Land Law Megadocument

8/17/2019 Land Law Megadocument

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Land Law Mega Document

Introduction

Legal definition of Land – Section 205(1) Para 9 Law of Property ct 1925

!nclude" t#e land$ mineral" %elow it and t#e air"pace a%o&e it' Su%ect to eception" eg ga" or coal

l"o it include" t#ing" p#y"ically attac#ed to land$ "uc# a" %uilding" or tree" wit#in t#e def of land

called corporeal #ereditament"$ a" well a" intangi%le rig#t" "uc# a" a rig#t of way called incorporeal#ereditament"'

ll land owned %y t#e crown – Doctrine of tenure

*ou do not own t#e land$ you own a %undle of rig#t" and dutie" in relation of land eg rig#t ofpo""e""ion'

Per"onal rig#t" are +nown a" rig#t" in per"onam and can only %e enforced again"t a "pecific per"on'

Proprietary rig#t" are +nown a" rig#t" in rem and are rig#t" w#ic# can ei"t in t#e land it"elf'

Proprietary rig#t" are capa%le of %inding a new owner of land'

Estates in Land

Legal e"tate" are a type of proprietary rig#t'

,#e ot#er type of rig#t would %e an e-uita%le e"tate'

What can be legal?

S1(1) LP 1925 – .nly two e"tate" can %e legal

1' /ree#old e"tate – /ee "imple a%"olute in po""e""ion

2' Lea"e#old e"tate – ,erm of year" a%"olutely

/ee "imple – Mean" it i" a perpetual grant$ capa%le of %eing in#erited and t#erefore can la"t fore&er'

%"olute – Mean" t#ere i" no ri"+ t#e e"tate may end at "ome point in t#e future'

!n po""e""ion – Mean" you #a&e an immediate entitlement to enoy t#e full rig#t" of an owner'

Lea"e#old"

,erm of year" – Lea"e mu"t %e granted for a fied period of time w#ic# i" +nown at t#e date of t#e

grant and not for an indefinite period' "ta%li"#ed in Lace & #antler

%"olute "eem" to #a&e no "ignificance and will not "top it %eing a legal e"tate u"t %ecau"e it can

%e terminated at an earlier date'

lea"e w#ic# commence" in t#e future i" called a re&er"ionary lea"e'


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Leases

,enant can %e called a le""ee and t#e landlord a le""or

term of year" a%"olute$ or lea"e#old e"tate$ i" one of t#e two legal e"tate" li"ted in S 1 of Law of

Property ct 1925' ranted for a "pecified period of time'

lea"e can %e granted %y t#e owner of t#e free#old e"tate granting a lea"e for a certain term' !t can

%e of any duration'

,#e lea"e car&ed out of t#e free#old e"tate$ w#ic# would %e +nown a" t#e free#old re&er"ion$ andt#e tenant #a" a lea"e of t#e property gi&ing t#em t#e rig#t to occupy and li&e t#ere' an %e many

intere"t" in land'

3ot all lea"e" are legal e"tate"$ for eample if it i" not completed wit# a deed$ t#en it cannot %e

legal' " S'52 of t#e Law of Property ct "tate" t#at a deed i" needed to create a legal e"tate'

tran"fer of a lea"e i" called an a""ignment$ once it i" created it i" po""i%le to "ell or 4a""ign4 t#at

lea"e to anot#er per"on w#o would t#en %ecome t#e tenant'

3ote$ you can al"o a""ign t#e free#old re&er"ion$ w#ic# i" u"t a tran"fer of a free#old e"tate w#ic#i" "u%ect to an ei"ting lea"e'

!n"tead of a""igning t#e lea"e a" to lea&e no proprietary rig#t left in t#e #ou"e' *ou can grant a "u%lea"e of t#e #ou"e' ,#i" i" an entirely new lea"e#old e"tate in t#e #ou"e$ %ut it mu"t %e for a "#orter

term t#an t#e lea"e out of w#ic# it i" gi&en$ if only for one day'!n t#i" in"tance$ t#e landlord would #a&e no legal relation"#ip wit# t#e tenant of t#e "u%lea"e'

Termination of a lease

!n a fied term lea"e$ it will u"ually terminate at t#e end of t#e contractual period' 6owe&er$ t#ere

are way" it can %e terminated %efore epiration' g$ if t#e tenant i" in %reac# of a co&enant in t#e

lea"e$ t#e landlord may u"e t#e remedy of forfeiture to end t#e lea"e prematurely' .r t#e lea"edocument may epre""ly allow for eit#er party to end t#e lea"e early %y gi&ing t#e ot#er party a

notice of t#eir intention to terminate'

lea"e may end w#ere t#e tenant "urrender" t#eir lea"e wit# t#e con"ent of t#e landlord' .r if t#erei" a merger of t#e e"tate" "o t#e lea"e and t#e free#old re&er"ion come into "ingle owner"#ip'

Legal interests in land

S 1(2) Law of Property ct 1925 li"t" 5 legal intere"t"

,#e mo"t important intere"t" are t#e ea"ement and t#e mortgage

a"ement" are capa%le of %eing legal if it i" granted 4for a term e-ui&alent to an e"tate in fee "imple

in a%"olute po""e""ion or a term of year" a%"olute'4 ,#erefore$ for it to %e legal it mu"t %e granted tola"t for eit#er a fied term or fore&er'


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not#er legal intere"t under S'1(2) LP 1925 i" t#e c#arge %y way of a legal mortgage' ,#e %an+ i"

t#e recei&er of t#e mortgage and i" +nown a" t#e mortgagee and t#e tenant or %uyer w#o i" grantingt#e mortgage i" +nown a" t#e mortgagor'

Le"" common legal intere"t" are7

1' landlord" rig#t of reentry in relation to a lea"e – Solicitor" will en"ure t#e lea"e contain" areentry clau"e and i" al"o +nown a" a forfeiture clau"e$ and t#e purpo"e i" to allow t#e

remedy of forfeiture a&aila%le if t#e tenant %reac#e" one of t#e co&enant" of t#e lea"e' g$ if

tenant promi"ed only to u"e t#e property for re"idential purpo"e"$ %ut in"tead i" running a%u"ine"" from it$ tenant i" in %reac# of t#e co&enant'

2' rentc#arge"8' "tatutory c#arge"

S52 LPA 1925 orrect documentation #a" to %e u"ed in order for a rig#t to %e legal' deed mu"t%e u"ed'

E!uitable interests in Land

!f it i" not a legal e"tate li"ted in S'1(1) LP 1925 or any of t#e legal intere"t" li"ted in S'1(2) t#en$S'1(8) tell" u" t#at e&eryt#ing el"e i" an e-uita%le intere"t'

ample"

e"tricti&e co&enant" – "elling part of your own e"tate$ for anot#er to %uild a #ou"e$ a re"tricti&eco&enant could dictate t#e term"$ to ma+e "ure t#ey don4t %uild a %loc+ of flat" on t#at land etc' ,#i"

would %e included in t#e tran"fer deed' re"tricti&e co&enant %enefit" my #ou"e and i" a %urden on

t#e garden or land "old'

!mportantly – ,#e"e are alway" e-uita%le intere"t" e&en t#oug# t#ey are contained in a deed$ a" t#eyare not li"ted in S'1(2)'

not#er e-uita%le intere"t i" an e"tate contract' ,#i" a contract to create or tran"fer a legal e"tate' ,o%e an e"tate contract t#e document mu"t comply wit# t#e correct formalitie" for a contract dealing

wit# land'

n option to purc#a"e and t#e rig#t of preemption are al"o eample" of e"tate contract"'

n option to purc#a"e i" a promi"e in a contract t#at #e will "ell t#e property to a "pecific per"on if

t#ey want to %uy it in t#e net 5 year"' ,#ey don4t #a&e to %uy it$ %ut if t#ey decide to$ #e mu"t "ell itto t#em'

ig#t of preemption i" a rig#t of fir"t refu"al' !f #e decide" to "ell t#e property$ and #a" contractedt#at #e will offer to #i" friend fir"t %efore t#e general mar+et$ t#en #e mu"t do "o' 6e doe"n4t #a&e to

"ell$ %ut if #e decided to$ t#en #e mu"t offer it t#ere fir"t'

,#e"e are all eample" of an e"tate contract and t#i" i" alway" an e-uita%le intere"t'

6ome rig#t" are anot#er eample of an e-uita%le intere"t$ t#ey are conferred %y "tatute – /amily

Law ct of 199: a" amended %y t#e i&il Partner"#ip ct of 200;' #ome rig#t i" a per"onal rig#t


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gi&en to a "pou"e or ci&il partner and protect" t#eir rig#t to occupy t#e matrimonial #ome'

!f a married couple or ci&il partner" %uy a #ou"e toget#er and %ot# are named a" t#e legal e"tate

owner$ t#en neit#er #a&e #ome rig#t"$ t#ere i" no need for t#em'

,#erefore #ome rig#t" only ari"e w#ere a married couple or ci&il partner" li&e in a #ou"e toget#er

and only one of t#em i" t#e legal e"tate owner' ,#e ot#er may #a&e no proprietary intere"t in t#eproperty at all or t#ey may #a&e t#e e-uita%le intere"t of a %eneficiary under a tru"t of land'

E!uit" and Trusts of Land

,#e tru"t of land i" t#e mean" %y w#ic# property may %e #eld %y one per"on$ called t#e tru"tee fort#e %enefit of anot#er per"on$ called t#e %eneficiary'

tru"tee #old" w#at i" called t#e paper title$ a" "#e #old" t#e property for t#e %enefit of t#e%eneficiary'

,in"ley & Milligan – 6ou"e wa" purc#a"ed %y two women and %ot# contri%uted e-ually to t#epurc#a"e price$ %ut only wa" put into ,in"ley4" name' di"pute aro"e' ,#e court #eld t#at w#ile

,in"ley wa" t#e legal owner$ "#e #eld #alf t#e property on tru"t for Milligan a" an e-uita%le owner',in"ley i" t#e tru"tee for #er"elf and milligan a" %eneficiarie"'

,#i" i" an intere"t of a %eneficiary under a tru"t of land and it i" alway" e-uita%le a" it i" not li"ted in

S1(2) a" one of t#e legal intere"t"'

#ormalities $%eeds and &ontracts


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" long a" it complie" wit# t#e"e two point"$ it could %e written on toilet roll'

-uita%le rig#t" do not need to %e made %y deed' 6owe&er$ e"tate contract" and rig#t" t#at could

#a&e %een legal %ut were not made %y deed$ do need to %e made u"ing a contract to %e &alid a"e-uita%le rig#t"' ,#i" i" re-uired %y S'58(1)(c) LP 1925'

,o %e &alid a" a contract it mu"t meet t#e re-uirement" of S'2 of t#e Law of Property

(Mi"cellaneou" Pro&i"ion") ct 19?9'

/ir"tly$ it mu"t %e made in writing and cannot deal wit# land orally'

Secondly$ it mu"t al"o %e "igned %y or on %e#alf of eac# party to t#e contract$ t#ere i" no need for

witne""e"'

/inally$ t#e contract mu"t incorporate all t#e term" to w#ic# t#e partie" #a&e epre""ly agreed into

one document' ,#e term" may %e incorporated into t#e contract eit#er %y %eing included in t#e tet

of t#e document or %y reference to anot#er document'

/ir"t "tage of %uying a #ou"e i" +nown a" t#e 4 ec#ange of contract" 4 and t#i" i" t#e point t#at t#e

%uyer and "eller are %ound to complete t#e "ale %y a legally enforcea%le contract'


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'egistered Land S"stem

egi"tered land de"cri%e" w#ere t#ere i" a regi"tered title #eld wit# 6M Land egi"try' o&erned

%y t#e Land egi"tration ct 2002'

egi"tered title i" a legal e"tate #a" %een entered onto t#e ,itle egi"ter$ w#ic# i" #eld at 6M Landegi"try' ngland and =ale" are di&ided up into area" and eac# one #a" it" own Di"trict Land

egi"try'

!t i" po""i%le to #a&e two or more regi"tered title" in one piece of land$ eg$ t#e free#old e"tate may

%e regi"tered along"ide a lea"e#old e"tate for t#e "ame property' ,#e property can %e referred to a"regi"tered land if it #a" at lea"t one regi"tered title'

!t wa" created to "implify con&eyancing – t#e %uying and "elling of land'

,wo important c#ec+" w#en %uying a #ou"e'

1' Doe" t#e "eller own t#e #ou"e>

2' re t#ere any 8rd party rig#t" w#ic# %urden t#e land> !e ea"ement"$ re"tricti&e co&enant">

*ou can find t#i" out %y c#ec+ing t#e title regi"ter'

6ow it wor+"7

=#en an e"tate i" regi"tered it i" gi&en an indi&idual regi"ter and it" own uni-ue title num%er

allocated %y t#e regi"trar' .t#er information i" al"o recorded on t#e regi"ter$ for eample intere"t"w#ic# %enefit or %urden t#e land'

ac# title i" di&ided into 8 part"@1' Property regi"ter – !dentifie" t#e land$ u"ually finding a de"cription of t#e property and it4"

po"tal addre""' =ill al"o indicate w#et#er it i" a free#old or a lea"e#old e"tate' ,#i" regi"terwill al"o include detail" of any rig#t" w#ic# %enefit t#e land and form part of t#e property'

2' Proprietor"#ip regi"ter – ,#i" identifie" t#e owner" of t#e land$ w#ic# are called t#e

regi"tered proprietor"' ,#i" part will al"o contain t#e grade of t#e title' /inally$ t#i" willcontain any e"triction"$ t#e"e are a particular met#od entering certain matter" onto t#e

regi"ter w#ic# limit t#e power of regi"tered proprietor" to deal wit# t#eir land'8' #arge" regi"ter – ,#i" detail" any 8rd party rig#t" w#ic# %urden t#e land$ eg$ legal

mortgage"$ re"tricti&e co&enant" in free#old land$ e"tate contract"$ #ome rig#t" andea"ement"'

,#e L #a" a num%er of principal aim"7

1' Aring all unregi"tered land in ngland and =ale" onto t#e regi"ter a" "oon a" po""i%le' !t"ee+" to ac#ie&e t#i" aim %y increa"ing t#e num%er of trigger e&ent" w#ic# trigger t#e need

for compul"ory fir"t regi"tration'2' ,o en"ure t#at a" many 8rd party rig#t" a" po""i%le are recorded on t#e title regi"ter' ,#ey aim

to do t#i" %y reducing t#e num%er of o&erreac#ing intere"t"'

,#ere are limited in"tance" for t#e regi"ter to %e altered' !f t#i" occur" compen"ation may %e made

paya%le %y t#e Land egi"try to anyone w#o "uffer" a lo"" %y rea"on of t#e alteration of t#e regi"ter'


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#irst registration of Title

,#i" occur" w#ere an e&ent trigger" t#e need for regi"tration of an e"tate t#at i" currently

unregi"tered'

,#ere i" an opportunity under S'8 L 2002 to &oluntarily regi"ter title and pro&ide" reduced fee"'

Section ; li"t" t#o"e e&ent" w#ic# trigger t#e need for compul"ory fir"t regi"tration of title'

,rigger e&ent"7

1' tran"fer of a free#old e"tate trigger" t#e need for compul"ory fir"t regi"tration$2' ,#e grant of a legal lea"e of more t#an B year"$

8' ,#e tran"fer of a legal lea"e wit# more t#an B year" to run will al"o trigger it

;' para (d) "tate"$ t#at t#e creation of a re&er"ionary lea"e of any lengt# mu"t %e regi"tered'5' ,#e grant of a fir"t legal mortgage o&er a free#old e"tate or a legal lea"e of B year"'

,#ere i" more t#an one way to tran"fer t#e property$ "ale i" one way$ %ut "o i" %y way of a gift'

/ollowing a trigger e&ent t#e rele&ant party only #a" 2 mont#" to fill in t#e form" and regi"ter t#e

e"tate under S':(;) L 2002$ t#i" %egin" on t#e date t#at t#e rele&ant e&ent occur"' !f t#i" i" notcompleted$ under S'B t#e tran"fer or grant of t#e legal e"tate i" &oid'

=#en applying for fir"t regi"tration$ w#et#er compul"ory or &oluntary regi"tration$ t#e regi"trar willin&e"tigate t#e title and c#ec+ t#e title document"' .n t#e %a"i" of t#i" c#ec+$ t#e regi"trar will gi&e

t#e title a grade w#ic# indicate" #ow relia%le t#e title i" con"idered to %e'

%ealing (ith 'egistered Land S)2* L'A 2++2

=#en referring to dealing wit# regi"tered land$ it mean" t#e owner creating or tran"ferring an e"tate

or intere"t out of t#eir regi"tered land'

S'2B L 2002 gi&e" a li"t of t#o"e dealing" w#ic# mu"t %e regi"tered7

1' &ery tran"fer of a regi"tered e"tate – %ot# free#old and lea"e#old$ e&en if t#ere i" le"" t#an B

year" remaining'2' rant of a lea"e of more t#an B year"

8' !f a re&er"ionary lea"e i" created;' ,#e grant of a legal c#arge5' pre""ly created ea"ement"

S'2B "tate" t#at if a di"po"ition i" re-uired to %e completed %y regi"tration$ it doe" not operate at law

until t#e rele&ant re-uirement" are met' ,#i" would mean t#e legal e"tate would remain wit# t#e

"eller and t#e %uyer would only ac-uire an e-uita%le owner"#ip' ,#e "ame applie" to t#e re"t oft#em$ t#ey would only ac-uire an e-uita%le &er"ion'

,#i" create" an additional re-uirement for ea"ement"$ not only mu"t t#ey %e fore&er or a fied term$

and comply wit# "'52 LP 1925 and %e made &ia deed for a legal intere"t$ t#ey mu"t al"o %e

regi"tered under "'2B$ ot#erwi"e it will only %e an e-uita%le ea"ement'


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Entries on the 'egister

S'29 L 2002 pro&ide" t#at once an intere"t #a" %een entered onto t#e c#arge" regi"ter %y mean"of a notice it i" %inding on future owner" of t#e e"tate' ,#e notice confer" priority w#ic# mean" t#at

it can %e enforced again"t a new regi"tered proprietor'

,#e re"triction i" t#e "econd way to enter an intere"t onto t#e title regi"ter' ,#i" i" go&erned %y

"ection" ;0 to ;B'

e"triction" are in t#e Proprietor"#ip regi"ter' ,#ey #a&e a &ery different role and purpo"e to


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notice"' re"triction cannot %e u"ed to protect an intere"t w#ic# i" capa%le of protection %y a notice'

,#e mo"t common way to come acro"" re"triction" i" in relation to t#e intere"t of a %eneficiary

under a tru"t of land' re"triction i" t#e only way to protect t#e intere"t of a %eneficiary under a

tru"t of land'

Aut w#at i" a re"triction> !t i" %a"ically re"trict" t#e way in w#ic# t#e regi"tered proprietor can dealwit# t#eir land'

S';1 define" a re"triction a" an entry in t#e regi"ter regulating t#e circum"tance" in w#ic# adi"po"ition of a regi"tered e"tate may %e t#e "u%ect of an entry in t#e regi"ter' ,#i" mean" t#e

re"triction operate" to pre&ent a dealing wit# t#e e"tate$ "uc# a" a tran"fer to a new owner$ from%eing regi"tered w#ic# doe" not conform to t#e term" of t#e re"triction'

common re"triction i" to re-uire any payment of capital monie" to %e paid to a tru"t corporation orat lea"t two tru"tee"$ t#i" en"ure" t#at o&erreac#ing occur" w#ere land "u%ect to a tru"t i" "old' !t i"

not t#e ca"e of once a re"triction i" on t#e regi"ter t#e intere"t of a %eneficiary i" %inding on all

future owner" of t#e e"tate'

,-erreaching interests

,#e"e are intere"t" w#ic# will %ind t#e purc#a"er e&en t#oug# t#ey do not appear on t#e title

regi"ter' " t#e point of t#e title regi"ter i" t#at you "#ould %e a%le to find out t#e rig#t" and intere"t"affecting an e"tate in land %y eamining t#e regi"ter$ t#erefore t#e"e are found to %e un"ati"factory

in modern con&eyancing'

,#e"e are "et out in Sc#edule 1 and "c#edule 8 of t#e L 2002'

Sc#edule 8 relate" to 4regi"tered di"po"ition"4$ w#ic# mean" dealing wit# an e"tate w#ic# i" alreadyregi"tered' g$ t#e "ale of a regi"tered free#old e"tate would %e a 4regi"tered di"po"ition4

Sc#edule 8 Paragrap# 1 "tate" t#at a legal lea"e granted for a term e-ual to or le"" t#an B year" i" ano&erriding intere"t' ,#i" i" fairly "traig#tforward %ut t#ere are eception"

.ne of t#e"e eception" i" t#at of a re&er"ionary lea"e$ w#ic# ta+e" place more t#an 8 mont#" in

ad&ance' ,#i" i" common among"t "tudent"' ,#i" type of lea"e i" re-uired to %e regi"tered wit# it"own title under S'2B L 2002'

Sc#edule 8 Paragrap# 2 identifie" an etremely important o&erriding intere"t$ t#i" i" an intere"t%elonging to a per"on in actual occupation of t#e land' ,#i" #elp" to t#in+ of it a" an e-uation$

a rig#t in t#e land actual occupation E an o&erriding intere"t

,#e fir"t component i" t#at a per"on mu"t #a&e a proprietary intere"t in t#e property$ it cannot %e a

mere per"onal intere"t "uc# a" a %are licen"e e&en wit# actual occupation' 3or doe" actualoccupation in t#e land it"elf create a proprietary rig#t to occupy' *ou mu"t fir"t wor+ out w#at

intere"t "omeone #a" %efore con"idering w#et#er it i" capa%le of %eing o&erriding intere"t'

,#e"e mig#t include t#ing" li+e7 a legal lea"e$ e-uita%le lea"e$ t#e intere"t of a %eneficiary under a

tru"t or e&en an e"tate contract "uc# a" an option to purc#a"e'


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Section 81(10) of t#e /amily Law ct 199:$ "tate" t#at #ome rig#t" cannot %e an o&erriding intere"t'

&en t#oug# t#i" i" a proprietary intere"t mu"t alway" %e entered a" a notice on t#e regi"ter in orderto %ind a purc#a"er'

!f "omeone #a" a proprietary intere"t in land it may con"titute an intere"t an o&erriding intere"tunder "c#edule 8 para 2 if t#e per"on i" in actual occupation of t#e land'

!f it i" in actual occupation

Some of t#e ca"e" defining actual occupation are %efore L 2002$ %ut are "till rele&ant'

1' =#ere t#e per"on claiming t#e intere"t i" in actual occupation and t#at occupation would %eo%&iou" on a rea"ona%le in"pection or

2' =#ere t#e per"on claiming t#e intere"t i" in actual occupation and t#e per"on to w#om t#edi"po"ition i" made #a" actual +nowledge of t#e intere"t

Williams & Glyn's Bank v Boland per Lord Wilberforce – ,#e word" actual occupation are word" ofplain ngli"# and "#ould %e interpreted a" "uc#' !t i" e&ident %y a p#y"ical pre"ence in t#e #ou"e$

rat#er t#an a mere entitlement at law'

Abbey National Building Society v ann per Lord !liver " 3o more t#an merely preparatory "tep"leading to t#e a""umption of actual re"idential occupation' ctual occupation re-uire" "ome degree

of permanence and continuity'

Lloyds Bank v #osset per Lord Bridge – ,#e rele&ant date for actual occupation to protect an

intere"t i" t#e date of t#e tran"fer$ not t#e date of regi"tration' ,#e wording of Sc# 8 Para 2 #a" ca"tdou%t on t#i" deci"ion' .%iter "tatement" "ugge"t t#at occupation %y a repre"entati&e may %e

"ufficient'

,emporary lap"e" in occupation7

• Linklending v Bustard $er Lord %ustice ummery – per"on recei&ing long term re"idential

medical care may %e regarded a" "till in actual occupation' !n t#i" ca"e$ "#e wa" pre&ented

from returning #ome due to #er mental #ealt#'

• okar v okar $er Lord %ustice umming"Bruce – S#orter "tay" in #o"pital may al"o

%e regarded' S#e wa" #a&ing a %a%y' Aelonging" in t#e #ou"e and intention to return i"

"ufficient'

•

alory (nterprises Ltd v esire )omes Ltd $er Lord %ustice Arden – =#et#er t#ere wa"actual occupation at t#e time i" e""entially a -ue"tion of fact for t#e udge' ,#e udge #ad to

con"ider %y ot#er mean"$ a" t#ere were derelict %uilding"$ denoting occupation "uc# a"%oarding up t#e window" and fencing t#e "ite$ to +eep tre"pa""er" and &andal" out'

Sc# 8 Para 2 al"o li"t" t#e circum"tance" w#ere a per"on" proprietary rig#t" in actual occupation oft#e land will not amount to an o&erriding intere"t'

• ,#ere will %e no o&erriding intere"t if t#e per"on wit# t#e intere"t wa" a"+ed w#et#er t#ey

#ad an intere"t in t#e land %efore t#e di"po"ition and t#ey failed to di"clo"e t#eir intere"t

w#en t#ey could rea"ona%ly %e epected to do "o' ,#i" i" common "en"e$ a" if t#e purc#a"er

a"+" t#e occupier if t#ey #a&e an intere"t in t#e land and t#ey "ay no$ t#en t#ey cannot turnaround and "tate t#at t#ey do' ,#i" would %e unfair and i" co&ered in Para 2'


11/41

• ,#ere will %e no o&erriding intere"t if t#e per"on" actual occupation wa" not o%&iou" upon a

rea"ona%le in"pection of t#e land and t#e purc#a"er did not +now a%out t#e ei"tence of t#e

proprietary intere"t' !t i" t#e per"on" occupation t#at "#ould %e o%&iou" not t#eir intere"t inland'

Sc#edule 8 Paragrap# 8 relate" to implied legal ea"ement"'

" an epre""ly created legal ea"ement mu"t %e regi"tered under S'2B L 2002 to operate at law$%efore it i" regi"tered it will %e e-uita%le only and cannot %e an o&erriding intere"t' n ea"ement

mu"t %e legal and it mu"t %e impliedly created' .nly t#o"e t#at comply wit# t#e pro&i"ion" in Sc# 8Para 8 will %e protected a" o&erriding intere"t"' ,#oug# t#ere are 8$ only one need" to %e "ati"fied'

1' ,#e legal ea"ement will %e an o&erriding intere"t if t#e purc#a"er #a" actual +nowledge oft#e ea"ement'

2' ,#e ea"ement will %ind if t#e ea"ement i" patent$ w#ic# mean" it would %e o%&iou" upon a

rea"ona%le careful in"pection of t#e land'8' ,#e final condition i" t#at t#e ea"ement #a" %een eerci"ed wit#in one year %efore t#e

di"po"ition'

The issue of .riorit" in registered land)

learly a purc#a"er need" to +now a%out any 8rd party rig#t" %efore t#ey go a#ead and purc#a"e t#e

land'

S'29 L 2002 i" a &ery important pro&i"ion'

S'2? L 2002 "tate" t#at – ll intere"t" t#at were in ei"tence %efore t#e regi"tered e"tate wa"

tran"ferred to t#e new owner will %e %inding on t#at new owner'

S'29 L 2002 – ,#at a per"on ac-uiring a regi"tered e"tate for &alua%le con"ideration and w#ocomplete" t#eir purc#a"e %y regi"tration ta+e" t#e land "u%ect .3L* to t#e intere"t" t#at are

protected %y a notice on t#e regi"ter and intere"t" t#at are o&erriding'

!t i" important to note t#at S'29 only applie" to a tran"feree w#o A


12/41

,#e %eneficiary cannot claim any intere"t in t#e land$ %ut doe" #a&e a claim in t#e "ale proceed"from t#e tru"tee"' !f t#e %eneficiary i" di""ati"fied wit# t#e money rai"ed from t#e "ale$ or feel t#at

t#e tru"tee" #a&e em%eGGled money$ t#eir only remedy i" in damage" again"t t#e tru"tee" and cannot

claim t#e land from t#e purc#a"er'

,#i" i" e"pecially rea""uring due to t#e rule 4.&erreac#ing %eat" o&erriding4' =#ic# mean" t#at ifo&erreac#ing occur"$ t#en t#i" trump" any potential o&erriding intere"t t#e %eneficiary may normally

%e a%le to claim' ,#i" i" illu"trated in ity of London Building Society v *legg'

&o$ ,(nershi.

oowner"#ip de"cri%e" a "ituation w#ere 2 or more people #a&e an intere"t in t#e owner"#ip of t#e"ame property at t#e "ame time'

,#e"e day" many people %uy a #ou"e toget#er wit# t#eir partner and "o coowner"#ip i" etremely"ignificant in practice' ,#ere i" a "tatutory re-uirement t#at w#ene&er property i" coowned t#ere i"

a tru"t'

S"8; 8: LP 1925 a" amended %y ,ru"t" of Land and ppointment of ,ru"tee" ct 199:(,.L,) impo"e" a tru"t on all coowned property'

!f "omeone %uy" a #ou"e toget#er$ t#ey will %ot# %e t#e tru"tee" and t#e %eneficiarie"' " tru"tee"

t#ey will own t#e legal title and #a&e &ariou" managerial type re"pon"i%ilitie" wit#in t#e tru"t' "%eneficiarie" t#ey #a&e t#e rig#t to enoy t#e property and #a&e owner"#ip of it" monetary &alue'

Statute limit" w#o can %e a tru"tee$ ie t#e legal owner"'

S'8;(2) of t#e LP 1925@

,#ere can %e no more t#an ; tru"tee"' ,#i" i" to "implify t#e con&eyancing proce"" a" t#e tru"tee"are t#e one" w#o need to "ign any tran"fer document in t#e future w#en t#e #ou"e i" "old$ "o t#e

fewer t#e %etter'

!n addition S'8; pro#i%it" anyone under t#e age of 1? from %eing a tru"tee' !f more t#an ; people

%uy a #ou"e$ t#e fir"t ; name" in t#e tran"fer deed$ t#at are o&er 1?$ will %e t#e tru"tee"$ #olding t#eland on tru"t for t#em"el&e" and t#e remainder on tru"t'

T,LATA

Stand" for Trusts of Land and Appointment of Trustees Act 1996.

,.L, came into force on 1"t Hanuary 199B and applie" to LL tru"t" of land'

S'1(1) (a) "tate" @ t#at a tru"t of land mean" any tru"t property w#ic# con"i"t" of$ or include" land'

,#i" include"$ epre"" and implied tru"t"$ and w#ere t#e tru"tee" and %eneficiarie" are one and t#e

"ame people a" in a couple owning t#eir own #ome'

,.L, "et" out w#at power" t#e ,ru"tee" #a&e'


13/41

S':(1) gi&e" t#e ,ru"tee" 4all t#e power" of an a%"olute owner4' ,#i" let" t#em do anyt#ing t#at anoutrig#t owner could do including "elling t#e property$ lea"e t#e property and mortgage it'

6owe&er$ t#e"e power" are only a&aila%le to t#em "o a" to ena%le t#em to eerci"e t#eir function a"tru"tee"' S: (5) of ,.L, pro&ide" t#at #e tru"tee" mu"t #a&e regard to t#e rig#t" of t#e

%eneficiarie"'

nd S': (:) pro&ide" t#at t#ey must not act contrar" to an" rule of la( or e!uit")

,ru"tee4" cannot profit from t#e tru"t'

Specific re"triction"

• S'10 "tate" t#at an epre""ly created tru"t can impo"e a re-uirement for con"ent from named

partie" to any dealing" wit# t#e land' ,#i" could %e con"ent from anyone$ %ut u"ually it i"

con"ent from a %eneficiary'

• S'11 create" a duty on tru"tee" to .3S


14/41

T,LATA and dis.ute resolution


15/41

%an+ruptcy'

(2).n "uc# an application t#e court "#all ma+e "uc# order a" it t#in+" u"t and rea"ona%le #a&ing

regard toJ

(a)t#e intere"t" of t#e %an+ruptI" creditor"7

(%)w#ere t#e application i" made in re"pect of land w#ic# include" a dwelling #ou"e w#ic# i" or #a"

%een t#e #ome of t#e %an+rupt or t#e K/8%an+ruptI" "pou"e or ci&il partner or former "pou"e or

former ci&il partnerJ

(i)t#e conduct of t#e K/;"pou"e$ ci&il partner$ former "pou"e or former ci&il partner$ "o far a"contri%uting to t#e %an+ruptcy$

(ii)t#e need" and financial re"ource" of t#e K/;"pou"e$ ci&il partner$ former "pou"e or former ci&ilpartner$ and

(iii)t#e need" of any c#ildren7 and

(c)all t#e circum"tance" of t#e ca"e ot#er t#an t#e need" of t#e %an+rupt'

(8)=#ere "uc# an application i" made after t#e end of t#e period of one year %eginning wit# t#e fir"t&e"ting under #apter !F of t#i" Part of t#e %an+ruptI" e"tate in a tru"tee$ t#e court "#all a""ume$

unle"" t#e circum"tance" of t#e ca"e are eceptional$ t#at t#e intere"t" of t#e %an+ruptI" creditor"

outweig# all ot#er con"ideration"'

(;),#e power" conferred on t#e court %y t#i" "ection are eerci"a%le on an application w#et#er it i"made %efore or after t#e commencement of t#i" "ection

,#e #ar"#ne"" of t#i" wa" "#own in #e itro +--+ =#ere two %rot#er" were made %an+rupt at t#e"ame time$ and %ot# owned a #ome and eac# #ad a wife and t#ree +id"' 3e&ert#ele"" an order of

"ale wa" made to %e po"tponed no longer t#an : mont#"'

In Fred Perry (Holdings) Ltd v (1) Ivan Genis (2) Ayelet Haim Genis (unreported) 1 August 2014

(High ourt)! the "ourt held that unse"ured de#t "onverted to se"ured re"overy ta$es priority

over %amily interests to uphold e&e"tive de#t re"overy'

a"$ground

he "laimant o#tained *udgment against +r Genis %or selling "ounter%eit goods under the

"laimant,s #rand' -udgment .as se"ured #y .ay o% a "harging order on the %amily property solely

o.ned #y +r Genis' +rs Genis "laimed a #ene/"ial interest in the property and had %urther

prote"ted her interest #y .ay o% a Home ight under s'0 Family La. A"t 13' +r and +rs Genis

resided at the property .ith their t.o young "hildren' he "laimant sought an order %or sale o%

the property'

Held

Although the legal estate .as vested in +r Genis alone! the property .as held #ene/"ially #y

#oth o% the e%endants' here%ore the "ourt re%erred to the provisions o% s'15(1) rusts o% Land

and Appointment o% rustees A"t 13! spe"i/"ally #eing the purpose o% the property! the .el%are

o% any minor and the interest o% the se"ured "reditor' 6o guidan"e .as provided as to the relative

.eight o% ea"h "onsideration'

he %ollo.ing use%ul points arise %rom the *udgment in this "ase7


16/41

• he relevant "ase authorities suggested a tension #et.een the legitimate pursuit o% a

de#t and the rights o% inno"ent vi"tims e&e"ted #y the re"overy'

•8n #alan"e! the "ommer"ial interests %avoured the residential se"urity o% the %amily (an$

o% Ireland Home +ortgages Ltd v ell 92001: 2 All ;'' (omm) 20 "onsidered)'

• he a#solute right o% a trustee in #an$rupt"y to o#tain an order %or sale o% a #an$rupt,s

property under Insolven"y A"t s'5A suggested an overriding "onsideration o% /nan"ial

interests over %amily interests in a statutory "onte


17/41

,#e rig#t of "ur&i&or"#ip doe" not apply to tenant" in common$ a" eac# per"on #a" t#eir own di"tinct

"#are in t#e property'

,#e tru"tee" w#o own t#e legal e"tate can only %e oint tenant"$ t#i" i" t#e impact of S'1(:) of t#e

LP 19257

4 legal e"tate in land i" not capa%le of "u%"i"ting or of %eing created in an undi&ided "#are in land4

4


18/41

=#et#er all ; unitie" were pre"ent w#en t#e coowner" %oug#t t#e property a" t#e %eneficiarie" canonly %e H, if t#e ; unitie" are pre"ent' 6owe&er$ t#ey are u"ually pre"ent in t#e ,1 form'

3et7

=#et#er t#e coowner" "aid t#ey wanted to %e H, or ,!'


19/41

Statutor" se-erance

S'8:(2) LP 1925

e-uire" t#e oint tenant w#o want" to "e&er to gi&e a written notice to t#e ot#er H,4"'!f t#ere are more t#an 2 H,4" #e mu"t gi&e t#e notice to eac# of t#em %ut #e doe" not need to con"ult

t#em fir"t or o%tain t#eir con"ent'

Pro%lem" ari"e w#ere not all notice" #a&e %een profe""ionally drafted' a"e law #a" clarified w#at i"

re-uired for t#i" "tyle of "e&erance'

,#e fir"t i""ue i" t#e form of t#e notice'

!n t#e ca"e of #e .raper's onveyance$ it wa" #eld t#ere i" no pre"cri%ed form t#at i" needed for t#e

notice'

,#e "econd i""ue i" t#e content it"elf' !n )arris v Goddard it wa" #eld t#ere mu"t %e an immediate

intention to "e&er t#e %eneficial H,'

,#i" #a" two element" to it71' Mu"t "#ow an intention to "e&er immediately'

2' Mu"t ma+e clear t#ey wi"# to "e&er and %ecome a ,!$ if t#i" i" not epre""ly "tated t#ey"#ould ma+e reference to a "#are in t#e property'

,#e 8rd i""ue i" t#at of accepta%le way" to deli&er t#e notice' ,#e act of 4gi&ing t#e notice4 or4"er&ice4 of t#e notice'

oncerned wit# =6. mu"t %e gi&en t#e notice and =6, met#od of deli&ery i" accepta%le'

S'8: (2) LP 1925 "tate" t#at "er&ice of t#e notice M


20/41

• Ay an act operating on one4" own "#are$ or

• ,#roug# mutual agreement$ or

• ,#roug# mutual conduct

1' .perating on one4" own "#are

.ccur" w#en a coowner deal" wit# t#eir potential "#are in "ome way$ an eample of t#i" would %eif a coowner "old #i" intere"t' ,#i" would re"ult in t#e "eller and t#e purc#a"er %ecoming ,!'

,#e action mu"t %e capa%le of %eing legally enforced7

• Li+e "elling an intere"t

• Ma+ing a legally enforcea%le contract to "ell t#e intere"t7 or

• t#e coowner granting a mortgage o&er t#e intere"t7 or

• t#e coowner %ecoming %an+rupt$ t#i" automatically "e&er" a %eneficial H, irre"pecti&e of

t#e wi"#e" of t#e coowner'=riting a will i" not a legally enforcea%le action "o t#i" it"elf will not con"titute "e&erance'

2' ,#roug# mutual agreement

,#i" mean" t#at all of t#e H,4" agree t#at one or more of t#em will #old t#eir intere"t a" a ,!',#e agreement doe" not #a&e to %e legally enforcea%le e"ta%li"#ed in Burgess v #a/nsley'

8' Mutual conduct or 4Mutual cour"e of dealing4

LL of t#e H, act in a way w#ic# ma+e" clear t#ey treat t#em"el&e" a" ,!' ,#ere i" no actual

agreement %etween t#em$ %ut t#ey4re %e#a&iour "#ow" t#ey are treating t#e H, a" "e&ered'

,#i" met#od i" &ery rare'


21/41

Leasehold &o-enants

co&enant i" a promi"e made %y one party$ t#e co&enantor$ for t#e %enefit of anot#er party$ t#e

co&enantee'

Lea"e#old co&enant" are t#e term" agreed in a lea"e w#ic# relate to t#e partie" o%ligation" to eac#

ot#er in t#eir capacity a" landlord and tenant' Some are written epre""ly into t#e lea"e document %yt#e partie" and "ome are implied into t#e lea"e %y common law or "tatute'

&ommon e7.ress statutes

/ir"tly$ t#ere i" a co&enant to pay t#e rent$ u"ually t#ere i" al"o a rent re&iew clau"e w#ic# allow"

t#e rent to %e re&iewed and amended'

not#er common one i" a u"er clau"e$ w#ic# mean" t#at t#e tenant agree" to u"e t#e property in a

particular way eg$ not for %u"ine""'

Oualified co&enant again"t a""ignment i" w#ere t#e tenant co&enant" not to a""ign or "u%let t#e

lea"e wit#out t#e prior con"ent of t#e landlord' ,#i" i" different to an %"olute co&enant again"ta""ignment w#ic# doe" not allow "u%letting or a""ignment'

=#ere t#ere i" a -ualified co&enant again"t a""ignment clau"e in t#e lea"e' S'19 of t#e Landlord and

,enant ct 192B implie" a pro&i"o into t#e lea"e t#at t#e landlord cannot unrea"ona%ly refu"e

con"ent to a""ign'


22/41

epair co&enant" could go eit#er way$ for eample in a "#ort 8 year lea"e$ it i" li+ely t#at t#e

landlord may %e re"pon"i%le for any "tructural repair" "uc# a" a lea+ing roof$ w#ile t#e tenantco&enant" to carry out relati&ely minor internal repair" li+e door" etc' 6owe&er$ for a long lea"e

"uc# a" a 99 year lea"e$ it would %e li+ely t#at t#e larger repair" would %e underta+en %y t#e tenant'

,#e "ame approac# i" u"ually ta+en wit# regard" to #ome in"urance'

Enforcement of leasehold co-enants

&ery co&enant #a" a %enefit and a %urden' g wit# a tenant repair co&enant$ t#e landlord #a" t#e%enefit of t#at co&enant and can "ue' ,#e tenant #a" t#e %urden of t#at co&enant and i" li+ely to %e

"ued if #e wa" to %reac# it'

=#at would #appen if t#e owner were to "ell t#e free#old re&er"ion$ or t#e tenant were to a""ign #i"

lea"e to "omeone el"e>

!t4" nece""ary to wor+ out if t#e %enefit and %urden #a" %een pa""ed on' ,#e repair co&enant for

eample could only %e repaired if t#e %enefit pa""ed to t#e new landlord and t#e %urden wa" pa""edto t#e new tenant'

,#ere i" one "et of rule" for lea"e" %efore 1st anuar" 199 and a different "et of rule" for after'!, !S ,6 D, =6 ,6 LS =S .!!3LL* 3,D ,6, M,,S$ 3.,=63 !, =S L, SS!3D'

&en if a lea"e wa" a""igned in 2005 %ut wa" granted in 1995$ it would "till %e an old lea"e'

Landlord and Tenant Act :&o-enants; 1995 go&ern" t#e lea"e" granted after 1"t anuary 199:$ %utdoe" not #a&e retro"pecti&e effect"'

Enforcement of old leases ,riginal Parties

Aetween t#e original landlord and t#e original tenant$ it i" fairly "traig#tforward$ a" t#ere i" pri&ityof contract %etween t#em and w#ile t#e tenant #old" t#e lea"e#old and t#e landlord #old" t#e

free#old re&er"ion t#ey can enforce all t#e co&enant" again"t eac# ot#er'

Section B9 LP 1925 "tate" t#at$ a co&enant relating to any land of a co&enantor "#all %e deemed to

%e made %y t#e co&enantor on %e#alf of #im"elf and #i" "ucce""or" in title and t#o"e per"on"deri&ing title under #im' ,#i" mean" t#e original landlord and t#e original tenant remain lia%le for

%reac#e" of co&enant" %y t#eir "ucce""or" in title for t#e w#ole duration of t#e lea"e'

#$) Ltd v irror Group Ne/spapers3 i" an eample of t#e #ar"#ne"" of t#i" rule' ,#ey #ad to pay

o&er 1 million e&en t#oug# t#ey #ad a""igned t#e lea"e 20 year" earlier'

,#e rule of continuing lia%ility in t#e old lea"e" only applie" to t#e original partie" and not t#eir

"ucce""or" in title' !f "omeone a""igned a lea"e to anot#er per"on$ and t#en t#e 2nd per"on a""ignedt#e lea"e furt#er$ t#e original tenant would "till %e lia%le$ not t#e 2nd one'

=#en a""igning t#e lea"e or "elling t#e free#old re&er"ion$ t#e "eller "#ould include an indemnity

clau"e from t#eir immediate a""ignee' ,#ere i" an implied indemnity in regi"tered land under S'18;

and Sc#edule 12 of L 2002$ or t#e a""ignment documentation can epre""ly include one' nindemnity co&enant allow" t#e party to reco&er damage" in t#e e&ent of #a&ing to pay out due to

S'B9'


23/41

Enforcement of ne( leases

,#e"e are t#e rule" regarding new lea"e" w#ic# are granted on or after 1"t Hanuary 199: and are

go&erned %y t#e Landlord and Tenant Act :&o-enants; Act 1995'

amining t#e po"ition of t#o"e w#o ac-uire an a""ignment of t#e lea"e or w#o %uy t#e free#oldre&er"ion' ,#e po"ition i" t#e "ame for %ot# t#e new tenant and t#e new landlord'

Section 4 Landlord and 5enant 6ovenants7 Act +--8

,#i" replace" t#e rule e"ta%li"#ed in "pencer4" ca"e and "ection" 1;1 and 1;2 of t#e LP 1925 w#ic#re-uired t#e te"t of t#e 4touc# and concern4 of t#e land'

,#e new rule" e"ta%li"#ed %y Section 8 i"7

4t#e %enefit and %urden of LL t#e co&enant" in t#e lea"e pa"" on a""ignment of t#e lea"e or t#e "ale

of a free#old re&er"ion4

,#ere i" one eception w#erein$ if t#ere are any co&enant" epre""ed to %e per"onal$ t#e"e will notpa"" to t#e "ucce""or"'

So if t#ere i" a repair co&enant in place wit# t#e original landlord and tenant$ and t#e lea"e i"

a""igned to anot#er$ andQ or t#e landlord "ell" t#e free#old re&er"ion$ t#i" repair co&enant will pa""

onto t#e new tenant and t#e new landlord would %e a%le to enforce it' ,#i" i" %ecau"e a repairco&enant i" not con"idered per"onal'

The original .arties and ne( leases

,#e enforcement of lea"e#old co&enant" %etween original partie" in new lea"e"$ i" "till go&erned %y

pri&ity of contract and a" a re"ult i" t#e "ame a" old lea"e"'

6owe&er w#at #appen" if t#e original partie" "ell t#e free#old re&er"ion or a""ign t#e lea"e>

.ne of t#e L, 19954" aim" wa" to reform t#e law relating to continuing lia%ility of t#e original

partie" e"ta%li"#ed in t#e old lea"e" %y S'B9 LP 1925 and "uc# ca"e" li+e #$) ltd v irror Group Ne/spapers

!t applie" differently to landlord" and tenant"'

Tenants

Section 5 L, 1995 "et" out t#e general rule' ,#i" "ection pro&ide" t#at t#e original tenant i"

automatically relea"ed from continuing lia%ility' Meaning once t#e lea"e #a" %een a""igned #e i" nolonger lia%le for %reac#e" %y #i" a""ignee'

6owe&er$ t#ere are two important eception" to t#e general rule under S'5 and A.,6 of w#ic# are

triggered w#ere t#e lea"e contain" a -ualified co&enant again"t a""ignment' ,#e"e can %e found in

S'11 and S'1: of t#e ct'


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S'11 applie" to ecluded a""ignment"' n ecluded a""ignment i" one made in %reac# of co&enantagain"t a""ignment' g$ if t#ere i" an epre"" -ualified co&enant again"t a""ignment and t#e lea"e i"

a""igned wit#out t#e con"ent of t#e landlord$ t#en t#i" a""ignment i" made in %reac# of co&enant'

,#i" i" an ecluded a""ignment under S'11

,#i" i" an eemption to S'5 "o t#e original tenant would remain lia%le for %reac#e" of co&enant %y#i" a""ignee' 6owe&er$ t#e original tenant will %e relea"ed from lia%ility on t#e net a""ignment

w#ic# i" not an ecluded a""ignment$ "o it i" po""i%le to %e relea"ed from continuing lia%ility'

,#e net eemption i" t#at of ut#ori"ed uarantee greement" under S'1:'

!t i" common for con"ent for a""ignment to %e gi&en to t#e original tenant %y t#e landlord "u%ect to

an etra written agreement w#ere t#e tenant agree" to guarantee t#e performance of t#e lea"e#old

co&enant" %y #i" immediate a""ignee' ,#i" i" an ut#ori"ed uarantee greement' ,#e tenant i"only lia%le for %reac#e" %y #i" immediate a""ignee'

,#e landlord could a"+ for an from any future tenant w#o wi"#ed to a""ign t#e lea"e'

Landlord


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Successors in title ,ld leases

Tenant

an t#o"e ta+ing an a""ignment of t#e lea"e "ue and %e "ued for %reac#e" of lea"e#old co&enant">

S.encer=s case 158> pro&ide" a t#ree pronged te"t for wor+ing out w#et#er a %enefit or %urden #a"pa""ed to t#e a""ignee'

1) ,#e lea"e in -ue"tion mu"t %e a legal lea"e – a""ignment mu"t al"o %e made %y deed$2' ,#ere mu"t %e a pri&ity of e"tate %etween t#e party "uing and t#e party %eing "ued'8' ,#e co&enant in -ue"tion mu"t touc# and concern t#e land'

2' Pri&ity of e"tate

,#i" "imply mean" t#at t#ere mu"t %e a current relation"#ip of landlord and tenant %etween t#e partyw#o i" "uing and t#e party %eing "ued in re"pect of t#at "ame lea"e#old e"tate'

Aetween t#e original landlord and tenant t#ere i" %ot# pri&ity of contract and e"tate$ #owe&er in

re"pect of a "ucce""or in title to t#e landlord and "ucce""or in title to t#e tenant t#ere i" no pri&ity ofcontract$ %ut t#ere i" pri&ity of e"tate due to t#eir current relation"#ip a" landlord and tenant'

8' ,ouc# and concern t#e land

,#e %e"t wor+ing definition of t#i" i" found in P A S(ift In-estments - &ombined EnglishStores


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Landlords remed" of forfeiture

/orfeiture i" a draconian remedy a" it ena%le" t#e landlord to repo""e"" t#e property and terminate

t#e lea"e prior to t#e contractual end date' ,#i" clearly #a" "eriou" con"e-uence"$ "o t#ere a

numerou" "afeguard" in place to pre&ent a%u"e'

/ir"tly$ it i" not an automatic remedy t#at applie" to e&ery lea"e' !t mu"t %e epre""ly included in t#elea"e %efore t#e landlord can rely on it' So a "olicitor mu"t alway" read t#e lea"e carefully %efore

ad&i"ing a landlord to ma+e u"e of t#i" remedy' !t i" al"o +nown a" a reentry clau"e$ and t#e clau"e

it"elf i" unli+ely to u"e t#e word forfeiture' Loo+ in"tead for a reference to t#e landlord %eing a%le toreenter t#e premi"e" and determine t#e lea"e if a tenant %reac#e" co&enant'

not#er important preliminary point i" t#at t#e landlord mu"t en"ure t#at t#e tenant" %reac# of

co&enant #a" not %een epre""ly or impliedly wai&ed' ,#ere are two re-uirement" to an im.lied(ai-er)

1' ,#e landlord mu"t #a&e +nowledge of t#e %reac# of co&enant$ and

2' ,#e landlord (or #i" agent) mu"t t#en ta+e "ome action w#ic# confirm" t#e continuedei"tence of t#e lea"e' ,#e mo"t common in"tance i" demanding or recei&ing rent' " wa"

found in t#e ca"e of Segal Securities v 5oseby

!t i" important t#at t#e landlord mu"t #a&e +nowledge of t#e %reac# w#en t#e rent i" demanded orrecei&ed'

!t can %e pro%lematic for landlord" t#at t#ey are %ound %y t#e action" of t#eir agent' So if t#e

landlord +new of a %reac# and t#e landlord" agent demanded rent t#en t#i" will amount to a wai&er%y t#e landlord'

!f t#ere are multiple %reac#e"$ t#en it i" only for t#o"e t#at #e +new a%out w#en #e demanded t#e

rent$ if #e find" out ot#er" after and #a"n4t c#arged or recei&ed rent t#en #e could "ee+ t#e remedy'

!n Green/ic v .icreet Selling (states3 t#e . noted t#at 4in t#e ca"e of a continuing %reac# t#e

rig#t to forfeit ari"e" afre"# t#e &ery net day and can t#en %e eerci"ed'4,#i" i" %ecau"e a wai&er only applie" to pa"t %reac#e"$ %ut not to future one"' %reac# of a tenant

repair co&enant i" a continuing %reac#$ and a" t#e di"repair would "till %e t#ere t#e net day e&en

after t#e landlord #ad demanded rent$ #e could pur"ue t#e remedy'

,#ere are two different procedure" a" to t#e non payment of rent t#an t#ere i" for e&ery ot#er typeof %reac#'

Tenant in arrears (ith the rent

,#e landlord mu"t fir"t ma+e a formal demand for t#e rent' 6owe&er$ w#ere t#e lea"e epre""lydi"pen"e" wit# t#e need for a formal demand$ w#ic# i" common$ t#i" i" not needed'

dditionally$ if t#e rent i" more t#an : mont#" in arrear" t#en Section 21+ of the &ommon La(Procedure Act 1852$ di"pen"e" wit# t#e need for a formal demand'


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All other breaches

/or any ot#er %reac# of co&enant$ t#e landlord mu"t "er&e an S)1@ notice on t#e tenant' ,#e aim oft#i" i" to gi&e t#e tenant a c#ance to remedy t#eir %reac# rat#er t#an face e&iction'

Section 1@ LPA 1925 li"t" 8 "pecific re-uirement"'

1' ,#e notice mu"t "pecify t#e %reac# of co&enant complained of' ,#i" i" !MP.,3,'

!n Akici v Butlin Ltd3 t#e landlord "er&ed an S)1@ notice on a tenant "tating t#e tenant #ad4parted wit# po""e""ion4 of t#e premi"e" in %reac# of a co&enant not to 4part wit# po""e""ionor "#are po""e""ion4' ,#e court #eld t#e tenant wa" "#aring po""e""ion and t#erefore t#e

notice wa" not effecti&e'2' ,#e landlord mu"t a"+ for t#e %reac# of co&enant to %e remedied if it i" capa%le of remedy'

,#i" #a" gi&en ri"e to pro%lem"'

8' ,#e notice mu"t re-uire t#e tenant to pay financial compen"ation if t#e landlord want" it',#i" can %e ecluded from t#e notice if t#e landlord doe"n4t re-uire any'

eturning to point 2 and t#at t#e landlord mu"t a"+ for t#e %reac# of co&enant to %e remedied if it i"capa%le of remedy' 6ow do landlord" decide w#et#er it i" capa%le of remedy> S'1;: gi&e" no

guidance'

&ase La(

'ugb" School :o-ernors; - Tannahill 19>5B 1 CD 8* :&ourt of A..eal;

Per reer L

6eld t#at %reac#ing t#i" co&enant not to u"e t#e premi"e" for any illegal or immoral purpo"e wa"

not capa%le of remedy' Di"mi""ed comment" %y cinnon L at fir"t in"tance t#at a negati&eco&enant$ ie not to do "omet#ing$ could ne&er %e capa%le of remedy'

!n$ 4an 0aarlam - Casner :1992; @ P) &)') 21@< 0arman


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!n t#i" ca"e it wa" a commercial lea"e$ w#ere nig#t clu%" were %eing u"ed for pro"titution'

,#e"e are "ome of t#e rea"on" w#y it wa" #eld it could grant relief in rare occa"ion"'

6eld$ t#at (1) t#e lea"e wa" forfeit7 %ut (2) t#i" wa" one of t#o"e &ery rare and eceptional "ituation"

w#ere t#e ourt would grant relief from forfeiture for a %reac# in&ol&ing immoral u"er$ #a&ingregard (i) to t#e "u%"tantial &alue of t#e lea"e7 (ii) to t#e "u%"tantial lo"" (out of proportion to t#eir

offence or to any damage cau"ed %y it w#ic# forfeiture would cau"e to , o'7 (iii) to t#e fact t#at t#eimmoral u"er #ad %een %roug#t to an end and wa" unli+ely to %e renewed7 (i&) to t#e fact t#at any

R"tigmaR attac#ing to t#e premi"e" wa" li+ely to %e "#ortli&ed7 (&) to t#e fact t#at any "uc# R"tigmaR

would not %e remo&ed %y getting rid of , o'7 (&i) t#at to grant relief would not %e to "addle L wit#unaccepta%le tenant"7 and (&ii) to t#e poor #ealt# of , o'4" "ole director$ and to #i" intention to

di"po"e of t#e lea"e'


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Expert Clothing v Hillgate House [1986] 1 Ch 340 (Court of Appeal

!la"e #$ %

Held there .as a distin"tion #et.een time limits regarding remedies .ithin areasona#le time limit %or ?negative #rea"hes o% "ovenant? su"h as those in the ug#y="hool ase! and #rea"hes o% positive "ovenants su"h as this one'

'In my judgment, on the remediability issue, the ultimate question for the court wasthis: if the section 146 notice had required the lessee to remedy the breach and thelessors had then allowed a reasonable time to elapse to enable the lessee fully tocomply with the relevant covenant, would such compliance, coupled with the payment of any appropriate monetary compensation, have eectively remedied the harmwhich the lessors had suered or were li!ely to suer from the breach" If, but only if,the answer to this question was #$o,# would the failure of the section 146 notice torequire remedy of the breach have been justi%able& In ugby (chool )*overnors+ v&annahill -1./0 1 2&3& 5 7gerton v& 7splanade 8otels, 9ondon 9td& -1.45 ;ll 7&& and 8omann v& es'

y conclusion3 terefore3 is tat te breac of te covenant to reconstruct /as 9capable of remedy,9 :n reacing tis conclusion3 : find it reassuring tat no reported case as been brougt to our

attention in /ic te breac of a positive covenant as been eld incapable of remedy3 toug : donot suggest tat cases of tis nature3 albeit peraps rarely3 could not arise,

In the result, I would allow this appeal on the basis that, while the defendants haveestablished no waiver, the plaintis' section 146 notice was invalid because therelevant breaches were capable of remedy&

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Savva v Hussein (1997) 73 P & CR 150 (Court of Appeal)

his dealt .ith a "ovenant not to display "ertain types o% signs outside o% the shop' hose signs that .ere allo.ed! the "olour s"heme had to #e approved #y the landlord'

'Staugton L,%,

:n tis case te ;uestion is /eter te breaces3 if tere /ere breaces3 /ere capable of remedy, 5ey

amount to doing tings /itout te consent of te landlord, 5at is /at te covenant did not allo/, :t is establised la/ in tis court tat te breac of a covenant not to assign /itout consent cannot beremedied, 5at /as decided in Scala )ouse & .istrict $roperty o, Ltd v, *orbes, (ven ten relief fromforfeiture /as granted3 so tat may not be of any great conse;uence,

:n my


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entry stage! and is e


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Easeents

An easement is a right to ma$e limited use o% another persons land

eg! right o% .ay! run drains under someone?s land'

Ho: to esta;lish :hether soeone has or "oesn 196- and a right .ill %ail unless it has all o% these >ualities'

Additionally! the "ourts have held that "ertain rights are not a""epta#le as easementseven i% they pass the e7 ellen#orough par$ test' his is #e"ause they are seen to havetoo adverse an impa"t on the other persons land'

&e ? Ellen;orough +ar> Criteria@

1) .here ust ;e a "oinant an" servient teneent) .he "oinant an" servient teneent ust not ;e o:ne" an" o**upie"

;, the sae person3) .he right *laie" ust a**oo"ate the "oinant teneent@ an"4) the right *laie" ust ;e *apa;le of ;eing grante" ;, "ee")

1' here must #e a dominant and servient tenement

For an ; to e


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' ight "laimed must ?a""ommodate? the dominant tenement

A""ommodate here *ust means #ene/t' he essential point here is that it must #e theLA6 that #ene/ts not *ust the individual o.ner' his "an #e satis/ed #y either

• he land itsel% %rom the dominant tenement #ene/ting %rom the easement over

the servient land' 8r!• he easement improving the manner in .hi"h the dominant land "an #e used'

Follo.ing euires that it "ould only #e an ; i% it "ould have #een .ritten up in the %orm o% adeed'

ase la. has given t.o "onse>uen"es

1' he right must #e su"iently de/nite D it must #e ?"apa#le o% pre"ise de/nition


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and des"ription?' his had led the "ourts to hold that neither a "laim to a good vie. a"ross aneigh#ouring land nor a right to re"eive a good tv signal a"ross neigh#ouringland "ould su""eed as easement?s as they .ere too vague'

2' he parties to the easement must have the "apa"ity to grant and re"eive it D his means they should #oth have an estate in the land #e"ause an ; is aproprietary interest' hus a li"ensee .ould la"$ "apa"ity to grant or re"eive an ;#e"ause a li"ense is not an estate in land'

I 8;= 68 +;A6 A ;; HA= AALLJ ;;6 =;KKK

Clais :hi*h are not easeents even if the, satisf, &E? E##E/&/BH+A&

he /rst o% these is a "laim .hi"h .ould re>uire the servient o.ner to ta$e a positivea"tion' It is an essential idea %or easements that the servient o.ner shouldn?t have to

do anything and in parti"ular! shouldn?t have to spend any money'

In egis Broperty =o 9td v edman D he right at sta$e .as a "laim to have an ; tore"eive a "onstant supply o% hot .ater %rom an ad*oining property' he 8A held this"ould not #e an ; as it .ould involve the servient o.ner o% the ad*oining property in#oth "ost and e&ort'

here is a %amous e


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hat matters is that they retain possession and "ontrol'

As this .as a ="ottish "ase it is only persuasive! and in the 200B "ase o% Firdi v =hana!the *udge noted the "omments in +on"rie&! the "ourt %elt #ound to %ollo. the de"ision#y the 8A in 3atchelor v ?arlow! as it remains good la. in ;ngland' =o the test %orthe time #eing remains the ?reasona#le use? test set out in 9ondon C 3lenheim 7statesv 9adbro!e&

hese are the re>uirements %or .hether something is "apa#le o% #eing an easementusing the rules in ;7 ;llen#orough Par$' hen .e dis"ussed that even some rightsthat satis%y these re>uirements "annot #e easements i% they re>uire a positive a"tion%rom the servient o.ner' I% any o% these rights are not met! it .ill not #e an ;! it .ouldli$ely only #e a li"ense'

Has it ;een vali"l, a*'uire"D

Assuming a "laim satis/es the test o% "apa"ity! .e must move on to "onsider i% it has#een validly a">uired #y the "laimant'

A GA6 o% an easement o""urs .hen a lando.ner GIM;= an ; over their o.n land toanother estate o.ner' An o.ner giving someone a right over the land they o.n toanother estate o.ner'

A ;=;MAI86 is the reverse situation' An o.ner $eeping a right over land they havesold o&'

Brant

A grant "an o""ur either e


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he "lassi" illustration o% this is .here the land is landlo"$ed' I% you #uy a plot o% landand /nd that your sole means o% a""ess to it is over the seller?s retained land! then inthat "ase you may #e a#le to "laim an implied easement o% ne"essity over the seller?sland'

he #asis %or implying an easement o% ne"essity' In $ic!erson v 3arraclough,i the =G;stated that i% the servient o.ner "an sho. no easement .as intended! the dominanto.ner .ill not get the easement even i% it means they "annot use the land at all' his.ould happen i% the deed e


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heel"on v urro:s

An o.ner euasi easement o% a right to drainagemight #e eviden"ed #y the e


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here is some de#ate as to .hether #oth 2 and need to #e satis/ed or *ust one o%them' In ?illman v 7llis! it .as held they 8H need to #e satis/ed' In any event! thet.o re>uirements overlap and intera"t so i% one is present the other one usually is too'

!)6 #+A 19

A !)6 ;asement is sometimes "alled an euired %or ='32 to ta$e e&e"tE

1' here must #e a "onveyan"e D his is a do"ument .hi"h "reates or trans%ers alegal estate';g trans%er o% legal %reeholdNleasehold #y deed! grant o% a legal lease #y deed!rene.al o% a legal lease #y deed' 6oti"e that a "ontra"t to trans%er or lease land.ould not #e su"ient as it does not give rise to a legal estate'

>, he advantage "laimed must have #een ?en*oyed .ith? the land that is #eingsold' In Aood v Aaddington! it .as held that it must #e evident #e%ore the"onveyan"e that one part o.ner?s land "arries a #ene/t .hi"h arises %rom a#urden on the other part' In other .ords there needs to #e an identi/a#le a>uasi D dominant and servient tenement #e%ore sale'

Giversit, of o**upation as a eans of sho:ing that the right *laie" :aseno,e" :ith the lan" sol")

8ne o#vious .ay to sho. the #ene/tN#urden relationship is to have the #ene/ted parto""upied #y someone other than the o.ner and using the advantage over the#urdened part o""upied #y the o.ner #e%ore the t.o parts are separated via sale'

here is a line o% authority that !)6 re>uires this diversity o% o""upation! nota#ly9ong v *owlett ! and supported o#iter in (ovmots Investments v (ecretary of (tate for


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the 7nvironment 1.5.'

Aright v ?acadamC +r +a"adam leased part o% his land to +rs right' =eparately tothe lease! he gave her a li"ense to use the shed %or storing "oal' hen the lease ranout! he then granted her a ne. legal lease to +rs right' he grant o% this ne. lease.ould have amounted to a "onveyan"e #y deed o% a legal estate so it "onverted theli"ense to use the shed into an easement'

here diversity o% o""upation is helping prove the advantage is en*oyed .ith the landnote t.o points

+, he diversity must "ontinue right up to the time o% the "onveyan"e' Bayne vInwood demonstrates that even one .ee$ "ommon o""upation o% #othtenements #y the same person immediately #e%ore the "onveyan"e .ill #rea$the diversity o% o""upation rule and prevent !)6 %rom ta$ing e&e"t'

2' It does not matter on .hat #asis the land is #eing o""upied! ie .hether its as ali"ensee or a tenant'

&ights ;eing *ontinuous an" apparent as an alternative eans of sho:ingthe right *laie" :as eno,e" :ith the lan" sol")

his is an alternative to diversity o% o""upation! and has #een approved in "ases %romB and ( Blatt and ood v addington 2015'

hese "ases "on/rm that even .here there has #een no diversity o% o""upation #e%orethe sale! ='32 "an still operate i% the seller himsel% .as euire the right"laimed to #e #oth "ontinuous and apparent' In addition heeldon re>uires the

right to #e ne"essary to the reasona#le en*oyment o% the land! #ut this is notneeded in ='32'


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Ex*lu"ing heel"on v urro:s an" !)6

A seller "an prevent #oth methods %rom happening #y euita#le';


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' I% it had #een used up to one year leading up to the pur"haser #uying the land'

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