Chapter 7: Freehold covenants Flashcards

1
Q

what is a freehold covenant?

A

A promise to do something or a promise not to do something on freehold land - for the benefit of neighbouring land.

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2
Q

what is a positive covenant?

A

request to do something on the land

usually spend money

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3
Q

what is a restrictive covenant?

A

a promise to refrain from doing something

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4
Q

what are the steps to deciding what rules apply when deciding if a covenant is binding?

A

step 1 is the covenant negative or positive?

step 2 who is the covenantor/ covenantee

step 3: passing in law/ equity? original owner or successor?

step 4: benefit or burden?

step 5: registered/ unregistered?

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5
Q

who is the covenantor/ covenantee?

A

covenantee - person who makes/ benefits/ enforces the covenant

covenantor - person who is bound to carry put the promise of the covenant

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6
Q

how do you show the burden?

A

someone prevented from doing something on their own land

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7
Q

how do you show the benefit?

A

someone showing they would be at a disadvantage if covenant was breached.

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8
Q

what is the rule for the passing of the benefit/ burden between original parties?

A

privity of contract = bound

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9
Q

what is the general rule at common law?

A

any covenant cannot run with the land

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10
Q

what must a landlord prove if they want to enforce a covenant on a successor covenantor

A

must prove the burden has also passed

benefit will pass as the covenantee is still the original landlord

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11
Q

what is the exception to the rule at common law?

A

Doctrine of mutual burden and benefit - landowner who enjoys benefits that come with burdens may ONLY take the benefits if he also takes on the burden

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12
Q

what type of covenants are not binding in law on successors in title?

A

positive covenants

restrictive covenants - must consider equity

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13
Q

when would we need to consider the benefit in law between successors in title?

A

where the original covenantee sells/ transfers land that has a benefit

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14
Q

when would we need to consider the burnden in law between successors in title?

A

when covenantor sells their land to someone else - new covenantor

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15
Q

how can the original covenantee sell/ transfer land

A

Express assignment under s36 LPA 1925 - assign benefit at at the same time transfer of land

Contracts Act 1999 - third party defined by name can = enjoy benefit

S56 LPA 1925 - third party identified at the time the covenant was made = enjoy benefit

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16
Q

what are the conditions for a benefit to run with the land in law?

A
  1. Covenant must touch and concern the land
  2. Original convenantee must have held the legal estate (freehold/ leasehold)
  3. The successor must obtain title from original covenantee
  4. The benefit of the covenant must have been intended to run with the land:
17
Q

what is the rule pre/ post 1925 for a successor obtain their title?

A

pre 1925 - must be the same legal estate as the original covenantee

post 1925 - successor does not have have to have the same legal estate as the original convenantee

18
Q

in what ways can the benefit be intended to run with the land?

A

Express annexation
Implied annexation
S78 LPA 1925

19
Q

what is express annexation

A

specific words in a deed stating the covenant is intended to benefit the land and pass to successive owners = pass automatically

20
Q

what is implied annexation?

A

Benefit will pass if the facts show the identity of land is sufficiently clear (rare)

21
Q

what is annexation under s78 LPA 1925?

A

Every covenant which is held to touch and concern the land will automatically be annexed (pass).

22
Q

what can pass in equity?

A

the burden of restrictive covenants

postive covenants cannot pass.

23
Q

what are the conditions for the burden in equity to pass between successors in title?

A

Must be negative/ restrictive covenant

At the date of the convent, the covenantee retained land (ownership) which was benefitted by the covenant.

Covenant must touch and concern the land

Burden must be intended to run with the land (look to see if notice was given)

24
Q

how is intention t run with the land satisfied when passing the burden in equity?

A

presumed to be intended to run with the land unless it is specified opposite in the deed

25
what are the conditions for the benefit to pass in equity to successors in title?
Covenant must touch / concern the land Successor to the original covenantee must hold legal/ equitable title in the land The benefit was intended to run with the land:
26
in what ways can the benefit be intended to run with the land?
Express/ implied/ statutory annexation under S78 LPA Express/ implied assignment The land in question is part of a building scheme
27
what is assignment?
land is transferred from person to person NOT the land. The benefit could be lost if the chain of indemnity/ assignment is broken
28
what are the conditions for valid assignment?
Land must be capable of benefitting Must be possible to identify the land Assignment must take place at the same time as the transfer
29
how will you know if land is part of a building scheme?
One piece of land sold off to different purchasers The owner / builder (covenantee) of the land does not retain any ownership
30
what are the conditions to satisfy intention for benefit to run with the land in a building scheme?
Evidence of common intention between all purchasers that the land is to be sold in plots Clear intention that all purchasers of the individual plots will be subject to the mutual covenants.
31
what are the 2 methods of running?
assignment annexation
32
when will a covenant be binding on both registered/ unregistered land?
if the purchaser did not make valuable consideration
33
when will a covenant be binding in registered land?
notice has been registered in the charges register (class D) not registered = not binding
34
what doctrine applies to covenants before 1 January 1926?
doctrine of notice Do not need to be registered to take effect. Purchasers for valuable consideration = not notified = not bound (not overriding interest)
35
what is applied to covenants made after 1 January 1926?
must be registered as a class D charge
36