How to remove Covenant from property deed

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    How to remove Covenant from property deed

    Hello,

    I will explain the what happened first. A few years ago I bought a house at auction and the conditions attached a Covenant which I should have read properly before buying. It reads as following on TR1 form which I signed:

    ----------------------------------------------------------------------------------------------------------------
    11. Additional Provisions
    1. Covenant to refurbish the property
    The transferee covenants with the transferor and the council for the benefit of the Council land and to bind the Property that the Transferee will:
    1. refurbish the property to a standard not less than the Council’s private sector home standard within 1 year of the date of this Transfer;
    2. not transfer the property prior to complying full with clause 1.1 without first procuring a deed of covenant from any successor in title in favour of the council.
    ----------------------------------------------------------------------------------------------------------------

    Now, the problem I have and have had is that the property did not require much refurbishment, just basic painting and carpeting. I have rang Nottingham council and they said they do not have anything to do with this. (I think this is most likely a very old coventant as it is an ex council property)
    I then contacted the previous owner who was a property company and asked them if can remove the covenant as there is no requirement to refurbish the property by the council. But the previous owner just directed me to sort out with council.

    Basically, I want to have the covenant removed as its irrelevant. I want to sell the property soon and don't want this covenant to be an issue. Can somebody please help with the best way I can have this covenant removed and it will be a problem to sell if it was not removed.

    #2
    The first thing to be established is whether there was a private sector home standard issued by the Council.
    If there was to be one the most it can expect is that there is adequate sanitary provision and a number of rooms that can used for normal habitation such as bedroom, kitchen, sitting room etc.

    The second thing to consider is whether all the property owned by the council has the benefit of such a positive covenant, since you seem to be saying that the Transferor was not the Council and that there is no property being retained by the Transferor that was to have the benefit of the positive covenant.

    It would seem that the positive covenant cannot bind anyone in the future and there is no property that has the benefit of the restrictive covenant, since the Council were not party to the contract to buy, nor to the transfer deed when you competed the purchase of the property.

    You could also complete a statement of truth confirming that as soon as you had completed the purchase of the property you refurbished the property to a standard commensurate with the Council's private sector home standard.

    You should refer to the fact that the sanitary ware was examined and found to be sound, the boiler was inspected and found to be working correctly and the decorative condition of each of the rooms was inspected and refurbished where necessary.

    That document can then be included with the register of title and title plan that will have to be supplied to a prospective purchaser by your solicitor.

    The negative covenant was not to transfer the property prior to complying full with clause 1.1.

    On any sale by you that covenant is spent, because the condition was observed, which is what the Statement of Truth will confirm.

    Comment


      #3
      I am far from being a legal genius but it would seem to me that the covenant is worded so that it can never be removed. The idea being that the council can always ensure that the property is kept up to standard by future purchasers in perpetuity.

      Comment


        #4
        Is there a restriction on the register preventing a transfer without some sort of confirmation that the covenant has been complied with?

        Comment


          #5
          Thank you all.

          Pilman: maybe I do need statement of truth saying I refurbished as soon as I purchased. So, who inspects it? myself, someone else or council?

          Kape65: strange thing is that the council don't want to deal with the convenant

          Lawcruncher: there is no other details on register preventing transfer without confirmation that the covenant has been complied. Clause is as shown out above, thats it.

          Comment


            #6
            Originally posted by Tony2270 View Post
            Lawcruncher: there is no other details on register preventing transfer without confirmation that the covenant has been complied. Clause is as shown out above, thats it.
            Since the covenant does not restrict user or building, there is no mechanism for it to be removed under section 84 of the Law of Property Act 1925.

            As there is no restriction on the register relating to a transfer there is nothing to stop you from transferring the property to another without obtaining any consents or requiring the transferee to enter into a deed of covenant. The way the whole thing is set up is though a bit tiresome, but not something which should impede a sale if the buyer is represented by a pragmatic (or incompetent!) conveyancer.

            I think the thing to do is to write to the council and ask them to confirm that they are satisfied that the requirement to refurbish has been complied with.

            Comment


              #7
              Originally posted by Tony2270 View Post
              Kape65: strange thing is that the council don't want to deal with the convenant
              That is why I feel it is never meant to be removed.

              Comment

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