Land Registry Dispute

bauderline

Hi Folks,

The scenario below is fictional but holds interest due to some similarities with real life example I have hears of ...

I have a query that some of you may be able to help me with. I will TRY to explain this properly so please be patient !

I am in the process of acquiring a site on which to build a house, the site has full planning permission. During my due dilligence I discovered that a small portion of the site is not registered to the vendor in the land registry it is in fact registered to someone else who owns adjoining lands.

Here goes...

The vendor (farmer A) inherited the land about five years ago from and old farmer (farmer he looked after and has farmed the land ever since. Farmer B had also owned and farmed this land for a considerable number of years before passing it on, however at the corner of plot of land I am trying to purchase there is an old derlict bungalow and the outline of an old hedge, farmer B bought this off a third party (farmer C) a long time ago for a nominal sum but never took the time or expense to register the transaction with land registry. I suppose he had the intention of knocking down the derlict cottage and hedge with the intention of expanding the area of his field.

When (farmer A) inherited the land he appears to have known about or was aware of this transaction but still did not take steps to rectify the problem.

The adjoining lands have sinced been purchased by someone else and of course this small corner of the plot is registered in their folio. Due to the fact that this corner of the plot includes road frontage it makes it impossible to comply with a number of the usual planning conditions you now get in rural areas.

I asked the vendor to resolve the issue and he against his solicitors advice offered the peron whoose folio the land is currently in a small sum of money to get things cleared up quickly, presumably he did not want to loose my offer on the plot. They looked as if they might accept however that parties son got involved and they rejected the offer saying they would not sell the land for any money.

Now they either want to get their hands on the plot themselves for a negotiated price with the vendor (farmer or want to extract an extortionate amount of money from him so that he can still sell the land as a plot with full planning permission.

The vendor (farmer went back to his solicitor and they have now given this third party fourteen days to agree to handover the land or legal action will be taken and they will be liable for all costs and damages. The vendor seems extremely confident that she has no choice but to sign up or that if legal action ensuses he will win hands down...

Now this is a REALLY nice site, which is reflected in the price I am paying for it and possibly why this third party is being as awkward as they are.

I do not know if anyone can answer these questions at all, but ....

1. If the third party refuses to sign over the lands how long is the legal route likely to take ? Even a ballpark figure would be useful for me.

2. What are the vendors chances of winning this in court given the fact that both he and the person he inherited the land from farmed this land and the fact that the third party was totally unaware that the small portion of the site was in their folio and their ownership of the adjoining lands does not predate my vendors ownership of his property...

Any input or guidance gratefully accepted !

Many Thanks ! B.

mojolaw

I do not know if anyone can answer these questions at all, but ....

1. If the third party refuses to sign over the lands how long is the legal route likely to take ? Even a ballpark figure would be useful for me.

2. What are the vendors chances of winning this in court given the fact that both he and the person he inherited the land from farmed this land and the fact that the third party was totally unaware that the small portion of the site was in their folio and their ownership of the adjoining lands does not predate my vendors ownership of his property...

Hi B

I am not a solicitor but my mother and I have been through a similar situation
where she had unchallenged, but unregistered possession of a number of plots for 25+ years.

In a situation where you wish to register title to a piece of ground such as this, you must be able to prove adverse possession.

This is normally classed as unbroken possession for a period of twelve or more years.

The first question I would ask is how long is it since farmer b inherited the land from farmer a?
Has the third party who is holding up the sale unbounded access to the piece of ground from their own property?

In our case we successfully gained title to all three pieces of ground, but it took five years.

In the case of two of the plots the original owners attempted to prove (falsely)that they had used their plots within the last twelve years but we were able to provide affidavits refuting these claims from several neighbours which the land registry accepted.
Affidavits are the most important evidence you can provide in a case like this.

My advice is that if you feel you are morally right and that you (or farmer b in this case) are the victim of opportunists, then call their bluff, the truth will always win out in the end.

The question is, will you want to hang around for up to five years?

bauderline

Hi Mojo !

Thanks for that interesting response. To answer your query the third party does NOT have unbounded access to the land. I believe they own the adjoining field but a hedge separates the two fields clearly. The disputed land is in the corner of a field owned entirely by the vendor which he inherited about 5 years ago as far as I can ascertain. The previous farmer I believe owned it for about 40 years previous to that. I am not sure at which point the transaction for the land in the corner of the field took place but I believe it was some time ago.

Yes, I could wait five years... but the planning permission won't.

I suppose I could go ahead and purchase and build on the land that does officially belong to the vendor, but if the dispute went in the third parties favour I would be at their mercy....

I am hoping brute force legal action will bring them back to the table for a quicker resolution !

Fingers crossed. Baud.

dermot_sheehan

bauderline wrote:

The vendor (farmer A) inherited the land about five years ago from and old farmer (farmer he looked after and has farmed the land ever since. Farmer B had also owned and farmed this land for a considerable number of years before passing it on, however at the corner of plot of land I am trying to purchase there is an old derlict bungalow and the outline of an old hedge, farmer B bought this off a third party (farmer C) a long time ago for a nominal sum but never took the time or expense to register the transaction with land registry. I suppose he had the intention of knocking down the derlict cottage and hedge with the intention of expanding the area of his field.

How many years has farmer B farmed the land? If it and farmer A's time amounts to 12 years he may be able to pass good possessory title.

When (farmer A) inherited the land he appears to have known about or was aware of this transaction but still did not take steps to rectify the problem.

The adjoining lands have sinced been purchased by someone else and of course this small corner of the plot is registered in their folio. Due to the fact that this corner of the plot includes road frontage it makes it impossible to comply with a number of the usual planning conditions you now get in rural areas.

How was the adjoining land purchased? This is crucial. Your problem is that section 31 of the Registration of Title Act 1964 says absence fraud, entries of the portfolio are conclusive evidence of land ownership. Section 52(1) states that a bona fides purchaser for valuable consideration is bound only by burdens that appear on the registrar http://www.irishstatutebook.ie/ZZA16Y1964S52.html .

Thus if farmer C transferred the land for valuable consideration after making the contract with farmer B, the purchaser is not bound by the equitable interest farmer B acquired in the land when he acquired when he signed an enforceable contract (when someone signs an enforceable contract for the purchase of land they acquire a form of proprietrial interest in that land). In such a situation, the only way to get title to the land would be to go down the posessory title (squatters rights) route.

If however the current owners of the small plot acquired their interest from farmer C by way of gift or inheritance, they are bound by the undregistered burdens in the land. This would include the equitable interest farmer B acquired, transmitted to farmer A on his death and that farmer A is seeking to sell to you.

bauderline

Thanks for the info !

I think I am going to go for a revision of boundaries and side step this issue. Very messy !

Best rgs. baud.