Wednesday 6 April 2011

11 - Restrictive Covenants

Source: Unlocking Land Law

Following is the summary of this chapter:

1) The nature of restrictive covenant - Rules with regard to enforceability against the original party v third party, under law v equity, positive v negative covenant

2) Covenant at law - Enforcement of covenant under special circumstances (s56 and 136 of LPA, C (R of TP) Act), passing of the benefit under law ie purchasers from the covenantEE (s78 of LPA touch and concern rule, see the rights attaching to the land / rights running with the land), passing of burden at law ie purchasers from the covenantOR (generally not possible: see the rule of Austerberry case), methods by which Austerberry rule can be avoided (indemnity, long lease, rule of mutual benefit and burden laid down in Halsall v Brizell, right of re-entry, rent charge)

3) Covenants at equity - Passing of benefit under equity, methods are: annexation (express, implied, statutory - see the arguments in favour and against Federated Home case), assignment (s136), building scheme, passing of burden under equity, see the rule laid down on Tulk v Moxhay (4 rule principle)

4) Breach of covenants and remedies

5) Discharge and modification of covenants - S84 of LPA

6) Proposal for reform

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