Third Party Rights Over Property Case Study Example | Topics and Well Written Essays - 1250 words

Third Party Rights Over Property - Case Study Example In the first instance Helen does not own the building outright as Kevin invested money into buying the shop and flats; Helen has taken out a mortgage on the building so Southern Counties Building Society would have a vested interest (the property was put up as collateral for the loan) and the second flat has been tenanted with Tom having a five year lease by deed of that flat. The amount of vested interest in the property owned by Kevin will depend on whether or not he and Helen had formed a partnership prior to buying the property, how long him and Helen had been living together in the first floor flat and what rights either of these situations (business partnership or de-facto relationship) might have on the ownership of the building. Because Helen raised the loan to buy the property it could be assumed that she might have a majority stake holding in the building and therefore could sell the business without involving Kevin. However, if Helen raised the mortgage so that her contribution to the building then equaled Kevin's then she has no right to sell the building without consulting Kevin first and the sale would be a joint decision. Kevin has another stake hold... Also any lease agreement he may have would have to be honored by the new buyer. The actual amount of impact Kevin would have on the sale of the building would depend on any agreement made between him and Helen, whether Kevin has any rights under de-facto law (which would be virtually nil in Britain as de-facto couples do not share the same rights as married couples) and whether or not Kevin is listed on the land title as co-owner. Helen would also have to pay off the mortgage owing amount on the building at the time of sale because the building is the collateral for the money loaned. Another problem that the new buyer would have to face is the lien on the property that prevented Helen from setting up a business that would act in competition to other businesses in the area. Any prospective buyer would have to be informed that the shop portion of the building could only be used as a newsagent shop. However, that covenant might not necessarily apply if the agreement was made personally between Helen and the person she purchased the shop from, as this covenant would only apply if it had been entered on the land title. If the land title had remained unregistered throughout the previous transactions then the situation for Kevin and Helen changes slightly. If Kevin does not have a legal partnership agreement with Helen then he would have difficulty proving his claim to any ownership of the building. He may be entitled to some duress under de-facto land ownership legislation, but that would be difficult to prove if he did not have something in writing that could prove the extent of his relationship with Helen (such as a Cohabitation Agreement) and the amount