An estate in perpetuity is freehold in substance with statutory conditions implied
A worked RES examination question on tenure and estates, from our Paper 1 bank — with the rule it turns on, and why each of the four options is right or wrong.
The question
An owner holds land under a grant made by the State many years ago which is freehold in substance but carries certain conditions implied into it by statute. A neighbour holds under a State lease for a term of ninety-nine years. A third plot nearby is occupied under a temporary licence granted to a contractor for under ten years so that he may store materials.
Consider the following statements.
- (i) The first is an estate in perpetuity.
- (ii) The second is limited in duration.
- (iii) The third gives its holder exclusive possession.
- (iv) The third creates no tenancy.
The answer, and why
Answer: B
The rule. An estate in perpetuity is freehold in substance with statutory conditions implied. A State lease is limited in duration. A temporary occupation licence gives no exclusive possession and creates no tenancy.
Why B is correct. (i), (ii) and (iv) hold. (iii) is false — the licence confers no exclusive possession.
The other options.
- A and D carry the false (iii).
- C drops the correct (i).
Exam note. The licence is the one to watch. Occupation is not possession.
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