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Issue 73 – June 2010

Welcome to the June edition of the Property Section
e-alert. 
 
Arguably the most important development since the last Property Section e-alert has been the announcement by the government of the suspension, and imminent abolition, of home information packs. This will hopefully mark a welcome boost to the property market by allowing people to 'test' the market without having to pay over £400 plus VAT for the privilege.
 
Meanwhile, behind the scenes, the Law Society has been working on plans for an accreditation scheme for property practitioners and conveyancers, and we have just sent out a survey to Property Section members to canvas your opinions on the proposed scheme.
 
We hope you are pleased with the new format and content of the Property Section e-alerts. We are continually looking for ways to improve them further, and for this edition, have marked up items we feel will be of particular interest to practitioners with green bullets, so if you are particularly busy, you can see the main headlines first, as well as reading the other interesting and useful content later. If you have any suggestions as to how the alert could be improved further, or if there is any particular subject which you would like to see featured in Property in Practice, please email the section.

Section Committee Chair, Peter Rodd


News

• Law Society: Law Society insists on home buying reform in wake of HIPs axe
• Land Registry: Land Registry launches third consultation on electronic conveyancing
• Communities.gov.uk: Shapps promises ‘no more red tape’ for private landlords
• Communites.gov.uk: Shapps pledges ‘age of aspiration’
• Planning Portal: Pickles moves to scrap regional plans
• Planning Portal: Government signals legislation to change planning regime
• Planning Portal: IPC will be scrapped, says coalition government
• The Leasehold Advisory Service: Danger of too many laws confusing leaseholdersCases and Legislation

 
Collated by the Law Society Library, with cases linked in full to BAILII, where available
 
Cases

• Hurst & Ors v Hone & Ors [2010] EWHC 1159 (QB) (27 May 2010)
  For representations to amount to deceit or negligent misstatement, they require an intention that the other party act on them, and that the other party be influenced by them.
• Kernott v Jones [2010] EWCA Civ 578 (26 May 2010)
  The passage of time is insufficient to displace joint beneficial interests, even if after a separation one party has paid all relevant expenses. The parties must themselves have evinced their intentions as to a fair split in the beneficial ownership.
  The Court of Appeal divided over this judgment.
• Sainsbury’s Supermarkets Ltd, R (on the application of) v Wolverhampton City Council & Anor [2010] UKSC 20 (12 May 2010)
  What constitutes a material consideration under the Town and Country Planning Act 1990, s. 70 is a question of law, but the weight to be given to it is a matter for the decision-maker. Financial viability may be material if it relates to the development. Financial dependency of a part of a composite development upon another part may be relevant. Off-site benefits related to or connected with the development will be material. There is no reason why similar principles should not apply to compulsory acquisition for development purposes, provided that a strict approach is taken. Compulsory purchase may be used to assemble a site for a preferred developer, but unconnected benefits may not be taken into account. See Standard Commercial Property Securities Ltd v Glasgow City Council [2006] UKHL 50.
  The House of Lords divided 4-3 in support of this judgment.
• Craftrule Ltd v 41-60 Albert Place Mansions (Freehold) Ltd [2010] EWHC 1230 (Ch) (27 May 2010)
  Section 3 of the Leasehold Reform, Housing and Urban Development Act 1993 neither expressly nor by implication requires that a self-contained part of a building should be indivisible into smaller such parts.
• GE Money Home Lending Ltd & Anor v HC Wolton & Sons Ltd (t/a Wolton Chartered Surveyors [2010] EWHC 1011 (Ch) (6 May 2010)A misidentification of an address of a property in a claim form is not sufficient to prevent correct identification. However, a mistake as to the name of the claimant can lead to a claim being struck out.
• Glentree Estates Ltd & Ors v Favermead Ltd [2010] EWHC 1120 (Ch) (20 May 2010)
  It is counterintuitive that an agent should expect to receive commission twice on successive dispositions of the same property by his principal.
• Groveholt Ltd v Hughes & Anor [2010] EWCA Civ 538 (20 May 2010)
  The court should not expect a litigant necessarily to bring forward at an interim stage all his arguments. A novation agreement cannot alter the meaning of an earlier agreement if there is no agreement to that effect.
• K/S Lincoln & Ors v CB Richard Ellis Hotels Ltd [2010] EWHC 1156 (TCC) (24 May 2010)
  Expert valuers owe a separate duty to take reasonable care in making statements about rental growth in general and shortfall clawback provisions in particular. However, where correct advice was provided by other sources and understood, an error cannot be considered causative of loss or other adverse circumstances. In valuation cases, the law properly focuses on the end result, not the way in which that end result may have been achieved. Where a valuation is within the appropriate margin of error, liability in negligence is not made out.
• Larkfield Ltd & Ors v Revenue & Customs Prosecution Office & Ors [2010] EWCA Civ 521 (12 May 2010)
  The resolution of a dispute with a third party as to the beneficial ownership of property is to be resolved in accordance with ordinary principles of property law, save to the extent that the Criminal Justice Act 1988 provides otherwise.
• Milebush Properties Ltd v Tameside Metropolitan Borough Council & Ors [2010] EWHC 1022 (Ch) (13 May 2010)A planning obligation contained in a section 106 agreement is enforceable by the identified local planning authority against the person entering into the obligation and any person deriving title from that person. Section 106 does not provide for enforcement by a beneficiary of the planning obligation.

Legislation

• The Energy Performance of Buildings (Certificates and Inspections) (England and Wales)(Amendment) Regulations 2010, SI 2010/1456
  This order makes amendments to the Energy Performance of Buildings (Certificates and Inspections) (England and Wales) Regulations 2007, SI 2007/991 in consequence of the suspension of the duties imposed by the Housing Act 2004, sections 155 and 159 in relation to the provision of home information packs. This order also introduces a new duty for sellers of residential property in England and Wales to secure the commissioning of an energy performance certificate before putting the property on the market as well as a new duty for persons acting on behalf of a seller not to market the property unless satisfied that such a certificate has been commissioned and other duties.
• The Home Information Pack (Suspension) Order 2010, SI 2010/1455This order suspends the operation of all of the duties imposed by Housing Act 2004, sections 155 to159 relating to the content and provision of home information packs as from 21 May 2010. Sellers will still need an energy performance certificate (see above).
• Building Regulations (Review) Bill
  A Bill to make provision for a review of the Building Regulations 2000 with regard to the installation of automatic fire suppression systems in new residential premises. First reading took place on 26 May. The second reading is yet to be scheduled.
  

Other material

• Referral arrangements, Legal Services Consumer Panel
  The Legal Services Consumer Panel has looked at referral arrangements from the client’s point of view in conveyancing and personal injury matters. The report makes twelve recommendations focusing on improving transparency and introducing a more consistent set of regulatory arrangement. It found that referral payments do have a place in the legal services market and recommends that the Legal Services Board should review the market in three years time.
• RICS Rights of Light Guidance Note 1st Ed 2010 Industry consultation
  The Royal Institution of Charered Surveyors (RICS) is seeking comments on the preliminary draft of the new 1st Ed 2010 of the RICS Rights of Light guidance note. The consultation focuses on the different stages of a potential dispute and the processes that an RICS member could follow as an example of best practice. Issues such as dispute resolution, mediation, how to deal with clients and  investigation techniques are covered. The consultation ends 20 July 2010.
  
  NB. This is intended for information only, and does not represent legal advice on which reliance should be placed.

FAQs

• Do you have any information on who is entitled to the interest when the deposit is being held as stakeholder in a conveyancing transaction?

Member Poll

• On the topic of mortgage providers and conveyancing panels, we asked you:
  “Do you think mortgage providers should have to declare the reasons for why they drop firms from their conveyancing panels?”
• 100 % of you said YES
  

Forum

• Stamp Duty Land Tax Rates (SDLT)
  What are the SDLT rates for residential freehold transactions?
  
  

Events

• Property Section annual conference
  The Property Section annual conference will take place on Wednesday 20 October 2010 in London – BOOK NOW!
  
• CPD Centre – search over 1,000 courses online!
  Free to use, the Law Society’s new online CPD Centre enables you to:
  Search over 1,000 courses from leading training providers
  Plan, track, and record your CPD online
  Find and take Law Society online courses.
  
  

Discounts

Members are entitled to 20% off selected titles from Law Society Publishing (quote promotion code PROPR) online or by telephone orders on 0870 850 1422). Recent titles include:

• Property Development
  Comprehensive step by step guide to the acquisition of land for development, featuring model clauses, checklists and precedents, and including a CD-ROM
• Conveyancing Checklists, 2nd Edition
  New edition providing a comprehensive range of checklists that follow the steps of a transaction. Also contains an accompanying CD-ROM