Freehold Covenants- benefit at common law Flashcards
DOES THE BENEFIT OF FREEHOLD COVENANTS RUN WITH THE LAND AT COMMON LAW?
You must prove attachment of the benefit at common law. To do this, the following 3 elements MUST be present:
🔳 the covenant must have touched and concerned the Covenantee’s land
🔳 the original parties must’ve intended for the benefit to run with the land
🔳 the covenantee and his successors must own a legal estate in the land
Who has privity of contract?
And what is the effect of S56 LPA 1925?
The original parties, being the covenantor and covenantee.
Future purchasers do not have privity of contract under S56 LPA 1925
What is a freehold covenant?
A promise to do or not to do something. For example, Fred sells The Orchard to Bob and Bob covenants that he will not use the Orchard for commercial purposes.
What does “touch and concern” mean?
Name a case for a purely personal covenant
The covenant in question must either affect the use of the covenantee’s land or its value. It can’t be of personal benefit only
P&A Swift Investments Ltd v Combined English Stores Group [1989] - this case reaffirmed the above criteria
What does S78 (1) of the LPA 1925 state?
A covenant relating to any land of the covenantee shall be deemed to be made with the covenantee and his successors in title. This implies the parties intention for the benefit to run with the land.
What does the requirement “the covenantee and his successors in title must own a legal estate in the land mean”?
Name the authority for this requirement
Authority: Webb v Russell [1789]
The successor to the covenantee use to have to hold the same legal estate in the land. This is now not the case, they can also have a lease - this is implied in S78 LPA 1925 and supported by the case of Smith and Snipes Hall Farm Ltd v River Douglas Catchment Board [1949]
Name the 2 legal estates under S1 of the LPA 1925
🔳 the fee simple absolute in possession (freehold)
🔳 the term of years absolute (leasehold)
