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LAW OF PROPERTY (MISCELLANEOUS PROVISIONS) ACT 1994

UK Public General Acts

Version 19/09/2013

1994 CHAPTER 36

Default Geographical Extent: E+W


  • Part I. Implied covenants for title
    • The covenants
    • Effect of covenants
    • Transitional provisions
  • Part II. Matters arising in connection with death
  • Part III (E+W+S+N.I.). General provisions
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  • Version 15/02/1995

Introductory Text

Law of Property (Miscellaneous Provisions) Act 1994

1994 CHAPTER 36

An Act to provide for new covenants for title to be implied on dispositions of property; to amend the law with respect to certain matters arising in connection with the death of the owner of property; and for connected purposes.

[3rd November 1994]

Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

Annotations:

Extent Information

E1 Act extends to EW, for additional provisions relating to Scotland and Northern Ireland see s. 22(2)

Commencement Information

I1 Act not in force at Royal Assent see s.23


Part I
Implied covenants for title



The covenants


1 Covenants to be implied on a disposition of property.

(1) In an instrument effecting or purporting to effect a disposition of property there shall be implied on the part of the person making the disposition, whether or not the disposition is for valuable consideration, such of the covenants specified in sections 2 to 5 as are applicable to the disposition.

(2) Of those sections—

(a) sections 2, 3(1) and (2) , 4 and 5 apply where dispositions are expressed to be made with full title guarantee; and
(b) sections 2, 3(3) , 4 and 5 apply where dispositions are expressed to be made with limited title guarantee.
(3) Sections 2 to 4 have effect subject to section 6 (no liability under covenants in certain cases) ; and sections 2 to 5 have effect subject to section 8(1) (limitation or extension of covenants by instrument effecting the disposition).

(4) In this Part— “disposition” includes the creation of a term of years; “instrument” includes an instrument which is not a deed; and “property” includes a thing in action, and any interest in real or personal property.

2 Right to dispose and further assurance.

(1) If the disposition is expressed to be made with full title guarantee or with limited title guarantee there shall be implied the following covenants—

(a) that the person making the disposition has the right (with the concurrence of any other person conveying the property) to dispose of the property as he purports to, and
(b) that that person will at his own cost do all that he reasonably can to give the person to whom he disposes of the property the title he purports to give.
(2) The latter obligation includes—

(a) in relation to a disposition of an interest in land the title to which is registered, doing all that he reasonably can to ensure that the person to whom the disposition is made is entitled to be registered as proprietor with at least the class of title registered immediately before the disposition; and
(b) in relation to a disposition of an interest in land the title to which is required to be registered by virtue of the disposition, giving all reasonable assistance fully to establish to the satisfaction of the Chief Land Registrar the right of the person to whom the disposition is made to registration as proprietor.
(3) In the case of a disposition of an existing legal interest in land, the following presumptions apply, subject to the terms of the instrument, in ascertaining for the purposes of the covenants implied by this section what the person making the disposition purports to dispose of—

(a) where the title to the interest is registered, it shall be presumed that the disposition is of the whole of that interest;
(b) where the title to the interest is not registered, then—
(i) if it appears from the instrument that the interest is a leasehold interest, it shall be presumed that the disposition is of the property for the unexpired portion of the term of years created by the lease; and
(ii) in any other case, it shall be presumed that what is disposed of is the fee simple.

3 Charges, incumbrances and third party rights.

(1) If the disposition is expressed to be made with full title guarantee there shall be implied a covenant that the person making the disposition is disposing of the property free—

(a) from all charges and incumbrances (whether monetary or not) , and
(b) from all other rights exercisable by third parties,
other than any charges, incumbrances or rights which that person does not and could not reasonably be expected to know about.
(2) In its application to charges, incumbrances and other third party rights subsection (1) extends to liabilities imposed and rights conferred by or under any enactment, except to the extent that such liabilities and rights are, by reason of—

(a) being, at the time of the disposition, only potential liabilities and rights in relation to the property, or
(b) being liabilities and rights imposed or conferred in relation to property generally,
not such as to constitute defects in title.
(3) If the disposition is expressed to be made with limited title guarantee there shall be implied a covenant that the person making the disposition has not since the last disposition for value—

(a) charged or incumbered the property by means of any charge or incumbrance which subsists at the time when the disposition is made, or granted third party rights in relation to the property which so subsist, or
(b) suffered the property to be so charged or incumbered or subjected to any such rights,
and that he is not aware that anyone else has done so since the last disposition for value.

4 Validity of lease.

(1) Where the disposition is of leasehold land and is expressed to be made with full title guarantee or with limited title guarantee, the following covenants shall also be implied—

(a) that the lease is subsisting at the time of the disposition, and
(b) that there is no subsisting breach of a condition or tenant’s obligation, and nothing which at that time would render the lease liable to forfeiture.
(2) If the disposition is the grant of an underlease, the references to “the lease” in subsection (1) are references to the lease out of which the underlease is created.

5 Discharge of obligations where property subject to rentcharge or leasehold land.

(1) Where the disposition is a mortgage of property subject to a rentcharge, [F1 of leasehold land or of a commonhold unit] , and is expressed to be made with full title guarantee or with limited title guarantee, the following covenants shall also be implied.

(2) If the property is subject to a rentcharge, there shall be implied a covenant that the mortgagor will fully and promptly observe and perform all the obligations under the instrument creating the rentcharge that are for the time being enforceable with respect to the property by the owner of the rentcharge in his capacity as such.

(3) If the property is leasehold land, there shall be implied a covenant that the mortgagor will fully and promptly observe and perform all the obligations under the lease subject to the mortgage that are for the time being imposed on him in his capacity as tenant under the lease.

[F2 (3A) If the property is a commonhold unit, there shall be implied a covenant that the mortgagor will fully and promptly observe and perform all the obligations under the commonhold community statement that are for the time being imposed on him in his capacity as a unit-holder or as a joint unit-holder.]

[F3 (4) In this section—

(a) “commonhold community statement”, “commonhold unit”, “joint unit-holder” and “unit-holder” have the same meanings as in the Commonhold and Leasehold Reform Act 2002, and
(b) “mortgage” includes charge, and “mortgagor” shall be construed accordingly.]
Annotations:

Amendments (Textual)

F1 Words in s. 5(1) substituted (27.9.2004) by Commonhold and Leasehold Reform Act 2002 (c. 15), s. 181(1), Sch. 5 para. 7(2) (with s. 63); S.I. 2004/1832, art. 2

F2 S. 5(3A) inserted (27.9.2004) by Commonhold and Leasehold Reform Act 2002 (c. 15), s. 181(1), Sch. 5 para. 7(3) (with s. 63); S.I. 2004/1832, art. 2

F3 S. 5(4) substituted (27.9.2004) by Commonhold and Leasehold Reform Act 2002 (c. 15), s. 181(1), Sch. 5 para. 7(4) (with s. 63); S.I. 2004/1832, art. 2


Effect of covenants


6 No liability under covenants in certain cases.

(1) The person making the disposition is not liable under the covenants implied by virtue of—

(a) section 2(1) (a) (right to dispose) ,
(b) section 3 (charges, incumbrances and third party rights) , or
(c) section 4 (validity of lease) ,
in respect of any particular matter to which the disposition is expressly made subject.
(2) Furthermore that person is not liable under any of those covenants for anything (not falling within subsection (1) ) —

(a) which at the time of the disposition is within the actual knowledge, or
(b) which is a necessary consequence of facts that are then within the actual knowledge,
of the person to whom the disposition is made.
(3) For this purpose section 198 of the M1 Law of Property Act 1925 (deemed notice by virtue of registration) shall be disregarded.

[F4 (4) Moreover, where the disposition is of an interest the title to which is registered under the Land Registration Act 2002, that person is not liable under any of those covenants for anything (not falling within subsection (1) or (2) ) which at the time of the disposition was entered in relation to that interest in the register of title under that Act.]

Annotations:

Amendments (Textual)

F4 S. 6(4) inserted (13.10.2003) by Land Registration Act 2002 (c. 9), s. 136(2), Sch. 11 para. 31(2) (with s. 129); S.I. 2003/1725, art. 2(1)

Marginal Citations

M1 1925 c. 20.


7 Annexation of benefit of covenants.

The benefit of a covenant implied by virtue of this Part shall be annexed and incident to, and shall go with, the estate or interest of the person to whom the disposition is made, and shall be capable of being enforced by every person in whom that estate or interest is (in whole or in part) for the time being vested.

8 Supplementary provisions.

(1) The operation of any covenant implied in an instrument by virtue of this Part may be limited or extended by a term of that instrument.

(2) Sections 81 and 83 of the M2 Law of Property Act 1925 (effect of covenant with two or more jointly; construction of implied covenants) apply to a covenant implied by virtue of this Part as they apply to a covenant implied by virtue of that Act.

(3) Where in an instrument effecting or purporting to effect a disposition of property a person is expressed to direct the disposition, this Part applies to him as if he were the person making the disposition.

(4) This Part has effect—

(a) where “gyda gwarant teitl llawn” is used instead of “with full title guarantee”, and
(b) where “gyda gwarant teitl cyfyngedig” is used instead of “with limited title guarantee”,
as it has effect where the English words are used.
Annotations:

Marginal Citations

M2 1925 c. 20.


9 Modifications of statutory forms.

(1) Where a form set out in an enactment, or in an instrument made under an enactment, includes words which (in an appropriate case) would have resulted in the implication of a covenant by virtue of section 76 of the M3 Law of Property Act 1925, the form shall be taken to authorise instead the use of the words “with full title guarantee” or “with limited title guarantee” or their Welsh equivalent given in section 8(4).

(2) This applies in particular to the forms set out in F5 ... Schedules 4 F5 ... to the M4 Law of Property Act 1925.

Annotations:

Amendments (Textual)

F5 Words in s. 9(2) repealed (22.7.2004) by Statute Law (Repeals) Act 2004 (c. 14), Sch. 1 Pt. 12

Marginal Citations

M3 1925 c. 20.

M4 1925 c. 20.


Transitional provisions


10 General saving for covenants in old form.

(1) Except as provided by section 11 below (cases in which covenants in old form implied on disposition after commencement) , the following provisions, namely—

(a) section 76 of the M5 Law of Property Act 1925, and
(b) section 24(1) (a) of the M6 Land Registration Act 1925,
are repealed as regards dispositions of property made after the commencement of this Part.
(2) The repeal of those provisions by this Act accordingly does not affect the enforcement of a covenant implied by virtue of either of them on a disposition before the commencement of this Part.

Annotations:

Marginal Citations

M5 1925 c. 20.

M6 1925 c. 21.