These five elements consisted of the plaintiff having expended some money or having done some act on the faith of their mistaken belief that they would acquire an interest in the land5; tey must have made some mistake as to their legal rights; te defendant must know of the existence of his own right which is inconsistent with the plaintiffs rights; te defendant must be aware of the plaintiffs mistaken belief of his rights; ad lastly the defendant must have encouraged the plaintiff to spend money in they have or have encouraged them to act in the way they did6.
T be able to advise the parties in this matter it is necessary to examine the law on leases and tenancies. Lases that are to be for less than three years are not required to be registered against the property thereby not triggering a registration of title7. Fr the courts to infer that a lease has been informally created the lease cannot be for more than three years8, te rent payable must be the market rent property and the tenant has to take possession immediately9.
Were a lease is in excess of seven years this would need to be registered on the deeds10. Lases of between 3 years and 7 years do not need to be registered; hwever, sch leases would only be protected if the lessor had entered these on the register11. I law a lease is deemed to have been granted where the leaseholder has been given exclusive occupation of the property. I general terms no services will be included with leased Fllowing creation of a lease the tenant would have full ownership rights of that property until the expiry of the lease12.
Alease is distinguished from a licence on the basis of which party has control over the property. Tis was explored in Shell-Mex & B P Ltd v Manchester Garages Ltd 13 where the court held that the agreement would be regarded as a licence if the landlord remained in control. Te Land Registration Act 2002 s3 allows for the voluntary registration of unregistered land whilst s4 of Act lays the regulations with regard to when registration is compulsory.
Land Registration on transfers became compulsory from 1990 onwards. A present the law requires registration when the qualifying estate is transferred, were the unregistered legal estate is transferred under s171A of the Housing Act 1985 or where a grant of land is given to another for a term of year’s. ..
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