Land Act: Contracts and Transfers

Contracts over Land

• Part V of the Land Act relates to contracts over land.
• Contracts over land are comparable to regular contracts.
• Contracts must be written and signed by all involved parties.
• Each party's signature must be attested by a witness who was present during the signing, according to sec 3(3) of the Law of Contract Act, sec 38(1) of the Land Act, and sec 97 of the Evidence Act.
• A transaction relating to land is legally required to be in writing.
• Under section 39, a vendor has the right to cancel a contract if the purchaser violates it.
• This can be done by peacefully retaking possession of the land or by getting a court order to do so.
• Before regaining possession, the vendor is required to give the purchaser a notice under section 41.

Transfers

• Sections 43-48 are related to transfers.
• Transfer includes an assignment, conveyance, land transfer, lease transfer, or other instrument used to transfer a land interest.
• The transfer is finalized by registering the transferee as the land, lease, or charge's owner.
• According to section 44 the transfer takes effect immediately.

Transmission

• Transmission is the passing of land ownership, lease, or charge from one individual to another by law because of death, insolvency or compulsory land acquisition under written law.
• Section 49 of the Land Act covers transmission upon the death of a joint proprietor.
• Section 50 of the Land Act covers transmission upon the death of a sole proprietor, or a proprietor in common.
• Section 51 covers the effect of death on transmission.
• Section 52 covers transmission in bankruptcy.
• Section 53 addresses transmission following a company's liquidation.

Leases - Introduction

• Part VI of the Land Act and Part IV of the Land Registration Act relate to leases.
• A lease is a document that establishes an interest in land for a specified duration in return for rent payments.
• Also, leases are defined as contracts between two parties that grants a time in land.
• According to Lord Templeman in Prudential Assurance Co. Ltd v London Residuary Board [1972] 2AC, 286 at 390, a lease is a contract that grants land's exclusive possession and profit for a predetermined period.
• A lease establishes, for a set number of years, a leasehold between a grantor/landlord/lessor and a grantee/tenant/lessee.
• According to Section 63 of the Land Act, the right to exclusive possession granted in a lease is for a term shorter than the grantor's ownership of the land.
• A land leasehold interest is assignable or sublet.
• A sublease / subtenancy / under-lease takes place when the tenant establishes a new lease from their own tenancy which is for a shorter duration than the remaining term of the headlease, according to Section 63 of the Land Act.
• The landlord or tenant's "assignment" happens when either party transfers their entire interest in the property to a new tenant or landlord, as relevant .
• Each party has the ability to transfer their interest in the land and The landlord retains the estate for the reversion.
• The landlord's "reversion" is the estate they retain when granting the lease.
• A lease remains in effect even after the parties involved pass away.
• A license is only transferable if it's connected to an interest, such as when A lets B enter A's property to cut timber that A sold to B.
• A license that has an interest attached to it cannot be revoked for as long as that interest is in effect.

Essentials of a Lease

• A capable grantor and grantee are required; an agreement cannot establish a leasehold estate if the landlord lacks the legal authority to grant tenancies.
• The lease's start date must be definite; if none is specified, it's assumed that the lease will begin when the tenant takes possession.
• The term must begin and end specifically.
• A lease is void if the lease is uncertain, such as in the case of Lace v Chantler [1944]KB, where a property lease was held to be uncertain due to the lease lasting the entire "duration of the war".
• Granting property "for the duration that the lessee uses them" cannot create a valid leasehold term as seen in Congregational Christian Church v Losefa Tanga[1982].
• Rent usually indicates a lease but is unnecessary.
• Premises must be defined to create a lease, so the property must be explicitly defined.
• The tenant's right to exclude all others from the property, including the landlord and anybody claiming through the landlord, is known as exclusive possession, and enables them to use the property, also excluding others from leased property, including the Landlord unless a notice is given.
• In Street v Mountford [1985]AC 809, the key question in assessing whether to grant a tenancy is whether to grant a right to occupy the premises exclusively.
• Exclusive possession does not automatically qualify a person as a tenant.
• Court's look at the deal's substance, reality, and factual matrix as seen in Street v Mountford (1985).
• Relevant considerations include the landlord's real control, the nature and scope of the property, the parties' relationship and the property's intended and actual use.

Types of Leases

• Periodic leases section 57 Land Act.
• Future leases section 61 consist of a term beginning on a future date that must be no more than 21 years after the lease is executed.
• Short-term leases section 58 (1) Land Act, is a lease that is applicable to sec 57(2), is a periodic lease and is made for two years or less without the option to renew.
• Short-term leases can be made writing or orally and are not registrable interests in land.
• Tenancy at will is the lowest estate known to law, and is of indeterminate duration that can be determined by either party.
• It is not transferable and ends once either party passes away.
• Tenancy at sufferance arises when a tenant continues to occupy a property after a lease expires without the landlord's approval.
• Tenancy by estoppel is created when a landlord gives a representation that a lease will be created, and the tenant relies on that representation.
• Tenancy without an estate arises as highlighted in Bruton v London & Quadrant Housing Trust [2000] where a contractual relationship is possible between parties as a lease, but may not confer the designated "tenant" any estate in land.
• Lord Hoffmann, in Bruton v London & Quadrant Housing Trust [2000], admitted that it is not always necessary for a lease to carry an estate in land and he concluded that the parties' relationship could exist purely from of the contract between them.

Covenants of the Landlord

• Ensuring a lessor has quiet possession and ownership of the leased land under Land Act section 65(1)(a).
• Non-derogation from the grant section 65(1)(b) Land Act and Bowen LJ in Birmingham, Dudley and District Banking Company v Ross [1888] 38 Ch D 295 at 313 stipulating"...a grantor having provided a thing with one hand is not to take away the means of enjoying it with the other."
• Must be fit for habitation under section 65(1)(d) Land Act.
• Landlords are obligated to disclose important facts.
• Landlords are obligated to make necessary repairs under Land Act section 65(1)(c).
• Must pay all rates, taxes, dues, and other charges on the leased property unless otherwise specified in the lease.
• According to Land Act section 67, consent won't be unreasonably withheld from a lessee's application.
• Section 69 states covenants burden the revision.

Covenants of the Tenant

• The tenant is responsible for paying rent.
• The tenant is responsible for using the leased property in a sustainable manner under section 66(1)(b).
• The tenant is responsible for returning the land in a reasonable state subject to section 66(1)(c)
• Section 66(1)(e) states the tenant is to keep all buildings listed in the lease in a reasonable state of repair.
• The tenant must not sublease, charge, or transfer the property.
• The tenant is required to allow the landlord access to view the premises under section 65(2)(a) of the Land Act.
• Tenants must preserve all boundary markers under section 66(1)(d).
• For commercial leases, a tenant must pay an additional service charge and ensure it is accounted for, also adhere to clauses limiting property usage, insurance and weight restrictions to avoid damage to the property.

Enforcing Obligations Under A Lease - By Landlord

• Distress for rent means a landlord can remove tenant possessions to compel rent payments, within Distress for Rent Act (Cap. 293).
• Forfeiture allows a landlord to re-enter the premises when tenants break covenants subject to 30 days notice.
• A landlord may action for rents in arrears and action for damages.
• The landlord may seek an injunction.

Enforcing Obligations Under A Lease - By Tenant

• An unlawful is when the tenant has the right to be relieved, to pay any due owing that relates to the land act according to section 77.
• The tenant may seek an injunction.
• The tenant may claim for damages.
• The tenant may repudiate the contract.

Termination of a Lease

• Termination by notice must be provided for in the lease and must be the exact period in the notice including for fixed period leases.
• Termination by effluxion of time occurs when the lease period ends.
• Termination by surrender of the lease happens when the lessee gives their interest back to the lessor through mutual consent and If no mutual consent, the lessor can seek unexpired rent through a civil suit.
• Termination by forfeiture is highlighted in ss 31(1), 73-77, Land Act.
• Termination by frustration occurs when an event fundamentally change the lease.
• Termination by merger is when the leasehold and reversionary interests merge into the same person.

Charges

• Refers to Part VII of the Land Act and Part V of the Land Registration Act.
• Securing payment or fulfilment, an interest in land includes sub-charge, instrument creating charge.
• Informal charge is both a written and witnessed undertaking to repay the borrowed funds for a specific land and the customary charge under Sec 2, Land Act.
• The informal charge has a type that is an actual type who has the power or has been under a law or considered one according to the ACT.
• Charge of land only is an additional security for the asset only. The transfer is highlighted under sec 80, and Land Act & 56(5) LRA.
• Formal charges must be registered for chargee for it to be entitled. The ACT sec 79 highlights this under the 5th section under the Land Act.
• The instruments contain a charge to highlight or contain 80 (3) and the conditions of the sale and to explain the charges.
• Also, the instruments include right to sale and Section 57 LRA, which contains charges that a lender obtains charge with an obligation to consent for the charge.

Charges - Order of Priority

• Order of priority of charges; charges rank is highlighted under ACT s81.
• The payment of the charge made is paid first and discharged.
• According to the order of making the order on ranking is highlighted under the ACT. Registered charge, the person will charge to the formal change.
• Under ACT s82 highlights of the section 82.
• Doctrine track tracking- a lender is allow to have prior lender.
• Consolidation ACT-83-chargor charge of security is charged on the land. It means he is now charge who has the right to do the job.

Charges - Transfer, Re-Open

• ACT s 86 1 highlights chargor and an employee other than charge can charge the land under ACT subsection 2. The person is the right to transfer.
• According to sec 105 and 106 the re open terms will be reviewed. This will need to be for both parties or justice.
• Highlights that under sec 106 the court is able to reopen the case on a charge.

Barclays Bank vs O'Brien and Another - [1993]4 All ER 417

• It was highlighted the husband had acc stored for the lone or his security.
• After his marriage, the wife was to get mortgage. He filled to pay for the marriage that happened under ACT. An employee agreed that the the land could be divided when both parties agreed to this.
• There was a bank that had a marimonial to charge or dis charge under a couple. This resulted in an employee trying to convince a spouse to sign paperwork relating his land claim.

Charges - O'Brien Case

• The charge in question can only be accepted with advice.
• The advice from the lawyer had to be in full effect and with any advice, with no effect.
• Any charge is binding to the vender under that ACT.

Chargor's Rights

• Right of redemption is under law it is able to re pay charges.
• There can always be a charge if repaid to be re deem. This is under Selton v Slide.
• There is able to be an undertaking to make a fee but must always be upheld and the right must be followed.
• According to s85, chargors have the right to discharge.

Chargee's Remedies

• A chargee's remedies can be found is section 90(3) in the land act.
• Appointment of a the income of the charge can only be made with 90%.
• According to the chargors land needs the land. If the person exercising is not in good standing it can not have the effect of the charge.
• Chargee is where the money and money are one.
• If it lease, sublease needs to be charged and land.
• Land under possesion to do the same.

Chargee's Remedies - Foreclosure

• This highlights a court order to take charges and rights to be followed on ACT 85.
• This the borrow personal need and be used under personal covenant.
• Right To consolidate- right and be charge one the land.

Chargee's Remedies - Other Provisions

• According to section 94 an employer can remove charge from the land.
• Security under the guarantor has effect under the land. Those who are a part. The sale sec 97.

Other Provisions Relevant to Charges

• Secured in 99 section (3) protection or the action with the charges of an illegal or unnecessary or fraud way
• Secured is able to action those with approval according to the charges under SEC 100.

Charges Over Matrimonial Home

• It highlights section 7(9 and 3) in ACT. The home must be for a house and or be shown of their asset.
• Security has the right to be sold under (section 96, 3 and C).
• Highlights apply and relief against action. Under section 103 and section 3.
• Land is allowed a duty and inquiry from LRA. The spouse must be alerted to the charger ACT sec ((section 93,3A).
• It highlights section 3 and A the charger had had and effect on not action ACT Sec (section 93.4 or LRA).

This section outlines the laws relating to contracts over land, emphasizing the need for written agreements and witnessed signatures as required by the Land Act. It also describes vendor's rights to cancel contracts upon purchaser violations, including repossession procedures. It further defines transfers within the context of land transactions.