Law of Property Act 1925 (-)
Search lawindexpro for case law on this statute.
This document is for private study purposes only. It is likely not to reflect the law as it stands today. It may be incomplete, and some provisions are likely to have been repealed or amended, and new ones inserted.

Acts affected

Amending Acts-

Law of Property (Miscellaneous Provisions) Act 1989

Law of Property (Miscellaneous Provisions) Act 1994

Law of Property Act 1925

An Act to consolidate the enactments relating to Conveyancing and the Law of Property in England and Wales.

GENERAL PRINCIPLES AS TO LEGAL ESTATES, EQUITABLE INTERESTS AND POWERS.

Legal estates and equitable interests

1.--

    (1) The only estates in land which are capable of subsisting or of being conveyed or created at law are--

      (a) An estate in fee simple absolute in possession

      (b) A term of years absolute.

    (2) The only interests or charges in or over land which are capable of subsisting or of being conveyed or created at law are--

      (a) An easement right or privilege in or over land for an interest equivalent to an estate in fee simple absolute in possession or a term of years absolute:

      (b) A rent charge in possession issuing out of or charged on land being either perpetual or for a term of years absolute;

      (c) A charge by way of legal mortgage;

      (d) ... and any other similar charge on land which is not created by an instrument

      (e) Rights of entry exercisable over or in respect of a legal term of years absolute or annexed, for any purpose to a legal rent charge.

    (3) All other estates interests and charges in or over land take effect as equitable interests.

    (4) The estates interests and charges which under this section authorised to subsist or to be conveyed or created at law are (when subsisting or conveyed or created at law) in this Act referred to as "legal estates," and have the same incidents as legal estates subsisting at the commencement of this Act; and the owner of a legal estate is referred to as "an estate owner" and his legal estate is referred to as his estate.

    (5) A legal estate may subsist concurrently with or subject to any other legal estate in the same land in like manner as it could have done before the commencement of this Act.

    (6) A legal estate is not capable of subsisting or of being created in an undivided share in land or of being held by an infant

    (7) Every power of appointment over or power to convey or charge land or any interest therein whether created by a statute or other instrument or implied by law and whether created before or after the commencement of this Act (not being a power vested in a legal mortgagee or an estate owner right of his estate and exercisable by him or by another person in his name and on his behalf), operates only in equity.

    (8) Estates, interests, and charges in or over land which are not legal estates are in this Act referred to as "equitable interests," and powers which by this Act are to operate in equity only are in this Act referred to as"equitable powers."

    (9) The provisions in any statute or other instrument requiring land to be conveyed to uses shall take effect as directions that the land shall (subject to creating or reserving there out any legal estate authorised by this Act which may be required) be conveyed to a person of full age upon the requisite trusts.

    (10) The repeal of the Statute of Uses (as amended) does not affect requisite trusts thereof in regard to dealings taking effect before the commencement of this Act.


Conveyances overreaching certain equitable interests and powers

2.--(1) A conveyance to a purchaser of a legal estate in land shall overreach any equitable interest or power affecting that estate, whether or not he has notice thereof, if--

(i) the conveyance is made under the powers conferred by the Settled Land Act 1925 or any additional powers conferred by a settlement, and the equitable interest or power is capable of being overreached thereby, and the statutory requirements respecting the payment of capital money arising under the settlement are complied with;

(ii) the conveyance is made by trustees for sale and the equitable interest or power is at the date of the conveyance capable of being overreached by such trustees under the provisions of sub-section (2) of this section or independently of that sub-section, and the statutory requirements respecting the payment of capital money arising on a disposition upon trust for sale are complied with;

(iii) the conveyance is made by a mortgagee or personal representative in the exercise of his paramount powers, and the equitable interest or power is capable of being overreached by such conveyance, and any capital money arising from the transaction is paid to the mortgagee or personal representative;

(iv) the conveyance is made under an order of the court and the equitable interest or power is bound by such order, and any capital money arising from the transaction is paid into, or in accordance with the order of, the court.

Note See State Bank of India v Sood et al Times November 8 1996 - equitable interest overreached by mortgage executed by trustees despite lack of capital advanced under mortgage.

(2) Where the legal estate affected is subject to a trust for sale, then if at the date of a conveyance made after the commencement of this Act under the trust for sale or the powers conferred on the trustees for sale, the trustees (whether original or substituted) are either

    (a) two or more individuals approved or appointed by the court or the successors in office of the individuals so approved or appointed; or

    (b) a trust corporation,

any equitable interest or power having priority to the trust for sale] shall, notwithstanding any stipulation to the contrary, be overreached by the conveyance, and shall, according to its priority, take effect as if created or arising by means of a primary trust affecting the proceeds of sale and the income of the land until sale.

(3) The following equitable interests and powers are excepted from the operation of subsection (2) of this section, namely-

    (i) Any equitable interest protected by a deposit of documents relating to the legal estate affected;

    (ii) The benefit of any covenant or agreement restrictive of the user of land;

    (iii) Any easement, liberty, or privilege over or affecting land and being merely an equitable interest (in this Act referred to as an "equitable easement");

    (iv) The benefit of any contract (in this Act referred to as an "estate contract") to convey or create a legal estate, including a contract conferring either expressly or by statutory implication a valid option to purchase, a right of pre-emption, or any other like right;

    (v) Any equitable interest protected by registration under the Land Charges Act 1925 other than-

      (a) an annuity within the meaning of Part II of that Act;

      (b) a limited owner's charge or a general equitable charge within the meaning of that Act.

    (4) Subject to the protection afforded by this section to the purchaser of a legal estate, nothing contained in this section shall deprive a person entifled to an equitable charge of any of his rights or remedies for enforcing the same.

    (a) the benefit of any covenant or agreement restrictive of the user of the land;

    (b) any equitable easement;

    (d) the benefit of an estate contract, unless and until the same is acquired under a conveyance made after the commencement of this Act;

a purchaser of a legal estate shall only take subject thereto if he has notice thereof, and the same are not overreached under the provisions contained or in the manner referred to this section.

Sub-s (2) is as amended by the Law of Property (Amendment) Act 1926, s7,


3. Manner of giving effect to equitable interests and powers

    (1) All equitable interests and powers in or over land shall be enforceable against the estate owner of the legal estate affected in manner following (that is to say):-

      (a) Where the legal estate affected is settled land, the tenant for life or statutory owner shall be bound to give effect to the equitable interests and powers in manner provided by the Settled Land Act 1925;

      (b) Where the legal estate affected is vested in trustees for sale-

        (i)The trustees shall stand possessed of the net proceeds of sale after payment of costs and of the net rents and profits of the land until sale after payment of rates, taxes, costs of insurance, repairs, and other outgoings, upon such trusts and subject to such powers and provisions as may be requisite for giving effect to the equitable interests and powers affecting the same respectively, of which they have notice, and whether created before or after the disposition upon trust for sale, according to their respective priorities:

        (ii) Where, by reason of the exercise of any equitable power or under any trust affecting the proceeds of sale, any principal sum is required to be raised, or any person of full age becomes entided to require a legal estate in the land to be vested in him in priority to the trust for sale, then, unless the claim is satisfied out of thc net proceeds of sale, the trustees for sale shall (if so requested in writing) be bound to transfer or create such legal estates, to take effect in priority to the trust for sale, as may be required for raising the money by way of legal mortgage or for giving effect to the rights of the person so denied:

      Provided that, if the proceeds of sale are held in trust for persons of full age in undivided shares absolutely free from incumbrances affecting undivided share, those pergons cannot require the land to be conveyed to them in undivided shares; but may (subject to effect being given by way of legal mortgage to incurnbrances affecting the entirety) require the same to be vested in therm (not exceeding four) as joint tenants on trust for sal, and if the conveyance purports to transfer the land to any of them undivided shares or to more than four such persons, it operate only as a transfer to them or (if more than four) to the four first named therein as joint tenants on trust for sale:

    (c) Where the legal estate affected is neither setiled land nor vested in the trustees for sale, the estate owner shall be bound to give effect to the equitable interests and powers affecting his estate of which he has notice according to their respective priorities. This provision does affect the priority or powers of personal representatives for purposes of administration.

(2) Effect may be given by means ofa legal mortgage C to an agreement for a mortgage, charge or lien (whether or not arising by operation of law) if the agreement, charge or lien ought to have prionty over the trust for sale.

Provided that, after the commencement of this Act (and save as hereinafter expressly enacted), an equitable interest in land shall only be capable of being


Satisfied terms, whether created out of freehold or leasehold land to cease

5.--

    (1) Where the purposes of a term of years created or limited at any time out of freehold land, become satisfied either before or after the commencement of this Act (whether or not that term either by express declaration or by construction of law becomes attendant upon the freehold reversion) it shall merge in the reversion expectant thereon and shall cease accordingly.

    (2) Where the purposes of a term of years created or limited, at any time, out of leasehold land, become satisfied after the commencement of this Act, that term shall merge in the reversion expectant thereon and shall cease accordingly.

    (3) Where the purposes are satisfied only as respects part of the land comprised in a term, this section shall have effect as if a separate term had been created in regard to that part of the land.


Saving of lessors' and lessees' covenants

6.--

    (1) Nothing in this Part of this affects prejudicially the right to enforce any lessee's or lessee's covenants, agreements or conditions (including a valid option to purchase or right of pre-emption over the reversion),contained in any such instrument as is in this section mentioned, the benefit or burden of which runs with the reversion or the term.

    (2) This section applies where the covenant, agreement or condition contained in any instrument--

      (a) creating a term of years absolute, or

      (b) varying the rights of the lessor or lessee under the instrument creating the term.


Saving of certain legal powers to lease.

8.--

    (1) All leases or tenancies at a rent for a term of years absolute authorised to be granted by a mortgager or mortgagee or by the Settled Land Act 1925, or any other statue (whether or not extended by any instrument) may be granted in the name and on behalf of the estate owner by the person empowered to grant the same, whether being an estate owner or not, with the same, effect and priority as if this Part of this Act had not been passed; but this sections does not (except as respects the usual qualified covenant for quiet enjoyment) authorise any person granting a lease in the name of an estate owner to impose any personal liability on him.

    (2)Where a rentcharge is held for a legal estate, the owner thereof may under the statutory power or under any corresponding power, create a legal term of years absolute for securing of compelling payment of the same; but in other cases terms created under any such power shall, unless and until the estate owner of the land charged gives legal effect to the transaction, takes, effect only as equitable interests.


14.--

This Part of this Act shall not prejudicially affect the interest of any person in possession or in actual occupation of land to which he may be entitled in right of such possession or occupation.

27 (as amended by the Law of Property (Amendment) Act 1926, Schedule)

    (1) A purchaser of a legal estate from trustees for sale shall not be concerned with the trusts affecting the proceeds of sale of land subject to a trust for sale... or affecting the rents and profits of the land until sale... (2) Notwithstanding anything to the contrary in the instrument (if any) creating a trust for sale of land or in the settlement of the net proceeds, the proceeds of sale or other capital money shall not be paid to or applied by the direction of fewer than two persons as trustees for sale, except where the trustee is a trust corporation…

Powers of court where trustees for sale refuse to exercise powers

30.-- If the trustees for sale refuse to sell or to exercise any of their powers conferred by either of the last two sections, or any requisite consent cannot be obtained, any person interested may apply to the court of a vesting or other orderfor giving effect to the proposed transaction or for an order directing the trustees for sale to give effect thereto, and the court may make such order as it thinks fit.

CONTRACTS FOR SALE, ETC, OF LAND TO BE IN WRITING

Contracts for sale, etc, of land to be in writing

40.--

    (1) No action may be brought upon any contract for the sale or other disposition of land or any interest in land, unless the agreement upon which such action is brought, or some memorandum or note thereof, is in writing, and signed by the party to be charged or by some other person thereunto by him lawfully authorised.

    (2) This section applies to contracts whether made before or after the commencement of this Act and does not affect the law relating to part performance, or sales by the court.

[REPEALED: See now Law of Property (Miscellaneous Provisions) Act 1989 section 2 and Electronic Communications Act 2000]


Statutory commencements of title

44.--(1) After the commencement of this Act [Fifteen years] shall be substituted for forty years as the period of commencement of title which a purchaser of land may require: nevertheless earlier title than [fifteen years] may be required in cases similar to those in which earlier title than forty years might immediately before the commencement of this Act be required.

(2) Under a contract to grant or assign a term of years, whether derived or to be derived out of freehold or leasehold land, the intended lessee or assign shall not be entitled to call for the title to the freehold.

(3) Under a contract to sell and assign a term of years derived out of a leasehold interest in land, the intended assign shall not have the right to call for the title to the leasehold reversion

(4) On a contract to grant a lease for a term of years to be derived out of a leasehold interest, with a leasehold reversion, the intended lessee shall not have the right to call for the title to that reversion.

(5) Where by reason of any of the three last preceedings subsections, an intending lessee or assign is not entitled to call for the title to the freeholder to a leasehold reversion, as the case may be, he shall not, where the contract is made after the commencement of this Act, be deemed to be affected with notice of any matter or thing of which, if he had contracted that such title should be furnished, he might have had notice.

(6) Where land of copy hold or customary tenure has been converted into freehold by enfranchisement, then, under a contract to sell and convey, the purchaser shall not have the right to call for the title to make the enfranchisement.

(7) Where the manorial incidents formerly affecting any land have been extinguished, then, under a contract to sell and convey the freehold, thepurchaser shall not have the right to call for the title of the person entering into any compensation agreement or giving a receipt for the compensation money to enter into such agreement or to give such receipt, and shall not be deemed to be affected with notice of any matter or thing of which, if he had contracted that such title should be furnished, he might have had notice.

(8) A purchaser shall not be deemed to be or ever to have been affected with notice of any matter or thing of which, if he had investigated the title or made enquiries in regard to matters prior to the period of commencement of title fixed by this Act, or by any other statute, or by any rule of law, he might have had notice, unless he actually makes such investigation or enquiries.

(9) Where a lease whether made before or after the commencement of this Act, is made under a power contained in a settlement, will, Act of Parliament, or other instrument, any preliminary contract for or relating to the lease shall not, for the purpose of the deduction of title to an intended assign, from part of the title, or evidence of the title, to the lease.

(10) This section, save where otherwise expressly provided, applies to contracts for sale whether made before or after the commencement of this Act, and applies to contracts for exchange in like manner as to contracts for sale, save that it applies only to contracts for exchange made after such commencement.

(11) This section applies only if and so far as a contrary intention is not expressed in the contract.


Application of insurance money on completion of a sale or exchange

47.--

    (1) Where after the date of any contract for sale or exchange of property, money becomes payable under any policy of insurance maintained by the vendor in respect of any damage to or destruction of property included in the contract, the money shall, on completion of the contract be held or receivable by the vendor on behalf of the purchaser and paid by the vendor to the purchaser on completion of the sale or exchange, or so soon thereafter as the same shall be received by the vendor.

    (2) This section applies only to contracts made after the commencement of this Act, and has effect subject to--

      (a) any stipulation to the contrary contained in the contract,

      (b) any requisite consents of the insurers,

      (c) the payment by the purchaser of the proportionate part of the premium from the date of the contract.

    (3) This sale applies to a sale or exchange by an order of the court, as if--

      (a) for the reference to the "vendor" there were substituted references to the "person bound by the order"

      (b) for the reference to the completion of the contract there were substituted a refernce to the payment of equality money (if any) into court;

      (c) for the reference to the date of the contract there were substituted a reference to the time when the contract becomes binding.


Stipulations preventing a purchaser, lessee, or Undererlessee from employing his own solicitor to be void.

48.--

    (1) Any stipulation made on the sale of any interest in land after the commencement of this Act to the effect that the conveyance to, or the registration of the title of, the purchaser shall be prepared or carried out at the expense of the purchaser by a solicitor appointed by or acting for the vendor, and any stipulation which might restrict a purchaser in the selection of a solicitor to act on has behalf in relation to any interest in land agreed to be purchased, shall be void; and, if a sale is effected by demise or subdemise, then, for the purposes of this subsection, the instrument required for giving effect to the transaction shall be deemed to be a conveyance:

    Provided that nothing in this subsection shall affect any right reserved to a vendor to furnish a form of conveyance to a purchaser from which the draft can be prepared, or to charge a reasonable fee therefor, or, where a perpetual rentcharge is to be reserved as the only consideration in money or money's worth, the right of a vendor to stipulate that the draft conveyance is to be prepared by his solicitor at the expense of the purchaser.

    (2) Any covenant or stipulation contained in, or entered into with reference to any lease or under lease made before or after the commencement of this Act

      (a) whereby the right of preparing the expense of a purchaser, any conveyance of the estate or interest of the lessee or under lessee in the demised premisesor in any part thereof, or of otherwise carrying out, at the expense of the purchaser, any dealing with such estate or interest, is expressed to be reserved to or vested in the lessor car under lessor or his solicitor or

      (b) which in any way restricts the right of the purchaser to have such conveyance carried out on his behalf by a solicitor appointed by him

    shall be void:

    Provided that, where any covenant or stipulation is rendered void by this subsection there shall be implied in lieu thereof a covenant or stipulation that the lessee or under lessee shall register with the lessee or his solicitor within six months from the date thereof, or as soon after the expiration of that period as may be practicable, all conveyances and revolutions (including probates or letters of administration) affecting the lease or underlease and pay a fee of one guinea in respect of each registration, and the power of entry (if any) on breach of any covenant contained in the lease or underlease shall apply and extend to the breach of any covenant so to be implied.

    (3) Save where a sale is effected by demise or subdemise, this section does not affect the law relating to the preparation of a lease or under lease or the draft thereof.

    (4) In this section "lease" and "underlease" include any agreement the for or other tenancy "lessee" and "underlessee" and "lessor" andunderlessor" have corrosponding meanings.


Conveyances to be by deed

52.--

    (1) All conveyances of land or of any interest therein are void for the purpose of conveying or creating a legal estate unless made by deed.

    (2) This section does not apply to--

      (a) assents by a personal representative

      (b) disclaimers made in accordance with section fifty-four of the Bankruptcy Act 1914 or not required to be evidenced in writing

      (c) surrenders by operation of law, including surrenders which may, by law, be effected without writing

      (d) leases or tenancies or other assurances not required by law to be made in writing

      (e) receipts not required by law to be under seal:

      (f) vesting orders of the court or other competent authority

      (g) conveyances taking effect by operation of law.


53

    (1) Subject to the provisions hereinafter contained with respect to the creation of interests in land by parol-

      (a) no interest in land can be created or disposed of except by writing signed by the person creating or conveying the same, or by his agent thereunto lawfully authorised in writing, or by will, or by operation of law;

      (b) . . .

      (c) a disposition of an equitable interest or trust subsisting at the time of the disposition, must be in writing signed by the person disposing of the same or by his agent thereunto lawfully authorised in writing or by will.

Creation of interests in land by parol

54.--

    (1) All interests in land created by parol and not put in writing and signed by the persons so creating the same, or by their agents whereunto lawfully authorised in writing, have, notwithstanding any consideration having been given for the same, the force and effect of interests at will only.

    (2) Nothing in the foregoing provisions of this Part of this Act shall affect the creation by parole of leases taking effect in possession for a term not exceeding three years (whether or not the lessee is given power to extend the term) at the best rent which can be reasonably obtained without taking a fine.


Savings in regard to last two sections

55.--Nothing in the last two foregoing sections shall--

    (a) invalidate dispositions by will or

    (b) affect any interest validly created before the commencement of this Act or

    (c) affect the right to acquire an interest in land by virtue of taking possession or

    (d) affect the operation of the law relating to part performance.


Persons taking who are not parties and as to indentures

56.--

    (1) A person may take an immediate or other interest in land or other property, or the benefit of any condition, right of entry, covenant agreement over or respecting land or other property, although he may not be named as a party to the conveyance or other instrument.

    (2) A deed between parties, to effect its objects, has the effect of an indenture though not indented or expressed to be an indenture.


62.--

    (1) A conveyance of land shall be deemed to include and shall by virtue of this Act operate to convey, with the land, all buildings, erections, fixtures, commons, hedges, ditches, fences, ways, waters, watercourses, liberties, privileges, easements, rights, and advantages whatsoever, appertaining or reputed to appertain to the land, or any part, thereof, or, at the time of conveyance, demised, occupied, or enjoyed with, or reputed or known as part or parcel of or appurtenant to the land or any part thereof.

    (2) A conveyance of land, having houses or other buildings thereon, shall be deemed to include and shall by virtue of this Act operate to convey, with the land, houses, or other buildings, all outhouses, erections, fixtures, cellars, areas, courts, courtyards, cisterns, sewers, gutters, drains, ways, passages, lights, watercourses, liberties, privileges, easements, rights, and advantages whatsoever, appertaining or reputed to appertain to the land, or any part thereof, or, at the time of conveyance, demised, occupied, or enjoyed with, or reputed or known as part or parcel of or appurtenant to, the land, houses or other buildings conveyed, or any of them or any part thereof.

    (3)

    (4) This section applies only if and as far as a contrary intention is not expressed in the conveyance, and has effect subject to the terms of the conveyance, and to the provisions therein contained

[Repealed]

65:--

    (1) A reservation of a legal estate shall operate at law without any execution of the conveyance by the grantee of the legal estate out of which the reservation is made, or any grant by him, so as to create the legal estate reserved, and so as to vest the same in possession in the person (whether being the grantor or not) for whose benefit the reservation is made.

    (2) A conveyance of a legal estate expressed to be made subject to another legal estate not in existence immediately before the date of the conveyance, shall operate as a reservation, unless a contrary intention appears.


Benefit of covenants relating to land

70.--

    (1) A covenant relating to any land of the covenanted shall be deemed to be made with the covenanted and his successors in title and the persons deriving title under him or them, and shall have effect as if such successors and other persons were expressed.

    For the purposes of this subsection in connexion with covenants restrictive of the user of land "successors in title" shall be deemed to include the owners and occupiers for the time being of the land of the covenantee intended to be benefited.

    (2) This section applies to covenants made after the commencement of this Act, but the repeal of section fifty-eight of the Conveyancing Act 1881does not affect the operation of covenants to which that section applied.


Execution of instruments by or on behalf of corporations

74.--

    (1) In favour of a purchaser a deed shall be deemed to have been duly executed by a corporation aggregate if its seal be affixed thereto in the presence of and attested by its clerk, secretary or other permanent officer or his deputy, and a member of the board of directors, council or other governing body of the corporation, and where a seal purporting to be the seal of a corporation has been affixed to a deed, attested by persons purporting to be persons holding such offices as aforesaid, the deed shall be deemed to have been executed in accordance with the requirements of this section, and to have taken effect accordingly.

    . . .

    (6) Notwithstanding anything contained in this section, any mode of execution or attestation authorised by law or by practice or by the statute, charter, memorandum or articles, deed of settlement or other instrument constituting the corporation or regulating the affairs thereof, shall (in addition to the modes authorised by this section) be as effectual as if this section had not been passed


Rights of purchaser as to execution

75.--

    (1) On a sale, the purchaser shall not be entitled to require that the conveyance to him be executed in his presence, or in that of his solicitot, as such; but shall be entitled to have, at his own cost. tyhe execution of the conveyance attested by some person appointed by him, who may, if he thinks fit, be his solicitor.

    (2) This section applies to sales made after the thirty-first day of December eighteen hundred and eighty-one


COVENANTS

Covenants for title

76.--

    (1) In a conveyance there shall, in the several cases in this section mentioned, be deemed to be included, and there shall in those several cases,by virtue of this Act, be implied, a covenant to the effect in this section stated, by the person or by each person who conveys, as far as regards the subject-matter or share of subject-matter expressed to be conveyed by him, with the person, if one, to whom the conveyance is made, or with the persons jointly, if more than one, to whom the conveyance is made as joint tenants, or with each of the persons, if more than one, to whom the conveyance is (when the law permits) made as tenants in common, that is to say:

      (A) In a conveyance for valuable consideration, other than a mortgage, a covenant by a person who conveys and is expressed to convey as beneficial owner in the terms set out in Part I of the Second Schedule to this Act

      (B) In a conveyance of leasehold property for valuable consideration, other than a mortgage, a further covenant by a person who conveys and is expressed to convey as beneficial owner in the terms set out in Part II of the Second Schedule to this Act

      (C) In a conveyance by way of mortgage (including a charge) a covenant by a person who conveys or charges and is expressed to convey or charge as beneficial owner in the terms set out in Part III of the Second Schedule to this Act:

      (D) In a conveyance by way of mortgage (including a charge) of freehold property subject to a rent or of leasehold property, a further covenant by a person who conveys or charges and is expressed to convey or charge as beneficial owner in the terms set out in Part IV of the Second Schedule to this Act;

      (E) In a conveyance by way of settlement, a covenant by a person who conveys and is expressed to convey as settler in the terms set out in Part V of the Second Schedule to this Act;

      (F) In any conveyance, a covenant by every person who conveys and is expressed to convey as trustee or mortgagee, or as personal representative of a deceased person, ... or under an order of the court, in the terms set out in Part VI of the Second Schedule to this Act, which covenant shall be deemed to extend to every such person's own acts only, and may be implied in an asset by a personal representative in like manner as in a conveyance by deed.

    (2)Where in a conveyance it is expressed that by direction of a person expressed to direct as beneficial owner another conveys, then, for the purposes of this section, the person giving the direction, whether he conveys and is expressed to convey as beneficial owner; and, in addition to the covenant on his part shall be implied accordingly.

    (3)Where a wife conveys and is expressed to convey as beneficial owner, and the husband also conveys and is expressed to convey as beneficial owner, then, for the purposes of this section, the wife shall be deemed to convey and to be expressed to convey by direction of the husband, as beneficial owner; and, in addition to the covenant implied on the part of the wife, there shall also be implied, first, a covenant on the part of the husband as the person giving that direction, and secondly, a covenant on the part of the husband in the same terms as the covenant implied on the part of the wife.

    (4)Where in a conveyance a person conveying is not expressed to convey as beneficial owner, or as settler, or as trustee, or as mortgage, or as personal representative of a deceased person, ... or under an order of the court, or by direction of a person as beneficial owner, no covenant on the part of the person conveying shall be, by virtue of this section, implied in the conveyance.

    (5)In this section a conveyance does not include a demise by way of lease at a rent, but does not include a charge and "convey" has a corresponding meaning.

    (6)The benefit of a covenant implied as aforesaid shall be annexed and incident to, and shall go with, the estate or interest of the implied Covenanter, and shall be capable of being enforced by every person in whom that estate or interest is, for the whole or any part thereof, from time to time vested.

    (7) A covenant implied as aforesaid may be varied or extended by a deed or an assent, and, as so varied or extended, shall, as far as may be, operate in the like manner, and with all the like incidents, effects, and consequences, as if such variations or extensions were directed in this section to be implied.

    (8)This section applies to conveyances made after the thirty-first day of December, eighteen hundred and eighty-one, but only to assets by a personal representative made after the commencement of this Act.


Implied covenants in conveyance subject to rents

77.--

    (1) In addition to the covenants implied under -the last preceding section-> +Part I of the Law of Property (Miscellaneous Provisions) Act 1994+>, there shall in the several cases in thissection mentioned, be deemed to be included and implied, a covenant to the effect in this section stated, by and such persons as are hereinafter mentioned, that is to say:-

      (A) In a conveyance for valuable consideration, other than a mortgage, of the entirety of the land affected by a rent charge, a covenant by the grantee or joint and several covenants by the grantees, if more than one, with the conveying parties and with each of them, if more than one, in the terms set out in Part VII of the Second Schedule to this Act. Where a rent charge has been apportioned in respect of any land, with the consent of the owner of the rent charge, the covenants in this paragraph shall be implied in the conveyance of that land in like manner as if the apportioned rent charge were the rent charge referred to, and the document creating the rent charge related solely to that land:

      (B) In a conveyance for valuable consideration, other than a mortgage, of part of land affected by a rent charge, subject to a part of that rent charge which has been or is by that conveyance apportioned (but in either case without the consent of the owner of the rent charge) in respect of the land conveyed:--

        (i) A covenant by the grantee of the land or joint and several covenants by the grantees, if more than one, with the conveying parties and with each of them, if more than one, in the terms set out in paragraph (i) of Part VIII of the Second Schedule to this Act

        (ii) A covenant by a person who conveys or is expressed to convey as beneficial owner, or joint and several covenants by the persons who so convey or are expressed to so covey, if at the date of the conveyance any part of the land comprised in the lease is retained, with the assignees of the land and with each of them (if more than one) in the terms set out in paragraph (ii) of Part X of the Second Schedule to this Act.

      (C) In a conveyance for valuable consideration, other than a mortgage, of the entirely of the land comprised in a lease, forthe residue of the term or interest created by the lease, a covenant by the assignee or joint and several covenants by the assignees (if more than one) with the conveying parties and with each of them (if more than one) in the terms set out in Part IX of the Second Schedule to this Act.Where a rent has been apportioned in respect of any land, with the consent of the lessor, the covenants in this paragraph shall be implied in the conveyance of that land in like manner as if the apportioned rent were the original rent reserved, and the lease related solely to that land:

      (D)In a conveyance for valuable consideration, other than a mortgage, of part of the land comprised in a lease for the residue of the term or interest created by the lease, subject to a part of the rent which has been or is by the conveyance apportioned (but in either case without the consent of the lessor) in respect of the land conveyed:--

        (i) A covenant by the assignee of the land, or joint and several covenants by the assignees, if more than one, with the conveying parties and with each of them, if more than one, in the terms set out in paragraph (i) of Part X of the Second Schedule to this Act;

        (ii) A covenant by a person who conveys or is expressed to convey as beneficial owner, or joint and several covenants by the persons who so convey or are expressed to so convey, if the date of the conveyance any part of the land comprised in the lease is retained, with the assignees of the landlord

    (2) Where in a conveyance for valuable consideration, other than a mortgage, part of land affected by a rentcharge, or part of land comprised in a lease is, without the consent of the owner of the rentcharge or of the lessor, as the case may be, expressed to be conveyed--

      (i) subject to or charged with with the entire rent-

      then paragraph (B) (ii) or (D) (ii) of the last subsection, as the case may require, shall have effect as if the entire rent were the appointed rent; or

      (ii) discharged or exonerated from the entire rent--

    then paragraph (B) (ii) (D) (ii) of the last subsection, as the case may require, shall have effect as if the entire rent were the balance of the rent, and the word's "other than the covenant to pay the entire rent" had been omitted.

    (3) In this section "conveyance" does not include a demise by way of lease at a rent.

    (4) Any covenant which would be implied under this section by reason of a person conveying or being expressed to convey as beneficial owner may, by express reference to this section, be implied, with or without variation, in a conveyance, whether or not for a valuable consideration, by s person who conveys or is expressed to convey a settler, or as trustee, or as mortgagee, or as personal representative of a deceased person, ... or under an order of court.

    (5) The benefit of a covenant which would be implied a aforesaid shall be annexed and incident to, and shall go with, the estate or interest of the implied covenant, and shall be capable of being enforced by every person in whom that estate or interest is, for the whole or any part thereof, from time to time vested.

    (6) A covenant implied as aforesaid may be varied or extended by deed, and as so varied or extended, shall as far as may be operate in the like manner, and with al the incidents, effects and consequences, as if such variations or extensions were directed in this section to be implied.

    (7) In particular any covenant implied under this section may be extended by providing that--

      (a) the land conveyed; or

      (b) the part of the land affected by the rentcharge which remains vested in the covenant;

      (c) the part of the land demised which remains vested in the covenant

    shall, as the case may require, stand charged with the payment of all money which may become payable under the implied covenant.

    (8) This section applies only to conveyances made after the commencement of this Act.


Benefit of covenants relating to land

78:--

    (1) A covenant relating to any land of the covenantee shall be deemed to be made with the covenantee and his successors in title and the persons deriving title under him or them, and shall have effect as if such successors and other persons were expressed.

    For the purposes of this subsection in connexion with covenants restrictive of the user of land "successors in title" shall be deemed to include the owners and occupiers for the time being of the land of the covenantee intended to be benefited.


Burden of covenants relating to land

79.--

    (1) A covenant relating to any land of a covenantor or capable of being bound by him, shall, unless a contrary intention is expressed, be deemed to be made by the covenantor on behalf of himself his successors in title and the persons deriving title under him or them, and, subject as aforesaid, shall have effect as if such successors and other persons were expressed.

    This subsection extends to a covenant to do some act relating to the land, notwithstanding that the subject-matter may not be in existence when the covenant is made.

    (2) For the purposes of this section in connection with covenants restrictive of the user of land "successors in title" shall be deemed to include the owners and occupiers for the time being of such land.

    (3) This section applies only to covenants made after the commencement of this Act.


Power to discharge or modify restrictive covenants affecting land

84.--

    (1) The Lands Tribunal shall (without prejudice to any concurrent jurisdiction of the court) have power from time to time, on the application of any person interested in any freehold land affected by any restriction arising under covenant or otherwise as to the user thereof or the building there on, by order wholly or partially to discharge or modify any such restriction on being satisfied--

      (a) that by reason of changes in the character of the property or the neighbourhood or other circumstances of the case which the Lands Tribunal may deem material, the restriction ought to be deemed obsolete; or

      (aa) that (in a case falling within subsection (1A) below) the continued existence thereof would impede some reasonable user of the land for public or private purposes or, as the case may be, would unless modified so impede such user; or [-- that the continued existence [of the restriction] would impede the reasonable user of the land for public or private purposes without securing practical benefits to other persons . . --]

      (b) that the persons of full age and capacity for the time being of from time to time entitled to the benefit of the restriction, whether in respect of estates in fee simple or any lesser estates or interests in the property to which the benefit of the restriction is annexed, have agreed, either expressly or by implication, by their acts or omissions, to the same being discharged or modified; or

      (c) that the proposed discharge or modification will not injure the persons entitled to the benefit of the restriction;

    and an order discharging or modifying a restriction under this subsection may direct the applicant to pay to any person entitled to the benefit of the restriction such sum by way of consideration as the Tribunal may think is just to award under one, but not both, of the following heads, that is to say, either--

      (i) a sum to make up for any loss or disadvantage suffered by that person in consequence of the discharge or modification; or

      (ii) a sum to make up for any effect which the restriction had, at the time when it was imposed, in reducing the consideration then received for the land affected by it.

    (1A) Subsection (1)(aa) above authorises the discharge or modification of the restriction by reference to its impeding some reasonable user of land in any case in which the Lands Tribunal is satisfied that the restriction, in impeding that user, either . . .

      (a) does not secure to persons entitled to the benefit of it any practical benefits of substantial value or advantage to them;

      (b) is contrary to the public interest

    and that money will be an adequate compensation for the loss or disadvantage (if any) which any such person will suffer from the discharge or modification.

    (1B) In determining whether a case is one falling within subsection (1A) above, and in determining whether (in any such case or otherwise) a restriction ought to be discharged or modified, the Lands Tribunal shall take into account the development plan and any declared or ascertainable pattern for the grant or refusal of planning permissions in the relevant areas, as well as the period at which and context in which the restriction was created or imposed and any other material circumstances.

    (1C) It is hereby declared that the power conferred by this section to modify a restriction includes power to add such further provisions restricting the user of or the building on the land affected as appear to the Lands Tribunal to be reasonable in view of the relaxation of the existing provisions, and as may be accepted by the applicant; and the Lands Tribunal may accordingly refuse to modify a restriction without some such addition.

    (2) The court shall have power on the application of any person interested--

      (a) to declare whether or not in any particular case any freehold land is, or would in any given event be, affected by a restriction imposed by any instrument; or

      (b) to declare what, upon the true construction of any instrument purporting to impose a restriction, in the nature and extent of the restriction thereby imposed and whether the same is, or would in any given event be, enforceable and if so by whom.

    Neither subsections (7) and (11) of this section nor, unless the contrary is expressed, any later enactment providing for this section not to apply to any restrictions shall affect the operation of this subsection or the operation for the purposes of this subsection of any other provisions of this section.

    (3) The Lands Tribunal shall, before making any order under this section, direct such enquiries, if any, to be made of any government department or local authority, and such notices, if any, whether by way of advertisement or otherwise, to be given to such of the persons who, appear to be entitled to the benefit of the restrictions intended to be discharged, modified, or dealt with as having regard to any enquiries, notices or other proceedings previously made, given or taken, the Lands Tribunal may think fit.

    (3A) On an application to the Lands Tribunal under this section the Lands Tribunal shall give any necessary directions as to the persons who are or are not to be admitted (as appearing to entitled to the benefit restriction) to oppose the application, and no appeal shall lie against any such direction; but rules under the Lands Tribunal Act 1949 shall make provision whereby, in cases in which there arises on such an application (whether or not in connection with the admission of persons to oppose) any such question as is referred to in subsection (2)(a) or (b) of this section, the proceedings on the application can and, if the rules so provide, shall be suspended to enable the decision of the court to be obtained on that question by an application under that subsection, or by means of a case stated by the Lands Tribunal, or otherwise, as may be provided by those rules or by rules of court.

    (5) Any order made under this section shall be binding on all persons, whether ascertained or full age or capacity or not, then entitled or thereafter capable of becoming entitled to the benefit of any restriction, which is thereby discharged, modified or dealt with, and whether such persons are parties to the proceedings or have been served with notice or not.

    (6) An order may be made under this section notwithstanding that any instrument which is alleged to impose the restriction intended to be discharged, modified, or dealt with, may not have been produced to thecourt of the Lands Tribunal, and the court or the Lands Tribunal may act on such evidence of that instrument as it may think sufficient.

    (7) This section applies to restrictions whether subsisting at the commencement of this At or imposed thereafter, but this section does not apply where the restriction was imposed on the occasion of a disposition made gratuitously or for a nominal consideration for the public purposes.

    (8) This section applies applies whether the land affected by the restrictions is registered or not, but, in the case of registered land, the Land Registrar shall give effect on the register to any order under this section in accordance with the Land Registration Act 1925.

    (9) Where any proceedings by action or otherwise are taken to enforce arestrictive covenant, any person against whom the proceedings are taken, may in such proceedings apply to the court for an order giving leave to apply to the Lands Tribunal under this section, and staying the proceedings in the meantime.

    (11) This section does not apply to restrictions imposed by the Commissioners of Works under any statutory power for the protection of any Royal Park or Garden or to restrictions of a like character imposed upon the occasion of any enfranchisement effected before the commencement of this Act in any manor vested in His Majesty in right of the Crown or the Duchy of Lancaster, nor (subject to subsection

    (11A) below) to restrictions created or imposed--

      (a) for naval, military or air force purposes,

      (b) for civil aviation purposes under the powers of the Air Navigation Act 1920 or of section section 19 or 23 of the Civil Avaiation Act 1949.

    (11A) Subsection (11) of this section--

      (a)shall exclude the application of this section to a restriction falling within subsection (11)(a), and not created or imposed in connection with the use of any land as an aerodrome, only so long as the restriction is enforceable by or on behalf of the crown; and

      (b)shall exclude the application of this section (11)(b), or created or imposed in connection with the use of any land as an areodrome, only so long as the restriction is enforceable by or behalf of the crown or any public or international authority.

    (12) Where a term of more than forty years is created in land (whether before or after the commencement of this Act) this section shall, after the expiration of twenty-five years of the term, apply to restrictions, affecting such leasehold land in like manner as it would have applied had the land been freehold:

    Provided that this subsection shall not apply to mining leases.


104:-

    (2) Where a conveyance is made in exercise of the power of sale conferred by this Act, or any enactment replaced by this Act, the title of the purchaser shall not be impeachable on the ground—

      (a) that no case had arisen to authorise the sale; or

      (b) that due notice was not given; or

      (c) where the mortgage is made after the commencement of this Act, that leave of the court, when so required, was not obtained; or

      (d) whether the mortgage was made before or after such commencement, that the power was otherwise improperly or irregularly exercised;

    and a purchaser is not, either before or on conveyance, concerned to see or inquire whether a case has arisen to authorise the sale, or due notice has been given, or the power is otherwise properly and regularly exercised; but any person damnified by an unauthorised, or improper, or irregular exercise of the power shall have his remedy in damages against the person exercising the power.


Appointment, powers, remuneration and duties of receiver.

109:

    (1) A mortgagee entitled to appoint a receiver under the power in that behalf conferred by this Act shall not appoint a receiver until he has become entitled to exercise the power of sale conferred by this Act, but may then, by writing under his hand, appoint such person as he thinks fit to be receiver.

    (2) A receiver appointed under the powers conferred by this Act, or any enactment replaced by this Act, shall be deemed to be the agent of the mortgagor; and the mortgagor shall be solely responsible for the receiver’s acts or defaults unless the mortgage deed otherwise provides.

    (3) The receiver shall have power to demand and recover all the income of which he is appointed receiver, by action, distress, or otherwise, in the name either of the mortgagor or of the mortgagee, to the full extent of the estate or interest which the mortgagor could dispose of, and to give effectual receipts accordingly for the same, and to exercise any powers which may have been delegated to him by the mortgagee pursuant to this Act.

    (4) A person paying money to the receiver shall not be concerned to inquire whether any case has happened to authorise the receiver to act.

    (5) The receiver may be removed, and a new receiver may be appointed, from time to time by the mortgagee by writing under his hand.

    (6) The receiver shall be entitled to retain out of any money received by him, for his remuneration, and in satisfaction of all costs, charges, and expenses incurred by him as receiver, a commission at such rate, not exceeding five per centum on the gross amount of all money received, as is specified in his appointment, and if no rate is so specified, then at the rate of five per centum on that gross amount, or at such other rate as the court thinks fit to allow, on application made by him for that purpose.

    (7) The receiver shall, if so directed in writing by the mortgagee, insure to the extent, if any, to which the mortgagee might have insured and keep insured against loss or damage by fire, out of the money received by him, any building, effects, or property comprised in the mortgage, whether affixed to the freehold or not, being of an insurable nature.

    (8) Subject to the provisions of this Act as to the application of insurance money, the receiver shall apply all money received by him as follows, namely:

      (i) In discharge of all rents, taxes, rates, and outgoings whatever affecting the mortgaged property; and

      (ii) In keeping down all annual sums or other payments, and the interest on all principal sums, having priority to the mortgage in right whereof he is receiver; and

      (iii) In payment of his commission, and of the premiums on fire, life, or other insurances, if any, properly payable under the mortgage deed or under this Act, and the cost of executing necessary or proper repairs directed in writing by the mortgagee; and

      (iv) In payment of the interest accruing due in respect of any principal money due under the mortgage; and

      (v) In or towards discharge of the principal money if so directed in writing by the mortgagee;

    and shall pay the residue, if any, of the money received by him to the person who, but for the possession of the receiver, would have been entitled to receive the income of which he is appointed receiver, or who is otherwise entitled to the mortgaged property.


114:--

    (1) A deed executed by a mortgagee purporting to transfer his mortgage or the benefit thereof shall, unless a contrary intention is therein expressed, and subject to any provision therein contained, operate to transfer to the transferee

      (a) the right to demand, sue for, recover, and give receipts for, the mortgage money or the unpaid part thereof, and the interest then due, if any, and thenceforth to become due thereon; and

      (b) the benefit of all securities for the same, and the benefit of and the right to sue on all covenants with the mortgagee, and the right to exercise all powers of the mortgage; and

      (c) all the estate and interest in the mortgaged property then vested in the mortgagee subject to redemption or cesser, but as to such estate and interest subject to the right of redemption then subsisting.


Rent and benefit of lessee's covenants to run with the reversion

141.--

    (1) Rent reserved by a lease, and the benefit of every covenant or provision therein contained, having reference to the subject-matter thereof, and on the lessee's part to be observed or performed, and every condition of re-entry and other condition therein contained, shall be annexed and incident to and shall go with the reversionary estate in the land . . . without prejudice to any liability affecting a covenantor or his estate.

    (2) Any such rent, covenant or provision shall be capable of being recovered received, enforced, and taken advantage of by the person from time to time entitled, subject to the term, to the income of the whole or any part, as the case may require, of the land leased.


Obligation of lessor's covenants to run with the reversion

142.--

    (1) The obligation . . . of a covenant entered into by a lessor with reference to the subject-matter of the lease shall, if and as far as the lessor has power to bind the reversionary estate immediately expectant on the term granted by the lease, be annexed and incident to and shall go with that reversionary estate . . . and may be taken advantage of and enforced by the person in whom the term is from time to time vested . . . .; and, if and as far as the lessor has power to bind the person from time to time entitled to that reversionary estate, the obligation aforesaid may be taken advantage of and entered against any person so entitled.

Effect of licenses granted to lessees

143.--

    (1) Where a licence is granted to a lessee to do any act, the licence, unless otherwise expressed, extends only--

      (a) to the permission actually given; or

      (b) to the specific breach of any provision or covenant referred to; or

      (c) to any other matter specifically authorised to be done;

    and the licence does notprevent any proceeding for any subsequent breach unless otherwise specified in the licence.

    (2) Notwithstanding any such licence--

      (a) all rights under covenants and powers of re-entry contained in the lease remain in full force and areavailable as against any subsequent breach of covenant, condition or other matter not specifically authorised or waived, in the same manner as if no licence had been granted; and

      (b) the condition or right of entry remains in force in all respects as if the licence had not been granted, save in respect of the particular matter authorised to be done.

    (3) ...


    146.--

      (1) A right of re-entry or forfeiture under any proviso or stipulation in a lease for breach of any covenant or condition in the lease shall not be enforceable, by action or otherwise, unless and until the lessor serves on the lessee a notice-

        (a) Specifying the particular breach complained of; and

        (b) If the breach is capable of remedy, requiring the lessee to remedy the breach; and

        (c) In any case, requiring the lessee to make compensation in money for the breach; and the lessee fails, within a reasonable time thereafter, to remedy the breach, if it is capable of remedy, and to make reasonable compensation in money, to the satisfaction of the lessor, for the breach.

      (2) Where a lessor is proceeding, by action or otherwise, to enforce such a right of re-entry or forfeiture, the lessee may, in the lessor's action, if any, or in any action brought by himself, apply to the court for relief; and the court may grant or refuse relief, as the court, having regard to the proceedings and conduct of the parties under the foregoing provisions of this section, and to all the other circumstances, thinks fit; and in case of relief may grant it on such terms, if any, as to costs, expenses, damages, compensation, penalty, or otherwise, including the granting of an injunction to restrain any like breach in the future, as the court, in the circumstances of each case, thinks fit.


25 November 2012
http://www.swarb.co.uk/acts/1925LawofProperty001Act.html ver 9 July 2010