Most arguments about covenants placed on land have to do with property developments which are opposed by the owners of neighbouring land.
A historic case involved land which had been split into four plots in the 1950s. The owner of the land sold three of the plots and retained the fourth for her home. The plots she sold were subject to a covenant that any developments had to be approved by the original owner. When she finally sold her own plot, there was no such covenant put on the land.
The owners of one of the plots decided to demolish the building that was on their land and to build a small block of flats. The new owners of the fourth plot of land sought to prevent this by saying that the covenant which was attached to the earlier plot sales was still valid.
The people wishing to build the flats argued that the covenant could not pass to the new owners on their conveyance unless it was expressly assigned. The court agreed. The original covenant had clearly been placed on the first three properties in order to protect the interests of the original owner.
The case shows the need to give careful consideration to covenants when examining conveyances. In this case the covenant belonged, in effect, to the original vendor of the land and did not attach to the subsequent owners of the property (her 'successors in title'). They were therefore unable to prevent the development.
The position may have been different if the original owner had made sure that the benefit of the covenant had been annexed to the fourth plot.
To ensure that your property purchase does not contain hidden pitfalls, or for advice on any property matter, contact Sydney Mitchell on 0121 698 2200 or via email to f.ismail@sydneymitchell.co.uk.
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