Land Agreements Exclusion Order: What You Need to Know
Land agreements exclusion orders are a legal mechanism used in the United Kingdom to modify or exclude certain restrictive covenants affecting land, especially those related to development and use of land. In this article, we`ll explore what land agreements exclusion orders are, how they work, and what you need to know if you`re a property owner or developer.
What is a Land Agreements Exclusion Order?
A land agreements exclusion order is a court order that modifies or excludes the operation of restrictive covenants affecting land, often in the context of development and use. Restrictive covenants are contractual terms that limit the use or enjoyment of land, such as restrictions on building, fencing, or parking on the land. These covenants can be agreed by the parties involved, such as in a sale agreement, or imposed by law, such as in a planning permission.
However, restrictive covenants can sometimes hinder development or use of land in ways that are no longer relevant or reasonable. For example, a restrictive covenant may prevent the construction of a housing development on land that is now zoned for residential use. In such cases, a land agreements exclusion order may be sought to modify or exclude the restrictive covenant, allowing the development to proceed.
How Does a Land Agreements Exclusion Order Work?
A land agreements exclusion order is obtained through a court application made under section 84 of the Law of Property Act 1925 (LPA 1925) by the person who owns the land or has an interest in it, such as a lessee or mortgagee. The application must show that the restrictive covenant affects the land in a way that is obsolete, impedes reasonable use of the land, or causes disadvantage to the applicant. The application must be served on the beneficiaries of the restrictive covenant, who have the right to oppose or consent to the order.
The court may grant the land agreements exclusion order if it deems it just to do so, having regard to the public interest, the prejudicial effect of the restrictive covenant, and the interests of the parties. The order may modify, discharge, or make subject to a new covenant the restrictive covenant affecting the land. The order will be registered against the land and will bind all successors in title.
What You Need to Know If You`re a Property Owner or Developer
If you`re a property owner or developer, you should be aware of the following:
– Land agreements exclusion orders can provide a way to overcome restrictive covenants that limit the use or development of land. However, they are subject to court approval and may not always be granted.
– Land agreements exclusion orders can affect the value and marketability of the land, as they will be registered against the title and may deter potential buyers or lenders.
– Land agreements exclusion orders may require compensation to be paid to the beneficiaries of the restrictive covenant, especially if the order deprives them of a valuable right or interest.
– Land agreements exclusion orders may have wider implications for planning and development, as they may affect the balance between private property rights and the public interest in regulating land use.
To sum up, land agreements exclusion orders are a legal tool that can be used to modify or exclude restrictive covenants affecting land, but they require careful consideration and legal advice. If you`re considering applying for a land agreements exclusion order, or if you`re affected by one, you should seek professional guidance to ensure that your interests are protected and your obligations are clear.