WARNING.

The format of this question paper was changed due the COVID-19 pandemic and applies to the 2019-20 examinations only.

LA2003 July ZB

Property law (Level 5)

Thursday 6 August 2020

You will have TWO HOURS AND 45 MINUTES in which to answer the
questions, including 15 minutes reading time. You must answer all parts of a
question unless otherwise stated.

You will have an additional 30 minutes to download the examination paper and
to upload your saved answers to the VLE; this time should be used solely for
these purposes.

You must answer TWO of the following EIGHT questions.

© University of London 2020

Page 1 of 6
WARNING. The format of this question paper was changed due the COVID-19 pandemic and applies to the 2019-20 examinations only.

1. In 1987 Felpersham Council decided to make use of a vacant plot of

rough ground it owned on the edge of town. It drew up plans for the
conversion of the land into a car park for tourists and shoppers but put
the project on hold because it lacked sufficient funding to proceed with
it.

In 1988, when Oliver, a local farmer, noticed that the ground was empty,
he decided to make use of that part of the plot closest to his farmland. In
the spring of 1989 he began to cut back overgrown bushes before
tethering four goats on the plot during the summer months. Early in 1990
he spread fertiliser over the whole plot and then planted carrots and
potatoes in the corner with the most fertile soil. By the middle of 1995
Oliver had planted the entire plot with vegetables and fruit trees, installed
an irrigation system and laid an area of hard standing for his tractor. He
then built a small storage unit for his other equipment. In early 1998
Oliver built a mesh fence around the entire plot to protect the crops from
being eaten by rabbits and deer. Some years later Oliver met Tom, his
local councillor, in the pub. During their conversation Oliver explained
that he would ‘willingly pay a token sum’ for the use of the land.

Last month Felpersham Council was successful in obtaining funding to

allow it to carry out its development plans to create a car park. Its
solicitors have now written to Oliver asking him to leave the land
immediately.

Advise Oliver.

Page 2 of 6
WARNING. The format of this question paper was changed due the COVID-19 pandemic and applies to the 2019-20 examinations only.

2. Before Debbie moved to live and work in Hungary she made the
following arrangements for the use of her house in Borcetshire, and an
adjoining warehouse, which she had been using in previous years.
Debbie had taken a 20-year licence to use the warehouse for storage
when the local Council stopped using it as a recycling plant.

(a) Debbie allowed, Russ, a struggling artist, to use the warehouse

as a live-in studio. Debbie gave Russ a written document that was
headed ‘lease’. It provided that Russ could have sole use of the
empty warehouse for three years in return for a payment of £150
per month.

(b) Debbie agreed that her sister, Kate, could live in the self-
contained basement flat in the house in return for a monthly
payment of £300. Kate was saving hard to finance her move to
Australia, where she planned to set up business as a holistic
therapist. Debbie therefore agreed that Kate could live in the
basement flat ‘until she was ready to emigrate to Australia’.

(c) Debbie allowed her half-brother, Adam, to live in the rest of the
house with his partner, Ian. Debbie signed identical agreements
with Adam and Ian. However, Ian signed his agreement with
Debbie a few days later than Adam because he was away on a
training course for executive chefs. The agreement allowed
Debbie to move another person in to one of the spare bedrooms
in the house at any time. Debbie reassured Adam and Ian that
she would only move somebody else in to live in the house if she
was in dire financial need. Under the agreement Debbie kept a
key to the house. It also provided for Debbie’s cleaner to come on
the first Tuesday of every month to undertake a ‘deep clean’ of
the house.

Debbie now wishes to sell the house with vacant possession. She
therefore seeks your advice as to the legal status of the arrangements
she has made with Russ, Kate, Adam and Ian.

Advise Debbie.

Page 3 of 6
WARNING. The format of this question paper was changed due the COVID-19 pandemic and applies to the 2019-20 examinations only.

3. In 2014 Kenton decided to purchase The Bull, a public house located in

a picturesque country village. He needed to borrow 90% of the
£500,000, purchase price. After Kenton had unsuccessfully approached
several banks, Fairbrothers, a local gin manufacturing company, offered
to provide Kenton with the money. In return Kenton granted Fairbrothers
a 10-year mortgage secured on the registered title of The Bull. The
mortgage agreement included terms that:

(a) Kenton must purchase all his supplies of gin from Fairbrothers for
the duration of the mortgage;

(b) The annual rate of interest was to be variable throughout the

period of the mortgage and should never be less than 20% above
the Bank of England’s lending rate; and

(c) Fairbrothers had the right to purchase the car park belonging to
The Bull for a period of 7 years from the start of the mortgage.

Kenton and his wife, Jolene, moved in and ran The Bull. In 2019 The
Bull’s trade suffered because severe flooding throughout the summer
months affected tourism. Early in 2020 Kenton was unable to meet some
of his monthly mortgage repayments. Fairbrothers has now written to
Kenton advising him that it is going to bring an action for possession
before seeking to sell The Bull at auction as soon as possible.

Advise Kenton as to (a) the validity of each of the mortgage terms; and
(b) whether or not he can retain possession of The Bull and prevent its
sale.

4. Critically analyse the approach of the courts to claims to acquire a share

in the beneficial ownership of land by means of resulting and
constructive trusts.

5. ‘Although the joint tenancy in equity should not be abolished, the

methods by which a joint tenancy can be converted into a tenancy in
common would benefit from being simplified and streamlined.’

Discuss.

6. What reforms would you propose to the law governing the methods by
which the benefit and burden of freehold covenants may be passed to
successors in title of the land belonging to the original parties?

Page 4 of 6
WARNING. The format of this question paper was changed due the COVID-19 pandemic and applies to the 2019-20 examinations only.

7. Lillian is the registered proprietor of the freehold of the Dower House.

The Dower House comprises a large house set in substantial grounds in
which there are a number of barns.

In 2012 Lillian granted Rex, who lives in the local village, a six-year lease
to use one of the empty barns to establish his new part-time pig-rearing
business. After granting Rex the lease Lillian continued to keep her
surplus riding equipment in the loft in the barn, as Rex did not need the
space for his own use. A year later, in 2013, she gave Rex permission
to park his taxi on the driveway behind the Dower House, as it was safer
than parking it on the busy main road outside his own house. She also
allowed him to use a remote corner of the Dower House’s grounds to
practice martial arts.

In 2018 Lillian renewed Rex’s lease for a further six years.

Last week, after a disagreement, Lillian told Rex that he must stop
parking his taxi on the driveway belonging to the Dower House and
refrain from using the grounds for martial arts. Rex has replied by telling
Lillian to remove her riding equipment from the loft space in the barn.

Advise Rex.

Page 5 of 6
WARNING. The format of this question paper was changed due the COVID-19 pandemic and applies to the 2019-20 examinations only.

8. In 2020, after Brian purchased the registered freehold proprietor of

Bridge Farm from Tony, he discovered the following:

(a) David, a neighbouring landowner, insists that he has a legal right

to use the drains in Long Meadow, the field on Bridge Farm next
to the boundary with his own land. However, David does not have
any documentation to support his claim;

(b) Helen claims to have a document proving that Tony gave her the
right to keep her cheese-making equipment in one of Bridge
Farm’s barns for the next five years; and

(c) Tony's mother, Peggy, is claiming she has the right to return to
live in The Lodge, a cottage on Bridge Farm. Peggy, who went to
live in a nursing home after a fall nine months ago, had
contributed part of the purchase price of Bridge Farm when Tony
acquired it. However she had told Tony at the time that, at her
age, she did not want to be named as a registered proprietor.
Tony had shown Brian The Lodge before the sale of Bridge Farm
was finalised. Brian asked him about the furniture, various items
of female clothing and other personal effects in the cottage. Tony
explained that his elderly mother, ‘who sadly was not now living
there’ had left them behind.

Brian now wants: (i) David to stop using the drains on Long Meadow; (ii)
Helen to remove her cheese-making equipment from the barn; and (iii)
to prevent Peggy from moving back to live in The Lodge.

Advise Brian.

Explain briefly how your advice would differ if the sale of Bridge Farm to
Brian was governed solely by the rules concerning unregistered land.

END OF PAPER

Page 6 of 6