Classifications of Property - LA4008 Principles of Property Law

Classifications of Property

Aims of this lesson

  • Develop an understanding of the classification of English property law into real and personal property.
  • Develop an understanding of what is included as part of land.
  • Develop an understanding of the concept of tenure and estates.
  • Develop an understanding of the different rights and interests that can exist in land.

What is Property?

  • Possessions and the rights in respect of an object, i.e., the rights of an owner.
  • Distinctions:
    • Tangible and intangible property.
    • Fixed and moveable property.

Real vs. Personal Property

  • Real Property
    • The courts would order that an item be restored to the rightful owner.
    • Rights “in rem” – in the thing itself.
  • Personal Property (Chattels)
    • The courts would merely order compensation for loss.

What is “Real Property”?

  • Freehold property
  • Interests created out of it / connected to it
    • Corporeal hereditaments
    • Incorporeal hereditaments

What is Personal Property?

  • Everything which isn’t real property!
    • Only damages or compensation could be sought for its loss.
  • Chattels real = leaseholds
  • Chattels personal = everything else
    • Choses in possession
    • Choses in action

Significance of real/personal distinction today

  • No difference in relation to:
    • Intestacy rules
    • Recover property by rightful owner
  • Continued distinctions:
    • No absolute ownership of real property
    • Leaseholds still classed as personal property (personalty)

The real/personal distinction today

  • Still a valid distinction
  • BUT current land legislation applies to freeholds and leaseholds equally
    • Definition of “land” in Law of Property Act 1925 includes freehold land AND leasehold land
  • Key legal distinction now is between land and other property

What is Land?

  • Differences between Land and Other Property
    • Statutory definition of “Land”
    • Complexity of land
    • Proprietary status
    • Different time limits for recovery of possession
    • Different methods of transfer

Statutory Definition of Land

  • S.205(1)(ix) LPA 1925
    • land of any tenure
    • mines and minerals
    • buildings or parts of buildings
    • corporeal hereditaments
    • Lordship
    • other incorporeal hereditaments
    • Easements, rights, or privileges
  • S. 62 LPA 1925 conveyance includes
    • All the above
    • All “fixtures”
  • Common law developments
    • Scope of land
    • Distinction between Chattels (fittings) and fixtures

Complexity of Land

  • Many estates and interests can co-exist
  • Proof of ownership and evidence of third-party rights and obligations required
  • Rules to determine priority of rights

Proprietary status

  • Rights in land are proprietary
    • Binds 3rd parties
  • Other rights are personal
    • Bind parties to agreement

Formality Requirements on Transfer of Property

  • Very simple / informal
    • No writing required
    • E.g. Choses in Possession – delivery only
  • Some formality
    • Written document “signed under hand”
    • Transaction is evidenced by writing
    • Required for most Choses in Action
  • Most formal
    • Deed signed in the presence of witnesses
    • Usually required for land - s 52 Law of Property Act 1925

Tenure and Estates in Land

  • The System of Tenure
    • Monarch at the top, followed by Lords, Tenants, and Sub-tenants.
  • Modern Tenure
    • Crown, Freeholder, Leaseholder/Tenant, Sub-tenant
  • Estates in Land
    • Freehold
    • Leasehold

Interests in Land

  • Licence
  • Easement
  • Profit a prendre
  • Covenant
  • Mortgage
  • Rentcharge
  • Land contract

Summary and Further Reading

  • Distinction between real and personal property
  • Unique nature of land
  • Doctrine of tenure
  • Estates and interests in land
  • ESSENTIAL READING: Chapter 1 - Bevan, Land Law, OUP (available on Law Trove)
  • FURTHER READING: Chapter 1 - Clarke & Greer, Land Law Directions, OUP (available on Law Trove)