Property Lawyers and Conveyancing Solicitors in Manchester at Ford Banks Irwin Solicitors - Selling a House / Flat Implied Covenants
Please note: Not to be used or relied upon without legal advice. These notes are for illustrative purposes ONLY.
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Assignments of old tenancies:
These covenants are implied by section 134 and schedule 12, paragraph 20 Land Registration Act 2002. Where the old tenancy is unregistered, effectively the same covenants are implied by section 77 Law of Property Act 1925.
Further provision is made in the Land Registration Rules 2003 where the old tenancy is a registered Lease and the transfer is of only part of the Land / Property comprised in the Lease.
- rule 60(2) Land Registration Rules 2003 provides that where the part transferred is, without the consent of the Lessor, expressed to be exonerated from the entire rent, the transferor's covenant extends to the entire rent. Similarly, rule 60(3) Land Registration Rules 2003 provides that where the part transferred is, without the consent of the Lessor, expressed to be subject to the entire rent, the transferee's covenant extends to the entire rent.
- rule 66 Land Registration Rules 2003 provides that if a transfer of a registered Lease that is an old tenancy modifies or negatives any covenant on the part of the transferee implied by schedule 12, paragraph 20 Land Registration Act 2002, then an entry must be made in the register (Property Title Deeds) to record this.
Assignments of new tenancies:
A 'new tenancy' is a Lease prepared by Property Lawyers and Conveyancing Solicitors and granted on or after 1 January 2006 otherwise than in pursuance of an agreement entered into, an option granted or a Court Order made before that date (section 1(3) Landlord and Tenant (Covenant) Act 1995.
Original tenant liability was abolished for new tenancies. The covenants implied into transfers of old tenancies are not, therefore, implied into transfers of new tenancies. But transfers of these tenancies will still, of course, be subject to the implied covenants for title set out in the section - the covenants implied in dispositions made with full or limited title guarantee.
Implied Covenants in respect of rentcharges:
A transfer for valuable consideration of Land / Property subject to an existing rentcharge implied a covenant by the transferee that the transferee and the transferee's successors in title will:
- pay the rentcharge
- comply with the covenants and conditions imposed on the owner of the Land by the document creating the rentcharge
- keep the transferor and the transferor's successors in title indemnified in respect of any failure to pay the rentcharge or to comply with the covenants and conditions.
Where the transfer is of only part of the Land subject to a rentcharge, and the rent is apportioned without the consent of the owner of the rentcharge, the transferee's covenant is only in respect of the apportioned rent. The transferor similarly covenants that they and their successors in title will pay the balance of the rent, comply with the covenants and conditions and keep the transferee indemnified.
Where the part transferred is, without the consent of the rentcharge owner, expressed to be exonerated from the entire rent, the transferor's covenants extends to the entire rent (section 69(2) Land Registration Rules 2003). Where the part transferred is, without the consent of the rentcharge owner, expressed to be subject to the entire rent, the transferee's covenant extends to the entire rent (section 69(3) Land Registration Rules 2003).
The Land Registry state these covenants are implied by section 77 and Schedule 2 Law of Property Act 1925.
The Land Registry state these covenants do not apply to a rentcharge falling within section 2(3)(a) Rentcharges Act 1977 (family charges) in relation to which difference covenants are implied (section 11 Rentcharges Act 1977).
(All italics in this page are Crown Copyright and reproduced here for your information with permission from HM Land Registry)
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Property Lawyers and Conveyancing Solicitors in Manchester for Selling a House / Flat Implied Covenants 1 | Property Lawyers and Conveyancing Solicitors in Manchester for Selling a House / Flat Implied Covenants 2 | Property Lawyers and Conveyancing Solicitors in Manchester for Selling a House / Flat Implied Covenants 3 | Property Lawyers and Conveyancing Solicitors in Manchester for Selling a House / Flat Implied Covenants 4 |