Proprietary estoppel Definition

GLOSSARY

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What does Proprietary estoppel mean?

A means of acquiring rights in land in an informal manner.

Proprietary estoppel is a means by which rights in land can be acquired informally by the making of promises and reliance on them so as to incur a detriment through that reliance. Where it would be unconscionable for the person who made the promise to withdraw from it, an equity arises that the Court may, on a discretionary basis, enforce. In registered land, s.116 of the Land Registration Act 2002 provides that proprietary estoppels are capable of binding third parties as overriding interests.

View the related checklists about Proprietary estoppel

Probate actions—table of cases

Probate actions—table of cases Testamentary capacity Topic Case name Summary Author Testamentary capacity Leonard v Leonard (by her litigation friend Sharon Thompsett) [2024] EWHC 321 (Ch) News Analysis: High Court provides guidance on the test for testamentary capacity (Leonard v Leonard)The High Court provides analysis and clarification of the test in Banks v Goodfellow and reaffirms the role of expert evidence in capacity cases. George Vare, barrister at Serle Court Chambers Testamentary capacity Wilkinson and others v Hicken [2023] EWHC 1983 (Ch) News Analysis: Personality disorders and testamentary capacity—Will declared valid by High Court (Re Wilkinson)The presumption of capacity was not rebutted as although the testator’s decision to largely disinherit his children ‘may be considered unfair’, that decision was not irrational. Emma Fitzmaurice, senior associate solicitor at Freeths LLP Testamentary capacity Baker and another v Hewston [2023] EWHC 1145 (Ch) News Analysis: Can Banks v Goodfellow and the Mental Capacity Act 2005 be reconciled? (Baker and another v Hewston)The High Court reconciled the Mental Capacity Act...

Due diligence—restrictive covenants—checklist

Due diligence—restrictive covenants—checklist Title to land (both registered and unregistered) may show that the owner of the land, or a predecessor in title, has entered into covenants concerning all or part of the land. These covenants may be positive in nature (such as a covenant to maintain a fence) or restrictive (such as a covenant not to build next to a boundary). Covenants will always be enforceable between the original covenanting parties but a distinction is made between positive and restrictive covenants for the purposes of establishing their effect on successors in title to the original covenanting parties. This Checklist is for use as part of a due diligence exercise where a property is subject to and/or has the benefit of one or more restrictive covenants. These covenants may be: • imposed for the landowner’s own benefit; these are personal and are only enforceable by the original parties to the covenant unless expressly assigned to a third party • part of a scheme, such as a building scheme, where covenants...

Proprietary estoppel for property disputes lawyers

This Practice Note discusses issues that arise in proprietary estoppel in a property context. For a general discussion of proprietary estoppel, see Practice Note: Proprietary estoppel.The doctrine of proprietary estoppelProprietary estoppel is a means by which property interests can be affected or created, so as to make the assertion of strict rights unconscionable. The estoppel gives rise to ‘an equity’ in favour of the person who is entitled to assert the estoppel. Unlike other kinds of estoppel, it gives rise to a cause of action.Proprietary estoppel arises where:•an owner of land (D) makes an assurance or promise, or gives encouragement, to another party (C) to believe that they have or will enjoy some right or benefit over D’s property•C reasonably relies on that assurance, promise or encouragement•C suffers detriment as a result of its reliance•then D seeks to take unconscionable advantage of C by denying them the right or benefit which they expected to receiveAlthough all these elements must usually be satisfied, it is wrong to treat them as rigidly...

Creating a valid contract—statutory exceptions

The requirements set out in section 2 of the Law of Property (Miscellaneous Provisions) Act 1989 (LP(MP)A 1989) do not apply to certain contracts and trusts. This Practice Note sets out what those contracts and trusts are, and how the exceptions are implemented.Excepted contractsThe contractual formalities set out in LP(MP)A 1989, s 2 do not apply to contracts:•for leases not exceeding three years (ie short leases under Law of Property Act 1925, s 54)•made in the course of a public auction•regulated under the Financial Services and Markets Act 2000 (other than a regulated mortgage contract, regulated home reversion plan, regulated purchase plan or a regulated sale and rent back agreement)Constructive trustsThe statutory formalities set out in Law of Property (Miscellaneous Provisions) Act 1989, s 2 do not affect the creation or operation of resulting, implied or constructive trusts. They are not required to be evidenced in writing.A constructive trust arises in connection with the legal title to property where one party has so conducted themselves that it would be inequitable...

Discover our 59 Practice Notes on Proprietary estoppel

Letter of claim—proprietary estoppel claim

Letter of claim—proprietary estoppel claim Dear [insert organisation name] Our Client: [insert name] Your Client: [insert name] Re: [insert property address] We act on behalf of [insert name]. This is our letter of claim in relation to our client’s claim to [an interest in] the property known as [insert property address] (the Property) by virtue of proprietary estoppel. Background [Provide a summary of the relevant factual background.] Our client’s proprietary estoppel claim In summary, as explained above, [representor] repeatedly represented to our client that [insert details of what the claimant says was represented to them]. Our client trusted [representor] and relied on the promises and representations [representor] made to [him/her] to [his/her] detriment, in particular by [summarise the strongest 2 or 3 points on detriment]. It is therefore unconscionable for our client not to receive [explain what the claimant says they should receive] and for the Property to instead [explain the status quo, ie what would happen to the property but for the claimant’s claim]. Law As...

Cohabitant claims under the Trusts of Land and Appointment of Trustees Act 1996—client guide

Cohabitant claims under the Trusts of Land and Appointment of Trustees Act 1996—client guide This document provides general guidance regarding the property rights of cohabitants and claims under the Trusts of Land and Appointment of Trustees Act 1996. Your family lawyer will be able to provide specific advice based on your circumstances. Who can apply? Cohabitants do not have the same rights to make property claims as married couples or civil partners. Instead, disputes between cohabitants regarding their interests in a property are determined in accordance with the law of trusts. The 'common law' wife or husband does not exist in law, and claims by cohabitants are very limited in comparison with spouses or civil partners. In some circumstances it may be possible to make a claim on behalf of a child (see: Financial arrangements for children—client guide). There are two main ways in which a cohabitant may have an interest in a property: • as a joint owner, or • where the property is in the...

Dive into our 2 Precedents related to Proprietary estoppel

What is the definition of ‘intermeddling’ in an estate? Can an executor make a claim against the estate for either proprietary estoppel or under the Inheritance (Provision for Family and Dependants) Act 1975 without renouncing their executorship? Can an executor, before the application for the grant, appoint an attorney to act on their behalf to allow them to pursue those claims?

What is the definition of ‘intermeddling’ in an estate? Can an executor make a claim against the estate for either proprietary estoppel or under the Inheritance (Provision for Family and Dependants) Act 1975 without renouncing their executorship? Can an executor, before the application for the grant, appoint an attorney to act on their behalf to allow them to pursue those claims? This Q&A assumes that the executor is one of several personal representatives (PRs) and has an interest in the estate beside the executorship. Intermeddling Intermeddling occurs where a person handles the deceased’s assets and/or holds themselves out as an executor. There is no formal test for what constitutes intermeddling, but the threshold is not high. For examples where the court has found intermeddling, see Holder v Holder and Re Stevens. In considering whether a particular act amounts to intermeddling, it is often useful to consider whether that act, had it been carried out by someone who had not been not nominated as an executor, would...

A tenant entered into a 12-month AST and the landlord has served a valid section 21 notice terminating the tenancy on the expiry of the term. The tenant entered into the tenancy having been assured by the landlord that they could stay for longer than one year. Does the client have any cause of action or remedy based on estoppel or misrepresentation?

A tenant entered into a 12-month AST and the landlord has served a valid section 21 notice terminating the tenancy on the expiry of the term. The tenant entered into the tenancy having been assured by the landlord that they could stay for longer than one year. Does the client have any cause of action or remedy based on estoppel or misrepresentation? Misrepresentation Misrepresentation is a statement of a fact which is untrue. In order to establish a misrepresentation you must be able to point to the represented words either on the page or electronically, or point to them being said by a certain person, on a certain date. There must be an actual representation or statement. The representation must be a fact, as distinct from a statement of opinion, a statement of intention or a commendatory statement. The representation must be false. The general rule is that, in determining whether there has been an express representation, and to what effect, the court has to consider what a...

See the 48 Q&As about Proprietary estoppel

Property Disputes weekly highlights—5 December 2024

This week's edition of Property Disputes weekly highlights includes: Court of Appeal decisions on the Tenant Fees Act 2019 and estoppel in an adverse possession claim, High Court decisions concerning occupiers’ liability, mesne profits, and non-payment of a court fee when issuing a lease renewal claim, and Upper Tribunal decisions on modification of a restrictive covenant and the application of non-domestic rates to barristers’ chambers. It also includes the publication of the Ministry of Housing, Communities and Local Government (MHCLG)’s new Remediation Acceleration Plan (RAP), the MHCLG’s consultation on permitted insurance fees for landlords and freeholders, and the Supreme Court and Privy Council’s new websites and online Case Management Portal.

Private Client weekly highlights—5 December 2024

This week’s edition of Private Client highlights includes: (1) the Office of the Public Guardian upgrades processing time for LPA applications; (2) Newfield v Revenue and Customs Commissioners, in which the UT held that the appellant failed to satisfy the Ladd v Marshall test for admitting new evidence on appeal regarding the existence of a trust; (3) HMRC v The Taxpayer, where the UT considered a taxpayer’s application for permanent anonymity and third party disclosure request; (4) Lefort v HMRC, in which the Tribunal upheld HMRC’s Fixed Protection revocation, notwithstanding the taxpayer having been mistaken in continuing to make pension contributions after 6 April 2014; (5) Malik v Malik, in which the court upheld a defence for adverse possession by way of estoppel; (6) the Scottish government launches a consultation on digital assets and publishes its budget for 2025–26; and (7) MPs vote in favour of Assisted Dying Bill.

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