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Land Law - Essay Example

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LAND LAW Tutor name 13 March 2012 LAND LAW Mr. Jones claims to have a monthly tenancy that is granted for a period of three years. The lease is therefore renewable on a monthly basis. However, registered purchase defines liability over registered third party rights…
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Land Law
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Land Law

Download file to see previous pages... If she however failed to make the necessary enquiries then she remains to be bound by the lease agreements.2 Mr. Wood claims to have a lease interest that was executed under deed. A purchaser’s legal obligations over a lease under deed are determined by legality of the deed. If the deed is legal then registration of the interest in the property is considered. In such a case, the deed must have been legally or properly constituted. The lease is legally binding under common law if Mr. Wood can prove that the deed was properly constituted.3 Otherwise, the purchaser’s obligation to to be bound by the lease will be determined under the doctrine of equity4 . Under this approach, Wood would need to prove that the agreement was in writing and was correctly registered.5 If this was the case, then the existing lease will bind Henrietta on ground of registered notices. The underlying principle of the written and registered agreement is that a purchaser of a registered property is supposed to make a search over all third party rights that are attached to the property before proceeding with the purchase. Failure to make the search and a subsequent existence of a right binds the purchase. If the lease was not registered then Henrietta is not bound by the agreement this is because unregistered interest on registered property is considered as null and void.6 Annabelle claims that she made a share contribution to the purchase of the property sold by Fred. The first factor is Henrietta’s enquiry to find out if such claim was registered.7 If the claim was not registered then it can only be enforced under equity. The case can therefore be considered based on property held under trust. Rights due to trust can be overreached if the the purchase price is paid to more than one trustee. Under such a circumstance, the purchaser is not bound by any claim of ownership by a third party, as the purchase price is sufficient under overreaching principle.8 Payment of the purchase price to one trustee however introduces the doctrine of overriding interest in the case. For this to be applicable, Fred’s grandmother must prove that she was in occupation of the property at the time of sale. If occupation can be successfully proved then the grandmother’s right over the land binds Henrietta. However, failure to prove interest or occupation in the property at the time of sale protects Henrietta from the grandmother’s claim.9 Mohamed has warned Henrietta against carrying out constructions on a portion of the purchased land on the basis of a restrictive covenant with a former owner. Restrictive covenants are not enforceable under law and would be interpreted in line with the doctrine of equity. In order to determine the legal position of Mohamed’s claim, circumstances under which the covenant was created as well as the nature of the created rights will be evaluated. Since covenants create interest in land, the next factor to be considered in determining Henrietta’s liability over the covenant is registration of the right created by the covenant. If the agreement was duly registered, then Henrietta has no legal option but to honour the terms of the covenant as was created between Mohamed and the former property owner. A different scenario would however be witnessed if the covenant was not duly registered.10 Failure to meet requirements under the registration deprives Mohamed of any legal claim over the covenant. In such a case, under which restrictive coven ...Download file to see next pagesRead More
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