Law of Property (Miscellaneous Provisions) Act 1989

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The Law of Property (Miscellaneous Provisions) Act 1989 (c. 34) is a United Kingdom Act of Parliament, which laid down a number of significant revisions to English property law.

Nature of reforms

The Act introduced several distinct reforms:

Subsequent jurisprudence

Validity of execution under Mercury

S. 1(3) of the Act provides that: An instrument is validly executed as a deed by an individual if, and only if— In its 2008 decision in the Mercury Tax Group case, the High Court of England and Wales expressed in obiter that the recycling of signature pages from earlier drafts rendered the agreements in question invalid as deeds under the Act. Taken together with previous jurisprudence on the execution of documents in the Court of Appeal for England and Wales, the Law Society of England and Wales has issued guidance as to what steps are necessary in order to validly execute deeds and other documents executed in counterpart in electronic or virtual signings or closings:

Land contracts

Section 2 deals with contracts for the creation or sale of legal estates or interests in land, and not with documents that transfer such estates or interests. The Court of Appeal has noted which types of agreements fall either within the Act or outside of it: ... Section 2 is concerned with contracts for the creation or sale of legal estates or interests in land, not with documents which actually create or transfer such estates or interests. So a contract to transfer a freehold or a lease in the future, a contract to grant a lease in the future, or a contract for a mortgage in the future, are all within the reach of the section, provided of course the ultimate subject matter is land. However, an actual transfer, conveyance or assignment, an actual lease, or an actual mortgage are not within the scope of section 2 at all. The "single document" requirement is strictly applied: Lord Justice Rimer observed in Keay & Anor v Morris Homes (West Midlands) Ltd. (2012) regarding section 2(1) that:... Its effect is merciless. An appropriately signed document purporting to amount to a contract for the sale or other disposition of an interest in land will not in fact create a valid contract unless it includes all the expressly agreed terms of the sale or other disposition. If it fails do so it will be void... The Court has given guidance on circumstances where a land contract can be avoided under s. 2:

Proprietary estoppel

S. 2 of the Act repealed s. 40 of the Law of Property Act 1925, thus abolishing the equitable doctrine of part performance with respect to dispositions of interests in land, which had been recommended by the Law Commission of England and Wales. Although the Commission believed that the equitable doctrines of promissory estoppel and proprietary estoppel would still be available to provide relief, the House of Lords has subsequently held that such relief was not available. As Lord Scott of Foscote stated in his speech: 29.... proprietary estoppel cannot be prayed in aid in order to render enforceable an agreement that statute has declared to be void. The proposition that an owner of land can be estopped from asserting that an agreement is void for want of compliance with the requirements of section 2 is, in my opinion, unacceptable. The assertion is no more than the statute provides. Equity can surely not contradict the statute.... This mirrors the observation that "The doctrine of estoppel may not be invoked to render valid a transaction which the legislature has, on grounds of general public policy, enacted is to be invalid," which has been cited in other cases in the matter by the Court of Appeal. The constructive trust remedy that is available under s. 2(5) of the Act, however, operates under principles distinct from those of estoppel, which can lead to problems in application and enforcement. Academic discussion suggests that estoppel may still be available in situations outside of s. 2 on its own terms.

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