The Law of Property Act 1988 (Miscellaneous Provisions) contains legislation that protects areas of land from inadvertent transactions by ensuring that all such contracts must be evidenced in writing. Nevertheless, the consequences of entering into informal agreements regarding land boundaries can be momentous and, potentially, irreversible.
Boundary disputes often cause considerable stress on the parties involved, both emotionally and financially, and can be very expensive when solicitors are involved. The temptation for landowners to agree to minor adjustments, particularly when believed to be temporary, is therefore great, and is commonly presented as an economical way through a potential difficulty.
It is often overlooked, however, that such agreements may amount to:
- A contract which is binding on the makers of it.
- Enduring so as to bind any subsequent owners of the land as well as the current owner.
It is also important to be accurate and thorough when describing areas of land, and on the occasion of the sale of the land, in particular. If a party asserts that the boundaries are correct or that there are no existing issues which affect a boundary position, such an ‘agreement’, undisclosed, could cause a seller of land to make an incorrect representation of the land. In such instances a buyer may raise an issue as to why he might wish not to continue with the purchase of the land. More importantly, this can also be an issue post-sale where a buyer may seek compensation for any losses arising due to a misrepresentation within the contract for the sale of the land or, potentially worse, seek to unravel the contract for sale of the land entirely.
It is important to remember, therefore, that if any discussion takes place regarding boundaries, be very careful before agreeing to anything!
If you have any quesions, please don't hesitate t get in touch with Stuart at sng@dawson-hart.co.uk, or phone our offices at 01825 762281.