I contribute to an online advice forum at http://www.homemove.co.uk
A query that (to me, at least) was quite interesting cropped up today, regarding a breach of a restrictive covenant.
The query itself was:
"We purchased a converted barn 2 years ago and the developer (who also  lived next door) suggested that we get a garden room extension when I  said I wouldn't buy it as I wanted more room! We decided to do just that  and got the necessary planning permission but have uncovered in the  past few weeks that there is a restrictive covenant on the property for 5  years. Unfortunately, the developer has since moved away leaving no  forwarding addresses (as we believe she is in debt) however she was the  one to initally mention the extension PLUS she phoned to congratulate us  on getting the permission AND she even wanted to quote for the  business! Our solicitor made it out that it would be best to try to  contact her which we have done via her solicitor. We know she has the  letter but has not bothered to respond either way! She is reknowned for  her lack of business acumen! We have just been told by our solicitor  that we cannot even get an indemnity now because (we did what we were  originally told was the "right thing") we have made contact with her. Is  there anyway out of this mess? Surely, we must have recourse in some  way that she cannot simply abstain from an answer? And given that we  have verbal confirmation from her, can we rely on anything here? It  would be greatly appreciated if anyone can help!! Thanks."
My reply was:
"I assume that it is the developer who has the benefit of the restrictive  covenant, and the problem you have is that you are now trying to sell  the property and the buyer is seeking evidence of compliance with the  covenant in the form of a consent/release from the developer
"If so, I suggest you make a "statutory declaration", detailing exactly  what happened, and detailiung the various ways in which the developer  encouraged you to build the extension, knew of it and did not object and  has failed to respond to correspondence.
"The point is that a court will not enforce a restrictive covenant if the  person entitled to enforce it has connived in its breach, nor if they  have simply sat back and done nothing in the knowledge that it is about  to be or has been breached - the person with the benefit of the right  musdt act reasonable promptly to enforce it - this is under the  equitable doctrine of "laches" - the Wikipedia entery on this is very  useful: Laches  (equity) - Wikipedia, the free encyclopedia
"A sufficiently clear statutory declaration should be sufficient comfort  to a buyer to enable them to proceed despite the apparent breach of  covenant"
Whether my suggested solution will succeed or not, I cannot say, but at least it offers somed light at the end of the tunnel
Friday, 4 June 2010
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