Land Sale Reform
The legislation will modernize contracts, land contracts, and conveyancing practice.
A contract for the sale of land must be evidenced in writing. This replicates the existing law. Some document proving key terms of sale must be signed for or on behalf of the person against whom enforcement is to be taken.
The equitable principle as part performance applies. An agreement may be enforced notwithstanding writing in the absence of writing where it has been partly performed and it would be unjust not to do so.
See our chapter on specific performance and equitable remedies.
In the case of registry of deeds conveyancing, a 15-year title is sufficient. The original title must commence with the deed at least 15 years old.
As in the Republic of Ireland and in England and Wales, the position in Northern Ireland is that on every sale after 2003, the whole of Northern Ireland is subject to compulsory registration.
Description statements and recitals on deeds over 15 years old are presumed true.
The legislation modernizes the law on deeds. As with the Republic of Ireland, the requirement for certain technical language has now been removed from deeds.
The legislation confirms that in a number of cases, deeds are not required, including a sale which may be in writing passing a gift to the persons entitled under a Will from the rep. Disclaimers by liquidators; Surrenders of leases; Assignment of short leases.
The requirement for words of limitations has been abolished. Where a person transfers land, he would be deemed to pass the ownership in land which he has power to convey. Formally the presumption was in the absence of words conveying the fee simple at a life interest only.
The rules regarding fraudulence and conveyances are restated in modern form. Where a person transfers land with intention to defraud others’ rights to the land, such as creditors, it may be set aside.
Certain covenants or promises on the title are implied by the use of certain wording in the legislation. This would mean that even where title is investigated, if a person successfully challenges the interest of the vendor, the vendor may be sued with compensation and consequences.
These are effectively warranties or covenants on title equivalent to those given by the seller of goods. There are various classes of warranty or covenant. They can be incorporated by the use of short-form words.
The new legislation will introduce a trust of land in Northern Ireland similar to that applying in the Republic and in England and Wales. This will apply to all land trusts whether created by a document or by circumstances such as the resulting trust and constructive trusts.
The key feature of a trust of land is that there will always be somebody named or deemed trustee, and that person has power to deal with the land as if he is the absolute owner. However, he must deal with the land as a trustee for the benefit of the beneficiaries to the extent they apply. The person will often be a beneficiary or one of the principal entrusted parties.
After commencement of the act, where land is held under a trust or where there are successions of interest in land that would be deemed to be a trust of land.
Trustees of land have all the powers of a full owner. He must exercise the powers bearing in mind his duty as a trustee. He has a duty of care to beneficiaries.
As with the English and Republic of Ireland position, a sale by two trustees under a trust of land transfers the full interest free from encumbrances and benefits other than those of persons in actual occupation. This occupation is reasonably discoverable. After a sale, the interest of money since the person is attached only to the proceeds of sales.
There are some limited circumstances where this overriding power will not apply. Where fraud is involved; Where the sale is made subject to the equitable interest; Where the deeds are mortgaged by deposits; in this case, the purchaser is tipped off by the absence of the deed; Sales by a single trustee or owner.
Another exception is where the interest has been protected by legislation in a land registry or a registry of deeds. The same principle applies to registry of deeds title.
Where a dispute arises regarding a trust of land, it may be resolved by a summary application court. The trustee’s beneficiaries and certain other interest and persons are entitled to make the application.
The court has a wide range of discretion as to how to resolve the dispute. It must take account in exercising its discretion of various matters, including the overriding interest of the beneficiaries as a whole.