Property Law I-Classification-wk4 (Unrevised) - Copy
Property Law I-Classification-wk4 (Unrevised) - Copy
➢ The idea that one does not own the land but rather has an interest in it is
what underlies the basis of landholding. This, in a nutshell, is what is
referred to as an estate.
➢ An estate is therefore an abstract entity which defines the rights that the
owner has in relation to the land.
➢ Under English law, all land belonged to the crown. Individual ownership
of land therefore devolved from crown land.
➢ The doctrine of estates could also be said to have emerged because certain
incidences of ownership can be divided between different people at
different times. It is the doctrine of estates that facilitates this process.
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➢ Under common law, it can be generally said that only 2 distinct legal rights
can exist at the concurrently in chattels; that is possession and ownership.
For instance, where A lends his car to B, ownership is still vested in A but
possession resides with B.
➢ It may be so held for various estates, i.e. for a greater or less period of time.
Under English law, estates were divided into 2 categories; freehold estates
and leasehold estates.
A. Freehold Estates
➢ The expression freehold derives from the feudal system where there were
free and unfree tenures. Today, English land is held by the crown on
freehold.
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➢ Freeholds not of inheritance were further categorized as life estates and
estates pur autre vie.
➢ The words simple and tail distinguish the classes of heirs which could
inherit.
➢ To the contrary, a life estate was not a fee, therefore, it could not devolve
by way of inheritance and not perpetual in that sense. The tenancy of a
life estate extinguished at his death.
➢ However, in estates pur autre vie, the estate passed under special rules of
occupancy (more on this shortly).
➢ A fee simple would terminate if the original tenant died without leaving
any descendants or collateral blood relations even if the before his death
the land had been conveyed to another tenant who was still alive.
➢ In Walsingham’s case (1573) 2 Plow. 547 the fee simple estate was
described as “a time in the land without end.” The fee simple estate is
practically indistinguishable from ownership of the land.
➢ In the event that there is no passing of such successive interest i.e. where
there is failure for whatever reason to pass to the designated person, it is
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in the nature of such an estate to pass to the state through the operation
of the doctrine of “escheat”.
➢ The radical title is retained by the state and in event of failure property
passes back to the state.
➢ Fee simple may be absolute or modified. Modified fee simple estates can
be classified further into determinable fee simple and fee simple upon
condition.
➢ Fee tails were hard to come by. Traditionally, the fee tail estate was a grant
of land for the purpose of providing for the family or family branch of a
younger son who were not going to inherit family property.
➢ Under this estate, the right to possess land could only be inherited by the
direct descendants of the couple.
➢ The estate was thus limited (curtailed) in time and ended where there were
no more heirs of the body.
➢ Unlike a fee simple, the fee tail estate was followed by a reversion or a
remainder.
➢ Upon failure of the donee’s lineal issues, the estate would still belong to
the original donor.
➢ This trustee would fill the residue of eternity which would be vacant if and
when the fee tail ended abruptly.
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➢ It should be noted that grant land under a fee tail estate could not be
alienated.
c. Life Estate
➢ A life estate is where a person owns the rights over the land for the length
of his own lifetime.
➢ Upon the death of a life interest owner, the estate reverts to the superior
estate owner who is usually a leasehold owner or a fee simple owner.
➢ A life tenant has the right to immediate possession of the land. Where a
third party trespasses, the life tenant may bring an action against them.
➢ For all intents and purposes, the life tenant was the owner of the land for
the length of his life.
➢ For instance, if the property in question is vested in ‘A” for the life of ‘B’
what it means is that the Estate will last for as long as B lives and in the
event that B dies before A, the property re-vests on the person who made
the settlement or the settlor.
B. Leasehold Estates
➢ Land law in England only recognized freeholds as the only estates in law.
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➢ Leaseholds can be distinguished from freeholds by the certainty of
duration of the ownership rights conferred.
➢ These estates vary depending on duration or time for which they are
supposed to last so that we can speak of different categories of such
interests.
C. Absolute Estate
➢ In pre-colonial Kenya, land was held under a communal tenure. Land was
held jointly by a clan, tribe or family as opposed to individual tenure.
➢ The individual tenure was however only meant to benefit the white settlers.
➢ Consequently, the natives were stripped of large tracts of land and forced
into a state of landlessness.
➢ After a period of oppression, the natives were agitated and raised their
grievances.
➢ One of the major pillars of reform was the consolidation of native land.
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➢ Because of displacement, African natives had subdivided their parcels of
land into small uneconomic units. The small units were economically
unsound.
➢ The Swynnerton Plan of 1954 advocated for reform of the land tenure
system within these areas and the most important recommendation was
that all property falling within the African areas be brought under a
registration regime.
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i. Leases, charges, and other encumbrances and to conditions and
restrictions if any as shown in the register.
ii. Such liabilities rights and interests that have affected the land and are
declared by Section 28 of the LRA not to require noting on the register
unless the contrary is noted in the register. These are called overriding
interests.
➢ Section 26 (1) provides that the Certificate of Title issued by the registrar
upon registration shall be taken by all courts as prima facie evidence that
the person named as the proprietor is the absolute and indefeasible owner
subject to encumbrances, easements, restrictions, and conditions
endorsed/ contained in the certificate.
➢ There have been a lot of judicial decisions on the interpreting of the rights
of an absolute proprietor.
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➢ Obiero v. Opiyo [1972] E.A. 227 was decided under the Registered Lands
Act regime. In that case, the plaintiff had been registered as the absolute
proprietor of the title in question in 1968 and in the register no
encumbrances were noted. The defendants who were sons of the
defendant with the co-wives conceded that they had always been in
possession of the suit property and they based their ownership purely
under customary law. In a bid to bolster their case they argued that they
had always worked the land since time immemorial and argued that the
registration of the plaintiff, the first wife, in their view was obtained by way
of fraud to the extent that the plaintiff never revealed their interest during
the registration process. That sort of argument did not persuade the court
and the court in its findings held that even if the registration had been
procured fraudulently, the plaintiff’s title of first registration was
indefeasible and the plaintiff’s title was subject to no encumbrances as the
register reflected none and accordingly the title was free from all interests
and claims and finally the court found that the rights of occupation
inherent in the defendants which in any case arose under customary law
were not overriding interests within S. 30 of the RLA and the court further
held that such a right of occupation had been extinguished upon the first
registration with the plaintiff emerging as the absolute proprietor of the
suit property and in granting the plaintiff the relief sought i.e. damages for
trespass and a permanent injunction to restrain the defendants from
continued trespass. The Judge had this to say “rights arising under
customary law are not among the interests listed in S. 30 of the Act as
overriding interests. Had the legislature intended that the rights of a
registered proprietor were to be subject to the rights of any person under
customary law, nothing could have been easier than for it to say so.”
➢ In the case of Esiroyo v. Esiroyo & Another [1973] E.A. 388 the judge
relied on the judgment of Obiero case with the result that the registered
proprietor was allowed to evict his sons from land that was registered
under him as the absolute proprietor. This case arose after Esiroyo had a
bitter disagreement with his sons and threatened to disinherit them from
the land. The relevant customary law was Luhya customary law regarding
land tenure and there was evidence called to prove that under that system
of law that they were entitled to a share. The customary law did not carry
any favour and the court proceeded to allow the old Esiroyo to preclude
his sons from having their share of the family land although the sons had
proved entitlement to that law under the relevant customary law.
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➢ Look for post-2012 case law (if any)
➢ Legal rights are created and are capable of being conveyed at law.
➢ All other interests were considered equitable under English law (equitable
interests will be discussed later in this lesson).
➢ In Kenya, legal charges are registered against the title in the register.
Equitable charges are construed by law but are still enforceable.
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➢ Rights in alieno solo enjoyed in the land of another person other than the
one entitled to enjoy such rights are called encumbrances (to discuss
shortly).
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➢ Charges and Mortgages shall be discussed in detail later in the course.
➢ An owner of a property who does not wish to stay or occupy the land
himself may grant another person the right to occupy and use the property
for a certain period in return for an agreed sum of money.
“a contract for the exclusive possession and profit of land for some
determinate time”
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so granted and the instrument granting it and also includes a sublease
but does not include an agreement to lease.”
➢ The words ‘lease’ and ‘tenancy’ denote the grant and are sometimes used
interchangeably.
➢ However the word tenancy has come to be used in reference to short term
leases.
➢ Leases are regulated by Part VI of the Land Act. However, Section 55 allows
parties to enter into lease agreements outside the scope of Part VI.
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a. Un-alienated government land as defined by an Act of Parliament;
b. Land lawfully held, used or occupied by any State organ – However, this
does not include land that is occupied by the State organ as lessee
under a private lease;
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➢ Such property will devolve by way of survivorship. (to be discussed later).
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• Before the dawn of civilization, the preponderant condition that there was
this order that everything became yours not because you owned it,
developed it but because you could actually get it by force.
• Individuals were pitted against one another and in order to survive one
had to withstand these harsh conditions.
• One lived in constant fear of losing out to the mightier parties and the
conditions of living were pitiful. Life, according to Thomas Hobbes in his
discourse, became impossible: life was short, cruel and brutish.
• The fear of extinction pushed people to forego the exercise of their own
might in exchange of authority but instead each of them was guaranteed
some property rights that their property would not be taken away and that
they would enjoy the fruits of their labour.
• This gave way to the idea of a three way exchange of rights known as the
Social Contract
• The Social Contract achieved peace to all men and guaranteed them a
number of benefits which were by far more attractive.
• The Social Contract is the basis of civil society and is predicated on the
understanding that the sovereign, the ultimate authority to whom all
individuals cede their powers of might, is a custodian of the society’s
collective interests as it were.
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Property and Ownership
• There must also exist some entitlement involved which essentially explains
or offers the very reasons for which the right in question is being invested
in the honour of the person entitled to enjoy it.
• The rightful owner enjoys the right to hold and recover possession of the
property as against all others and this then is the essential ingredient of
the idea of ownership. To the extent that ownership consists a complex of
exclusionary rights which can be exercised against the entire world.
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Incidents and Characteristics of Ownership
• The fact that he may have parted with such an object or thing either by
voluntarily divesting himself of the same or by being wrongfully being
deprived does not derogate from that fact he still remains the owner of
such an object or thing with an immediate right to possession.
• The owner of an object or thing will still retain a reversionary interest even
where he has lent out /leased/loaned the subject of ownership.
• This right to possession is jealously protected by the law and any party
deprived of their rights to possession may pursue legal action in a claim
for damages, specific performance, or for an injunction.
• In exercise of such right, the owner is free to determine or decide how the
object or thing will be used and by whom.
• Correspondingly, other people are under a duty not to use or interfere with
the rights conferred on the owner.
• Ownership rights are peculiar to the owner alone. As such ownership may
be said to be rights in rem (against the entire world).
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• However, as it will be seen below, there are some instances of concurrent
ownership.
• Ownership rights are inexhaustible. The owner may grant any interest in
their property without losing his right of ownership.
a) Joint Tenancies
b) Tenancies in Common
c) Leases and Licenses; and
d) Sectional Properties and subleases
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tenancies in common.
• Joint tenancies:
- There are in unity of interest, unity of possession, unity of title and unity
of time.
- On death, the surviving co-owner (joint tenant) continues owning the land.
- The deceased does not die owning a distinct and separate interest in the
co-owned property.
- Under this doctrine, in the event of death of all co-owners, inheritance will
go to the heirs of the heirs of the co-owner, who died last/survived the
older one.
- In the event of uncertainty of died last, it shall be deemed that the younger
one died last.
• Tenancies in common:
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- See part IX of the LRA.
• The need for urban housing has led to lots of investments by private
developers the motivation being the quick and huge profits that accrue
from these particular investments.
• The Sectional Properties Act 1987 (now 2020) was essentially enacted to
facilitate the sale and purchase of flats and apartments by way of sectional
titles.
• Different persons can own different units or flats in the same high-rise
building.
• Only properties registered under the Registered Land Act (repealed) may
have been subject to registration as Sectional Titles. Where property was
been registered under a different regime, it must have first been converted
to RLA (repealed).
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• Mother title, leases/subleases (eg flats, apartments, even bungalows,
maisonattes etc) sharing the same mother title, management company,
reversionary interest/transfer of land for freehold.
• The LRA S 54 (3) recognises registration of interest in land under the SPA.
• LRA S 54(5)-registrar shall register long term leases and issue certificates
of lease over apartments, flats, maisonettes, townhouses or offices as long
they are properly geo-referenced and approved by the body charged with
survey.
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