Promises regarding property can lead to serious legal disputes, particularly when one party relies on a commitment about ownership rights, only to encounter challenges or denials later. This kind of situation falls under the legal principle of proprietary estoppel which addresses claims related to promises made about the property.
This article will explore proprietary estoppel in detail, highlight when legal advice is crucial, and how Goughs can help support clients in resolving these complex property disputes.
What is proprietary estoppel?
Proprietary estoppel is a legal remedy that can prevent someone from going back on a promise made about property rights, especially if another person has relied on that promise to their detriment. Proprietary estoppel normally occurs when there are disputes in inheritances or informal property agreements, and is often used as an alternative claim by people looking to contest a will.
For a successful proprietary estoppel claim, three essential elements must be present:
Assurance: The claimant must have received an assurance which created an expectation that they would be entitled to a right of interest in the defendant’s land/property.
Reliance: The claimant must be able to demonstrate a reliance on that promise.
Detriment: The claimant must be able to demonstrate that they acted to their detriment.
Common scenarios of proprietary estoppel
Proprietary estoppel plays a big role in resolving disputes where promises regarding property rights, inheritance, or use are made but later unfulfilled. Key situations where proprietary estoppel may apply include:
Inheritance promises: When a child is promised a family home but is excluded from the will after their parents death.
Informal land or property agreements: When a person is allowed to live on land with the understanding they will inherit it but is later denied ownership.
Promises of financial assistance or property transfer: Where an individual works or invests in their family business in exchange for future share but the promise isn’t honoured.
Land access or right of way: When a person is promised a right of way through a neighbour’s land but is later blocked from using the path.
Joint property ownership or family farm: When a family member works on a family farm with the understanding that they will inherit it but is excluded from the will.
Living arrangements based on promises: When a person is promised to inherit a home in return for caring for a relative but is excluded from the will when the relative passes away.
When to seek legal advice
Proprietary estoppel cases can be complex, and seeking legal advice early is crucial to ensure the best chance of a successful claim. Acting swiftly helps preserve evidence, navigate the legal process, and prevent any obstacles that could slow down the proprietary estoppel case. Here’s why early intervention is important:
Preserving evidence
The success of a proprietary estoppel case often depends on solid evidence, including written promises, emails, messages, and witness accounts that support the claim. The longer you wait, the harder it may become together with these materials, especially if evidence is lost or forgotten. Legal professionals can guide you in collecting evidence you need.
Identifying warning signs
If you notice any of the following, it’s a strong indication that you might need legal advice:
Broken promises about property or inheritance: If someone has verbally or has written and promised you a property or the rights to it and is now going back on that promise, it’s important to seek legal advice as soon as possible to see what your options are.
Actions taken in reliance on a promise: If you’ve made a big investment e.g. time, money or effort in a property based on the understanding that you would receive rights to it, it’s important to seek legal advice.
Changes in circumstances: If the person who made the promise is now acting in a way that contradicts their previous promises, such as excluding you from the will, seeking legal advice early can prevent delays and strengthen your case.
How does the court judge proprietary estoppel cases?
Proprietary estoppel cases often go to court due to them being costly. They are handled on a case to case basis, where the court considers evidence from the claimant and any other third party evidence that may help determine if promises were made. The claimant must also prove that they relied on that promise and took a different path than they would’ve done if it had not been for the promise, and that they suffered a disadvantage by relying on the promise.
The unsuccessful party of proprietary cases will have to pay their legal costs as well as the successful party’s costs as well. Although, these claims are suitable for mediation and negotiation which may lead to a settlement during the claim without having to go to court.
How Goughs can help you
At Goughs, we have extensive experience in handling complex property disputes, including proprietary estoppel. Our team of expert lawyers understand these legal issues and provide the guidance needed to navigate the complex and sensitive matters surrounding property related promises. Reach out today for legal advice or to see how we can help with your proprietary estoppel case.
