THE CHARTERED INSTITUTE OF LEGAL EXECUTIVES UNIT 9 LAND LAW *

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1 13 January 2015 Level 6 LAND LAW Subject Code L6-9 THE CHARTERED INSTITUTE OF LEGAL EXECUTIVES UNIT 9 LAND LAW * Time allowed: 3 hours 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. All questions carry 25 marks. Answer FOUR only of the following EIGHT questions. The question paper is divided into TWO sections. You MUST answer at least ONE question from Section A and at least ONE question from Section B. Write in full sentences a yes or no answer will earn no marks. Candidates may use in the examination their own unmarked copy of the designated statute book: Blackstone s Statutes on Property Law , 22nd edition, Meryl Thomas, Oxford University Press, 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 following CILEx qualifications: LEVEL 6 CERTIFICATE IN LAW, LEVEL 6 PROFESSIONAL HIGHER DIPLOMA IN LAW AND PRACTICE and the LEVEL 6 DIPLOMA IN LEGAL PRACTICE Page 1 of 8

2 SECTION A (Answer at least one question from this section) 1. Critically evaluate the extent to which the defendant, in a proprietary estoppel claim, can rely on the provisions of s2 Law of Property (Miscellaneous Provisions) Act 1989 to defeat the claim. 2. Critically evaluate the extent to which the purchaser of an estate or interest in registered land will be bound by prior interests, and has the opportunity to discover them prior to that purchase. 3. Critically evaluate the effectiveness of the use of implied trusts for determining parties entitlement to property on the breakdown of a cohabiting relationship. 4. (a) Critically evaluate the fairness, as between landlord and tenant, of the regime in relation to the running of leasehold covenants made prior to (15 marks) (b) Critically evaluate the extent to which any such unfairness has been resolved by the Landlord and Tenant (Covenants) Act (10 marks) (Total: 25 marks) Page 2 of 8

3 SECTION B (Answer at least one question from this section) Question 1 In 1990, Albert purchased Weston s Field, an undeveloped registered estate in rural Norfolk. He intended to use the land to build a home when he retired from his job as a city trader. In 2000, Barbara received planning permission to build stables on a part of Weston s Field. She fenced an area of land and built stables and a paddock, which she has used to stable and exercise her horses ever since. Albert was aware of the application for planning permission (having seen it in the local newspaper) but could not believe anyone would build on his land. In 2002, Colin purchased Horner House, a registered estate adjacent to Weston s Field. Unknown to Colin, the previous owner of Horner House had moved the boundary fence five metres into Weston s Field. Both Colin and his predecessor have used that part of Weston s Field as a vegetable garden. In 2004, Deirdre, who owned an adjacent farm, began using the rest of Weston s Field to graze her sheep, reasoning that the land had been abandoned and that she might as well make use of it. This year, Albert has applied for planning permission to develop Weston s Field. On reading of this in the local newspaper, Barbara, Colin and Deirdre have contacted you for advice. Advise Barbara, Colin and Deirdre. Page 3 of 8 Turn over

4 Question 2 Ella and Francis have been married for seven years. They are joint owners of their family home. Ella was, until recently, a successful investment fund manager in the city. Francis worked as a labourer until their first child was born, when he became a stay-at-home parent. Francis, who professes no understanding of financial matters, leaves the family finances to Ella. Last year, Ella was made redundant. She decided to set up her own financial services company, Frella Finance Ltd. Both Ella and Francis are directors and shareholders in the company. The company applied to Georgetown Bank plc for a loan to establish the company s offices. The bank agreed to advance the loan (an open-ended (i.e. without time limit) loan of up to 250,000) provided that the family home was charged as security. Francis was concerned that the family home would be charged. Ella told him, Do not worry, it is only for a few thousand, and it will be paid off within the year. Anyway, you need to leave the money side of things to me. The bank required Francis to take independent legal advice, which he did. The lawyer acting for him confirmed this to the bank. The loan was advanced and the family home charged. Unfortunately, the business was unsuccessful and the company has gone into liquidation. After the winding up, 150,000 of the loan remains outstanding. (a) Advise the bank of the steps it might now take to recoup the outstanding loan. (13 marks) (b) Advise Francis whether he might resist any attempt by the bank to realise its security. (12 marks) (Total: 25 marks) Page 4 of 8

5 Question 3 In 1982, Harmeet purchased Lane s End, a small cottage with grounds at the end of a long track over the adjacent common. Harmeet has always used the track, on foot and by vehicle, to access the property. The utility media serving the property run under the track. Shortly after moving in, he started using a shed on an adjacent property to store chemicals he uses for his hobby of photography. In 2003, the Government passed legislation proscribing how such chemicals should be stored. Harmeet s storage of chemicals in the shed does not meet the requirements of the legislation. Notwithstanding that, his user has continued to date. Recently, the owners of the common, Norman, and of the adjacent property, Olly, have objected to Harmeet s users and are threatening to issue claims for injunctions. Advise Harmeet regarding the use of the track, utility media and storage. Page 5 of 8 Turn over

6 Question 4 Some years ago, Isabelle purchased a large plot of undeveloped land. She constructed two houses on the land. The first, Redacre, was sold to Juliet in January The second, Greenacre (which comprised the remainder of her estate), was sold to Kuda in February Both transfers contained the following covenants: (i) (ii) To use the property only for the residential purposes of a single family. To pay a fair proportion of the cost of maintaining the shared driveway. (iii) Not to construct any building, extension or other structure without the consent in writing of the vendor. Juliet sold Redacre to Louise in January Kuda sold Greenacre to Mina in March Mina has converted Greenacre into a hotel, and has applied for planning permission for an extension to the premises to incorporate more rooms. Louise has refused to pay for the maintenance of the shared drive, which is in disrepair, until Mina agrees to stop running the hotel and to withdraw her application for planning permission. Advise as to the enforceability of the covenants. End of Examination Paper 2015 The Chartered Institute of Legal Executives Page 6 of 8

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