Zusammenfassung der Ressource
FREEHOLD COVENANTS 2
- Step 3 - Running of the burden in equity
- Rules from TULK v MOXHAY
- 1) Only applies to negative/restrictive covenants
- A positive covenant may not pass in equity from RHONE v STEPHENS
- 2) Must accommodate the dominant land:
Original covenatee was owner of the
benefitted land when covenant granted
- The dominant and servient
tenements must have enjoyed
sufficient proximity
- Proximity test from FORMBY v BARKER -
covenants binding land in Hampstead too
remote to benefit land in Clapham!!
- Original parties must of intended burden to run
with land, either expressly in deed or impliedly.
s79 LPA following case of FEDERATED
HOMES v MILL LODGE PROPERTIES
- 3) Burden of the covenant must have
been intended by both parties to run with
servient land. Expressly or impliedly!
- REGISTRATION OF RESTRICTIVE COVENANTS
- In many cases even if all conditions are
met, will only bind successor if registered
- Pre 1926 - Doctrine of Notice
- Post 1926 - Unregistered land needs land
charge. Registered land by way of notice
- If not registered, void for BFP (Cannot be an
overriding interest in registered land)
- Step 4 - Running of benefit in equity
- Benefit will pass in equity if it touches and
concerns the land
- Or the benefit
passes by:
Annexation;
Assignment or
under a
Building
Scheme
- Covenant touch & concern the land from
SMITH & SNIPES HALL FARM v RIVER
DOUGLAS CATCHMENT BOARD
- Annexation - Expressly: where words of
covenant show that benefit was intended
to pass to new owners of DT
- Or impliedly: s78 LPA when covenant relates to the
land, benefit will be annexed to DT, unless evidence to
the contrary. FEDERATED HOMES v MILL LODGE
PROPERTIES
- Assignment - Unless covenant is annexed to land
will remain separate from it. For benefit to pass
must be an express assignment of covenant
- Assignment must be at same time as
transfer of the land, usually within transfer
deed - ROAKE v CHADHA
- Required with every sale
or purchase of the land
- Building scheme - when a scheme exists,
benefit and burden of covenants will pass
with land
- Requirements in ELLISTON v REACHER
- Must be a common vendor
- Estate must be laid out in plots before selling
- Restrictions must benefit all the lots
- Parties will have purchased on basis that covenants
enforceable by all other purchasers in same scheme
- Area of the scheme is clearly defined
- REMEDIES at CL
- If able to prove benefit and burden, could only claim
damages, court does not have discretion
- In Equity - If able to prove benefit and burden
may be able to claim, Injunction (Restrictive);
Specific Performance (Positive) or Damages
- Damages would only be awarded when: Injury to claimants rights is
small; the damage can be estimated in money; damage can be
adequately compensated with small payment or injunction would be
too oppressive
- Discharge of Covenants as they can become outdated
- Express Discharge - will the
benefitted owner agree to the
discharge?
- Unity of Seisin - if you buy
both the benefitted and
burdened property
- S84 LPA - Covenants discharged
forcibly. ie formerly residential area
- s28 LPA - Enforced by tribunal
- Reform Proposals
- At present: person who
agreed to covenant has
contract and can be
sued.
- Even if they no longer live at the property
- Introduction of a 'land obligation' binding on successors
- Would no longer be enforceable
against original covenantor
- These land obligations would
be positive and negative
- Would be registrable
- Moving towards the covenant being to
the property and not the current owner