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Land Law Comes into the 21st Century

August 3, 2010

Until recently, nineteenth century (and even earlier) legislation formed the basis of Irish land and conveyancing law. A new era has however begun with the coming into effect of the Land and Conveyancing Law Reform Act 2009. This modernising Act institutes major reforms and impacts not only on land and conveyancing law, but also on banking law and the law of trusts. The Act came into force on 1 December 2009 (apart from its controversial ban on upwards only rent review clauses in commercial leases which took effect from 28 February 2010). A sample of its reforms is set out below.

Easements:  A reduced user period of 12 years now applies for the acquisition of rights of way and other easements by prescription. A court order supporting the right must also be obtained and be registered in the Land Registry or Registry of Deeds as appropriate.

Freehold covenants: A court order can now be sought to discharge obsolete freehold covenants affecting land.

Execution of deeds: Deeds executed by individuals no longer have to be sealed but, as a new requirement, their execution must be witnessed.

Co-owned land: It is no longer possible unilaterally to sever a joint tenancy.  Consent of all joint tenants to the severance or a court order must be obtained.

Party structures: A new statutory framework has been introduced to deal with works to party structures.

Mortgages: “Housing loan mortgages” have been distinguished from all other types of mortgages so that it is not be possible to contract out of the new provisions dealing with housing loans. In addition, all mortgages will now be created by way of a “charge” and mortgage documentation must be amended to reflect this.

Judgment mortgages: Registration of a judgment mortgage against the interest of a joint tenant does not sever the joint tenancy.  If the joint tenancy remains unsevered, the judgment mortgage is extinguished upon the death of the judgment debtor. Simplified procedures for registering judgment mortgages are now also contained within the Act.

Trusts: The Act introduces a new simplified statutory code for dealing with trusts of land, changes to trustees’ powers and new variation of trusts legislation.  

The Act is unquestionably far-reaching and while it restates many basic land law principles in modern language, new rules, rights, obligations and entitlements are also introduced and also potentially, new areas of uncertainty.

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