Hi I will try and help
1) is the property registered ?
2) was the agreement made by deed?
3) was the option registered?
4) was jim aware of the agreement in some other way?
5) what was the date of the option agreement?
Hello, yes the property is registered, the arrangement was not made by deed but through a written agreement. The option was not registered and I think Jim was not aware of the agreement. The date of the agreement was made at the beginning of 2003
do you know the specific date of the agreement?
Im afraid not, probably around January
Also, is this question regarding lease options? are there any cases similar to my case?
sorry I am not sure i understand, is this an option to lease?
I'm not sure what is is, i don't know if its an option to lease
Is this an exam question or real life?
it's real life
hi sorry just had to nip away
and so whom are you concerned with? Jim or Stephaine?
thats okay don't worry
I need to know whether he would be bound by this right
Did Jim pay the pruchase money to just Tom, or was their a joint owner?
Tom initially owned the property and the title was solely in his name, but he's not sold the property to Jim
Jim is now the sole owner of the farm
sorry to clarify, you say above "not" sold the property, dd you mean "now"
yes sorry i meant now
and finally, was Stephanie in occupation of the property at all?
no she was not in occupation
It is unlikely Jim will be bound by the agreement. It was an estate contract made before 2002 and so was not registrable but as the property is register the only way Jim would be bound if he had either actual notice (i.e a notice on the register, and there isn't one) or constructive (i.e. she was in occupation).
Stephoen would be able t Sue Tom however under the contratct for the loss of profit
okay so would Stephanie get back the £10 consideration and can sue more on top of that?
also what is an estate contract?
She could sue for the loss (assuming she could prove that she would have exercised the option at some point) and so she could sue for the loss on the basis that the contract was performed correctly i.e. value in the land being around £10 million
and estate contract is a contract sale of land, or other disposition in land (i.e. lease etc)
okay, and because tom and Stephanie signed a written agreement, wouldn't that bind jim? or does that not count because its not registered?
It is the registration or notification that is key. A buyer needs. to become aware of an "overrding interest" for it to become bound by it. So if Tom or his Solicitors made Jim aware then he would be bound, but otherwise from what you have said it sounds like he wasn't.
an overriding interest includes occupation of the house, which Stephanie was not, but propriety interest is isn't it? does she not have a propriety interest in the land?
also what other things could count as an overriding interest which may bind jim?
and how could Stephanie prove that she has exercised the option?
the contract is a proprietary interest yes, as it is basically a conditional contract for purchase of land (the condition being the notice etc), but to be binding the buyer has to have notice of it.
I am not sure what you mean by the second question. It is a bit too wide, could you clarify.
I thought you said she hadn't exercised? If she had she would have to prvove that she had serve a correct notice, in the manner prescibed by the agreement
so she cannot bind Jim just because she has a propriety interest in the land? when you say the buyer has to have notice to it, do you mean Tom would have had to tell Jim about it?
sorry what do you mean by exercised?
so she cannot bind Jim just because she has a propriety interest in the land? Yes : when you say the buyer has to have notice to it, do you mean Tom would have had to tell Jim about it? Yes.
exercised the Notice
erm im not sure about that one
i don't know if she has exercised it or not
she did not live in the property
ohh do you mean if she registered it or not?
she did not register it, but what does a written agreement include?
I think this is getting a bit confused. You asked above how could stephanie prove she exercised the option. I said she would have to prove that she correctly served the 1 months notice as set out in the option agreement, usually in writing and delivered by post.
ohhh i understand, and if she has not yet exercised the option then would she still be entitled to sue Tom?
yes because the right was still live at the time he sold the property, assuming she could reasonably have eventually exercised the option.
okay i understand! just another question, if i were to read further about this topic what would i look at, is this option to purchase or lease option?
also do you know any cases what i could rely on which have had similar issues?
It depends what the actual agreement says between Tom and Stephanie - it could be either.
what information would be needed in order for it to be a option to purchase?
so is an option to purchase and estate contracts the same thing?
because you said to me this is an estate contract
It is more accurate to say an option to purchase is an estate contract *as is a contract to purchase, lease, etc). It is difficult to give you specific cases as there are disparate legal principles being discussed here
you could start with
okay thank you, ***** ***** any laws on this? for example anything in the land registration act or the land of property act?
Well there is the Law of Property 1925 that this all begins with and then the more recent Land registration Act 2002
also perhaps consider further Hunt v Luck
okay thank you i will have a look at that
what sections shall i look in the law of property act and the land registration act?
1925 act - too wide a question as it depends on what you want to look at; 2002 act check out the Schedules 1 and 3 as a starting point, and sec. 11, 29-30.
okay thank you, ***** ***** i understand
Jim cannot be bound because Stephanie was not in occupation, and even though she has a propriety interest in the property, she cannot rely on this solely. However she can sue under breach of contract and claim damages
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thank you very much
Hello, I was just wondering can't option to purchase be protected by notice?
In 2003 Tom entered into a written agreement with his niece Stephanie, to the effect that, in consideration of £10, Stephanie was given the right to purchase the farm from Tom for a sum of £1 million, on the giving of one calendar month’s notice, within a period of 21 years, Tom has now sold his farm to Jim, will Jim be bound by Stephanies rights?