave up the tenancy of her small flat (which was convenient and near to her work). She moved in with George, sharing household expenses and paying towards the mortgage instalments. When Laura left she was very angry, saying that she was sure she had a share in Greensleeves. Page 8 of 12 Scenario 3 Questions 1. Marco has just returned from abroad and has learned for the first time of the terms of Kate’s will. Explain whether Marco can claim a share in ‘Greensleeves’. (6 marks) 2. Fiona has now quarrelled with George and has reluctantly left the house to stay with relatives. She was told by a friend that she has an interest in ‘Greensleeves’. Explain whether this is correct. (6 marks) 3. Laura took legal advice to see whether she could claim an interest in Greensleeves. Explain what advice she should have been given. (5 marks) 4. Whatever the advice given to them, Marco, Fiona and Laura have now all claimed a share in ‘Greensleeves’ and demanded that George sells the house. George refuses to do so. He wants to remain there as his home, especially as Alisa, whose new school is nearby, will soon come to live with him there. (a) What statutory power does the court have to hear an application to compel George to sell and what type of applicant is able to apply? (4 marks) (b) What statutory factors would the court consider when deciding on the application? (5 marks) (c) Explain what you would expect the outcome of the application to be. (4 marks) (Total: 13 marks) (Total Marks for Scenario 3: 30 marks) End of Examination Paper © 2015 The Chartered Institute of Legal Executives Page 9 of 12 BLANK PAGE Page 10 of 12 BLANK PAGE Page 11 of 12 BLANK PAGE Page 12 of 12
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