Core principles of land law - Nature of land

Learning Outcomes

After reading this article, you will be able to identify the statutory definition of land, distinguish real property from personal property, define estates and interests, and explain the difference between legal and equitable rights in land. You will also understand what is required for the creation and transfer of legal and equitable rights—skills essential for application in SQE2 assessments.

SQE2 Syllabus

For SQE2, you are required to understand the nature and characteristics of land, as well as the basics of estates and interests. Particular attention should be given in your revision to:

• the statutory meaning of “land” in England and Wales and how it is applied in practice
• the distinction between fixtures and chattels
• the main types of estates and interests (legal and equitable) that exist in land law
• how legal and equitable rights are created, transferred, and protected
• which formalities are required for legal and equitable rights to be valid and enforceable.

Test Your Knowledge

Attempt these questions before reading this article. If you find some difficult or cannot remember the answers, remember to look more closely at that area during your revision.

1. What is the legal test for deciding whether an object attached to land is a fixture or a chattel?
2. Name the two types of legal estates that are recognised under English land law.
3. How does a legal interest differ from an equitable interest in land?
4. Give two examples of interests in land that can only ever be equitable.

Introduction

Land law defines not only the physical components of land but also the bundles of rights and obligations attached to it. Understanding what constitutes “land,” how it can be owned, and which rights may exist helps to determine whether a right is legal, equitable or merely personal. This article explains the key legal concepts that form the basis for all other land law topics.

What is Land?

The statutory definition of land is set by the Law of Property Act 1925:

Key Term: land
Land includes land of any tenure, mines and minerals (whether or not held apart from the surface), buildings or parts of buildings, and both tangible and intangible hereditaments.

The statutory definition is broad. It encompasses not only soil and buildings but also rights—such as easements and profits—a landowner may exercise over or under their land.

Fixtures and Chattels

A distinction is drawn between items attached to the land (fixtures) and those which are not (chattels). Understanding the difference is critical because only fixtures pass automatically to a buyer on sale; chattels remain the seller's property unless an agreement states otherwise.

Key Term: fixture
An object attached to land or a building in a manner and for a purpose such that it is treated as part of the land.

Key Term: chattel
An object that remains separate and not annexed to the land; usually regarded as personal property.

The Two-Stage Test

The two-stage test for classifying an item as a fixture or chattel is:

1. Degree of annexation: How firmly is the object fixed? If removing it would cause damage, it is more likely a fixture.
2. Purpose of annexation: Was the item attached to improve the land or for its own enjoyment? If to improve the land, it is a fixture; if only for convenient use, it is a chattel.

Estates in Land

Land can be owned freehold (with the potential to last forever) or leasehold (for a fixed period). The concept of tenure—land ultimately owned by the Crown—remains, but modern law recognises only two types of legal estates.

Key Term: freehold estate
Also known as fee simple absolute in possession; a potentially perpetual right to occupy and deal with the land.

Key Term: leasehold estate
Also called a term of years absolute; a right to occupy for a definite, fixed period.

Interests in Land

In addition to estates, interests may exist—rights held by someone other than the owner that “burden” or give use of the land to that person. These include:

• easements (e.g., rights of way)
• mortgages (security rights for a loan)
• profits à prendre (e.g., rights to extract natural resources).

Legal and Equitable Rights in Land

Rights in land are either legal or equitable. The distinction affects their enforceability and the methods by which they are created.

Key Term: legal interest
A right or estate in land recognised by statute as capable of being legal, provided strict formality requirements are met (often deed and registration).

Key Term: equitable interest
A right in land that is not recognised as legal or was not created/formalised properly, but is nonetheless enforceable in equity.

Examples of legal interests include legal leases, easements for a fixed term, and mortgages created by deed. Interests outside this list or improperly formalised may exist only in equity (such as beneficial interests under trusts, restrictive covenants, and options).

Formalities for Creation and Transfer

Legal estates and interests require a deed that is clear on its face, signed, and, for certain dispositions, registered. Contracts to create or transfer legal rights must be in writing and signed, setting out all terms. Equitable interests that can only exist in equity usually require only a signed, written document (subject to limited exceptions for trusts implied by law).

Worked Example 1.1

Saira installs a built-in oven and a washing machine in her kitchen before selling her house. The buyer claims both should transfer with the house. Which is a fixture?

Answer:
The built-in oven is a fixture: removing it would damage the kitchen units. The washing machine, connected by hoses and plugged in, is a chattel and does not automatically transfer.

Worked Example 1.2

A garden centre owner builds a conservatory in the garden that is bolted to the ground. Does the conservatory pass to a new buyer if not otherwise agreed?

Answer:
Yes, the conservatory is a fixture: it is annexed to the land and was likely installed to improve the land. It automatically passes on sale.

Exam Warning

Exam mistakes are common around fixtures and chattels. Focus on the purpose of annexation rather than just how an object is fixed when classifying items for SQE2.

Revision Tip

For problem questions on the legal status of an item, start by asking two questions: "How was it attached?" and "Why was it attached?"

Key Point Checklist

This article has covered the following key knowledge points:

• Land is defined widely and includes physical and intangible components.
• The fixture/chattel distinction is essential: fixtures are part of the land; chattels are not.
• Freehold and leasehold are the only types of legal estates in land.
• Estates give possession; interests (e.g., easements, profits, mortgages) confer rights over land held by another.
• Legal and equitable rights differ by creation, protection, and enforceability.
• Proper formalities are always essential for legal estate or interest validity.

Key Terms and Concepts

• land
• fixture
• chattel
• freehold estate
• leasehold estate
• legal interest
• equitable interest