Easements and restrictive covenants

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Helen inherited farmland from her grandfather and discovered that neighbors have used a private track across the land for more than 25 years, claiming a right of way. Additionally, the farmland is subject to a restrictive covenant from 1960 prohibiting the construction of any building taller than two storeys. Last month, Helen granted a local utility company a formal, written right to install and maintain an underground pipeline through her land. She is now negotiating to sell a portion of the farmland, including the track, to a developer planning to build multiple residential units. Helen wonders whether the neighbors’ claim to use the track is legally enforceable and if the restrictive covenant still binds potential successors.


Which of the following is the best explanation of how to determine if the neighbors’ claim to use the track qualifies as a prescriptive easement?

An easement is a non-possessory right to use another person's land for a specific purpose, while a restrictive covenant is a binding obligation that restricts the use or enjoyment of land for the benefit of another's land. Both are key aspects of property law, defining rights and obligations that significantly impact land use, value, and development. Understanding the principles governing easements and restrictive covenants—including their creation, enforcement, and termination—is important for managing property transactions and resolving disputes effectively.

Easements

Easements provide specific rights to use land owned by someone else without owning it. They are indispensable in situations where access, utilities, or rights of way are necessary for enjoying a property.

Types of Easements

Easements can be established in various ways, each with its own legal considerations.

Express Easements

Express easements are deliberately created through formal agreements between parties, typically documented in writing. For instance, if a landowner grants their neighbor a right of way over their land, this agreement is explicitly stated in a deed. These easements must comply with legal formalities under the Law of Property Act 1925, such as being created by deed as per section 52.

Implied Easements

Implied easements arise without explicit documentation, often because they are necessary for the reasonable use of the property. There are several categories:

  • Easements of Necessity: Occur when land cannot be used without the easement, like accessing a landlocked property.
  • Common Intention Easements: Arise from the mutual intentions of the parties at the time of property transfer.
  • Wheeldon v Burrows Rule: Transfers to a buyer all quasi-easements that are continuous and apparent, necessary for the reasonable enjoyment of the part transferred, and used by the seller at the time of the sale.

Prescriptive Easements

Prescriptive easements are acquired through long-term use. If someone has used a right over another's land openly, without permission, and without objection for at least 20 years, they may gain a legal right to continue that use. It's akin to a custom becoming recognized as a right due to its long-standing nature.

Legal Characteristics of Easements

For a right to qualify as an easement, it must meet the criteria established in Re Ellenborough Park [1956] Ch 131:

  1. Dominant and Servient Tenements: There must be two pieces of land—one benefiting (dominant) and one burdened (servient).
  2. Benefit the Land: The easement must accommodate and benefit the dominant tenement.
  3. Separate Ownership: The dominant and servient tenements must be owned by different parties.
  4. Capable of Grant: The right must be sufficiently definite and capable of being the subject matter of a grant.

Creation and Termination of Easements

Creation Methods:

  • Express Grant or Reservation: Formal creation through a deed.
  • Implied Grant: Arising under circumstances such as necessity or common intention.
  • Prescription: Established through long-standing, uninterrupted use.

Termination Methods:

  • Express Release: The dominant owner relinquishes the right, typically in writing.
  • Consolidation of Ownership: When both properties come under the same ownership, the easement may be extinguished.
  • Abandonment: If the dominant owner behaves in a way that clearly indicates an intention to abandon the easement.

Restrictive Covenants

Restrictive covenants are promises restricting the use of land, intended to preserve the value or character of neighboring properties.

Nature of Restrictive Covenants

A restrictive covenant obliges the covenantor (the person making the promise) to refrain from specific actions on their land for the benefit of the covenantee's land. Unlike easements, which grant rights, restrictive covenants impose limitations.

Requirements for Enforceability

For a restrictive covenant to bind successors:

  1. Negative in Nature: The covenant must restrict actions rather than impose positive obligations.
  2. Intended to Run with the Land: There must be intent, either express or implied, that the covenant binds successors.
  3. Benefit Identifiable Land: The covenant must benefit specific land owned by the covenantee.
  4. Registration: Properly registered under the Land Charges Act 1972 for unregistered land or noted on the title for registered land.

The Rule in Tulk v Moxhay

In Tulk v Moxhay (1848), it was established that a restrictive covenant can be enforced against subsequent purchasers of the servient land who have notice of the covenant, ensuring the covenant's longevity and effectiveness.

Modification and Discharge

Under section 84 of the Law of Property Act 1925, a landowner can apply to the Upper Tribunal (Lands Chamber) to modify or discharge a restrictive covenant if it:

  • Obstructs Reasonable Use: The covenant impedes reasonable use of the land without substantial benefit to others.
  • Becomes Obsolete: Changes in the character of the property or neighborhood render the covenant obsolete.
  • Consent of Beneficiaries: All beneficiaries agree to the modification or discharge.

Interactions Between Easements and Restrictive Covenants

Easements and restrictive covenants often coexist, influencing how land can be used or developed.

Practical Scenario

Consider a developer planning to build new homes on a plot of land. The land benefits from an easement granting access via a private road but is also burdened by a restrictive covenant limiting construction to single-story buildings. The developer must:

  • Assess the Easement's Scope: Ensure the increased traffic doesn't exceed the easement's terms.
  • Evaluate the Covenant's Impact: Determine if the building plans violate the height restriction.
  • Explore Modification Options: Consider whether the restrictive covenant can be modified or discharged.

This interplay requires careful legal analysis to resolve potential conflicts and move the development project forward.

Investigating Title: Comprehensive Steps

Thorough investigation of a property's title is essential to identify any easements or restrictive covenants that may affect ownership or use.

Step-by-Step Guide

  1. Review Title Documents: Examine deeds and the Land Registry entries for any registered interests.
  2. Conduct Searches:
    • Land Registry Searches: For registered land, check for notices or restrictions.
    • Land Charges Searches: For unregistered land, search for any land charges against previous owners.
  3. Inspect the Property: Look for physical signs of easements, such as paths or utility lines, and assess potential breaches of covenants.
  4. Make Inquiries: Ask the seller about any rights or obligations affecting the property.
  5. Analyze Legal Implications: Determine the enforceability of any discovered easements or covenants.
  6. Advise Clients: Provide detailed information on how these interests may impact ownership or intended use.

Conclusion

Easements and restrictive covenants are complex yet fundamental components of property law, governing how land can be used and enjoyed. The criteria established in landmark cases like Re Ellenborough Park and Tulk v Moxhay offer foundational guidance for assessing these rights and obligations. Recognizing how easements are created—whether expressly, by implication, or through prescription—and understanding the strict requirements for restrictive covenants to bind successors are key for accurate legal evaluation.

For instance, when evaluating a property's suitability for development, one must consider existing easements that may restrict access or construction, as well as restrictive covenants that could limit building types or uses. Familiarity with statutory provisions like the Law of Property Act 1925 and the Land Charges Act 1972 is essential in determining the validity and enforceability of these interests.

Ultimately, a sound understanding of easements and restrictive covenants enables legal professionals to manage the complexities of property transactions, ensuring that rights are protected and obligations are clearly understood. This knowledge is important in preventing disputes, ensuring smooth transactions, and supporting clients in achieving their property objectives.

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