Land Law

Here are a bunch of definitions and terms that come together with land laws: the right to use, alienate or exclude others from land.

Real property is a legal term. It’s real property (real estate) because the property is permanent, immovable, and fixed to the land.

Personal property is movable property.

A hereditament is inheritable property. (It comes from Latin, which is probably why it sounds so French.)

Corporal hereditaments are tangible, can be seen and touched.

Incorporeal hereditaments are intangible, like easement (the right to use another’s property).

Rights

Proprietary right / legal right / rights in rem are rights (rules?) that apply to everyone and follow physical (corporeal!) objects, like a house.

• Right
  • of possession/enjoyment
  • of exclusion (of others)
  • of alienation / to assign / of disposition
  • to rent out
  • to pledge property as collateral for bank mortgage.

Personal right / licence / rights in personam apply only to specific people.

(proprietary is everyone, personal is just against you/him/her/them.
Exigibility — the line drawn between you vs everyone or you vs someone.)

Licence is a permission. Does not carry to new owners. (see licence below.)

A tenancy agreement is both personal and proprietary (between tenant and landlord, and the agreement carries even after the property is sold). While a licence to pet the guard dog doesn’t continue with a new owner.

(007’s licence to kill doesn’t just transfer to the new 007 then.)

Property right must be defined, have a level of permanence, and third parties can identify and assume it is there.

Interest

is a right, like ownership.

Property interest deals with rights in property — ownership percentage, duration, right of survivorship and transfer.

Legal interest applies to everybody. (everyone must listen/follow.) The name is in the property title, certificate of ownership, register, tenancy agreement.

Equitable interest only applies to some, like a beneficiary, and can be overwhelmed by an equity’s dealing.

Equity’s dealing — a bona fide (genuine, honest) buyer gives consideration/value (pays) with no notice of the equitable rights, expressed or implied.

• (?) This happens when the legal owner cannot keep the benefit of the property for themselves, like in a trust.

Land

Land is the surface, the airspace, the underground, the landscape and the structures. The proprietorship of land includes natural rights to air, light, water, highway/road.

Airspace to a height necessary for ordinary use and enjoyment (about the height of a tree.)

Subterranean space up to 30 metres below the Singapore Height Datum (historical mean sea level).

Fixtures versus Fittings

Real property is the land, buildings, and anything affixed to it, like…

Fixtures are chattel (things) attached to become part of the premises. Removing it will cause damage. Both real and personal property. Ownership transfers.

Fixture test:

• Degree/Method of annexation
  • permanently attached to land and not resting on its own weight? fixture.
  • resting on its own weight and can be moved? fitting
• Purpose of annexation
  • improves the land in convenience and use? fixture.
  • just for own enjoyment? fitting
    attached so it can be used better? fitting (tv, painting, tapestry)

Personal property / Fittings are movable chattel (things), not permanently attached, and will not be passed down.

Chattel officially means item or thing, and is used “chattel personal”, but it also refers to movable personal property, so there will be times “chattel” just means personal property/fittings. :/

In buying, to turn a fitting into a fixture, to be sold with the property, create an inventory list with the Option to Purchase. It’s the buyer who must say something is a fixture so seller does not remove designer lamps and chandeliers. (prevents conflict.)

In renting…

IRAS property tax allows “rent” for fittings to be deducted, but not for fixtures when calculating annual value of a property. (furniture rental can be deducted.)

Landlord’s fixtures come as part of the premises from the beginning — installed by the landlord or tenant — and the tenant has no right of removal.

Tenant’s fixtures includes trade, ornamental, agricultural fixtures, of which the tenant has right of removal. (again, no serious damage to land, or if damaged, tenant has to repair and pay)
[trade fixtures are also “chattel fixtures”. 🙂 ]

Usually, lease agreements ask for “re-instatement”, so all fixtures and fittings must be removed. If a trade fixture is left behind, it becomes the landlord’s property.

Also, a Malay house on stilts is not a fixture. And a landlord can just ask for something to be removed if permission was not given in the first place.

Lot Base System

A lot is a unit of ownership (land or strata unit).

Lot Base System — a complete inventory of all lot numbers in Singapore (history, amalgamation, subdivision). Every land parcel is identified by:

• Town Subdivision (TS) — TS1-TS30 in the city area
• Mukim (MK) — MK1-MK34 in “rural” districts

lot numbers / land lots — numbers for land

• owner — proprietor
• holds Certificate of Title (CT)
  • Land Titles Act
• tenants-in-common can apply for Certificates of Title for their respective shares

strata lot numbers — numbers for units in a subdivided building

• owner — subsidiary proprietor
• holds Subsidiary Strata Certificate of Title (SSCT)
  • Land Titles Strata Act

issued by SLA.

[Not part of this section, but
Subsidiary Certificate of Title (SCT) — HDB issues Lease Titles in the form of a Deed (legal contract).]

A lot cannot sit on more than one TS or MK, so the SLA will redefine boundaries.

New lot numbers when:

• alienation or acquisition
• amalgamation or subdivision
• new reclaimed land, foreshore, airspace, subterranean lot

Lots:

• Land lots TS/MK1+, TS/MK90000+
• Airspace lots 70000+
• Subterranean lots 80,000+
• Strata lot “U” prefix. U1+
• Accessory lot “A” prefix. A1+ (a strata lot attached to another strata lot, must be sold together. think car park. not common area, no share value.)

found in…

Survey Maps

Cadastral maps — accurate boundaries (line map drawings of lots of lots)

Registrar of Title Plans (RT) — airspace, subterranean lot, reclaimed land, foreshore structure.

Certified Plans (CP) — land boundaries and areas (line drawing just of the lot)
Strata Certified Plans (CPST) — strata lot boundaries and areas

Maps and plans maintained by the SLA’s…

INLIS — Integrated Land Information System

Provides Land Title searches with map or text info:

• property title, ownership
• lot history and particulars
• caveat index
• historical info
• images of instruments, and index to land books, caveat books, deeds.

(To practising agents, always get the more expensive INLIS search report, because that will list caveats and encumbrances.)

Strata Titles

The vertical subdivision of land into lots and common property, with each lot a different title.

Share value of each strata lot:

• set according to strata area (size of unit)
• determines voting right
• share of common area (not use)
• amount of maintenance fee
• recorded in
  • Schedule of Entitlement
    • used to issue
  • Subsidiary Strata Certificate of Title
    • for units in a strata subdivided building
  • Strata Roll kept by the Management Corporation Strata Title (MCST)

Tenure and Estate

Tenure — when all land belongs to State, ownership is not of the land, but an estate in land.
(freehold or leasehold estate [detail])

Estate — duration of ownership.
(freehold in Fee Simple, in Perpetuity, leasehold 30-9,999 years)

Freehold — immobile land/property held “forever”
(unless govt. compulsorily acquires it)

• Estate in Fee Simple / Grant in Fee Simple
  • issued by State, grants ownership, right to use (do whatever), ownership descends to heirs. Property Tax payable.
    • only available to current properties
• Estate in Perpetuity / Statutory Land Grant (SLG)
  • issued by State, subject to State Lands Act. More than Property Tax payable.
    • government’s right
      • access for infrastructure, oil, earth
    • owner’s duties
      • maintain boundary landmarks
    • (easement?) right of way by neighbours to nearest public road

Leasehold — fixed/defined duration of ownership

• Government Land Sales (GLS) for residential (HDB), condo/apartments (URA): 99 years leasehold
• Private leases 999 or 9,999 years lease
• JTC/HDB: 30/60 years lease
• MUIS properties: 199 years lease

Land Tenure examples: freehold estate in fee simple, or leasehold estate with a duration of 99 years.

Life estate — for lifetime (private arrangement, then there is a reversion of the property to the original owner, who has future interest to the property. Gift, Trust, Succession, Future Interest)

The State has reversionary and future interest as the ownership of land returns to the State.

All Government Land Sales for residential are 99 years leasehold now. No more freehold land.

State Lands

The government has the right to compulsorily acquire private property land for public purposes, and will pay market value compensation equal to a bona fide purchaser. Future development that may increase land value is not considered. Past development yes.

Residents will have one year to deliver vacant possession.

Remnant land — small odd lots that cannot be developed, private landowners encouraged to buy (bid) and amalgamate to their land.

If no one claims a land within three years, it reverts to the State. Even if occupied.

Covenants on State Land

A covenant is a legal agreement — a promise — between two parties, a
covenator (promise-make-or) and a
covenatee (promise-receive-ee).

State land is granted or leased on covenants and conditions, inserted into property titles.

Covenantor is the person making the promise. (promise-make-or)

Covenantee is the person to whom the promise is made. (promise-receive-ee)

State land is granted or leased on covenants and conditions.

Implied covenants in statutory grant include:

• pay rent
• maintain landmarks and boundaries
• no burials
• no lease longer than seven years

Covenants run with land. They do not expire.

Implied conditions include:

• government’s right to access for infrastructure, mineral oil, earth, clay, gravel…
• neighbour’s right of access to public road (easement?)
• in case of breach, other than rent and landmarks, the land is forfeited.

State covenants cannot be removed by court order, but some may be removed by paying the…

Land Betterment Charge

(this section was called Differential Premium.)

Land Betterment Charge (LBC) replaces Differential Premium (DP), Development Charge (DC) and Temporary Development Levy (TDL), and is by the Singapore Land Authority.

The name has changed, but the idea remains the same. And because it’s rather new, there’s still a reference to the old Development Charge (DC) rates.

(1 August 2022)

The difference in land value between current and proposed use/intensity, paid to remove restrictive state covenants (zoning, plot ratio, height restriction).

(State land is sold at a price based on proposed use. If proposed development results in an increase in land value = pay.)

Land Betterment Charge rates for leasehold properties take into account remaining lease with a Leasehold Table.

Differential Premium — leasehold land (old)
Development Charge — freehold land (old)
Land Betterment Charge — both (new)

Land Betterment Charge:

1. Table of Rates method
   • development ceiling – development baseline =
   • old(DC rate x Gross Floor Area) – new(DC rate x Gross Floor Area) =
   • (value of proposed development – currently approved development = )

2. Valuation method
   • the Chief Valuer of the Inland Revenue Authority of Singapore (IRAS) will calculate the case.

Paying differential premium for the enhancement in land value means an exemption from paying the development charge.

Explained better here: Land Planning and Development.

Govt links:

• Lease Management (sla.gov.sg)
• Microsoft Word – Circular – Draft V1.15 (30 Jun 2022)_URA_SLA_URA(amendedFAQ9)typo

Renting State Property/Land

Tenancies are fixed term rentals of State properties (2/3-year term).

• ex-schools, community centres, camps.

Temporary Occupation License is a license for temporary use of land, renewable monthly or yearly.

• land for showflats, worksites…
• encroachment of private property into state land.

Non-Renewable Temporary Occupation License — a one-off event, no more than three months.

• land for pasar malams, carnivals, religious events, wakes…

by SLA, mostly.

Agent-managed properties can be rented from agents. Still under SLA.

Rights in Another’s Land

Encumbrance is a right / interest / liability that may reduce property value but allows for title passing.

• lien: a legal claim on assets, access to property, if debts are not paid
• mortgage: a loan, the property is collateral
• easement: legal right to se another’s land for limited purpose
• restrictive covenant: agreement the restricts future use of property
• unpaid property tax.

Licence

Licence is granted by licensor to licensee as an agreement between two.

• no legal interest (not in title)
• no property right (not definable)
• a personal interest, and not assignable
• just a permission that would usually interfere with licensor’s property right
• terminates when
  • revoked
  • expiry
  • licencee dies
  • land is transferred
• then it’s trespass

(licence make-or, licence receive-ee)

Bare licence — permission to enter land.

• ~ “come on over,
  come on over baby” ~

Contractual licence — for specified period, granted by contract with valuable consideration (pay to enter), short-/long-term.

• paying ~$10 to sit in a cinema hall to watch Thor: Love and Thunder.
• car park, museum, hotel… (would a café be included?)

Licence coupled with grant — permission to enter land for approved activities, usually for profit (paid to enter)

• landscaping, painting jobs
• renovation work

Estoppel licence — prevents licensor from refusing a license when the right circumstances have taken place.

• “Sure you can host parties here if you build a party place.”
  *place is built*
  “Well now I cannot stop you from holding parties!”
• (We’ll also see this in Agent Law, in agency by estoppel. you cannot say they’re not your agent when you’re the one who gave that impression!)

Easement

Easement is a right/interest to use property we don’t own.
Two parties with benefits defined.

The dominant tenement enjoys a benefit, that can be defined, from a
servient tenement.

Easement appurtenant — transfers automatically with dominant estate (appurtenant: belongs, is attached). Incorporeal hereditament.

Affirmative easement is the right to use. I have the right to pass through your property to get to the only road.

Negative easement is a restriction. I am restricted from planting massive trees that will block you(r way).

Implied easement understood in situations. Implied by Statutory Law:

• water
• electricity
• light (natural and artificial)
• way (highway)
• support (neighbouring property, party wall)

The Court can also create easements.

Express easement / easement by reservation is created by the owner in writing, deed or will.

Easement by necessity are granted or reserved. e.g. landlocked lots to nearest road.

Easement by prescription is a right due to long, open, obvious history. At least 20 years. e.g. hiking trails, public access. (this sounds like those old Jane Austen-esque walks through land or perhaps the TARDIS police box design.)

Easements can be terminated by:

• Release — agreement in form filled or implied by non-use (blocked myself)
• Merger — of dominant and servient tenement
• Necessity/Expiry — or, when no longer necessary (landlocked lot gets new road)
• Court Order — to vary or extinguish easement
• Abandonment — 12 years of non-use.
  • unless servient tenement reclaims easement with “actual, open, hostile, continuous use” of easement,

Easements for land include: infrastructure, repairs, right of way, party walls.

Easements for strata include: infrastructure, support, shelter.

Covenants in Another’s Land

(There were covenants in state land above.)

Positive covenants:

• requires the performance of something
• doesn’t automatically run with land,
  • unless
  • it touches and concerns the land (an interest in land)
  • Privity of Estate — landlord and tenant’s Tenancy Agreement.

Restrictive covenants:

• restrict the performance of something
• it runs with land
  • touches and concerns land (a burden)
  • if filed with Registry of Land
• created
  • when implied by law
    • MCST by-laws
  • by private agreement
• stops
  • expiry (this includes Common Law covenants)
    • 20 years from date of creation OR
      • extendable every 10 years
    • 5 years from notification in the Land Register, whichever
      • by the dominant tenement
    • later
  • released or varied
    • by notification of dominant tenement
    • by court order.

Land Registration

Land Titles Registry contains all legal transactions affecting land, properties, owners, encumbrances/interests (mortgage, CPF charge). Under SLA.

Certificate of Title (CT) for land.
Subsidiary Strata Certificate of Title for strata property.

The Land Titles System:

• mirror principle — reflect facts accurately and completely
• curtain principle — all necessary information shown, no need to go behind
• insurance principle — guaranteed by state

Not all interests are registered:

• tenancies within seven years unregistered
• easements unregistered (dominant tenement has equitable interest already).

Caveats

Caveats lodged by caveator, claiming an interest in property against others:

• transfer / sale of land
• mortgage
• easements, restrictions, or the discharge of
• strata application

Lapses:

• after 30 days from date of notice given, or
• after five years from date of caveat lodgement,
• extension
  • valid extensions are for five years.

Withdrawn by caveator:

• or authorised agent
• ‘s death
• ‘s bankruptcy or liquidation
• ‘s insanity
• court order

❤️🌧️

Image of a small wood gate surrounded by greens and flowers by Richard Woollett from Pixabay.