Property Law

Proprietary Rights

  • Rights to use and enjoy property, exclude others from using and alienate (dispose)
  • Licence is not ownership
  • Numerus clausus – depends on the specific type of property title
  • In personam – enforceable against a particular person
  • In rem – against the whole world

Real Property

Rights in land

Contract needs to be in writing

Personal Property

Chattels and lesser land rights like leases

Chattels

  • Choses in possession – tangible possessions
  • Choses in action – intangible property like IP

Doctrine of Fixtures

Any personal property affixed to the land becomes a part of the real property – ownership can transfer.
However, tenant’s fixtures are recoverable until the end of the lease, unless annexed without permission

Degree of annexation

Not just fixed by its own weight

Intention

Whether intention was that it would become annexed

Interests and Actions in Property

Personal Property Actions

  • Trespass – interference with actual possession
  • Conversion and detinue – depriving someone of their right to possession e.g. using as if their own

Claim for Recovery of Land

Need to show better title than defendant works against anyone except someone with better title (relativity of titles).  Show through:

  • Registered title
  • Tracing of ownership
  • Adverse possession

12 year limitation to recover land from when the adverse possession exists

Interests in Land

Doctrine of tenure

  • Dividing land based on space, by the Crown

Doctrine of estates

  • Dividing land based on time, with interests flowing to remaindermen
  • Freehold – fee simple or life estate
  • Leasehold

Native title

  • Dividing land based on indigenous claims

Sale of Real Property

  • Must be in writing (except where there has been part performance, which creates equitable transfer)
  • Must be registered to be effective
  • Agreement must be made in approved form
  • Before sale and settlement, there is transfer of equitable title

Gifts

Transfer of title for no consideration

  • Only enforceable if legally transferred, equity does not recognise

Indefeasibility

Register of titles is the definitive interest of land ownership

  • except where the person registering has acquired the property through fraudulent means and
  • In personam exception – where there are rights alleged by another person under contract
  • Other exceptions are easements, profit-a-pendre, short-term leases (< 3 years) and adverse possession

Caveat

Registration ‘injunction’ to prevent new interests being registered while the caveat-holder’s interest is resolved in court

Equitable Assignment

Equity may recognise assignment where it is legally effective (doesn’t meet required formalities) – where the assignor has done all they need to do to make it effective

Tracing

Tracing of property rights (common law or equity) to determine plaintiff’s interest where property has been mixed

Fiduciary Relationships

Fiduciary acts for Principal and in interests of Principal

Duties include:

  • Not to make profit
  • Not to act in own benefit or that of third parties
  • Not to put themselves in a position of conflict
  • E.g. solicitor/client, director/company, trustee/beneficiary

Remedies include

  • Account of profits
  • Constructive trust – profits are to be held on trust
  • Recission of any contract entered into
  • Equitable lien – security interest over property
  • Third parties may be held liable for assisting in breach of duty

Ownership Interests

Co-ownership

Joint Tenants

The parties own the property together and not individually (e.g. most married couples owning property. 

  • Must have unity of possession, interest, title and time
  • Right of survivorship – title remains with living joint tenants on death of another
  • Severance – joint tenant can sever his/her interest, creating a tenancy in common

Tenants in Common

The parties own separate interests in the whole property

  • No right of survivorship – if one party dies, their interest passes to their estate

Doctrine of Fixtures

Any personal property affixed to the land becomes a part of the real property – ownership can transfer.

However, tenant’s fixtures are recoverable until the end of the lease, unless annexed without permission.

Degree of annexation

Not just fixed by its own weight

Intention

Whether intention was that it would become annexed

Leases

  • Legal lease – through deed
  • Common law lease – through possession
  • Equitable lease – agreement for lease
  • Contractual and proprietary
  • Lease confers exclusive possession, licence does not
  • Lease covenants – terms of the lease
  • Absolute – prohibited generally
  • Qualified – prohibited except with consent of the landlord
  • Assignment – there may be continued liability, if the lessor covenants for himself and any successors in title. Any successors (lessee or sublessee) must indemnify the assignor
  • Privity of Estate – assignee can be sued (but sublessor cannot)

Remedies

  • Landlord – forfeiture of lease/ right to re-enter
  • Termination does not usually entitle the landlord to damages – unless expressly provided for in the lease.