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- 2 – Tenures, Estates and Possession
2 – Tenures, Estates and Possession
- By Student at Law
- Published 10/05/2007
- Sydney Uni 2006
- Unrated
• 2 basic doctrines of property law
o Doctrine of tenures
o Doctrine of estates
Doctrine of Tenures
• All land is owned by the crown – no-one owns their land, it is held of the crown
• The crown grants their subjects the right to hold (but not own the land)
o Doctrine of tenures explains the terms upon which the land is held
• Possible exception of native title claims
• Relevant aspect: Law of escheats
o In Australia, that land will only revert to the crown if you die and do not leave your property to anyone in your will
Doctrine of estates
• Sets up three sorts of interest in land
o Fee simple (FS)
- Most extensive, most absolute
o Life estate (LE)
o Fee tail (FT)
- Now obsolete
Fee simple
• Freehold interest in land
• An interest in land which lasts as long as the owner, and is survived by their heirs
o Heirs wider concept than just lineal descendants
o ‘Simple’ meaning unrestricted
• Most common form of estate since the Tenures Abolition Act 1660
• Sometimes reference to someone being ‘seised’ of the land in fee simple
o Means they have the right to remain in peaceful possession of the land
Essential features:
• Owner (tenant in fee simple) has the power to dispose of the land during their life or by their will
• Owner can transfer the property to collateral heirs
To create an estate in fee simple - conveyances
• Section 47 Conveyancing Act
o Only relevant to conveyance inter vivos (between living people)
• Presumption that fee simple passes as long as conveyor had an interest in fee simple to pass
o Ie it is enough to conveyance to A or A in fee simple
o Wills Act NSW
- Presumed that fee simple passes in will
• Onus of proving otherwise lies on person who wishes to prove so
• To leave life estate only, must be explicit
• Person with estate in fee simple may convey some of the estate away
Possession is respected
• The law recognises the person who has possession of the land
• Protects them from anyone but the true owner
• If wrongful possessor hold onto possession for 12 years they will acquire the owner’s rights
Reversion
• If A, is seised of land in fee simple, and grants a life estate to B
• A’s interest is called a reversion
o May be sold or passed onto heirs
Remainder
• If A sells reversion to X
o X’s estate cannot be classed as a reversion, as X has never been sesed (in possession) of land, and so subinfeudation is not possible
o This is because reversion implies tenure
• X’s interest is called a remainder interest
o Upon B’s death, the land remains away from A instead of reverting to A
Contingent Remainder
• Where an interest in land will vest itself only upon the occurrence of some contingency
o Eg person turning 21
• If person dies at 20
o If life tenant alive, back to life tenant
o If live tenant not alive, back to grantor
o If grantor not alive, to estate of grantor (or government if no estate)
Determinable fee simple
•
Fee simple that will automatically come to an end on the occurrence of a specified event that may or may not occur
o Eg “For as long as the land continues to be used for school purposes”
o If the event occurs, the land reverts to the grantor
o If the event becomes impossible, the possibility of reverter to the grantor is destroyed, and the fee simple becomes absolute
Defeasible Fee Simple
• Fee simple granted in absolute terms, but qualified by super added condition of defeasance
• Similar to above, but grantor has the choice to decide whether or not to reclaim the right of entry – not automatic
Life Estate
• An interest for as long as you live, but which cannot be passed on
o Eg husband might leave wife estate that will pass when she dies
• Cannot sell the property
• Can have life estate for duration of someone else’s life
• 2 types
o ordinary life estate
o estate ‘pur autre vie’
Ordinary life estate
o Estate for the life of the grantee (most common)
o Formerly used as a lease before leases received full protection of the law
o Now used mainly in Australia in retirement villages and in wills
o To leave a life estate
o The presumption is now that it is a fee simple unless otherwise indicated
o Between living people (inter vivos)
- Must be established with words –eg ‘to A for life)
o In a will
- Must be expressly indicated
• Formerly, burden of proof to prove fee simple, now, burden of proof to prove life estate
Estate ‘pur autre vie’
• Eg To B for the life of A
o B is the tenant of life estate ‘pur autre vie’
o A is the cestui que vie
• Ie cestui que vie:
• Person whose life governs the length of the estate
• No beneficial interest in the land, only a unit of measure
• May arise in 2 ways
o Created by express grant
o Created where the holder of an existing life estate conveys to another person
• If B dies before A
o B’s Heirs could occupy until A’s death
- S5 Wills and Probate Administration Act 1898 (NSW) allows testator to dispose of all his personal estate
Legal and equitable life estates:
• Legal life estate
o Life tenant has automatic right to possession (usual case)
• Equitable life estate
o No automatic right to possession, although equity courts will usually afford that right
o Legal ownership of property in someone else
- eg where land conveyed to trustees upon trust for A for life, with remainder going to B in fee simple
o Where trustees have no active duties to manage the property
- Equitable life tenant entitled to possession
• Turner v Noyes
• Brown v How
o Where trusties have duties to perform
- Equitable life tenant not entitled to possession as of right, unless the instrument creating the life interest confers that right expressly or by implication
• Powrys v Blagrave
- Equitable Life tenant may apply to court for order granting possession and right to manage the property
• Court decides whether allowing tenant into possession is the best way of dealing with the property in the interests of all
o Re Earl of Stamford and Warrington
Remainder men
• People to whom the property passes when the life tenant dies
o Doctrine of tenures
o Doctrine of estates
Doctrine of Tenures
• All land is owned by the crown – no-one owns their land, it is held of the crown
• The crown grants their subjects the right to hold (but not own the land)
o Doctrine of tenures explains the terms upon which the land is held
• Possible exception of native title claims
• Relevant aspect: Law of escheats
o In Australia, that land will only revert to the crown if you die and do not leave your property to anyone in your will
Doctrine of estates
• Sets up three sorts of interest in land
o Fee simple (FS)
- Most extensive, most absolute
o Life estate (LE)
o Fee tail (FT)
- Now obsolete
Fee simple
• Freehold interest in land
• An interest in land which lasts as long as the owner, and is survived by their heirs
o Heirs wider concept than just lineal descendants
o ‘Simple’ meaning unrestricted
• Most common form of estate since the Tenures Abolition Act 1660
• Sometimes reference to someone being ‘seised’ of the land in fee simple
o Means they have the right to remain in peaceful possession of the land
Essential features:
• Owner (tenant in fee simple) has the power to dispose of the land during their life or by their will
• Owner can transfer the property to collateral heirs
To create an estate in fee simple - conveyances
• Section 47 Conveyancing Act
o Only relevant to conveyance inter vivos (between living people)
• Presumption that fee simple passes as long as conveyor had an interest in fee simple to pass
o Ie it is enough to conveyance to A or A in fee simple
o Wills Act NSW
- Presumed that fee simple passes in will
• Onus of proving otherwise lies on person who wishes to prove so
• To leave life estate only, must be explicit
• Person with estate in fee simple may convey some of the estate away
Possession is respected
• The law recognises the person who has possession of the land
• Protects them from anyone but the true owner
• If wrongful possessor hold onto possession for 12 years they will acquire the owner’s rights
Reversion
• If A, is seised of land in fee simple, and grants a life estate to B
• A’s interest is called a reversion
o May be sold or passed onto heirs
Remainder
• If A sells reversion to X
o X’s estate cannot be classed as a reversion, as X has never been sesed (in possession) of land, and so subinfeudation is not possible
o This is because reversion implies tenure
• X’s interest is called a remainder interest
o Upon B’s death, the land remains away from A instead of reverting to A
Contingent Remainder
• Where an interest in land will vest itself only upon the occurrence of some contingency
o Eg person turning 21
• If person dies at 20
o If life tenant alive, back to life tenant
o If live tenant not alive, back to grantor
o If grantor not alive, to estate of grantor (or government if no estate)
Determinable fee simple
•
o Eg “For as long as the land continues to be used for school purposes”
o If the event occurs, the land reverts to the grantor
o If the event becomes impossible, the possibility of reverter to the grantor is destroyed, and the fee simple becomes absolute
Defeasible Fee Simple
• Fee simple granted in absolute terms, but qualified by super added condition of defeasance
• Similar to above, but grantor has the choice to decide whether or not to reclaim the right of entry – not automatic
Life Estate
• An interest for as long as you live, but which cannot be passed on
o Eg husband might leave wife estate that will pass when she dies
• Cannot sell the property
• Can have life estate for duration of someone else’s life
• 2 types
o ordinary life estate
o estate ‘pur autre vie’
Ordinary life estate
o Estate for the life of the grantee (most common)
o Formerly used as a lease before leases received full protection of the law
o Now used mainly in Australia in retirement villages and in wills
o To leave a life estate
o The presumption is now that it is a fee simple unless otherwise indicated
o Between living people (inter vivos)
- Must be established with words –eg ‘to A for life)
o In a will
- Must be expressly indicated
• Formerly, burden of proof to prove fee simple, now, burden of proof to prove life estate
Estate ‘pur autre vie’
• Eg To B for the life of A
o B is the tenant of life estate ‘pur autre vie’
o A is the cestui que vie
• Ie cestui que vie:
• Person whose life governs the length of the estate
• No beneficial interest in the land, only a unit of measure
• May arise in 2 ways
o Created by express grant
o Created where the holder of an existing life estate conveys to another person
• If B dies before A
o B’s Heirs could occupy until A’s death
- S5 Wills and Probate Administration Act 1898 (NSW) allows testator to dispose of all his personal estate
Legal and equitable life estates:
• Legal life estate
o Life tenant has automatic right to possession (usual case)
• Equitable life estate
o No automatic right to possession, although equity courts will usually afford that right
o Legal ownership of property in someone else
- eg where land conveyed to trustees upon trust for A for life, with remainder going to B in fee simple
o Where trustees have no active duties to manage the property
- Equitable life tenant entitled to possession
• Turner v Noyes
• Brown v How
o Where trusties have duties to perform
- Equitable life tenant not entitled to possession as of right, unless the instrument creating the life interest confers that right expressly or by implication
• Powrys v Blagrave
- Equitable Life tenant may apply to court for order granting possession and right to manage the property
• Court decides whether allowing tenant into possession is the best way of dealing with the property in the interests of all
o Re Earl of Stamford and Warrington
Remainder men
• People to whom the property passes when the life tenant dies
Continued on page 2
