Land Flashcards
A buyer and a seller have verbally agreed on the sale of a freehold estate. The buyer paid a 10% deposit to the seller, and both parties shook hands to confirm the deal. However, no written contract was prepared or signed. A week later, the seller received a higher offer from another buyer and decided to back out of the agreement with the first buyer.
What is the legal status of the initial agreement between the buyer and the seller?
The agreement is not legally binding because it was not in writing and signed by both parties
A buyer and a seller have exchanged contracts for the sale of a freehold estate. The buyer paid a 10% deposit upon exchange. A week before the completion date, the seller informed the buyer that they are unable to proceed with the purchase. The buyer wants to know their legal options given that the seller is now in breach of the contract.
What interest (if any) does the buyer hold in the land in this situation and what remedy is available to it?
The buyer has an equitable interest in the land and can sue for specific performance to compel the seller to complete the purchase.
his is because, upon the exchange of contracts, the agreement becomes legally binding. This gives the buyer an equitable interest in the land known as an estate contract. This is a proprietary right and can be enforced ‘in rem’ meaning the buyer does not have to settle for damages and can ask the court for an order of specific performance. This is a discretionary remedy, which would force the seller to transfer the land and complete the purchase
A landowner enters into a document with their neighbour, which gives their neighbour a right of first refusal to purchase the landowner’s land in the event the landowner decides to sell within the subsequent four years. The written document is signed by the landowner only.
What interest, if any, does the neighbour have in the landowner’s land?
No interest in the circumstances.
This is because the formalities for a valid estate contract have not been complied with. The landowner is attempting to grant the neighbour a right or pre-emption, which if validly create (in writing, contains all the terms and is signed by both parties as per LP(MP)A 1989, s2) is a type of estate contract.
A homeowner recently discovered that a utility company has installed a pipeline running several feet below their property without obtaining their consent. The pipeline is part of a larger project to supply water to the neighborhood. The homeowner is concerned about the unauthorised use of their land and seeks legal advice on the matter.
What legal action can the homeowner take against the utility company?
The homeowner can seek an injunction to remove the pipeline because it constitutes a trespass into the subterranean space of their property.
Unauthorised installations like pipelines constitute trespass, and an injunction is a common remedy to stop or remove such trespass.
