- •Contents
- •Preface
- •Acknowledgments
- •Table of cases
- •Table of statutes
- •Table of statutory instruments
- •Table of treaties
- •Table of EC legislation
- •1 Property law: the issues
- •1.1. Basic definition
- •1.2. Illustrative example
- •1.2.1. John
- •1.2.1.1. The unexcised body cell and the question of ownership
- •1.2.1.2. John’s interest in the excised body cell
- •1.2.1.3. Continuity of interests and John’s interest in the cell line
- •1.2.1.4. Enforceability of John’s interest in the cell line
- •1.2.2. Dr A and Dr B and the acquisition and transmission of property interests
- •1.2.3. The drugs company: constraints on the exercise of property rights
- •Notes and Questions 1.1
- •2 What we mean by ‘property’
- •2.1. Introduction
- •2.1.1. Property as a relationship and as a thing
- •2.1.2. Conceptualising ‘things’
- •2.1.3. Distinguishing property rights from other rights relating to things
- •2.1.4. Rights and other entitlements: Hohfeld’s rights analysis
- •2.1.4.1. Rights and duties, privileges and no-rights
- •2.1.4.2. Privileges and no-rights, and powers and liabilities
- •Abandonment
- •Effect of restrictions on alienation rights
- •2.1.4.3. Powers and liabilities, immunities and disabilities
- •2.1.5. Hohfeldian analysis of dynamic property relationships
- •2.1.5.1. Stage 1: Before the grant of the option
- •2.1.5.2. Stage 2: Grant of the option
- •2.1.5.3. Stage 3: Exercise of the option
- •2.1.6. Property rights, property interests and ownership
- •Notes and Questions 2.1
- •2.2. Private property, communal property, state property and no property
- •2.2.1. Introduction
- •2.2.2.1. No-property: ownerless things
- •2.2.2.2. Open access communal property
- •Distinction between open access and limited access communal property
- •Distinction between open access communal property and no property
- •Distinction between open access communal property and state property
- •Distinction between allocation and provision of resources
- •Regulation of communal property
- •2.2.2.3. Limited access communal property
- •Distinction between communal property and co-ownership
- •Particular use rights rather than general use rights
- •2.2.2.4. State property
- •2.2.2.5. Anticommons property
- •2.3. Economic analysis of property rights
- •2.3.1. What economic analysis seeks to achieve
- •Notes and Questions 2.2
- •2.3.2. Key concepts in the economic analysis of property rights
- •2.3.2.1. Externalities
- •2.3.2.2. Transaction costs
- •Imperfect information
- •Costs of collective action
- •Free-riders and holdouts
- •2.3.2.3. Efficiency
- •Value
- •Pareto efficiency
- •Kaldor-Hicks efficiency
- •2.4. Things as thing and things as wealth
- •2.4.1. Functions of things
- •2.4.2. The idea of a fund
- •2.4.3. Thing versus wealth
- •2.4.4. Related conceptions
- •2.4.4.1. Fungibles and non-fungibles
- •2.4.4.2. ‘Use value’ and ‘exchange value’
- •2.4.4.3. Property and personhood
- •Use value/exchange value
- •A functional distinction
- •Notes and Questions 2.3
- •3 Justifications for property rights
- •3.1. Introduction: general and specific justifications
- •3.2. Economic justification of property rights
- •3.2.1. Property and scarcity
- •Notes and Questions 3.1
- •3.2.2. Viability of single property systems
- •3.2.3. Criteria for measuring the success of a particular form of ownership
- •3.3. John Locke’s justification for private property
- •3.3.1. What Locke was attempting to establish
- •3.3.2. The political context
- •3.3.3. The problem of consent
- •3.3.4. Locke’s justification for original acquisition
- •3.3.5. The nature of Locke’s commons
- •3.3.6. Why mixing labour with a thing should give rise to entitlement
- •3.3.7. The sufficiency proviso
- •3.3.8. The spoilation proviso
- •3.3.9. The theological dimension to Locke’s theory
- •3.3.10. Present relevance of Locke’s theory
- •Notes and Questions 3.2
- •4 Allocating property rights
- •4.1. Introduction
- •4.2. The first occupancy rule
- •4.2.1. Intuitive ordering
- •4.2.2. Preservation of public order
- •4.2.3. Simplicity
- •4.2.4. Signalling
- •4.2.5. The bond between person and possessions
- •4.2.6. The libertarian justification
- •4.2.7. The communitarian objection
- •4.2.8. Economic efficiency
- •Notes and Questions 4.1
- •4.3. New things
- •Notes and Questions 4.2
- •4.4. Capture
- •Notes and Questions 4.3
- •5.2. Iron-holds-the-whale
- •5.3. Split ownership
- •4.5. Colonisation and property rights
- •4.5.1. Introduction
- •4.5.2. The Milirrpum decision and the doctrine of terra nullius
- •4.5.3. Mabo (No. 2)
- •4.5.3.1. Terra nullius
- •4.5.3.2. Property, sovereignty and the doctrine of radical title
- •4.5.3.3. Extinguishment
- •Express extinguishment
- •Implied extinguishment by inconsistent grant
- •Abandonment
- •Surrender but not alienation
- •Notes and Questions 4.4
- •4.5.4. Developments since Mabo (No. 2)
- •5 Personal and proprietary interests
- •5.1. Characteristics of proprietary interests
- •5.1.1. General enforceability
- •5.1.2. Identifiability of subject-matter
- •5.1.2.1. The basic principle
- •5.1.2.2. Fluctuating assets
- •5.1.3. Significance of alienability
- •5.1.3.1. Inalienability of communal property
- •5.1.3.2. Status rights
- •5.1.3.3. Appurtenant rights
- •5.1.4. Requirement for certainty
- •5.1.5. The numerus clausus of property interests
- •5.1.6. Vindication of property rights
- •5.1.7. Termination
- •5.1.7.1. Abandonment
- •5.1.7.2. Disclaimer
- •5.1.7.3. Forfeiture
- •5.1.8. Property rights and insolvency
- •5.2. Special features of communal property rights
- •5.2.1. Present scope of communal property
- •5.2.1.1. Rights of common
- •5.2.1.2. Customary rights
- •Notes and Questions 5.1
- •5.3. Aboriginal land rights
- •5.3.1. Nature of native title
- •5.3.2. Alienability
- •5.3.3. Abandonment
- •5.3.4. Variation
- •5.3.5. Extent of native title
- •5.3.6. Is native title proprietary?
- •5.3.6.1. Blackburn J’s view in Milirrpum
- •5.3.6.2. The view of the High Court in Mabo (No. 2)
- •5.3.6.3. The Canadian view
- •Notes and Questions 5.2
- •6 Ownership
- •6.1. The nature of ownership
- •6.1.1. The basis of ownership
- •6.1.1.1. Ownership and people
- •6.1.1.2. Ownership and things
- •6.1.2. An outline of the difficulties encountered in any consideration of ownership
- •6.1.2.1. The different meanings of ownership
- •6.1.2.2. Disagreements about ownership
- •6.1.2.3. Contradictions within ownership
- •6.1.2.4. The division of ownership
- •Between different types of owner
- •Between owners and non-owners
- •Notes and Questions 6.1
- •Notes and Questions 6.2
- •6.2. The contents of ownership
- •Notes and Questions 6.3
- •Notes and Questions 6.4
- •6.3. The roles played by ownership
- •6.3.1. As a legal term of art
- •6.3.1.1. Ownership’s role in land
- •6.3.1.2. Ownership’s role in chattels
- •6.3.1.3. Ownership’s role in legislation
- •6.3.2. As an amorphous notion
- •6.3.2.1. Ownership as an organising idea
- •6.3.2.2. Ownership as a contested concept
- •6.4. The limitations of ownership
- •6.4.1. Nuisance
- •6.4.1.1. A brief introduction to nuisance
- •Public nuisance
- •Private nuisance
- •6.4.1.2. The requirements of private nuisance
- •6.4.1.3. Private nuisance and private property
- •What is protected?
- •6.4.1.4. The allocation of entitlements
- •The traditional criteria
- •The role of the market
- •The role of public policy
- •6.4.1.5. The protection of entitlements
- •Property rules
- •Liability rules
- •Rules of inalienability
- •Notes and Questions 6.5
- •Notes and Questions 6.6
- •Notes and Questions 6.7
- •Notes and Questions 6.8
- •Notes and Questions 6.9
- •A. Property and liability rules
- •B. Inalienable entitlements
- •Notes and Questions 6.10
- •6.5. Restrictive covenants
- •Notes and Questions 6.11
- •Notes and Questions 6.12
- •7 Possession
- •7.1. The nature of possession
- •7.1.1. Introduction
- •7.1.2. Possession, ownership and proprietary interests
- •7.1.3. What is possession?
- •7.1.3.1. Factual control
- •The relevance of title
- •The nature of the thing possessed
- •The purpose for which the thing is used
- •Control through agents and control of contents
- •7.1.3.2. Intention required
- •Intention to exclude
- •Effect of ignorance
- •Notes and Questions 7.1
- •7.2. Possession of land
- •7.2.1. Leases and licences
- •7.2.1.1. Why the distinction matters
- •7.2.1.2. Distinguishing leases from licences
- •Notes and Questions 7.2
- •7.2.2. Possession and particular use rights
- •7.2.2.1. General and particular use rights
- •7.2.2.2. Compatibility of particular and general use rights
- •7.3. Possession of goods: bailment
- •7.3.1. Nature of bailment
- •7.3.2. Rights, duties and obligations of bailor and bailee
- •7.4. Protection of possession
- •7.4.1. Protection of property rights by protection of possession
- •7.4.2. Tort and the protection of property rights
- •7.4.2.1. The role of tort in the protection of property rights
- •7.4.2.2. Scope of the property torts
- •Conversion
- •What amounts to a conversion of goods?
- •Remedies
- •Trespass
- •What amounts to trespass
- •Remedies
- •7.4.3. Self-help remedies
- •7.4.3.1. Survival of self-help remedies
- •7.4.3.2. Restrictions and deterrents
- •7.4.4. Unlawful eviction and harassment
- •7.4.5. Trespassing and the criminal law
- •Notes and Questions 7.3
- •8 Fragmentation of ownership
- •8.1. Introduction
- •8.2. Present and future interests
- •8.2.1. Interests in possession, in reversion and in remainder
- •8.2.2. Absolute entitlements, contingent entitlements and mere expectancies
- •8.2.2.1. Absolute entitlements
- •8.2.2.2. Contingent interests and expectancies
- •8.2.2.3. Alternative contingencies
- •8.2.3. When interests vest
- •8.2.4. Alienation, management and control
- •8.2.5. Interests of contingent duration
- •8.2.5.1. Determinable interests
- •8.2.5.2. Interests subject to a condition subsequent
- •8.2.5.3. Distinguishing determinable and forfeitable interests
- •8.2.6. Requirement of certainty
- •8.2.7. Successive interests in land and the doctrine of tenures and estates
- •8.2.7.1. Tenures and estates
- •8.2.7.2. Estates in particular use rights
- •8.2.7.3. Leases
- •8.2.8. Restrictions on the power to create future interests
- •8.3. Legal and equitable interests
- •8.3.1. Origin of the legal/equitable distinction
- •8.3.1.1. Failed formality interests
- •8.3.1.2. Novel interests
- •8.3.2. Legal and equitable interests now
- •8.3.2.1. Interests in land
- •8.3.2.2. Interests in goods
- •8.3.3. The significance of the legal/equitable distinction
- •8.3.4. Three common fallacies
- •8.3.4.1. Equitable interests and beneficial interests
- •8.3.4.2. Over-identification of equitable interests with trusts
- •8.3.4.3. Absolute ownership does not include equitable beneficial ownership
- •Notes and Questions 8.1
- •8.4. Fragmentation of management, control and benefit
- •8.4.1. Corporate property holding
- •8.4.2. Managerial property holding
- •8.4.2.1. Trust
- •The trustee
- •The settlor
- •The beneficiaries
- •8.4.2.2. Administration of property on death
- •8.4.2.3. Bankruptcy and liquidation
- •Notes and Questions 8.2
- •8.5. Group ownership
- •8.6. General and particular use rights
- •Notes and Questions 8.3
- •9 Recognition of new property interests
- •9.1. Why are certain interests regarded as property?
- •9.1.1. The function of property
- •9.1.1.1. As a means of allocating scarce resources
- •9.1.1.2. As an incentive to promote their management
- •9.1.1.3. As a moral, philosophical or political statement
- •9.1.2. The danger of property
- •9.1.3. The requirements of property
- •9.2. The dynamic nature of property
- •9.2.1. The recognition and limits of the covenant as a proprietary interest
- •Notes and Questions 9.1
- •9.2.2. The recognition of a proprietary right to occupy the matrimonial home
- •Notes and Questions 9.2
- •9.3. The general reluctance to recognise new property rights
- •9.3.1. The facts of Victoria Park Racing v. Taylor
- •9.3.2. The views of the majority
- •9.3.3. The views of the minority
- •9.3.4. The significance of the case
- •Notes and Questions 9.3
- •9.4. A comparative confirmation and an economic critique
- •Notes and Questions 9.4
- •9.5. The future of property
- •9.5.1. The new property thesis
- •Notes and Questions 9.5
- •Notes and Questions 9.6
- •10 Title
- •10.1. What we mean by ‘title’
- •10.2. Acquiring title: derivative and original acquisition of title
- •10.2.1. Derivative acquisition: disposition or grant
- •10.2.2. Original acquisition
- •10.3. Relativity of title
- •10.4. Proving title
- •10.4.1. Role of registration
- •10.4.2. Possession as a root of title
- •10.4.3. Provenance
- •10.4.4. Extinguishing title by limitation of action rules
- •10.4.5. Relativity of title and the ius tertii
- •10.5. The nemo dat rule
- •10.5.1. Scope of the nemo dat rule
- •10.5.2. General principles applicable to all property
- •10.5.2.1. Registration and the nemo dat rule
- •10.5.2.2. Dispositions to volunteers
- •10.5.2.3. Powers of sale
- •10.5.3. The application of the nemo dat rule to goods
- •10.5.4. The application of the nemo dat rule to money
- •10.5.5. The application of the nemo dat rule to land
- •10.5.5.1. The general principle
- •10.5.5.2. After-acquired property
- •10.5.5.3. Interests by estoppel
- •10.6. Legal and equitable title
- •11 Acquiring title by possession
- •11.1. Introduction
- •11.2. The operation of adverse possession rules
- •11.2.1. Unregistered land
- •11.2.2. Registered land
- •11.2.3. What counts as ‘adverse’ possession
- •11.2.4. Effect on third party interests
- •11.3. Why established possession should defeat the paper owner
- •11.4. Adverse possession and registration
- •11.5. Good faith and the adverse possessor
- •1. Tension between principle and proof
- •Notes and Questions 11.1
- •A. Lockean entitlement
- •B. Utilitarianism
- •C. Property and personhood
- •B. Property theory and adverse possession
- •Notes and Questions 11.2
- •Notes and Questions 11.3
- •Stale claims in registered land
- •Stale claims under the 2002 Act
- •Distinguishing the ‘good’ squatter from the ‘bad’ squatter
- •Problems of proof
- •Effect of the 2002 Act changes on the incidence of adverse possession
- •The incompatibility argument
- •Notes and Questions 11.4
- •11.6. Goods
- •11.6.1. Taking and theft
- •11.6.2. Protection of title by tort
- •11.6.3. The Limitation Act 1980 and title to goods
- •11.6.4. Finders
- •Notes and Questions 11.5
- •12 Transfer and grant
- •12.1. Derivative acquisition
- •12.2. Formalities
- •12.2.1. Nature and content of formalities rules
- •12.2.2. Registration and electronic transactions
- •12.2.3. Validity and enforceability against third parties
- •12.2.4. Effect of compliance on passing of title
- •12.2.5. Transactions excepted from formalities rules
- •12.2.5.1. Equitable modification of legal rules
- •12.2.5.2. Implied rights
- •12.2.5.3. Rights acquired by possession or prescription
- •12.2.6. Deeds and prescribed forms
- •12.2.7. Why have formalities rules
- •12.2.7.1. The evidentiary function
- •12.2.7.2. The cautionary function
- •12.2.7.3. The channelling function
- •12.2.7.4. Other functions
- •Clarifying terms
- •Publicity
- •State functions
- •12.2.8. Disadvantages
- •12.2.8.1. Hard cases
- •12.2.8.2. Costs
- •Notes and Questions 12.1
- •Notes and Questions 12.2
- •12.3. Contractual rights to property interests
- •12.3.1. Estate contracts and the rule in Walsh v. Lonsdale
- •12.3.2. Application to property other than land
- •12.3.3. The failed formalities rule
- •12.3.3.1. The general rule
- •12.3.3.2. The failed formalities rule as it applies to land
- •12.3.3.3. Failed formalities rule as it applies to other property
- •Notes and Questions 12.3
- •Notes and Questions 12.4
- •12.3.4. Options to purchase, rights of pre-emption and rights of first refusal
- •Notes and Questions 12.5
- •Notes and Questions 12.6
- •12.4. Unascertained property
- •12.4.1. The problem of identification
- •12.4.2. Unascertained goods
- •12.4.3. Other unascertained property
- •Notes and Questions 12.7
- •13 Acquiring interests by other methods
- •13.1. Introduction
- •13.2. The difference between adverse possession and prescription
- •13.3. Why long use should give rise to entitlement
- •13.4. Rationale
- •13.4.1. Ascendancy of the presumed grant rationale
- •13.4.2. Effect of the ‘revolting fiction’
- •13.5. When long use gives rise to a prescriptive right
- •13.5.1. The problem of negative uses
- •13.5.2. Rights that can be granted but not acquired by prescription
- •13.6. User as of right and the problem of acquiescence
- •13.7. The future of prescription
- •Recommendation in favour of abolition
- •Minority view in favour of retention
- •Notes and Questions 13.1
- •14 Enforceability and priority of interests
- •14.1. Rationale of enforceability and priority rules
- •14.2. Enforceability and priority rules
- •14.2.1. The basic rules
- •14.2.2. Impact of registration
- •Notes and Questions 14.1
- •14.3. The doctrine of notice
- •14.3.1. Notice
- •14.3.2. Good faith
- •14.3.3. Effectiveness of the doctrine of notice as an enforceability rule
- •Notes and Questions 14.2
- •14.4. Overreaching
- •14.4.1. Nature and scope of overreaching
- •14.4.2. Operation of overreaching
- •14.4.3. Overreaching the interests of occupying beneficiaries
- •14.4.4. Transactions capable of overreaching beneficiaries’ interests
- •14.4.5. The two-trustees rule
- •Introductory
- •Overreaching
- •Safeguard for beneficiaries
- •Change of circumstances
- •Protecting occupation of property
- •Principal recommendation
- •Notes and Questions 14.3
- •15 Registration
- •15.1. What are registration systems for?
- •15.2. Characteristics of the English land registration system
- •15.2.1. Privacy
- •15.2.2. Comprehensiveness
- •15.2.3. Boundaries
- •15.2.4. Restricted class of registrable interests
- •15.2.4.1. Distinguishing ‘substantive’ registration and ‘protection’ on the register
- •15.2.4.2. Registration
- •15.2.4.3. ‘Protection’ by notice or restriction
- •15.2.4.4. The overriding interest class
- •15.2.5. The mirror, curtain and guarantee principles
- •THE ‘MIRROR PRINCIPLE’
- •THE ‘CURTAIN PRINCIPLE’
- •15.2.6. Consequences of non-registration
- •Notes and Questions 15.1
- •Compulsory use of electronic conveyancing
- •Do-it-yourself conveyancing
- •The objective of the power
- •The application of the power
- •Notes and Questions 15.2
- •15.3. Enforceability and priority of interests under the Land Registration Act 2002
- •15.3.1. Registrable interests
- •15.3.2. All other interests
- •15.3.2.1. Enforceability
- •15.3.2.2. Priority
- •15.4. Overriding interests
- •15.4.1. Justifications for overriding interests
- •15.4.2. Principles to be applied
- •15.4.3. Overriding interests under the 2002 Act
- •15.4.4. Easements and profits
- •15.4.5. Interests of persons in actual occupation: the 1925 Act
- •15.4.5.1. What rights are covered?
- •5.4.5.2. Actual occupation
- •Physical presence
- •Personal occupation
- •Non-residential premises
- •15.4.6. Interests of persons in actual occupation: the 2002 Act
- •15.4.6.1. Causal link between interest and occupation
- •15.4.6.2. Meaning of ‘actual occupation’
- •15.4.6.3. The ‘notice’ element
- •15.4.6.4. Can minors be in actual occupation?
- •15.4.6.5. Occupation of part
- •15.4.7. Complexity
- •Notes and Questions 15.3
- •15.5. Indemnity
- •15.5.1. Function of indemnity
- •15.5.2. Shortfall in the provision of indemnity
- •15.5.3. Cost
- •17 Leases and bailment
- •17.1. Introduction
- •17.2. Leases and bailments compared
- •17.2.1. Consensuality
- •17.2.2. Contract
- •17.2.3. Enforcement
- •17.2.4. Duration and purpose
- •17.2.5. Beneficial use
- •17.2.6. Proprietary status
- •17.2.7. Inherent obligations of the possessor
- •17.3. Leases
- •17.3.1. Nature of the lease
- •17.3.1.1. Duration: the four basic categories
- •The legal position
- •Length of fixed-term leases in practice
- •Commonhold as an alternative to the long residential lease
- •Commercial premises
- •Assignment and premature termination of fixed-term lease
- •17.3.1.3. Periodic tenancies
- •Nature
- •Contractual fetters on notice to quit
- •17.3.1.4. Tenancy at will
- •Tenancy at sufferance
- •Notes and Questions 17.1
- •17.3.1.5. Certainty of duration
- •Notes and Questions 17.2
- •Passage 2
- •Passage 3
- •Passage 4
- •Notes and Questions 17.3
- •17.3.1.7. The tolerated trespasser status
- •Notes and Questions 17.4
- •Notes and Questions 17.5
- •17.3.2. Alienability
- •17.3.2.1. Inherent alienability
- •Alienability of tenant’s interest
- •Subleases and other derivative interests granted by the tenant
- •Effect of termination of lease on derivative interests
- •Alienability of landlord’s interest
- •Concurrent leases and other derivative interests granted by the landlord
- •17.3.2.2. Restrictions on alienability
- •17.3.2.3. Statutory control of contractual restrictions
- •Notes and Questions 17.6
- •17.3.3. Effect of alienation on enforceability
- •17.3.3.1. Introduction: the basic principle
- •Automatic transmission of benefit and burden of proprietary terms: the privity of estate principle
- •Post-assignment liability: the privity of contract principle
- •17.3.3.3. Derivative interest holders
- •17.4. Bailment
- •17.4.1. Essential features of bailment
- •17.4.2. Categories of bailment
- •17.4.3. Characteristics of bailment
- •17.4.4. Liabilities of the bailee
- •Notes and Questions 17.7
- •17.4.5. Is bailment proprietary?
- •17.4.5.1. Possession and exclusivity
- •17.4.5.2. Alienability
- •17.4.5.3. Enforceability against third parties
- •17.4.5.4. Other proprietary indicia
- •18 Security interests
- •18.1. The nature and function of security
- •18.1.1. Nature of security
- •18.1.1.1. Terminology problems
- •18.1.1.2. Legal and equitable rights to redeem
- •18.1.1.3. Creation, attachment and perfection of security
- •18.1.2. Function
- •18.1.2.1. Right of first recourse
- •18.1.2.2. Attachment to the asset
- •18.1.2.4. The hostage function
- •18.1.2.5. Signalling, monitoring and control
- •18.1.3. Efficiency
- •18.1.4. Use of security
- •18.2. Forms of security
- •18.2.1. Property transfer securities: the mortgage
- •18.2.2. Possessory securities: pledge or pawn
- •18.2.3. Hypothecations: the charge
- •18.2.4. Liens
- •18.2.5. Property retention securities
- •18.2.6. Charge by way of legal mortgage
- •Notes and Questions 18.1
- •18.3. Control over the terms of the relationship
- •18.3.1. Equitable supervisory jurisdiction
- •18.3.2. The Kreglinger principles
- •18.3.3. Statutory intervention
- •Notes and Questions 18.2
- •18.4. Enforcement of security
- •18.4.1. Remedies
- •18.4.2. Possession
- •18.4.3. Sale
- •18.4.3.1. When the power arises
- •18.4.3.2. When the power becomes exercisable
- •18.4.4. Duties on enforcement
- •General principles
- •The handling of arrears: initial action taken by lenders
- •Alleviating arrears problems
- •The levying of charges on accounts in arrear
- •Methods of obtaining possession
- •Proceeds of sale
- •Indemnity insurance
- •Loss recovery procedures
- •Notes and Questions 18.3
- •16 Co-ownership
- •16.1. Introduction
- •16.2.1. Basic concepts
- •OWNERSHIP IN COMMON
- •JOINT OWNERSHIP
- •CONCURRENT INTERESTS IN FINANCIAL ASSETS
- •CONCURRENT INTERESTS IN LAND
- •Notes and Questions 16.1
- •Unity of possession
- •Unity of interest
- •Unity of title
- •Unity of time
- •16.2.2. A comparison of joint tenancies and tenancies in common
- •16.2.2.1. Four unities versus one
- •Notes and Questions 16.2
- •16.2.2.2. The right of survivorship (and how to avoid it)
- •Severance at common law
- •16.2.2.3. Acting upon one’s share
- •16.2.2.4. Mutual agreement
- •16.2.2.5. Mutual conduct
- •16.2.2.6. Statutory severance
- •Notes and Questions 16.3
- •16.2.3. Use of co-owned property
- •16.2.3.1. Land
- •12 THE RIGHT TO OCCUPY
- •13 EXCLUSION AND RESTRICTION OF RIGHT TO OCCUPY
- •Notes and Questions 16.4
- •16.2.3.2. Chattels
- •Notes and Questions 16.5
- •16.2.4. Sale and other dispositions of co-owned property
- •16.2.4.1. Land
- •Notes and Questions 16.6
- •16.2.4.2. Chattels
- •16.3. Other forms of co-ownership
- •16.3.1. Commonhold
- •16.3.2. Unincorporated associations
- •Notes and Questions 16.7
- •16.3.3. Extending the limits of co-ownership: public trusts
- •Bibliography
- •Index
424 Property Law
cannot be confined to adverse possession. Whatever assumptions we choose about the long run and the role of the utility of future generations, etc., it is hard to construct a utilitarian argument concluding that an entitlement gained through first possession is fixed for all time. Utilitarianism is too empirical for such absolutes. For utilitarianism, ‘pragmatics’ is ‘high principle’. All we have is some giant balance weighing the welfare gain from certainty of planning and transacting, and from not disturbing the ‘subjective’ value of developed expectations of continued control over resources, against the welfare losses from holdouts against land reform, or implementation of new technology, or the demoralization of the have-nots vis-a`-vis the haves, etc. The advantage of Lockean (and Nozickian) natural rights theory is that it seems proof against non-contractual redistribution. The disadvantage is that it cannot account for adverse possession, which it appears the functioning legal system – the enforcer of those ‘absolute’ entitlements – cannot do without. Hence Epstein’s tension. Does he intend to defend a pluralist metaethic? (Are absolute natural rights somehow involved in a paradoxical coexistence with utility maximization as the sole good?) Or does he intend to abandon natural rights theory and face the difficulties of utilitarian ethics? Epstein has not yet squarely faced this problem.
B. Property theory and adverse possession
Now let me complicate the question by throwing another ‘ethic’ into the hopper. For personality theory, adverse possession is easy, at least if one is envisioning possession by natural persons who successively occupy land. The title follows the will, or investment of personhood. If the old title holder has withdrawn her will, and the new possessor has entered, a new title follows. Title is temporal because the state of relations between wills and objects changes.
[She gives Hegel’s own formulation of this in a footnote:]
‘The form given to a possession and its mark are themselves externalities but for the subjective presence of the will which alone constitutes the meaning and value of externalities. This presence, however, which is use, employment, or some other mode in which the will expresses itself, is an event in time, and what is objective in time is the continuance of this expression of the will. Without this the thing becomes a res nullius, because it has been deprived of the actuality of the will and possession. Therefore, I gain or lose possession of property through prescription’ (Hegel, Philosophy of Right, x 64 (T. Knox trans., 1952)). The result of this theory is to attach normative force, and not merely practical significance, to the bond developing between adverse possessor and object over time; and to attach normative force, as well, to the ‘laches’ of the title holder who allows this to happen.
Notes and Questions 11.2
1.Do you agree with Radin’s argument that Epstein’s utilitarian justification for adverse possession is incompatible with his general natural rights theory of property?
Acquiring title by possession 425
2.Compare Radin’s personality theory argument for protecting adverse possessors with the arguments put forward by Hume and Bentham quoted in Chapter 4 above. Does the point made by Bentham argue for or against removing and conferring title by adverse possession?
3.Commenting on Radin’s paper, Ellickson (in Merrill (ed.), ‘Symposium’, p. 814) points out that there is a utilitarian advantage in acknowledging the
strength of the link between a person and a thing they have come to regard as their own, in relation to land at least:
A utilitarian should see value in protecting people’s territorial roots. The notion of territoriality is extremely important in biology. The sociobiologists who have ventured to apply biological theory to humans have understandably created controversy. Yet it is plausible that humans are to some degree territorial, and that this tendency has helped shape adverse possession law. Someone who resides or works on a particular piece of land has, in Peggy Radin’s terms, invested his personhood in it, or, in my terms, is vulnerable to suffering demoralization costs upon being dispossessed from the property . . . [In this paper] I therefore treat damage from uprooting as a demoralization cost. During the early stages of adverse possession, I assume demoralization considerations favor the original owners, but as time passes the adverse possessor can lay claim to deeper roots.
See further below, where he argues that this, together with other factors, can be utilised as a means of calculating an optimal length for limitation periods.
Extract 11.3 Carol M. Rose, ‘Possession as the Origin of Property’ (1985) 52
University of Chicago Law Review 73
[In adverse possession] we seem to have an example of a reward to the useful laborer at the expense of the sluggard. But the doctrine is susceptible to another interpretation as well; it might be designed, not to reward the useful laborer, but to require the owner to assert her right publicly. It requires her to make it clear that she, and not the trespasser, is the person to deal with if anyone should wish to buy the property or use some portion of it.
Courts have devoted much attention to the elements of a successful claim of adverse possession. [She then gives a number of examples from American cases.] No matter how much the doctrine of adverse possession seems to reward the one who performs useful labor on land at the expense of the lazy owner who does nothing, the crucial element in all these situations is, once again, communication . . .
In Illinois, for example, an adverse possessor may establish his claim merely by paying taxes on the property, at least against an owner who is familiar with real estate practice and records. Why is this? Naturally, the community likes to have taxes paid and is favorably disposed towards one who pays them. But more important, payment of taxes is a matter of public record, and the owner whose taxes are paid by someone else should be aware that something peculiar is happening. Just as important, the public is very likely to view the taxpayer as the owner. If someone is paying taxes on my
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vacant lot or empty house, any third person who wants to buy the house is very likely to think that the taxpayer is the owner because people do not ordinarily pay taxes on land they do not own. If I want to keep my land, the burden is upon me to correct the misimpression. The possibility of transferring titles through adverse possession once again serves to ensure that members of the public can rely upon their own reasonable perceptions, and an owner who fails to correct misleading appearances may find his title lost to one who speaks loudly and clearly, though erroneously . . .
[She then considers why it is that property owners should make and keep their communications clear (see Extract 4.4 below) and argues that the communication must be in language that is understood. She illustrates this by reference to the American case, Pierson v. Post, 3 Cai R 175, 2 Am Dec 264 (1805), discussed in Chapter 4 above.]
The dissenting judge in Pierson v. Post may well have thought that fox hunters were the only relevant audience for a claim to the fox; they are the only ones who have regular contact with the subject-matter. By the same token, the mid-nineteenth- century California courts gave much deference to the mining-camp customs in adjudicating various Gold Rush claims; the Forty-Niners themselves, as those most closely involved with the subject, could best communicate and interpret the signs of property claims and would be particularly well served by a stable system of symbols that would enable them to avoid disputes.
The point, then, is that ‘acts of possession’ are, in the now fashionable term, a ‘text’, and that the common law rewards the author of that text. But, as students of hermeneutics know, the clearest text may have ambiguous subtexts. In connection with the text of first possession, there are several subtexts that are especially worthy of note. One is the implication that the text will be ‘read’ by the relevant audience at the appropriate time. It is not always easy to establish a symbolic structure in which the text of first possession can be ‘published’ at such a time as to be useful to anyone. Once again, Pierson v. Post illustrates the problem that occurs when a clear sign (killing the fox) comes only relatively late in the game, after the relevant parties may have already expended overlapping efforts and embroiled themselves in a dispute. Very similar problems occurred in the whaling industry in the nineteenth century: the courts expended a considerable amount of mental energy in finding signs of ‘possession’ that were comprehensible to whalers from their own customs and that at the same time came early enough in the chase to allow the parties to avoid wasted efforts and the ensuing mutual recriminations.
Some objects of property claims do seem inherently incapable of clear demarcation – ideas, for example. In order to establish ownership of such disembodied items we find it necessary to translate the property claims into sets of secondary symbols that our culture understands. In patent and copyright law, for example, one establishes an entitlement to the expression of an idea by translating it into a written document and going through a registration process – though the unending litigation over ownership of these expressions, and over which expressions can even be subject to patent or copyright, might lead us to conclude that these particular secondary symbolic systems do not always yield widely understood markings. We also make up secondary symbols
Acquiring title by possession 427
for physical objects that would seem to be much easier to mark out than ideas; even property claims in land, that most tangible of things, are now at their most authoritative in the form of written records.
It is expensive to establish and maintain these elaborate structures of secondary symbols, as indeed it may be expensive to establish a structure of primary symbols of possession. The economists have once again performed a useful service in pointing out that there are costs entailed in establishing any property system. These costs might prevent the development of any system at all for some objects, where our need for secure investment and trade is not as great as the cost of creating the necessary symbols of possession.
Notes and Questions 11.3
In Rose’s rationale, adverse possession is justified by reference to acts of the owner, rather than by reference to what is done by the adverse possessor. In relation to land, does modern English law show a tendency to concentrate on what the owner did or on what the adverse possessor did? See section 11.4 below. Is the same balance apparent in the way English law treats goods? See section 11.5 below.
Extract 11.4 Alison Clarke, ‘Use, Time and Entitlement’ (2004) 57 Current Legal Problems 239
A D V E R S E P O S S E S S I O N
In English law, title derives from possession. A person who takes de facto exclusionary physical control of land thereby acquires a right to possession of the land which the law protects against everyone except the true owner. The only right that a squatter ever acquires at common law is a title to the land based on its possession of the land, and it acquires this right immediately, simply by taking exclusionary physical control and at the point when exclusive physical control is taken. At common law lapse of time does nothing to mature or perfect this right – all it does is to eliminate the rival title of the true owner. Adverse possession is simply part of the law of limitation of actions, eliminating the right of the true owner to bring an action for possession if the right is not exercised within 12 years of it accruing. More importantly for present purposes, not only is the squatter not required to prove that she has positively used and enjoyed the land over a period of time, it is irrelevant whether or not she has ever made positive use of it. All she has to demonstrate is that she has excluded all others.1 This is what robs a Lockean justification of adverse possession of much of its force in our legal
1 T. L. Anderson and P. J. Hill, ‘The Evolution of Property Rights’, in T. L. Anderson and
F. S. McChesney (eds.), Property Rights: Co-operation, Conflict, and Law (Princeton, 2003),
pp. 135–6, note that, in the nineteenth-century American West under various homesteading laws ownership of frontier land was allocated to those who took first possession and took up occupancy (typically the acreage to which title could be claimed was limited) and made some specified use of (amounting to an investment in) the land, such as by building cabins, digging irrigation ditches, planting trees etc. Use does therefore appear to have been necessary for the claim to mature into a legal title. The adverse economic effects of this (premature settlement decisions, optimistically
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system: the law does not award the land to the squatter rather than the ‘true’ owner because the former has demonstrated that she has made productive use of an unused or underused resource. The most one can say is that a ‘true’ owner who did not notice, or object to, being deprived of use of a resource for 12 years was making less productive use of it (in the short term, at any rate) than the squatter who at least bothered to take and keep control over it for a sustained period.
In other words, adverse possession simply rewards long possession by eliminating rival titles. If it also rewards long use and enjoyment, it does so only incidentally.
This absence of identity between possession and use is even more marked in the personal property equivalent of adverse possession. Although such questions are, oddly, located in personal property law under the heading of ‘finding’, it is now accepted that even a wrongful taker of possession of goods immediately acquires a title based on possession which is instantly enforceable against everyone but the person with a better right to possession, such as the true owner. It is the taking of physical control that does this, not long (or indeed any) use. The elimination of the title of the ‘true’ owner is a question of the disentangling of the complex limitation rules applicable to the tort of conversion, where the only relevant factor is the nature of the taker’s act of taking. The question of what use was made of the thing since then is irrelevant.
A D V E R S E P O S S E S S I O N A N D T H E L A N D R E G I S T R A T I O N A C T 2 0 0 2
In the case of adverse possession, the Land Registration Act 2002 has made it dramatically more difficult for long use to ripen into unchallengeable title over time. Why has this been done? The 2002 Act implements recommendations made by the Land Registry and the Law Commission in their joint report, Land Registration for the Twenty-First Century: A Conveyancing Revolution (Law Commission Report No. 271, 2001, ‘the 2001 Report’) following publication of a joint consultation paper, Land Registration for the Twenty-First Century: A Consultative Document (Law Commission Consultation Paper No. 252, 1998, ‘the 1998 Consultative Document’). In the 1998 Consultative Document and the 2001 Report two justifications for the changes can be discerned, although they are not always clearly distinguished from each other.
The first is, in essence, that the law of adverse possession is a bad thing per se, capable of operating harshly and disproportionately in practice, justifiable in unregistered land because it facilitates unregistered conveyancing, but no longer justifiable when that rationale is removed by registration of title (the ‘necessary evil’ argument). The second is that the law of adverse possession is incompatible with the principle of indefeasibility underlying registration of title (the ‘incompatibility’ argument). Each of these is considered below.
mis-estimating the productivity of the land, resulting in up to 80 per cent relinquishment of claims in some areas) are also noted: ibid. See also D. Lueck in ‘First Possession as the Basis of Property’ in
Property Rights: Co-operation, Conflict, and Law, ibid., 210, and also G. D. Libecap in ‘Contracting for Property Rights’ in the same volume at 150 and 156, noting similar respect given (by law and custom) to ‘beneficial use’ over and above physical control in Brazilian law.
Acquiring title by possession 429
T H E N E C E S S A R Y E V I L A R G U M EN T
As far as the first justification is concerned the basic premise – and for present purposes the most significant point – is that it is wrong in principle that a title should be defeated by a long-standing failure to take action to evict a squatter. Here, if anywhere, is the point at which one might expect a discussion of the fundamental question of whether long use should give rise to entitlement, and, if it should, whether the entitlement should trump that of the pre-existing title holder. However, the question is given no serious consideration in either the 1998 Consultative Document or the 2001 Report. Instead, the focus is on what is seen as the unfairness to the title holder of losing title through inaction.
So, for example, in paragraph 10.5 of the 1998 Consultative Document the law of adverse possession is described as ‘at least in some cases, tantamount to sanctioning a theft of land’. This essentially hostile view appears again in the 2001 Report, most notably in paragraphs 2.70 and 2.71, the introductory explanation of why the drastic curtailment of the right of adverse possessors to acquire an unchallengeable title is being recommended.2 These passages deserve detailed attention here.
Paragraph 2.70 starts by pointing to a perceived problem of public antagonism:
. . . at the practical level, there is growing public disquiet about the present law. It is perceived to be too easy for squatters to acquire title . . .
Evidence given to substantiate this amounts to no more than a single Daily Mail headline:3 ‘Swat the squatters: Owners to be protected from home hijackers’,4 plus a dictum of Neuberger J, speaking at first instance in J. A. Pye (Oxford) Ltd v. Graham [2002] Ch 676, 710. Neuberger J’s comments, as hostile to the institution of adverse possession as those of the Land Registry and the Law Commission, do not, however, purport to represent the views of anyone other than himself:
A frequent justification for limitation periods generally is that people should not be able to sit on their rights indefinitely, and that is a proposition to which at least in general nobody could take exception. However, if as in the present case the owner of land has no immediate use for it and is content to let another person trespass on the land for the time being, it is hard to see what principle of justice entitles the trespasser to acquire the land for nothing from the owner simply because he has been permitted to remain there for 12 years. To say that in such circumstances the owner who has sat on his rights should therefore be deprived of his land appears to me to be illogical and disproportionate. Illogical because the only reason that the owner can be said to have sat on his rights is because of the existence of the 12-year limitation period in the first place; if no limitation period existed he would be
2 A fuller explanation appears in Part XIV of the 2001 Report, further reference to which is made below.
3 To be precise, the evidence provided is a reference forward to paras. 14.1 and 14.2 of the Report: these paras. refer to the Daily Mail headline and the Neuberger J dictum quoted here in this para., plus some paras. in Part X of the 1998 Consultative Document which are not in point here.
4Appearing in the Daily Mail of 2 September 1988. Even this, however, turns out to be selfreferential: the article concerned the Law Commission and Land Registry’s own 1998 Consultative Document.
430 Property Law
entitled to claim possession whenever he actually wanted the land . . . I believe that the result is disproportionate because, particularly in a climate of increasing awareness of human rights including the right to enjoy one’s own property, it does seem draconian to the owner and a windfall for the squatter that, just because the owner has taken no steps to evict a squatter for 12 years, the owner should lose 25 hectares of land to the squatter with no compensation whatsoever.
Reliance on this dictum is all the more surprising because although it is quoted in full (not at this point in the 2001 Report but later on, at the opening of Part XIV which sets out the detailed recommendations on adverse possession, where it is said to ‘encapsulate the concerns’ that prompted the recommendations), at no point in the Report is it made clear that the Court of Appeal expressed the opposite view in the same case (at [2001] EWCA Civ 117, paragraph 52) reversing the decision of Neuberger J and also rejecting a submission that the law of adverse possession contravenes Article 1 of the First Protocol of the European Convention on Human Rights. In this context, Mummery LJ in the Court of Appeal said:
52. . . . (2) [The provisions of the Limitation Act 1980 extinguishing the title of the paper owner] do not deprive a person of his possessions or interfere with his peaceful enjoyment of them. They deprive a person of his right of access to the courts for the purpose of recovering property if he has delayed the institution of his legal proceedings for 12 years or more after he has been dispossessed of his land by another person who has been in adverse possession of it for at least that period. The extinction of the title of the claimant in those circumstances is not a deprivation of possessions or a confiscatory measure for which the payment of compensation would be appropriate: it is simply a logical and pragmatic consequence of the barring of his right to bring an action after the expiration of the limitation period.
(3) Even if, contrary to my view, that Convention right potentially impinges on the relevant provisions of the 1980 Act, those provisions are conditions provided for by law and are ‘in the public interest’ within the meaning of article 1. Such conditions are reasonably required to avoid the real risk of injustice in the adjudication of stale claims, to ensure certainty of title and to promote social stability by the protection of the established and peaceable possession of property from the resurrection of old claims. The conditions provided in the 1980 Act are not disproportionate; the period allowed for the bringing of proceedings is reasonable; the conditions are not discriminatory; and they are not impossible or so excessively difficult to comply with as to render ineffective the exercise of the legal right of a person who is entitled to the peaceful enjoyment of his possessions to recover them from another person who is alleged to have wrongfully deprived him of them.
This recognition by the Court of Appeal that there is a positive value in protecting ‘established and peaceable possession of property from the resurrection of old claims’ finds no echo in the Land Registry and Law Commission argument. Instead, the 2001 Report piles on the opprobrium by adding (still at paragraph 2.70):
Acquiring title by possession 431
Precisely because it is so easy, adverse possession is also very common. Although the popular conception of a squatter is that of a homeless person who takes over an empty house (for whom there is understandable sympathy) the much more typical case in practice is the landowner with an eye to the main chance who encroaches on his or her neighbour’s land.
Again, no statistical or even anecdotal evidence is provided to substantiate any of these assertions – i.e. that adverse possession is easy and very common, and that the typical squatter is a ‘landowner with an eye to the main chance’. In fact, an acquaintance with recent case law – a poor substitute for empirical research – would suggest that, if anything, the popular conception of the typical squatter is probably nearer the mark than that of the Land Registry/Law Commission. An electronic database search (in Westlaw) reveals 44 adverse possession cases decided in the years 2000 and onwards. On a very rough categorisation, 6 of these concerned a ‘landowner with an eye to the main chance’ who encroached on to his neighbour’s land. One could perhaps add to this group another two cases which appeared to involve casual trespass by strangers (as opposed to neighbours), taking over derelict land for their own use. 10 cases, on the other hand, concerned a ‘homeless person taking over an empty house’, and another 17 concerned occupiers whose possession either was or had been authorised at some stage (former tenants, prospective purchasers, relatives living in houses owned by a deceased whose estate had never been administered, directors or their relatives living in company owned property, a co-owner, and a former owner whose title had been divested by compulsory purchase). Four more appeared to arise out of genuine disagreement over boundaries, and another four arose where a parcel of land had been wrongly included in or excluded from a conveyance.5 All of this of course proves nothing, in the absence of evidence of how often adverse possession in each category results in litigation (we know, for example that many local authorities have procedures for regularising squatting in empty residential property by granting licences or tenancies to established squatters), and evidence that this sample is representative. It does, however, perhaps leave the onus on the Land Registry and the Law Commission to explain how they arrived at their model of the typical squatter as the neighbouring landowner ‘with an eye to the main chance’.
However, resting on this assumption, in paragraph 2.71 of the 2001 Report the Law Commission and Land Registry then question the soundness of the policy against allowing stale claims and allowing owners to sleep on their rights:
. . . it is possible for a squatter to acquire title by adverse possession without the owner realising it. This may be because the adverse possession is either clandestine or not readily apparent.6 It may be because the owner has more land than he or she can realistically police. Many public bodies fall into this category. A local authority, for example, cannot in practice keep an eye on every single piece of land that it owns to ensure that no one is encroaching on it.
5 Another two arose out of reverter of titles under the School Sites Act 1841.
6Here, a case is given to substantiate the proposition, albeit one reported 123 years ago: Rains v. Buxton (1880) 14 ChD 537, concerning adverse possession of a cellar.
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Now one might think that, in popular opinion, this is precisely what local authorities should be doing. Even while keeping the focus wholly on the paper owner and ignoring the merits, if any, of the person who has meanwhile been making use of the land, land management practices that allow a public landowner not to notice that it has an adverse possessor for 12 years are difficult to justify, however great its unused land stock. The Law Commission and the Land Registry, however, take a different view. They cite in support of this proposition – i.e. as a case in which a local authority did not realise that a squatter was acquiring title to a piece of land because it could not in practice keep an eye on it – a well-known case, Buckinghamshire County Council v. Moran [1990] Ch 623 which they describe as involving ‘a wealthy businessman who enclosed a piece of land that was owned by a County Council and was being kept by them as a ‘‘land bank’’ for future road-widening purposes’.
Leaving aside the trivial detail that the land appears to have been acquired in connection with a proposed bypass rather than for road-widening,7 a reading of the reported Court of Appeal decision in Buckinghamshire County Council v. Moran [1990] Ch 623 reveals that what the case actually involved was a plot of land bought by the Council thirty years before they finally got round to bringing possession proceedings against Moran. The Council had done nothing to the land since acquiring it. They had not even fenced it off from Moran’s adjoining garden. This was despite repeated requests from Moran’s predecessor complaining about children trespassing on the land who were annoying him. So to call it a ‘land bank’ is perhaps slightly overdignifying it. Moreover, far from failing to notice that someone was encroaching on the land, the Council had been in sporadic correspondence with Moran himself about it for more than 10 years before finally starting proceedings, and had known for at least five years before that that the land was being maintained by Moran’s predecessor as part of his garden. Also, Moran did not enclose the land himself. This was done by the couple who sold him the house. It appears that Moran bought their possessory title to the land when he bought the house, which is not quite the same thing as clandestine land-stealing. The only thing the law report fails to reveal is whether or not he was a wealthy businessman.8
For present purposes, however, the significant point is that the Land Registry and Law Commission did not think it worth even considering whether those who had been making use of the land for thirty years thereby acquired any moral claim to it that might outweigh the claims of the title holder who had no use for it.
Instead, the Land Registry and Law Commission conclude paragraph 2.71 of the 2001 Report by giving other examples of what they perceive to be inappropriate losses of title through the doctrine of adverse possession, not justified by the principle that defendants should be protected from stale claims and claimants should not sleep on
7The 1998 Consultative Document is more accurate: see fn 50 to para. 10.19 of the 1998 Consultative Document.
8It does reveal that he originally moved into the house with his mother but later moved out (so presumably could afford to live separately from his mother), and that Conservative Party functions were held in the garden (so presumably one or both were Conservative Party members) – perhaps not conclusive evidence of wealth.
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