LW392 - Property Law
LW392 - Property Law
What is property?
Control
Having exclusive control is indicative of owning one’s property
It is about the rights and responsibilities of an individual toward the property
You have a set of free rights to do what you will with the property (sell it, throw
it away, manage it, give it away), but you also have responsibilities, in regard
towards the law, other people (starting a drug trade on the phone, not causing
harm to others) etc.
Property also has a value of transmissibility and succession when the original
owner is no longer there to own it
Incidents of property
Use, possession, management, income, capital, security, transmissibility,
absence of term, duty to prevent harm
Property rights are not personal rights
Property is a right in rem – against other people in general
As opposed to in personam – against one particular person, like contract
Categorization of property
Real (land) – houses, books, laptops, anything physical, any “movable” property
Personal (chattels)
Law of finding
Relativity of title – hierarchy of owners
True owner will always have the strongest claim to an object
In the absence of a true owner, the default rule is first possession
Armory v Delamire (1722) - Chimney sweep, found broach and sold it to the
jeweller. Neither the owners of the home or the jeweller has the biggest right to
it. The chimney sweep boy has the strongest tie/first possession of the object
Hanna v Peel (1945) – finder maintains possession against all, but the true
owner
Parker v British Airways [1982] 1 All ER 834 – man finds a bracelet on a semi
owned area of an airport and gives it to British Airport, and o let him know if
anyone finds it or not. After a time of unclaimed possession, Parker finds that
British Airways sold it. Parker argues he found it first and has possession right
over it. British Airways argue that it was on their land and hence the possession
is theirs. The court ruled in favour of Parker, saying its not a controlled
environment, and anyone could have easily put in the effort to find it. There was
also no lost and found policy.
In circumstances where the owner of the land exercises possession of land and
control over it extensively, they may trump the right of possession of the
original owner
Elwes v Brigg (1886) 33 Ch D 562 – object found below the soil, the owner of the
land will have the stronger claim to it
Treasure trove
Originally a royal prerogative, as long as the items buried had the intent to be
recovered
Webb v Ireland [1988] IR 353
Father and son find Christian metalwork in Tipperary using metal detectors.
They brought them forward to national museums. They were told they would be
honourably treated, in part by awarding them 10k euro each. The finders
declined and sued for possession of the artifacts.
The court ruled against, stating its treasure trove and it belongs to the nation.
HC held in favour of Webb, abolishing the royal treasure trove test.
The SC reversed and held in favour of the state, arguing the treasure trove
doctrine is within the sovereign rights of the people and belongs to the state as
national heritage and is” not the exclusive property of the finders”. Finders were
awarded 25k euro each.
National Monuments Act 1994
S2 – ownership of archaeological objects with no known owner vests in the State
S5 – offence to not give in objects of archaeological significance
S7 offence to posses detection device on site without ministerial licence
S10 – monetary compensation is to be awarded
Doctrine of Estates – Freehold Estates
Invalid Conditions
Restrictions on alienability – if the condition restricts from division of property of
owner, it is invalid
Restrictions that are invalid on grounds of uncertainty
Restrictions on marriage
Ethnic of sectarian restrictions
Religious restrictions
Equitable Life Estate
A life estate is an interest in land for as long as a person lives
The estate will REVERT to the remainderman upon death in fee simple
Section 11 LCLRA 2009 makes Life Estates EQUITABLE ONLY! Legal Life Estates
can no longer be created
Where a life estate is created out of freehold land a trust will come into
operation. The person granted the life estate is the beneficiary of the trust.
Subject to the Doctrine of Waste - conversion of a life estate into an equitable
interest only by the 2009 Act does not affect a life owner’s liability for waste.
Duration and alienability
Duration of a life estate only lasts for the chosen persons lifetime
Cestui que vie – the person whose life is chosen
Pur autre vie – the life of another (determines on death of someone other than
the holder)
The holder of a life estate CAN alienate their interest BUT the interest will
terminate upon their death
The buyer will have to forfeit the land upon their death
It will revert to the remainderman
What is an estate?
The law measures ownership of land in terms of estates –Section 10(1) LCLRA 2009
The term estate is used to describe the portion of time during which an individual is
entitled to exercise rights of ownership over land
Lyall defines an Estate as a ‘period of time for which a person has rights and duties
over the land’
The nature of the estate will dictate
the duration
rights and responsibilities over the land
Leasehold Estates
A leasehold interest is a lesser estate than a freehold interest
Leasehold estates are for a certain duration - a tenant holds property for a term
of years and subject to conditions and rent – based on contract
S.11(2) LCLRA 2009 describes a leasehold estate as arising when a tenancy is
created for any period of time or any recurring period
Leasehold estates are carved out of the freehold estate (one stick in the bundle
of rights)
The Lessor is the freeholder who lets his property for a certain term e.g.
Yearly/monthly. Subleases are carved out of leases and the lessor in that case is
the lessee in the Head Lease
Bundle of Rights
Fee simple (Freehold) 66% -
Leasehold 20%
Sublease 14%
Types of leaseholds
Leases for a term certain/fixed term lease
These are relatively common and straightforward
Duration of the lease is determined from the beginning
Once the term expires, the lease terminates automatically
The lease can include a clause to the effect that a specific period of notice is
given
A renewal clause will not change the type of lease
Periodic tenancy
Lease lasts for a definitive period of time that renews automatically
These tenancies can be express or implied
Duration of the tenancy will be the same as the periods of rental payment.
The periodic tenancy will come to an end when either the tenant or landlord
gives notice to that effect.
Notice periods required are set out in the Residential Tenancies Act 2004
Reversionary leases
Almost all leases are followed by a reversion in favour of the landlord
This means that the landlord is entitled to reversion after the period specified in
the lease has come to an end
The landlord can also grant a separate lease to begin after one lease comes to
an end
A lease that is set to begin within the landlord’s reversion is called a
reversionary lease
S. 11(3)(a) LCLRA provides for reversionary leases
Leases forever
LCLRA 2009:
Fee grant grants can no longer be created (s. 12(1))
Any attempt to create a FFG or lease for lives or years that is perpetually
renewable will instead create a FS (s. 12(2))
Tenancy at will; no longer exist in law
The law used to recognise this type of estate, which were tenancies that lasted
for an indefinite period of time and were not necessarily subject to a payment.
They could be terminated at the will of either party
In effect they were more like licenses, particularly when based on a family
relationship
N.B: They no longer exist in law as they are not included in the
definition of a leasehold estate under s. 11(3) LCLRA
Tenancy at sufferance; no longer exist in law
These types of leases arose where a tenant held over the tenancy when the
time period expressed in the tenancy agreement had come to an end
The tenant was not entitled to possession of the property, but the relationship
between the landlord and tenant was a leasehold one
N.B: They no longer exist in law as they are not included in the
definition of a leasehold estate under section 11(3) LCLRA
Adverse Possession
The owner of the land can be dispossessed of their land if they don’t use it. If
someone else uses that land, and may take possession of that land instead
The default rule of finding is first possession, finder maintains the strongest
possession against anyone, accept the original owner. If the true owners interest in
the property is gone, the finder may have now the strongest claim to the property
In other words, the doctrine of Adverse Possession:
Allows trespassers to gain ownership over a certain area given they meet the
required criteria and if
The original owner fails to reclaim their land within an appropriate time period
Limitation Periods
The doctrine of adverse possession is governed by the Statute of Limitaions
1957
Limitation periods are time limits in which you can bring a claim. They are
absolute - strict rules against inordinate and inexcusable delay!
Limitation Periods can bar your cause of action.
In land law they can also extinguish your interest in a property (subject to a
squatter taking possession and the paper title owner being dispossessed)
In essence, it bars your action to recover land which has been possessed by a
third party
Adverse Possession Law provides against the futile use of land/ The Law wants
Landowners to invest in their Property/Onus on Landowners to exercise their
rights over their Property
Squatters Rights
Adverse Possession is a doctrine allowing a “squatter” or “trespasser” to claim
rights in land IF…
Certain rules are satisfied by the squatter
The paper title of the owner fails to evict the squatter or trespasser within the
statutory time period
Possession Is adverse
Section 18(1) of the 1957 Act: time must run in favour of someone – there
needs to be a trespasser
Trespassing is not a problem with Adverse Possession - Possession must be
adverse to the True Owners Title
Lyall: “must not be by consent”
If you are there with permission it is NOT adverse. You must be a Trespasser!
– Allen v Mathews [2007]
Possession must be inconsistent with the title of the true owner Murphy v
Murphy [1980]
If the squatter acknowledges the landowner, possession is not adverse
Acquiescence is not permission!
Factual Possession
Lyall: “An Appropriate Degree of Physical Control” over the particular
piece of land
An External Act over the Land
Dunne v Iarnrod Eireann: “sufficient degree of exclusive physical control
must depend on the circumstances, in particular the nature of the land and
the manner in which land of that nature is commonly used or enjoyed”
Character & Value of the Property – How can the Property be used? - The
Lord Advocate v Lord Lorat [1880]
Proving Factual Possession
Grazing cattle – Convey v Regan
Farming not sufficient in Dunne v Iamrod Eireann
Fencing – Seamus Durack Manufacturing v Considine / Murphy v Murphy
Walls, locks, guard dogs, signage, drainage
Dumping and temporary storage. Storage will not be sufficient to prove factual
possession (inconsistent with intention to possess exclusively) – Doyle v O’Neill
Dealing with the land “as an occupying owner might have been expected to” –
Powel v McFarlane
Animus Possidendi
In addition to factual possession, squatter must also demonstrate and intention
to possess the property to the exclusion of all others
The Court will look at the State of mind of the Trespasser- Feehan v Leamy
[2000]
Murphy v Murphy as per Kenny J: “involves an intention to exclude the true
owner, and all other persons, from enjoyment of the estate or interest which is
being acquired”
What is the intention behind the act of possession?- Fruin v Fruin (building a
fence to keep people in rather than keep people out)
The squatter does not need to know that they are trespassing so long as they
are acting with the intention of dispossessing the true owner
Lyall: “A person who occupies land mistakenly believing it to be their own can
extinguish the title of the owner” – McMahon v Kerry Co. Counsel
Talk about succession law – testamentary disposition and bury instructions and how
they are unenforceable. They are only as enforceable as the relatives make it be
Burial disputes and possession of the dead body for purposes of burial or keeping
ashes
What you really have to answer – actually answer the posed question, explaining what
limitations or “ifs and buts” are there
Cases
R. v Kelly (Anthony Noel)
Property Rights: human body and separated
human tissue
Co-ownership
Co-ownership arises where two or more persons are entitled to the simultaneous
or concurrent enjoyment of land
Rules of co-ownership dictate the rights and obligations of co-owners (right of
alienation, right to possession, apply for court courts etc.)
Co-ownership exists in respect of freehold and leasehold land
The use of the word “tenancy” may be misleading, as it is unrelated to the
relationship of landlord and tenant but merely refers to the holding of an estate
or interest in land
In a joint tenancy or tenancy in common the land is held by the co-owners in
such a way that, when they deal with other parties, they act as a single unit or
party. However, as between themselves the positions of joint tenants and
tenants in common are different
Depending on which form of co-ownership applies, the individual co-owners are
referred to as “joint tenants” or “tenants-in-common”
It is sometimes said that the common law prefers joint tenancy, while equity
prefers the tenancy in common (which students should simply bear in mind for
now)
Types of Co-ownership
Joint Tenancy
Each of the co-owners is entitled to 100% of the property – their ownership is
not split in terms of shares
Key principle of a joint tenancy when compared to a tenancy in common may be
seen in its essential elements:
the presence of the four unities
the right of survivorship (or jus accrescendi)
Tenants in Common
Tenants in common have distinct (but undivided) shares - Shares of ownership
generally reflect the contributions towards the purchase of the property
There is no right of survivorship and the share of a tenant in common will be
part of his estate on his death.
The only unity required for a tenancy in common is that of possession
Exception – Commorientes
Commorientes is where all of the joint tenants die together, and it is not
possible to ascertain who the last survivor of the joint tenancy was – i.e. you
cannot identify which joint tenant’s estate is entitled to sole ownership
The common law held that in such circumstances there could be no survivorship
and the heirs of the deceased joint tenants inherited the property as joint
tenants (Section 5 of the Succession Act 1965)
However, the section has now been amended by Section 68 of the Civil Law
(Miscellaneous Provisions) Act 2008 with the additional provisions:
(2) Where immediately prior to the death of two or more persons they held any
property as joint tenants and they died, or under subsection (1) were deemed to
have died, simultaneously, they shall be deemed to have held the
property immediately prior to their deaths as tenants in common in
equal shares
(3) Property deemed under subsection (2) to have been held by persons as
tenants in common shall form part of their respective estates
Essentially, it severs or converts the tenancy from a joint tenancy to a
tenancy in common
Severance in Law
Acquisition of an additional interest
One joint tenant alienates their interest to a third party
An act of a third party exercising statutory powers (e.g. a receiver)
All of these result in the destruction of the unity of title, time or the unity of
interest
Commorientes (simultaneous death of all JTs) will also sever joint tenancy in
law
Unlawful killing of JT does not sever tenancy – constructive trust!
Additional Interest
Where one joint tenant acquires an additional interest in the property as against
another joint tenant, the joint tenancy will sever to a tenancy in common
Flynn v. Flynn [1930] IR 337
*NB* you need 4 unities for joint tenancy - Destruction in the unity of
interest = tenancy in common
Alienation of Interest to third party
Where one joint tenant alienates their interest to a third party, the joint tenancy
will sever to a tenancy in common as between the new tenant in common and
the remaining joint tenants
Destruction in unity of time and title
Joint tenancy between the remaining joint tenants still exists – no destruction of
unities in their respect – i.e survivorship
LCLRA 2009
Pre LCLRA 2009, any joint tenant could unilaterally sever the joint tenancy
without the consent of the other joint tenants
S 30 LCLRA 2009 – any conveyance, or contract for a conveyance, of land held
in a joint tenancy, or the acquisition of another interest in such land, by a joint
tenant without the consent of the other joint tenants is void both at law
and in equity
Joint tenant (who wishes to alienate interest) can apply for a court order to have
consent dispensed with under s 31(2)(e) where it is unreasonably withheld
Third Party Exercising Statutory Powers
Pre 2009, the most common example of this arose when a creditor obtained a
judgment mortgage against one joint tenant
Registration of a judgment mortgage against a joint tenant’s interest in
unregistered land held in joint tenancy, severed the joint tenancy -
Containercare (Ireland) Ltd v Wycherley (1982) IR 143
However, registration of a judgment mortgage against a joint tenant’s interest
in registered land did not sever the joint tenancy - Irwin v Deasy (2011)
s. 30(3) LCLRA 2009: registration of a judgment mortgage against the
estate or interest in land of a joint tenant does not sever the joint
tenancy and if the joint tenancy remains unsevered, the judgment mortgage
is extinguished upon the death of the judgment debtor’ – See also:
Mahon v. Lawlor
Judgment mortgagee (creditor) can apply to court for a range of orders (such as
an order for sale or an order for partition) under s. 31 LCLRA 2009
Severance in Equity – Williams v Hensman
When it furthers the mutual intention of the parties
In the course of dealings
Contract by one joint tenant (acting on their own share)
Mutual Agreement
Court looks to the mutual intentions of the joint tenants to see if they
intended to server the joint tenancy
Intentions must be mutual and expressed openly
Burgess v Rawnsley [1975] 1 Ch 429
Course of dealings
Court has jurisdiction to sever tenancy in equity based on mutual agreement or
conduct of the tenants.
E.g. negotiations intended to sever the joint tenancy that are not formalised (as
in Burgess v Rawnsley [1975] 1 Ch 429)
Contract by joint tenant
When one tenant alienates their share, but the transaction is not completed -
Tempany v Hynes [1976] IR 101
A contract is entered into, but not completed and the purchaser has paid
monies, the purchaser will acquire an interest in equity (the interest normally
reflects the amount paid)- this breaks the unity of title.
s. 52 (1) LCLRA states the purchaser is entitled to the entire beneficial interest
in the property.
No severance in law, because the four unities remain (contract is not complete)
Consent of other joint tenants is required under s. 30(1) LCLRA, otherwise the
transaction is void ‘at law and in equity’
Termination of co-ownership
Termination of co-ownership is different from severance of a joint tenancy. Co-
ownership ends where:
The number of co-owners is reduced to one (vesting in a sole owner)
The unity of possession is destroyed (because this is required for both joint
tenancy and tenancy in common)
Union in sole owner – co-ownership cannot exist if there is only one owner
In respect of joint tenancy:
This occurs under the right of survivorship
One joint tenant may also buy out the other joint tenants (normally done by a
release, each release severs that share from the joint tenancy until one owner is
left)
Prior written consent required under s.30 LCLRA
In respect of tenants in common:
One co-owner will buy out the others or otherwise acquire the interests of the
other co-owners
Family Property
Prior to Conveyance
The Act states that consent must be acquired ‘prior to the conveyance’. Yet in
practice the Court have been quite relaxed with this. It appears that consent
must be acquired prior to the completion of the conveyance.
Bank of Ireland v Hanrahan [1987]: Facts: H. visited bank with the land
certificate with the intention of creating an equitable mortgage. Bank informed
H that his wife’s consent was required. H left the land cert with the bank and
returned later with his wife, who executed the consent form. O’Hanlon J: the
prior consent of H’s wife to the equitable mortgage had been given. There was
an agreement that the bank was merely the custodian of the land cert until the
consent was executed. This position changed once consent was given.
De Londres criticises the Courts approach in Hanrahan and suggests that it
potentially encourages ‘lackadaisical attitudes’ towards this element of the
section 3 requirement.
Section 3(9) FHPA 1976 provides that spouses can give ‘general consent’ to
future conveyances.
In Writing
Consent of non-owning spouse must be written
You cannot give oral consent under s.3 FHPR
No particular form strictly required by the Act
Valid Consent
Consent must be valid
Voluntary – Cannot be acquired through undue influence or duress
Fully informed – Consent must be fully informed
In order to give valid consent you must have knowledge of what you are approving!
Bank of Ireland v Smyth [1995] 2 IR 459
Blayney J stated that consent under section 3 ‘must be a fully informed consent.
The spouse giving it must know what it is that he or she is consenting to. Since
giving ones consent means that one is approving of something, obviously a
precondition is that one should have knowledge of what it is that one is
approving’
Facts:
Wife signed a deed of charge in favour of BOI over registered land owned by her
husband. The land consisted of a farm, including the family home, which had
been built with a loan secured by a mortgage on the farm. When signing the
consent form, Wife was not aware that BOI would have right to possess of the
family home, which was incorrect. Wife argued that she did not have a proper
understanding of what she was signing, which invalidated her consent.
HC (Geoghegan J.)):
Agreed with Wife and stated that the bank should have taken reasonable steps
to ensure that Wife understood the circumstances, or advise her to get
independent legal advice.
Married women are a ‘protected class’ because of the reliance on and influence
of their husbands.
Supreme Court upheld the decision of the High Court, but on narrower grounds.
1. Purpose of the FHPA was not just to protect the non-owning spouse, but to
protect the family.
2. Consent must be ‘fully informed’.
3. Onus on bank to prove that valid consent had been given, which was lacking in
the immediate case.
4. Bank should have made enquiries with Wife to determine the state of her
knowledge.
Exceptions
Conveyance by Third Parties
Section 3 only provides non-owning spouses with a veto over conveyances
made by the other spouse. Where a third party has power to convey an interest
in the family home, consent of the non-owning spouse will not be required. (E.G
Judgment mortgages).
Conveyance Prior to Introduction of Legislation
Conveyances made prior to the introduction of the Act are not subject to the
requirements of the Act – Hamilton v Hamilton and Dunne [1992] IR 466.
Conveyances Prior to the Marriage
where the conveyance is carried out prior to the valid marriage of the parties,
section 3 will not apply. The home would not fall under the definition of a
‘Family Home’
Conveyances to the Non-Owning Spouse
in cases where the owning spouse is conveying an interest in the family home to
the non-owning spouse consent under section 3 is not required.
Conveyance to a Purchaser for Full Value – Bona Fide purchaser
Section 3 of the 1976 Act does not apply in the case of a bona fide purchaser for
full value without notice
But it is remarkably difficult to envisage a scenario where, if appropriate
conveyancing standards are adhered to, such a bona fide purchaser could be
said to be without notice of the breach
A purchaser for full value is defined in section 3(3) as a ‘grantee, lessee,
assignee, mortgagee, chargeant or other person who in good faith acquires
an interest in the property’
Supreme Court in Sommers v Weir held that a purchaser for full value is acting
in ‘good faith’ when they pay FULL VALUE for the property and are without
notice of the consent requirement or lack of valid consent –
Contrast in judgments of Sommers v Weir [1976] IR 94 and Reynolds v. Waters
[1982] ILRM 335
The burden will be on the party proving the validity of the conveyance
Essay notes:
Bodies have been treated as property before, for rather unethical means
Can you leave your body in your will? Wills are only as binding as the family makes
them binding
Start essay on use of dead body for attraction, Samonella video
If you do ot have the duty to bury the body, you do not have the right to possess the
body
Death on someones property – the land owner will have possession (not ownership) of
the body for purpose of burial, until someone with greater possession shows up