Proprietary estoppel

What is a proprietary estoppel claim? Is proprietary estoppel based on assumption? Is there a difference between constructive and proprietary estoppel? What conditions must be fulfilled in proprietary estoppel? Proprietary estoppel is a means of creating a proprietary interest in land in the absence of following the correct formalities.

The doctrine of proprietary estoppel can be used to create freehold ownership, a lease, a licence or an easement.

Unlike the other forms of estoppel (see Practice Note: Estoppel—what, when and how to plead) which cannot ordinarily found a cause of action, proprietary estoppel can. This, says the law, is unconscionable behaviour. A proprietary estoppel claim can be made when someone has been promised that they will be given an interest in a property, but that promise is subsequently reneged upon. Proprietary Estoppel may sound like a complicated legal term but really it’s quite simple.

It’s a claim that might arise if property is promised to you on the death of the owner but then in their Will you find that it’s not going to be yours. What do we mean by proprietary estoppel ? Requirements for a claim in proprietary estoppel. Often there is very little anyone can do about this.

However, in certain circumstances, and specifically in relation to land or property, it may be possible to bring a claim to enforce a broken promise, known as a proprietary estoppel claim. It arises where one party is given an assurance by the other party which he then relies on to his detriment. The concept of proprietary estoppel applies when X acts to their detriment on the faith or a belief, which is known to and encouraged by T, that he either has been given or will be given a right to T’s property.

Summary ⇒ Where domestic property is jointly acquired (e.g. by a couple) a claim of common intention constructive trust and proprietary estoppel may arise on the same facts. It is the means of cresting a proprietary interest in land when the correct formalities are not followed. Costs usually follow the event, ie the losing party will be responsible for the winning party’s costs.

Clients should be encourage where appropriate, to consider alternative dispute resolution. Traditionally, proprietary estoppel arose in relation to rights to use the land of the owner, and possibly in connection with disputed transfers of ownership. In order to establish proprietary estoppel one must show: A promise, which can be an express representation, or passively allowing another party to spend money in a mistaken belief.

It relates to someone’s rights to live in a house that they do not own, and can come into play when dealing with disputes over who should inherit the property. People sometimes promise to leave something to someone when they die, typically a house, vehicle or valuable item, but then fail to make the necessary arrangements for that to happen. Essentially it can be used to allow an interest in land as a remedy where it is deemed unconscionable to deny the claimant entitlement. The term can be used in a variety of situations such as the establishment of freehold over a piece of land or during the creation of a lease, easement or licence.

This type of law operates under what is known as unconscionable behaviour. The principle is called proprietary estoppel , but sometimes estoppel by acquiescence or estoppel by encouragement. Unlike other kinds of estoppel , proprietary estoppel may be a cause of action but only where it involves the promise of an interest in land.

Estoppel is a legal principle that keeps people and businesses from, essentially, going back on their word or promise.

Promissory estoppel helps injured parties to recover on promises made that. The third type of action that can be taken by a disappointed child is a proprietary estoppel action. A proprietary estoppel action will aim to prove that the child acted to his detriment in the belief that he would be given a right to the deceased’s property and the deceased knew and encouraged this belief.