Can You Run a Business from Unregistered Land with Restrictions?

Question from Tim, Can You Run a Business from Unregistered Land with Restrictions?

Answer from AI:

When you own a property with certain restrictions on its use, it’s important to understand that these restrictions, often referred to as “covenants,” can be legally binding even if the land is unregistered or the title deeds are lost. Here’s a general overview of the issues involved:

Understanding Restrictive Covenants

• Restrictive covenants are conditions written into property deeds that restrict the way land can be used.
• Even if the land is unregistered and the deeds are lost, these covenants may still be enforceable if they have been passed down with the land.
• It is possible to apply to the Land Registry to obtain a copy of the deeds or to register the land, which could clarify any restrictions.

Right of Way and Neighbourly Agreements

• Granting a neighbor the right to pass over your land is a form of easement. While informal agreements can be made, formalizing this right can prevent future disputes.
• It’s advisable to have a written agreement for any easement to ensure clarity and legal standing.

Contracts for Future Property Sales

• Contracts that allow a person the option to buy a property within a certain timeframe are known as “option agreements.”
• These agreements must comply with certain formalities to be legally binding, including being in writing and signed by all parties involved.
• Consulting a lawyer to draft such an agreement is essential to ensure that it meets all legal requirements.

Changing Business Plans and Selling Property

• Deciding not to proceed with a business due to regulatory concerns is a prudent decision if the business could violate existing covenants or local laws.
• When selling property, it’s important to disclose any known covenants or rights of way to potential buyers.
• Consulting a lawyer can help ensure that the sale process adheres to all legal obligations and that any existing agreements, like the option agreement with the offspring, are honored.

Seeking Legal Advice

While this overview provides a general understanding of the issues, property law can be complex, and the enforceability of covenants or the legality of agreements can depend on specific circumstances. It is strongly recommended that individuals consult with a legal professional for personalized advice. A lawyer can help you understand your rights and obligations, assist with the registration of land, draft formal agreements, and guide you through the process of selling your property.

Remember, legal advice tailored to your specific situation is crucial to ensure that you are making informed decisions about your property.