The effects of registered title and covenants. Problem Question.

Authors Avatar

LAND LAW ESSAY QUESTION

                                                                                                

In 2000, Allan bought the Cornershop from William with the intention of operating a business selling dog clothing and accessories. Title to the shop premises was registered at all times. The purchase price was £200,000. Allan contributed £150,000 whilst his girlfriend, Becky, contributed the remaining £50,000. Allan was registered as the sole proprietor, and he and Becky moved into the living quarters on the premises.

As part of the purchase agreement, Allan granted William an easement (a right of way across the backyard of the shop, which William needed to get his Wheelie Bin to the street from his new home, which was next door). Allan also covenanted with William that he and his successors in title would not keep or sell live animals from the shop.

In June of this year, Allan sold the Cornershop to Davina, who was duly registered as the new proprietor. Davina has known Allan for a while and is aware that Becky has been living with him in the Cornershop. She was a little surprised, therefore, that when she visited the premises Becky was not around and that she only saw Allan’s possessions in the flat. She felt too embarrassed to ask about this in case the pair had recently split up. In fact the reasons were that the deal was being done without the knowledge of Becky, the visit and completion actually took place when Becky was on a fortnight break with her Mother, and Allan had hidden all traces of their relationship in a locked cupboard.

Davina planned to open a pet shop. Allan, though, had inserted a promise in the conveyance that Davina would give effect to the covenant with William. Davina accepted this at the time to make sure Allan sold the shop to her, but she never had any intention to respect this part of the deal.

Following completion Davina was shocked to be confronted by Becky claiming that she had an interest in the property. William has also complained about the sale of live animals and is threatening to sue. In anger, Davina has bolted the gate giving William no access across the backyard, thus preventing him from taking out his Wheelie Bin. Davina is fed up because the register of title had contained no mention of the covenant, right of way and Becky’s rights.

Join now!

Advise Davina.

                                                                                                

INTRODUCTION

From the above question it is obvious that Davina is exasperated because the register of title had contained no mention of the covenant, right of way and Becky’s rights. Therefore we must advise her on the legal proceedings she will be able to bring. We must ask ourselves three questions in order to understand this question. One, how does the registered title affect Davina? Two, due to the purchase agreement and Davina as duly registered as the new proprietor, what is her situation in consideration to Becky? E.g. does Becky have a beneficial ...

This is a preview of the whole essay