LIBRARY OF THE UNIVERSITY OF ILLINOIS AT URBANA-CHAMPAICN KD C lS c i . GH3 X I c ri3 LAW P i 12 14 c. 77 (Court of Probate, 1857).. 104 c. 85 (Matrimonial Causes, 1857) 11 21 & 22 Viet. c. 27 (Cairns Damages, 1858, repealed) 90 c. 108 (Matrimonial Causes, 1858) ; 23 Viet. PAGE c. 35 (Law of Property Amendment, 1859), s. 1 346 s. 3 345 s. 12 532 s. 14 26, 203 s. 15 26, 203 s. 16 26, 203, 470 s. 17 26, 203 s. 24 99 c. 145 (Lord Cranworth, 1859) 223 23 & 24 Viet. c. 38 (Law of Property Amendment, 1860), s. 6 ... 346 c. 106 (Lands Clauses Consoli- dation Amendment, 1860) 196 c. 115 (Crown Debts, &c., 1860) 111 c. 126 (Common Law Proce- dure, 1860), s. 1 344 c. 145 (Lord Cranworth’s, 1860) 29, 386 24 & 25 Viet. c. 87 (Industrial and Provident Societies, 1862) 268 c. 114 (Wills, 1861) 460, 461 c. 133 (Land Drainage, 1861)... 159 25 & 26 Viet. c. 53 (Proof of Titles and Con- veyance of Real Estate, 1862) 539, 556 c. 67 (Declaration of Title, 1862) 539 26 & 27 Viet. c. 106 (Charitable Lands, 1863) 22 27 & 28 Viet. c. 18 (Revenue (No. 1), 1864), s. 15 326 c. 114 (Improvement of Land, 1864) 159 28 & 29 Viet. c. 72 (Navy and Marines (Wills), 1865) 457, 461 30 & 31 Viet. c. 48 (Sales of Land by Auc- tion, 1867) 57 c. 69 (Real Estates Charges, 1867) . 88, 467 c. 144 (Policies of Assurance, 1867), s. 3 3, 181 32 & 33 Viet, c. 18 (Lands Clauses Consoli- dation, 1869) 196 c. 41 (Poor Rate Assessment, 1869), s. 1 11 313 xc TABLE OF STATUTES 33 & 34 Viet. page c. 14 (Naturalization, 1870), s. 2 16, 459 s. 14 16 c. 23 (Forfeiture, 1870) 16, 459, 460 c. 34 (Charitable Funds Invest- ment, 1870) 19 c. 35 (Apportionment, 1870) ... 403 c. 75 (Elementary Education, 1870) 149 35 & 36 Viet. c. 24 (Charitable Trusts Incor- poration, 1872) 19 36 & 37 Viet. c. 50 (Places of Worship Sites, 1873) 17 c. 66 (Judicature, 1873), s. 16 195 s. 24 81 s. 25 3, 177, 401, 404 37 & 38 Viet. c. 37 (Powers of Appointment, 1874) 532 c. 42 (Building Societies, 1874) 258, 262, 607 c. 57 (Real Property Limita- tion, 1874) ....'..112, 160, 322 s. 6 517 s. 7 218 s. 8 93, 210 s. 10 112, 470 c. 62 (Infants’ Relief, 1874)... 7, 202 c. 78 (Vendor and Purchaser, 1874), s. 1 48, 208 s. 2 50, 51, 54, 55, 106, 132, 169, 306, 576 s. 4 259 s. 7 248 s. 8 189 si. 9 93, 124, 306 c. 88 (Births and Deaths Registration, 1874), s. 30 106 s. 32 106 s. 38 106 38 & 39 Viet. c. 55 (Public Health, 1875)... 159 324 c. 60 (Friendly Societies, 1875) 258 c. 77 (Judicature, 1875), s. 10.. 290 c. 83 (Local Loans, 1875) 391 c. 87 (Land Transfer, 1875)... 153, 193, 539, 557 s. 2 563 s. 5 558, 564, 565 s. 7 571 s. 8 573 s. 9 573 38 & 39 Viet. page c. 87 (Land Transfer, 1875), s. 10 .. s. 11 .. 563, 574, 575 s. 13 576 s. 17 579 s. 18... ...560, 571, 576, 579, 618 s. 19 583 s. 20 583 s. 22 .. 596, 599 s. 23 .. 597, 600, 610 s. 24 .. 597, 600, 610 s. 25 .. 597, 600, 610 s. 26 .. 597, 610 s. 27 .. 597, 602, 610 s. 28 .. 248, 597, 604, 605 s. 29 589 s. 30 .. s. 31 591 s. 32 591 s. 33 592 s. 34 592 s. 35 .. 593, 594, 618 s. 38 594 s. 39 .. s. 40 .. 604, 605 s. 41 611 s. 42 611 s. 43 615 s. 46 616 s. 49 .. 617, 618 s. 50 .. 578, 618, 619 s. 51 .. 578, 619 s. 52 621 s. 53 .. 608, 617, 622 s. 54 .. 617, 623 s. 55 .. 617, 624 s. 56 .. 617, 624 617, 625 s. 57 .. s. 58 .. 617, 626 s. 59 .. 617, 626 s. 60 627 s. 61 628 s. 62 628 s. 63 629 s. 64 629 s. 65 629 s. 66 630 s. 67 .. 563, 630 s. 68 .. 564, 631 s. 69 .. 565, 631 s. 70 .. 570, 571, 631 s. 71 .. 568, 632 s. 72 .. 571, 572, 632 s. 73 656 s. 74 .. 568, 633 s. 75 .. 568, 633 s. 76 .. 568, 633 s. 77 .. 568, 634 s. 79 636 s. 80 635 s. 82 .. 563, 564, 638, 640 TABLE OF STATUTES XC1 & 39 Viet. PAGE c. 87 (Land Transfer, 1875), s. 83 588, 617, 640, 641, 642 s. 84 567, 642 s. 86 559 ' s. 87 . 643 s. 88 . 644 s. 89 . 644 s. 90 . 644 s. 91 . 644 s. 92 . 645 s. 93 . 645 s. 94 . 645 s. 95 .. 583, 603,645 s. 96 . 646 s. 97 . 646 s. 98 .. 591, 646 s. 99 . 646 s. 100 . 647 s. 101 . 647 s. 102 . 647 s. 103 . 647 s. 104 . 651 s. 106 . 558 s. 107 . 558 s. 108 . 558 s. 109 558, 568, 636 s. 110 559, 636 s. Ill . 559 s. 112 . 559 s. 118 . 559 s. 119 . 559 s. 120 . 559 s. 121 . 559 s. 122 . 559 s. 127 193, 650 s. 129 . 248 & 41 Viet. c. 18 (Settled Estates, 1877)... 298, 300, 303, 412 s. 4 .... 298 s. 16 . 7 s. 22 . 7 c. 33 (Contingent Remainders, 1877) .... 410 c. 34 (Real Estates Charges, 1877) .. 88, 467 c. 59 (Colonial Stock, 1877) ... 388 & 42 Viet. c. 31 (Bills of Sale, 1878) 239 si. 4 ... 264, 267, 269 s. 5 .... 270 s. 6 .., 239, 265 s. 7 .... 270 s. 8 .., 272, 290 s. 9 .... 289 s. 10 . 102, 272, 276, 285, 287, 289 s. 11 . 289 s. 14 . 288 s. 15 . 293 s. 17 . 285 41 & 42 Viet. page c. 31 (Bills of Sale, 1878), s. 20 272,292, 293 s. 22 288 42 & 43 Viet. c. 58 (Public Offices Fees, 1879) 664 c. 59 (Outlawry, 1879) 17 43 & 44 Viet. c. 19 (Isle of Man Loans, 1880) 391 c. 47 (Ground Game, 1880) ... 360 44 & 45 Viet. c. 12 (Customs and Inland Revenue, 1881), s. 41 113 c. 41 (Conveyancing, 1881), s. 2 175,223,225,255,343 s. 3 50, 51, 52, 53, 55, 77, 98, 100, 132, 208 a. 4 51, 86 s. 5 79 s. 6 138 s. 7 142, 175, 176, 222, 245, 255, 386, 585, 598 s. 8 166, 283, 588 a. 9 170, 171, 172 s. 10 316, 345 s. 11 316, 525 s. 12 345 s. 13 50,51,306 s. 14 241, 290, 308, 335, 340, 341, 342, 343, 344 s. 15 221 s. 17 220, 221 s. 18 233, 234, 236, 237, 364, 602, 603 s. 19 29, 223, 229, 233, 244, 245, 250, 251, 602 s. 20 244,245,280, 602 s. 21 221, 226, 227, 245, 602 s. 22 227, 245, 602 s. 23 229, 245, 602 s. 24 230, 245, 602 s. 25 219,251 s. 26 245 s. 30 ...28, 87, 259, 260, '477, 514 s. 39 12 s. 41 298 s. 42 411 s. 43 386, 472 s. 44 403, 406 s. 46 103, 298 s. 49 134, 298 s. 51 140 s. 52 535 s. 54 133 s. 55 55, 78 s. 56 133,167, 168, 588 s. 61 213 s. 63 138 s. 65 524 s. 67 225 s. 70 129 XC11 TABLE OF STATUTES 44 & 45 Viet. page c. 44 (Solicitors’ Remuneration, 1881) 186, 257, 536—541 45 Viet. c. 9 (Documentary Evi- dence, 1882) 104 45 & 46 Viet. c. 21 (Places of Worship Sites Amendment, 1882) 17 c. 38 (Settled Land, 1882)... 299, 413 s. 2 413,414,415,425 s. 3 7, 415, 416, 425, 523 s. 4 416 s. 5 415 s. 6 415, 418 s. 7 418 s. 8 78, 419 s. 9 78, 419 s. 10 419 s. 11 416,419,425 s. 12 421 s. 13 415,421 s. 14 304, 416, 422 s. 16 415, 416, 422 s> 17 422 s. 18 203, 416, 423, 425 s. 19 414, 418 s. 20 . 424 s. 21 416, 426 s. 22 428, 429 s. 23 429 s. 24 429, 431 s. 25 ;. . .416, 420—431 s. 26 433, 434 s. 27 434 s. 28 434, 435 s. 30 435 s. 31 416, 425, 436 s. 32 198 s. 33 425 s. 34 428 s. 35 416, 423, 425, 440 s. 37 416, 423, 425, 440 s. 38 437 s. 39 437 s. 40 437, 438 s. 41 437, 438 s. 42 437, 438 s. 43 437, 438 s. 45 438 s. 47 416, 423 s. 50 441, 442 s. 51 442 s. 52 442 s. 53 443 s. 54 443 s. 55 443 s. 56 28, 443 s. 57 444 s. 58 415, 444 s. 59 7,298,445 45 & 46 Viet. PAGE c. 38 (Settled Land, 1882), s. 60 7, 27,204,446 s. 61 12, 446 s. 62 446 s. 63 29, 400, 447, 448 c. 39 (Conveyancing, 1882), s. 2 163 s. 3 121 s. 4 51 s. 6 514, 535 s. 7 13 s. 8 78, 102, 166, 289 s. 9 78, 103, 166 s. 10 488 s. 11 525 s. 12 221 c. 43 (Bills of Sale, 1882), s. 4 271, 275 su 5 271, 274, 275 s. 6 271 s. 7 264, 281, 291 si. 8 102, 283, 288 s|. 9 239, 271, 275, 277, 278 s. 10 276 s. 11 294 s. 12 277 s. 13 264, 292 s. 15 292 s. 16 293 s. 17 268 e. 50 (Municipal Corporations, 1882) 17, 19, 301 c. 75 (Married Women’s Pro- perty, 1882) 300, 372 s. 1 458 s. 2 10 s. 5 11 s. 18 12 s. 19 13, 373, 375 s. 24 468 46 & 47 Viet. c. 15 (Lands Clauses (Um- pire), 1883) 196 c. 49 (Statute Law Revision, 1883), s. 3 90 c. 52 (Bankruptcy, 1883), s. 44 292 s. 47 118, 452 s. 55 ....85, 242, 243 s. 125 614 s. 134 108 s, 138 108 s. 140 108 c. 61 (Agricultural Holdings, 1883), s. 33 357 47 & 48 Viet. c. 18 (Settled Land, 1884), s, 4 418, 425 s. 5 439 TABLE OF STATUTES. XClll 47 A 48 Viet. page c. 18 (Settled Land, 1884), s. 6 28, 29, 414, 444, 448 s. 7 447 c. 54 (Yorkshire Registry, 1884), s. 3 191 s. 4 191 s. 5 191 s. 6 102, 191 s. 7 94, 192 s, 8 192 s. 11 192 s. 14 193 s, 15 162, 193 s. 16 162, 193,248 s. 20 164 s. 21 164 s. 22 164 s. 23 164 s. 28 193 s. 30 193 s. 31 193 s. 38 193 s. 51 162 c. 71 (Intestates’ Estates, 1884) 478 48 & 49 Viet. c. 4 (Yorkshire Registry Amending, 1885) 191, 193 c. 26 (Yorkshire Registry, 1885) 162, 191, 192 49 & 50 Viet. c. 27 (Guardianship of Infants, 1886) 468 c. 54 (Extraordinary Tithe Re- demption, 1886), s’. 7 313 50 & 51 Viet. c. 16 (National Debt and Local Loans, 1887) 390 c. 26 (Allotments and Cottage Gardens Compensation for Crops, 1887) 356, 359 c. 30 (Settled Lands Amend- ment, 1887) 427, 435 c. 73 (Copyhold, 1887) 260 51 & 52 Viet. c. 8 (Customs and Inland Revenue, 1888), s. 21 113 c. 10 (Local Government, 1888), s. 72 .....17, 19 c. 42 (Mortmain and Charitable Uses, 1888) 18, 19, 21, 194, 556 s. 1 301 s. 2 25 s. 4 2 1,22, 25;, 102 s. 5 22 s. 6 19, 23 s. 7 23, 25 s. 8 23 s. 10 22 s. 14 301 51 & 52 Viet. page c. 51 (Land Charges Registra- tion and Searches, 1888) 190, 356 s. 4 158 s. 5 155, 158 s. 6 158 s. 8 158 s. 9 158 s. 10 159 s. 12 159 s. 13 159 s. 17 164 52 Viet. c. 7 (Customs and Inland Revenue, 1889) 116, 583 52 & 53 Viet. c. 36 (Settled Land, 1889), s. 2 420 c. 63 (Interpretation, 1889) ... 49 s. 9 104 s. 31 62 53 & 54 Viet. c. 5 (Lunacy, 1890), s. 116 9, 10, 202, 299 s. 117 9 s. 120 9, 202, 299 s. 124 9,202 s. 135 202 s. 144 109 c. 16 (Working Classes Dwell- ings, 1890) 19, 24, 194 c. 53 (Bills of Sale, 1890), s. 2.. 293 c. 57 (Tenants’ Compensation, 1890) 356 c. 69 (Settled Land, 1890), s. 4 441 s. 5 417 s. 7 418,419,439 s. 8 420 s. 10 440 s. 11 203, 423 s. 12 437 s. 13 432 s. 14 429 s. 15 433 s. 16 415 c. 70 (Housing of the Working Classes, 1890) 315, 428 c. 71 (Bankruptcy, 1890), s. 13 85,242,243 54 Viet. c. 8 (Tithe, 1891)... 312, 313, 323 54 & 55 Viet. c. 33 (Public Health (London), 1891) 324, 325 c. 39 (Stamp, 1891) ...94, 252, 261, 367, 588 s. 5 133 s. 8 94 s. 15 94 XC1V TABLE OF STATUTES 54 & 55 Viet. page c. 39 (Stamp, 1891), s. 22 94 s. 54 184 s. 55 185 s. 56 185 s. 57 185 s. 58 128, 185 s. 59 95, 186 s. 61 186 s. 62 535 s. 75 368 s. 76 368 s. 77 368 s. 78 368, 369 s. 86 262 s. 87 262 s. 88 262 s. 89 262 s. 104 455 s. 105 455 s. 106 455 s. 117 65 Sched. (Memorial) 191, 193 c. 48 391 c. 64 (Land Registry (Middle- sex) Deeds, 1891)... 102, 161, 164, 188, 189, 190 c. 73 (Mortmain, 1891) 24 -55 & 56 Viet. c. 11 (Mortmain, 1892) 19, 25 c. 13 (Conveyancing, 1892), s. 2 ......339, 342, 343 s. 3 331 s. 4 241, 341 s. 5 308, 342 c. 29 (Technical and Industrial Institutions, 1892) 19, 25 c. 58 (Accumulations, 1892)... 474 56 & 57 Viet. c. 21 (Voluntary Conveyances, 1893) 451 s. 2 452 s. 3 452 s. 4 452 c. 39 (Industrial and Provi- dent Societies, 1893) 607 c. 53 (Trustee, 1893), s. 1 205,387, 426 s. 2 391,426 s. 3 391,426 s. 4 391,426 s. 5 205,388, 391,426 s. 6 426 s. 7 426 s. 8 204 s. 9 206 s. 10 394, 395, 396, 398 s. 11 397, 398, 456 s. 12 242,251, 398 s. 13 28 56 & 57 Viet. page c. 53 (Trustee, 1893), s. 14 28 s. 16 12 s. 17 133, 168 s. 18 470 s. 19 204 s. 20 392, 438 s. 21 393 s. 24 393 s. 26 241 s. 44 28,224 s. 47 438 s. 48 17 c. 63 (Married Women’s Pro- perty, 1893), s. 1 16 s 3 459 c. 71 (Sale of Goods, 1893), s. 4 35 s. 12 48 s. 17 3, 263 s. 18 3, 263 s. 48 75 s. 58 57 s. 62 34, 35 57 & 58 Viet. c. 10 (Trustee, 1894), s. 3.. .28, 224 c. 30 (Finance, 1894) 113 s. 1 113, 114 s. 2 113 s. 3 113 s. 4 113 s. 5 113, 117 s. 6 115 s. 7 113 s. 8 113, 117, 147,583 s. 9 117 s. 11 117 s. 14 114 s. 15 115 s. 16 114 s. 18 114, 115 s. 20 115 s. 22 115 c. 35 (Charitable Trusts, 1894) 21 .c. 46 (Copyhold, 1894) 260 s. 1 523 s. 3 523 s. 5 523 s. 8 523 s. 10 523 s. 14 522 s. 15 522 s. 16 522 i s. 21 523 s. 22 523 s. 23 137, 523 s. 26 522 s. 30 523 s. 34 522, 524 s. 42 524 TABLE OF STATUTES XCV 57 & 58 Viet. page c. 40 (Copyhold, 1894), s. 45 523 s. 49 524 s. 66 524 s. 79 524 s. 84 174 s. 88 87, 477 c. 60 (Merchant Shipping, 1894), ss. 24 — 46 3 s. 177 457, 462 58 & 59 Viet. c. 11 (Lands Clauses (Taxation of Costs), 1895) 196 c. 25 (Mortgagees’ Legal Costs, 1895) 253, 257, 261 c. 39 (Summary Jurisdiction (Married Women), 1895) 11 59 & 60 Viet. c. 25 (Friendly Societies, 1896) 258, 607 60 & 61 Viet. c. 15 (Navy and Marines’ Wills, 1897) 457, 461 c. 65 (Land Transfer, 1897)... 153, 193, 203, 217, 469, 470, 477, 557 s. 1 41,86,87 s. 2 302, 611 s. 3 611 s. 4 611 s. 5 611 s. 6 564, 565, 587, 612, 613 s. 7 646,647 s. 8 559,574,579,592,599, 602, 605, 607, 609, 635, 636, 637 s. 9 588, 590, 600, 602, 606, 609, 611, 616 s. 12 580, 583, 603 s. 13 582 s. 14 565, 631, 641 s. 15 644 s. 16 584, 585, 588, 595 s. 17 650 s. 18 590 s. 20 557,653, 654, 655 s. 21 649 s. 22 559 61 & 62 Viet. c. 10 (Finance, 1898), s. 6 184 62 & 63 Viet. c. 20 (Bodies Corporate (Joint Tenancy), 1899) 20 c. 46 (Improvement of Land, 1899) 159 63 & 64 Viet. PAGE c. 7 (Finance, 1900), s. 10 185 c. 26 (Land Charges, 1900), s. 1 111,154,194 s. 2 155 s. 3 158 s. 6 164 c. 50 (Agricultural Holdings, 1900) 352 c. 62 (Colonial Stock, 1900)... 387, 388, 391 2 Edw. 7, c. 41 (Metropolis Water, 1902) 387, 390 3 Edw. 7, c. 37 391 c. 39 (Housing of the Working Classes, 1903), s. 12 315 c. 46 (Revenue, 1903), s. 7 261 6 Edw. 7, e. 21 (Ground Game, 1906)... 360, 361, 362 c. 41 (Marine Insurance, 1906), s. 50 3 s. 51 3 e. 56 (Agricultural Holdings, 1906) 352, 353 c. 55 (Public Trustee, 1906)... 396 s. 5 398,439 7 Edw. 7, c. 18 (Married Women’s Pro- perty, 1907) 518 s. 1 13 s. 2 375 s. 3 518 8 Edw. 7, 28 (Agricultural Holdings, 1908) 63, 351 s. 1 352,353 s. 2 353 s. 3 353 s. 4 353 s. 5 353 s. 6 s. 7 354 s. 8 354 s. 9 354 s. 10 354 s. 11 355 s. 12 356 s. 13 354, 356 s. 14 354 s. 15 159, 357 s. 16 159, 357 s. 17 159,357 s. 18 159, 357 s. 19 159,356 s. 20 356 s. 21 357 s. 22 357 s. 23 357 XCV1 TABLE OF STATUTES 8 Edw. 7. page c. 28 (Agricultural Holdings, 1908), s. 24 315, 357 s. 25 358 s. 26 358 s. 27 358 s. 28 358 s. 29 358 s. 30 358 s. 31 358 s. 35 356 s. 42 352, 358 s. 48 359 c. 36 (Small Holdings and Allotments, 1908) 255 c. 47 (Lunacy, 1908), s. 1 ...10, 447 c. 53 (Law of Distress Amendment, 1908) 295 c. 69 (Companies Consolidation, 1908) 19, 129, 263 s. 105 208 9 Edw. 7, c. 43 (Revenue, 1909),. s. 7 95 c. 44 (Housing, Town Plan- ning, &e., 1909) 315, 326 10 Edw. 7 & 1 Geo. 5, c. 8 (Finance (1909-10), 1910), s. 1 74, 118, 370 s. 3 , 371 s. 4 74, 118, 167, 370 s. 5 74, 118 s. 6 74 s. 13 371 s. 14 371 s. 15 371 s. 22 371 s. 35 371 s. 36 371 s. 37 371 s. 38 371 10 Edw. 7 & 1 Geo. 5. page c. 8 (Finance (1909-10), 1910), s. 54 183 s. 55 .... 183 s. 56 .... 183 s. 57 .... 183 s. 58 115, 183 s. 59 183 s. 60 116, 183 s. 61 116, 183 s. 73 183, 184 s. 74 183,184, 454, 456 s. 75 367 c. 34 (Small Holdings and Allotments, 1910) 355 1 & 2 Geo. 5, c. 2 (Revenue , 1911) 391 s. 1 74,370 s. 2 74 s. 3 74,371 s. 4 74 s. 5 74 s. 6 74 s. 7 74 c. 6 (Perjury, 1911) 285 c. 37 (Conveyancing, 1911)... 152, 233 s. 1 79 s. 2 225, 316, 345 s. 3 233, 234,237 s. 4 29, 224,234, 236 s. 5 226, 227 s. 6 403 s. 7 11, 14 s. 8 397, 438, 514 s. 9 27, 431 s. 10 26, 447, 448 s. 12 87, 302 s. 15 .... 246 c. 40 (Lunacy, 1911), s. 1... 202, 299 ‘2 & 3 Geo. 5, c. 8 (Finance, 1912), s. 10 74 ERR A TUM. On page 242, read “ Trustee Act, 1893,” instead of “Trustee Act, 1897.” THE fitkttl’s INTRODUCTORY. The subject-matter of conveyancing may be said to be the law relating to the transfer of property and rights in the nature of property by act of the party, where any document is used for the purpose. The art of conveyancing consists in the preparation of the documents used for transferring these rights. A transfer of proprietary rights by act of the party may take any one of various forms. It may, for instance, be by way of sale, or exchange, or gift, or mortgage, or lease, or settlement, or donatio mortis causa, or testamentary disposi- tion; or it may be by way of disclaimer, or release of an in- terest, or by way of enlarging a smaller interest into a greater, as when an estate tail or a term of years is enlarged into a fee simple; or it may be by way of the exercise of a mere right of alienation, as in the case of an appointment under a power. In the case of a transfer inter vivos of the legal property in land, there are now two entirely distinct systems of convey- ancing in England. The old system, which in one form or another has existed for generations past, may, for the sake of distinguishing it from the new, be called common law con- veyancing. Under this system a legal estate in possession in freehold corporeal hereditaments may be transferred (1) by delivery, or in technical language, feoffment with livery of G. — C. B 2 INTRODUCTORY. seisin (a ) — a method of conveyance now almost obsolete (5);, or (2) since 1845 by deed of grant or conveyance (c); and future legal estates in corporeal hereditaments and incorporeal hereditaments of all kinds, may be transferred by deed of grant; a legal estate in copyhold hereditaments may be transferred by surrender and admittance entered on the court rolls of the manor in which they are situate; and a legal estate in a leasehold may be transferred by deed of assignment ( a ) . In all these cases the transferor — when the transfer is by way of sale or mortgage, and sometimes also when it is by way of lease or settlement— is bound to prove his right to make the conveyance on each successive dealing with the land, or what- ever interest in it is the subject of the conveyance, the proceed- ings following a regular course, originally adopted by convey- ancers as a matter of convenience, and long since recognized by the courts. There is also, in the case of freehold and lease- hold interests in land, the system of registration of title estab- lished by the Land Transfer Acts and Rules, under which the land is transferred by the substitution of the transferee’s name for that of the transferor on a public register, kept by a government department, no proof of the transferor’s right to make the transfer being (in theory) necessary. The equitable property in land, the creation of which must he evidenced by declaration of trust in writing under s. 7 of the Statute of Frauds, when once created is, in practice, subse- quently transferred inter vivos in the same way as a legal estate. The methods of transferring proprietary lights in pure personal property have always been simpler than those required for the transfer of rights in land. In the case of most kinds of personal chattels in possession the legal property can be transferred inter vivos , (1) by de- (a) Generally required to be evi- (6) See below, p. 6. denced by deed. Statute of Frauds, (c) Real Property Act, 1845, s. 1, and Real Property Act, 1845. s. 2. s. 3. INTRODUCTORY. 3 livery; (2) by a deed of assignment; or (3) by a contract of sale; the equitable property can be created by declaration of trust, which may be verbal (d), or in writing, or by deed, and when created can be transferred by writing or by deed (e). [Transfers of personal chattels by way of security for the loan of money, however, have been made the subject of minute statu- tory provisions by the Bills of Sale Acts, 1878 to 1891, and a few kinds of such property, like ships, are transferable in special ways established by statute law (/). In the case of such choses in action as stocks or shares, the legal property is transferable inter vivos by substitution of the transferee’s name for that of the transferor in the books of the corporation or company issuing them, and (subject to exceptional cases) such choses in action as policies of assur- ance and debts, whether legal or equitable, by a written as- signment, of which notice is given to the debtor or other person from whom the assignor would have been entitled to recover them, in accordance with the provisions of s. 25 (6) of the Judicature Act, 1873, or other statute in point (g), or the doctrines of equity. Incorporeal interests in pure personal property such as patent rights and copyrights are assignable by deed or writing in manner for the most part regulated by statute . In none of these cases is it, as a rule, usual or necessary for the transferor to prove his title to the property transferred. Occasionally, however, it is necessary to do so, as where a policy of assurance or stocks or shares are standing in the name of a person who is dead, or who has assigned them; and in such cases (d) See Benbow v. Townsend (1833), 1 M. & K. 506; Kiljpin v. Kilpin (1834), 1 M. & K. 520; McFadden v. Jenhyns (1842), 1 Hare, 458. (e) See Cochrane v. Moore (1890), 25 Q. B. D. 57; the Sale of Goods Act, 1893, ss. 17 and 18; and Statute of Frauds, s. 9. (/) See the Merchant Shipping Act, 1894, ss. 24 — 48. ( g ) See as to policies of life assurance, the Policies of Assur- ance Act, 1867, s. 3; and as to policies of marine insurance, the Marine Insurance Act, 1906, ss. 50 and 51. 4 INTRODUCTORY. the course of procedure is similar to that in the case of land . A. donatio mortis causa , though it involves a transfer of proprietary rights, does not fall within the scope of a book on conveyancing, since no document is required for its validity. The law relating to the transfer of proprietary rights by will is substantially the same for both land and other species of property in this country; the only complication arising from the conflict of laws. In this book, therefore, the subject of conveyancing' will be treated upon the assumption that the subject of the -transfer is land, and the rules of conveyancing relating to personal property will only be dealt with incidentally. The law and practice of conveyancing will accordingly be discussed under the following heads: — Bk. I. Conveyancing at Common Law. I. Sales, including incidentally exchanges and gifts. II. Mortgages. III. Bills of Sale. IV Leases. V. Settlements. VI. Wills. VII. Miscellaneous Transactions, including: — i. Deeds of Disclaimer. ii. Deeds of Release. iii. Disentailing Assurances. iv. Enfranchisement of Copyholds. v. Enlargement of Terms of Years into the Fee Simple. vi. Appointments under Powers. VIII. Convevancing Costs. v O Bk. II. Conveyancing under the Land Transfer Acts. 5 Book I. CONVEYANCING AT COMMON LAW. CHAPTER I. CAPACITY OF PARTIES. It is not everyone who possesses the full legal capacity to ac- quire or dispose of property, and consequently the first point for consideration when a disposition of any property is con- templated is whether the parties respectively have legal capacity to enter into the transaction. The persons who are disqualified, wholly or partially, are infants, persons of unsound mind, married women, aliens, traitors and felons, corporations, charities, and trustees and others having a fiduciary character. Of these, therefore, in their order. I. Infants. Sales by Infants. At common law a disposition of either real or personal pro- perty by an infant, whether by way of sale or gift, is void- able, i.e., when he comes of' age he can avoid it, or, if he dies under age, his representatives may avoid it; and it seems that, in the absence of fraud, he cannot be compelled to refund the purchase-money. But a disposition so made is binding Persons under disability — Classification of. Conveyances by infants : 6 (a) Of gavel- kind land. (b) Under powers of appointment. (c) Under the Infant Settlements Act, 1855. (d) Under the Conveyancing Act, 1881. BK. I., PT. I. — SALES, EXCHANGES AND GIFTS. unless repudiated, and the repudiation must take place on attaining full age or within a reasonable time afterwards (a) . To this rule an exception exists in the case of land subject to the custom of gavelkind, which may be alienated on a sale by a minor of fifteen years of age or upwards by a feoffment. Livery of seisin must be made by him in person, and, though no deed is required, as is necessary in feoffments by other people, the feoffment must be evidenced by writing signed by the infant (6). In order that the feoffment may be valid, the infant must receive the full value of the property or his share of it, and in the case of Re Maslcell and Goldfinch’ s Con- tract (c), the feoffment was held uot binding because it ap- peared that the infant had not received his full share of the purchase-money . Further, although an infant cannot exercise a power of ap- pointment over real property if the power is appendant or in gross, he may exercise it if purely collateral ( d ) ; and it seems that when he has arrived at years of discretion he can exercise a power of appointment over personal property if the power is a power collateral or a power in gross, and possibly even if it is a power appendant (e). The common law rule is also subject to the provisions of various statutes, by which binding dispositions of an infant’s property can be made. Thus, by the Infant Settlements Act, 1855, which will be discussed fully under the head of settle- ments, an infant of a certain age can, with the leave of the court, make a binding settlement on marriage. And by s. 41 of' the Conveyancing Act, 1881, when an infant is, in his own right, seised of or entitled to land in fee simple, or for any leasehold interest at a rent, the land is to be deemed a settled estate within the Settled Estates Act, 1877, and so (a) Allen v. Allen (1842), 2 D. & W. 307; Edwards v. Carter, (1893) A. C. 380; Williams, Ven- dor and Purchaser, 2nd ed. pp. 870 et seq. (5) Statute of Frauds, s. 1; Peal Property Act, 1845, s. 3. (c) (1895) 2 Cli. 525. (<2) See Ilearle v. Greenbank (1749), 3 Atk. 695. (e) See Re D' Angibau, Andrews v. Andrews (1880), 15 Cli. D. 228. This applies only to the exercise of a power by deed inter vivos. He cannot exercise a power by will: Wills Act, 1837, s. 7. CAPACITY OF PARTIES. 7 under s. 16 of the latter act the court can authorize a sale of the land, and under s. 22 direct what person shall execute the deed of conveyance. This enactment, though for most purposes superseded by the provision contained in the Settled Land Act, 1882, as below mentioned, is still useful where the infant is entitled to a contingent interest only, as the act of' 1882 does not apply in that case (/') . Lastly, by s. 59 of the Settled Land Act, 1882, where ,a (e) Under the i . . i . • i , "IT ? 1 j • j i i • • Settled Land person who is m his own right seised oi or entitled m possession Act 1882 to land is an infant, then for the purposes of the act the land is settled land, and the infant is to be deemed tenant for life thereof. The act empowers a tenant for life to sell settled land under certain conditions (g), and, if he be an infant, enables the trustees of the settlement, or, if there are none, then some one appointed by the court, to exercise all the powers which the tenant for life could exercise were he of full age (A). A contract to sell or dispose of 1 property made by an infant, Contracts to as distinguished from a conveyance, is also voidable; that is to say, it is binding unless repudiated by the infant on attaining his majority, or within a reasonable time afterwards (z) . The Infants Relief Act, 1874, seems not to apply to this class of contracts at all (;). It is always well where an infant has disposed of property Practice note, or exercised a power over property, that on majority the dis- position or appointment should be confirmed, even though a confirmation may not be strictly necessary. Sales to Infants. An infant may purchase property; hut here too the trans- Conveyances action is voidable, and he may repudiate it on attaining full to m dn s ' ago or within a reasonable time afterwards, but if he docs not do so it is binding (A); if he dies under age, his representa- tives may repudiate it. Whether on repudiation the price paid (/) See Re Sparrow's Settled Estates (1892), 68 L. T. 276. (. g ) s - 3 - ( h ) s. 60. (t) See Edwaids v. Carter, (1893) A. C. 360. (/) Duncan v. Dixon (1890), 44 Cli. D. 211. ( k ) JVkittinghani v. Murdy (1889), 60 L. T. 956. 8 Contracts to purchase by infants. Conveyances by a lunatic not so found. BK. I., PT. I. SALES, EXCHANGES AND GIFTS. can be recovered is exceedingly doubtful (7). So also as re- gards a mere contract to buy (m) ; but in this case it seems that an infant who, after contracting to purchase and paying a deposit, refuses to complete on attaining majority, can re- cover the deposit when he has derived no advantage under the contract (w). The contract being binding on the other party, the infant can sue him for damages for its breach, but he cannot enforce specific performance of it, for. as it could not be enforced against him, the remedy is not mutual (o) . II. Persons of Unsound Mind. Sales by Persons of Unsound Mind. A disposition of property made by a person of unsound mind but not so found by inquisition is valid if made during a lucid interval (p) . A disposition for valuable consideration made by such a person while of unsound mind is valid unless it can be shown that the person in whose f avour it was made was aware of the insanity, in which case it is voidable. This applies to sales (q), to mortgages (r), to contracts (s), and no doubt to dispositions of property of all kinds. But if a disposition of property by a person of unsound mind is gratuitous, it is not merely voidable, but void (t). It seems that when a disposi- tion, which is voidable owing to the other party having had notice of the insanity, is avoided, the property thereby assured can be recovered without refunding any purchase-money or other consideration received for making the conveyance, just (l) See Williams, Vendor and Purchaser, 2nd ed.pp. 884 et seq. (m) Whittingham v. Murdy (1889), 60 L. T. 956. (n) Hamilton v. Vaughan Sher- rin Electrical , &c. Co., (1894) 3 Ch. 589; but see Wilson v. Kearse (1800), Peake, Add. Cas. 196. (o) Flight v. Bolland, 4 Russ. 298. (p) Hall v. Warren (1805), 9 Ves. 605. ( q ) Molton v. Camroux (1848), 2 Exch. 487; 4 Exch. 17; Elliot v. Ince (1857), 7 De G. M. & G. 475. (r) Campbell v. Hooper (1855), 3 Sm. & G. 153. (s) Imperial Loan Co. v. Stone , (1892) 1 Q. B. 599. ( t ) Elliot v. Ince, supra; Man- ning v. Gill (1872), L. R. 13 Eq. 485. CAPACITY OF PARTIES. 9 as an infant, on avoiding a sale made by him, can apparently recover the land without refunding the purchase-money (u ) . If, however, a lunatic has been so found, unless the inquisi- tion has been superseded, an y disposition of property by deed made by him after the inquisition is absolutely void, even though made during a lucid interval, since upon the inquisition the property of the lunatic passes out of his control and comes under that of the crown, and any disposition by the lunatic is inconsistent with that control (x ) . And it may be that the same thing applies to a lunatic not so found if an order has been made under s. 116 of the Lunacy Act, 1890, for the management and administration of his property (y). In the case of 1 persons who have been found by inquisition to be of unsound mind, it is provided by the Lunacy Act, 1890, s. 117, that the judge in lunacy may order that any property of a lunatic may be sold, charged, mortgaged, dealt with or otherwise disposed of, for payment of his debts, to discharge his estate from incumbrances, or for his maintenance past and future. Further, by s. 120 of' the act, the judge may authorize the committee to sell, make exchange or partition of, or grant leases of any property of the lunatic for building, agricultural, or other purposes, or grant leases of minerals forming part of his property, or make and accept surrenders of leases and per- form other similar acts. And by s. 116 the above powers are to be exercised in the case of certain lunatics not so found by such person as the judge may direct. Such a person is usually called a “ receiver.” The committee or such person as the judge approves must, in the name and on behalf of the lunatic, execute and do all such assurances and things for giving effect to any order under the act as the judge directs ( z ). There are certain other cases in which a committee may execute a conveyance of a lunatic’s property; thus, he can, by (u) See Williams, Vendor and Purchaser, 2nd ed. p. 892, and ante, p. 5. (a?) Re Walker, (1905) 1 Ch. 160. He may, however, make a will during a lucid interval ( In the Estate of Walker (1912), 28 T. L. R. 466). (y) See per Vaughan Williams, L. J., in Re Walker, supra, at p. 171 of the report. ( z ) Lunacy Act, 1890, s. 124. Conveyances by a lunatic so foundr Sales by com mittee of lunatic for payment of debts. 53 Viet. c. 5. Sales, &c. by committee generally. Other powers of committee. 10 BK. I., PT. I. SALES, EXCHANGES AND GIFTS. Powers exercisable in case of lunatic not so fouud. leave of the judge in lunacy, make conveyances when the luna- tic’s property is taken under the Lands Clauses Consolidation Act, 1845, s. 7; and can, with similar leave, exercise on the lunatic’s behalf the powers given to limited owners who are sane persons by the Settled Land Acts, 1882 and 1890 (a). Until 1908 the court could not authorize these powers to be exercised in the case of a lunatic not so found (5). However, it is now provided by s. 1 of the Lunacy Act, 1908, in the case of any of the persons mentioned in sub-s. (1) of s. 116 of the Lunacy Act, 1890, not being a lunatic so found by inquisition, any powers which, if such person were a lunatic so found by inquisition, could be exercised by the committee of the estate, may be exercised by such person in such manner as the judge in lunacy or, subject to the rules in lunacy, a master may direct. Sales to a Person of Unsound Mind. Conveyances A purchase of property by a person of unsound mind is binding unless the fact of his insanity be known to the vendor (c ) ; and so too is a contract to purchase property (d) . If the vendor was aware of the insanity, the conveyance or contract is voidable. III. Married Women. Sales by a Married Woman. Statutory separate property may be disposed of without special formalities ; 45 & 4G Viet, c. 75 ; Any property which by virtue of statutory enactment belongs to a married woman for her separate use can be dis- posed of by her as if she were unmarried, unless it is subject to a restraint upon anticipation. The most important enact- ment on the subject is contained in the Married Women’s Property Act, 1882, s. 2 of which provides that every woman (а) See s. 62 of the Act of 1882, and the cases of Be Cathe/ine Salt, (1896) 1 Ch. 117; and Be Bay, (1896) 1 Ch. 468, below, under “ Settlements.” (б) Be Martha Baggs, (1894) 2 Ch. 416, n.; and Be S. S. B., (1906) 1 Ch. 712. (c) Molton v. Camroux (1848), 2 Exch. 487; 4 Exch. 17; Beavan v. McDonnell (1854), 9 Exch. 309. ( d ) Imperial Loan Co. v. Stone,. (1892) 1 Q. B. 599. CAPACITY OF PARTIES. 11 married after 1882 shall be entitled to hold as her separate property all real and personal property belonging to her at the time of marriage, or acquired by or devolving upon her after marriage, while s. 5 enables every woman married before 1883 to hold as her separate property all real and personal property her title to which, whether vested or contingent, and whether in possession, reversion or remainder, accrues after 1882. On this latter section it has been held that a rever- sionary interest, whether vested or contingent, to which a married woman was entitled before 1883, is not separate property, although it falls into possession after 1882 (e). Further, under the Matrimonial Causes Acts, 1857 and 1858, and the Summary Jurisdiction (Married Women) Act, 1895, a married woman who has obtained a judicial separation or a protection order, or an order in the nature of a judicial separation, may dispose as a feme sole of any property which may devolve on or be acquired by her during the separation, including property to which she is entitled in remainder or reversion at the date of the decree; and, even if she cohabits with her husband again, all property which she may be en- titled to when such cohabitation takes place will be hers for her separate use, unless she and her husband have, whilst still separate, made some agreement in writing to the contrary (/.) So, too, where property is settled upon her for her separate use, she may by the rules of equity convey her equitable in- terest as if she were unmarried, unless, again, it is subject to a restraint on anticipation (g ) . Where the separate property, whether statutory or equitable, is subject to a restraint upon anticipation, she has no power to dispose of it during coverture (h), unless the court permits the alienation of it, as it may under s. 7 of the Conveyancing Act, 1911, where it appears to be for her benefit and she con- (e) Reid v. Reid (1886), 31 Oh. D. 402. (/) Matrimonial Causes Act, 1857, ss. 25 and 26; Matrimonial Causes Act, 1858, ss. 7 and 8; Summary Jurisdiction (Married Women) Act, 1895, s. 5; and see Spark v. Massey, (1904) 1 Ch. 451, where the separation deed was in the nature of a settlement. (g) Taylor v. Meads (1865), 4 De Gr. J. & S. 597. (h) Tullett v. Armstrong (1838), 1 Beav. 1. 20 & 21 Viot. c. 85 ; 21 & 22 Viet, c. 108 ; 58 & 59 Viet, c. 39 ; and so may equitable separate property ; unless either is subject to restraint on anticipation. 12 20 & 21 Viet, c. 57. She may exercise a power of appointment as if a feme sole , and similarly dispose of trust pro- perty. 45 & 46 Viet, c. 75. 56 & 57 Viet, c. 53. BK. I., PT. I. — SALES, EXCHANGES AND GIFTS. sents (i ) — a provision which applies also to any property which she is restrained from alienating or is by law unable to dis- pose of or bind, including a reversionary interest arising under her marriage settlement, which, being excepted from the Married Women’s (Reversionary Interests) Act, 1857 (7c), could not be disposed of formerly unless it was her separate property. The restraint does not, however, prevent her from barring an estate tail (7), nor from exercising the powers given to tenants for life under the Settled Land Acts, 1882— 1890 (m). There are two other cases in which a married woman can dispose of property as if she were a feme sole. She has always been able to exercise a power of appointment, whether special or general, without her husband’s concurrence and without any special formalities, and she can now dispose in the same manner of' any property vested in her as trustee or personal representative. But ,this result has only gradually been reached. S. 18 of the Married Women s Property Act, 1882, enabled a married woman who is an executrix, administra- trix, or trustee, to transfer any annuity, bank deposit, shares or stocks without her husband, as if she were a feme sole, and s. 16 of the Trustee Act, 1893 (w), gave her power, when any freehold or copyhold hereditament is vested in her as a bare trustee, to convey or surrender it as a feme sole. But it was decided that a married woman trustee (other than a bare trustee) could not convey the legal estate in freehold land except by means of a deed acknowledged (o), and it seemed (i) This section repeals and re- enacts in an extended form s. 39 of the Conveyancing Act, 1881. See Tamplin v. Miller (1882), 30 W. R. 422; Hodges v. Hodges (1882), 20 Ch. D. 749; Be War- ren's Settlement (1883), 52 L. J. Ch. 928. (k) See infra, p. 14. ( l ) Cooper v. Macdonald, 7 Ch. D. 288. (m) Settled Land Act, 1882, s. 61 (5). (n) Re-enacting s. 6 of the Vendor and Purchaser Act, 1874. (o) Re Harkness and Allsopp's Contract, (1896) 2 Ch. 358. Com- pare Re Brooke and Fremlin's Contract, (1898) 1 Ch. 647; Re Ilowgate and Osborn's Contract, (1902) 1 Ch. 451; and Re West and Hardy's Contract, (1904) 1 Ch. 145. CAPACITY OF PARTIES. 13 to follow that copyhold and leasehold land vested in her as trustee could only he disposed of according to the ancient forms. This decision caused much inconvenience, and was removed by the Married Women’s Property Act, 1907, s. 1, which provides that “ a married woman is able, without her husband, to dispose of, or join in disposing of, real or personal property held by her solely or jointly with any other person as trustee or personal representative in like manner as if she were a feme sole .” The section is retrospective, and makes valid all such dispositions made after 1882, except that any title or right acquired through or with the concurrence of the husband before the section came into force is to prevail over any title or right which would otherwise be rendered valid by the section ( 00 ). It is clear, then, that generally a married woman may sell and convey property vested in her just as if she were unmarried. But there are still a few cases in which she cannot do so . Where the property is not her separate property, because the acquisi- tion of it and her marriage both occurred before the Married Women’s Property Act, 1882, came into operation, and it is not vested in her as trustee or personal representative, it must still be conveyed in the old manner. A few words, therefore, are necessary concerning the old methods of conveying a married woman’s property, esjDecially as they must be borne in mind on an investigation of title. The methods vary according to the nature of the property. If the property is freehold land or any interest in freehold land, or money subject to be invested in the purchase of land, it must be conveyed by a deed in which the husband concurs, and the deed must be acknowledged by the married woman in the manner directed in the Fines and Recoveries Act, 1833, as amended by s. 7 of the Conveyancing Act, 1882. The court has, however, power under s. 91 of the former act to dispense with the husband’s concurrence when he is of unsound mind, or from any other cause is incapable of executing a deed, or (oo) The doubt, expressed in band’s concurrence is not still Williams, Vendor and Purchaser, necessary is thought to be un- 2nd ed. p. 922, and Prideaux, 20th founded. > ed. vol. i. p. 878, whether the hus- 7 Edw. 7, c. 18. Where the property is not separate property, special for- malities still necessary. 45 & 4G Viet, c. 75. Freehold land. 3 & 4 Will. 4, c. 74, ss. 77 — 91. 14 BK. I.j PT. I. — SALES, EXCHANGES AND GIFTS. Copyhold land. Leasehold land. Chattels personal . Reversionary interests in personalty. 20 & 21 Viet, c. 57. Disclaimer by married woman. if his residence is not known, or he is in prison, or living apart from his wife, but without prejudice to his rights. Such an order was made in a case where the husband was living apart from his wife, and refused to execute the deed unless he first received 50 l. (p). A legal interest in copyhold land must be conveyed by ^ surrender by the married woman and her husband, the wife being separately examined as to her free consent by the steward of the manor. Equitable interests in copyholds may be con- veyed in the same way or by a deed in which the husband concurs, and which is duly acknowledged by her before the steward (q). If the property is leasehold, the married woman has no power to deal with it; it can be disposed of by the husband alone, except that he cannot bequeath it by his will if the wife survives him, and that he cannot alone dispose of it if it is reversionary and incapable of falling into possession during coverture (r). Nor can she dispose of chattels personal, since they vest at common law in the husband absolutely, and he alone can dis- pose of them, provided that, in the case of choses in action, he first reduce them into possession. Reversionary choses in action, however, can only be assigned under the provisions of the Married Women’s (Reversionary Interests) Act, 1857, which requires both husband and wife to join in the deed which must be acknowledged by the wife, and if the reversionary interest arises under her marriage settlement an order of' court authoriz- ing the alienation must be obtained under s. 7 of the Con- veyancing Act, 1911 ( s ). A deed acknowledged and executed with the husband’s con- currence may perhaps also be necessary to enable a married (p) Re Caine (1883), 10 Q. B. I). 284. The application for an order dispensing with the husband’s concurrence must be made to the King’s Bench and not to the Chancery Division of the High Court. See Re Ellen Giles (1894), 70 L. T. 757; and Ord. LIV. r. 12b of the Rules of the Supreme Court. ( q ) Dines and Recoveries Act, 1833, ss. 77—91. (r) Duberley v. Day (1852), 16 Beav. 33. Such an interest would now be disposed of by deed acknowledged under the Married Women’s (Reversionary Interests) Act, 1857. (s) Ante, p. 11. CAPACITY OF PARTIES. 15 woman to disclaim an interest in land of any tenure, since that was the method of 1 disclaimer under the Real Property Act, ® ^o 9 6 VlCt ' 1845, s. 7, and the Married Women’s Property Acts, 1882 and 1907, contain no mention of disclaimer. The result is that a deed acknowledged or an acknowledg- Summary of ment before the steward of the manor, as the case may be, is w ^ich deed now only necessary in the following cases:— led ^(Tis still (i) To convey freehold or copyhold land acquired before the nece!5 ‘ sai y- 1st January, 1883, by a woman married before that date and not settled to her separate use. (ii) To dispose of a reversionary interest in pure personalty, or of a reversionary interest in leaseholds incapable of falling into possession during coverture, the title to which was acquired by a woman married before the 1st January, 1883, under an instrument dated be- tween the 1st January, 1858, and the 31st December, 1882 (inclusive), and not settled on her for her separate use. (iii) Possibly, to disclaim land. Statutes which empower persons under disability to alienate their property, such as the Lands Clauses Consolidation Act, 1845, s. 7, generally confers such powers on married women. It is not necessary to take into consideration the husband’s As to the . i • . . • t , pi -j • husband’s curtesy as an impediment to a married woman s power oi dis- e8tate by posing of her real estate, for her conveyance will defeat his curtes y- right to it, since an estate by curtesy has no existence until the wife’s death (t). Sales to a Married Woman. At common law a married woman was not absolutely in- Conveyance capacitated from purchasing land, but her husband during her women” 6 life, and even herself after his death, and her representatives after her death, might avoid the purchase if not made out of her separate estate. Since the Married Women’s Property Act, 1882, a married woman may acquire, hold, and dispose of real or personal property like a feme sole ( u ) ; and she may not (t) Bates v. Kesterton, (1896) 1 ( u ) s. 1, sub-s. (1). Ch. 159. 16 56 & 57 Viet, c. 63. Conveyances by and to aliens. 33 & 34 Viet, c. 14. The old law as to forfeiture. The present law. 33 & 34 Viet, c. 23. BK. I., PT. I. — SALES, EXCHANGES AND GIFTS. only take a conveyance of any property, but enter into any contract for its purchase. By the Married Women’s Property Act, 1893, s. 1, every such contract made after the 5th Decem- ber, 1893, otherwise than as agent, is deemed to be entered into by her with respect to and to bind her separate property, whether she is possessed of any at the time or not, and binds all separate property which she may then or thereafter be pos- sessed of or entitled to, provided that it is not subject to a restraint against anticipation. IV. Aliens. Subject as stated below, aliens are no longer under any dis- ability in respect of 1 conveyances of property. For, by the Naturalization Act, 1870, s. 2, real and personal property of every description may be taken, held, acquired, and disposed of by an alien in the same manner as by a natural-born British subject, and a title to such property may be derived through, from, or in succession to an alien, just as through, from, or in succession to a natural-born British subject. But s. 14 pro- vides that nothing in the act shall qualify an alien to be owner of a British ship, or of any share therein. V. Traitors and Felons. Before the 4th July, 1870, if a man was attainted of treason, ho forfeited his land and goods to the crown for ever; and if ho was attainted of felony — i.e., sentenced to death or judged outlaw on a capital offence — his land was forfeited to the crown for a year and a day, and his goods absolutely: at the end of the year and a day his land escheated to his feudal lord; and the forfeiture in the case of land related back to the time of the offence, so that all intermediate dealings by the attainted person with such property were void. Consequently a purchaser from a man who had committed such a crime would, when the man was attainted, lose his purchase, even if he was without notice. Traitors and felons could, however, aliene their chattels, real and personal, provided they did so before conviction. Since the Forfeiture Act, 1870, however, no confession, verdict, inquest, conviction, or judgment of or for any treason or felony will now cause any attainder or corruption of blood CAPACITY OF PARTIES. 17 or any forfeiture or escheat. This act does not affect the for- feiture consequent on outlawry ( x ), though outlawry in civil actions has been since abolished by the Civil Procedure Acts Repeal Act, 1879, and is hardly ever resorted to in criminal proceedings. The Forfeiture Act provides, however, that a convict, as de- fined by the act, cannot during the period of his sentence aliene or charge any property or make any contract (y ) ; but provi- sion is made for the appointment of an administrator in whom will vest all the property the convict had at the time of convic- tion, or which he afterwards acquires, and who has absolute power to let, sell, mortgage, convey, and transfer any part of such property as he thinks fit (z ) ; where an administrator has not been appointed, an interim curator may be appointed by justices, who, on appointment, has power to sell the convict’s personal property with the leave of the justices or the court (zz ) . These provisions, however, do not apply to property vested in the convict as trustee or mortgagee, which remains vested in him (a ) . VI. Corporations. Sales by Corporations . A common law corporation has generally the same capacity of alienation as an individual. Restrictions, however, have been imposed on municipal corporations by the Municipal Cor- porations Act, 1882, ss. 108 — 110; under the provisions of which they cannot sell, mortgage or alienate their land except with the approval of the Local Government Board (6), or in the case of a site for a place of worship under the Places of Worship Sites Act, 1873, of the Treasury (c); they may, how- (x) s. 1. \y) s. 8. (z) ss. 9, 10, 12. As to the administrator’s powers and duties, see Carr v. Anderson, (1903) 2 Ch. 279. He lias no power to bar an estate tail vested in the convict, but the convict himself can exe- cute the disentailing deed, and the administrator can then sell the G. — C. fee: Re Gaskell and Walters' Con- tract, (1906) 2 Ch. 1. (zz) ss. 21 — 26. (а) Re Levy and the Debenture Corporation (1894), 42 W. R. 533; Trustee Act, 1893, s. 48. (б) See Local Government Act, 1888, s. 72. (c) Places of Worship Sites Amendment Act, 1882, s. 1. c 42 & 43 Viet, c. 59. Conveyances f>y convicts. Capacity of common law corporation. 45 & 46 Viet c. 50. 36 & 37 Viet, c. 50. 18 Capacity of statutory corporation. Conveyances to corpora- tions cause a forfeiture unless under licence or statute. 51 & 52 Viet, c. 42. Exceptions : (a) Incor- porated charities ; (b) Public and charitable corporations ; BK. I., PT. I. SALES, EXCHANGES AND GIFTS. ever, make leases for not exceeding thirty-one years without such approval. Restrictions have also been imposed on eccle- siastical corporations by a great number of statutes; and on the principal universities and some colleges and other institu- tions (d) . A statutory corporation cannot do anything which its consti- tution, as defined by the act of parliament or memorandum of association which incorporates it, does not expressly or im- pliedly Warrant (e). Anything outside it is said to be ultra vires. A power of 1 sale of its property may, however, be im- pliedly warranted from its constitution without any words in the act or memorandum of 1 association, as, for instance, in the case of a commercial corporation (/). Sales to Corporations . From very early times it has been the policy of the law to prevent the acquisition of land by a corporation in perpetuity. The law on the subject is now contained in the Mortmain and Charitable Uses Act, 1888, Part I. of which provides that land shall not be assured to, or for the benefit of, or acquired by or on behalf of, any corporation in mortmain, otherwise than under the authority of a licence from the king, or of a statute for the time being in force. If this provision be infringed, the land is forfeited to His Majesty from the date of the assur- ance, subject to this, that if the land is held of a mesne lord the mesne lord may enter on and hold the land at any time (t/ O within twelve months of the assurance. But the following exceptions have been made to the opera- tion of the mortmain law: — Incorporated charities may, in certain circumstances, with the consent of the Charity Com- missioners, hold land without a licence under the Charitable Trusts Act, 1853; and so may corporations formed for public or charitable purposes under the Charitable Funds Investment (d) For fuller information, see riage and Iron Co. v. Biche Dart, Vendors and Purchasers, (1875), L. E. 7 H. L. 653. 7th ed. 24. (/) In re Kingsbury Collieries, (e) Sec Ashbury Bailway Car- Ltd., and Moore's Contract, (1907) 2 Ck. 259. CAPACITY OF PARTIES. 19 Act, 1870. The Charitable Trustees Incorporation Act, 1872, also enables trustees of certain charities to be incorporated, and yet hold and convey land in the same manner as trustees might do without such incorporation. Companies registered under the Companies (Consolidation) Act, 1908, may hold land, ex- cept that no company whose objects do not involve the acquisi- tion of gain can, without the sanction of the Board of Trade, hold more than two acres of land (< 7 ); and by s. 275 of that act companies incorporated in a British possession may hold land if they file certain particulars with the registrar of joint stock companies. By the custom of London, churchwardens are a corporation for the purpose of purchasing land; and churchwardens generally can by statute purchase lands for specified purposes — e.g., for poor law and educational purposes. Municipal corporations may, under the Municipal Corporations Act, 1882 (A), purchase and hold land to the extent of five acres for buildings for borough purposes, and the Local Government Board (i) may authorize them to acquire further land. Fur- ther, by Part III. of the Mortmain Act, 1888, a licence to hold land in mortmain is not required for an assurance to a corpora- tion for the purposes only of a public park, a school-house, or a museum, provided that if the assurance is by will the quantity of land must not exceed twenty acres in the case of a park, two acres in the case of a museum, and one acre in the case of a school-house, and both voluntary deeds and wills must be en- rolled with the Charity Commissioners (j). Again, no licence in mortmain is required for a conveyance to a corporation under the Working Classes Dwellings Act, 1890, or under the Mort- main and Charitable Uses Act, 1892. The provisions of' these acts are set out later (1c) . Lastly, no licence is required for a conveyance to a technical or industrial institute under the Technical and Industrial Institutions Act, 1892 (l). It may be mentioned here that the lord of a manor cannot be compelled to admit a corporation as tenant on the court rolls of (, g ) Companies (Consolidation) Act, 1888, s. 72. Act, 1908, s. 16. (j) s. 6. ( h ) s. 105 et seq. (Jc) pp. 26, 27. (i) See the Local Government ( l ) s. 10. c 2 (0) Charitable trustees ; (d) Registered companies ; (e) Church • wardens ; (f) Municipal corporations ; (g) Public park, school- house, or museum ; (h) Working classes’ dwellings ; (i) Technical and industrial institutes. Conveyances of copyholds to corpora- tions. 20 Corporations may now hold property as joint tenants. 62 & 63 Viet, c. 20. Restrictions on convey- ances by charities. BK. I., PT. I. — SALES, EXCHANGES AND GIFTS. the manor; and therefore, where a purchaser of copyholds is a corporation, they must be surrendered to some nominee of the corporation, the nominee executing a declaration of trust in favour of the corporation. Corporations were formerly subject to another disability in that they were incapable of' holding property in joint tenancy either with another corporation or an individual (ra). This, however, has been altered by the Bodies Corporate (Joint Tenancy) Act, 1899, which provides that a body corporate shall be capable of acquiring and holding any real or personal pro- perty in joint tenancy in the same manner as if it were an in- dividual; and that where a body corporate and an individual or two or more bodies corporate become entitled to any such property under circumstances or by virtue of an instrument which would, if the body corporate had been an individual, have created a joint tenancy, they shall be entitled to the pro- perty as joint tenants. The act enables corporations to hold land jointly not only with individuals, but also as co-trustees (n ) . VII. Charities. Sales by Charities. Charities also are subject to restrictions against making dis- positions of their property. By s. 29 of the Charitable Trusts Act, 1855, it is made unlawful for the trustees or persons acting- in the administration of any charity to make or grant otherwise than with the express authority of 1 an act of parliament or of a court or judge of competent jurisdiction, or according to a scheme legally established, or with the approval of the Charity Commissioners, any sale, mortgage or charge of the charity estate, or any lease thereof in reversion after more than three years of 1 any existing term, or for any berm of life, or in con- sideration wholly or in part of any fine, or for any term of years exceeding twenty-one years (o) . (ra) See Law Guarantee and Trust Society v. Bank of England (1890), 24 Q. B. D. 406. {n) See Be Thompson , (1905) 1 Ch. 229; 74 L. J. Oh. 133. (o) See as to the meaning of this section, Be Mason's Orphan- age, &c., (1896) 1 Ch. 596. The CAPACITY OF PARTIES. 21 But the act has to be construed as one with the Charitable Trusts Act, 1853, and since s. 62 of the act of 1853, as extended by the Charitable Trusts Act, 1894, s. 4, exempts numerous specified charities (including any charity wholly maintained by voluntary contributions), such charities are exempted also from the act of 1855 (p). Sales to Charities. Conveyances to charities have also been subjected to restric- tions by the legislature, and are now for the most part governed by the Mortmain and Charitable Uses Act, 1888, which repeals 9 Geo. 2, c. 3,6, the main statute on the subject prior to 1888. Part II. of the act of 1888 imposes the conditions to be complied with in order to render valid a disposition of land or personal estate to be laid out in land for charitable purposes. The requirements of the act vary according as the assurance is (a) a free gift, or (b) a sale for valuable consideration. These cases, therefore, require separate consideration. First, as to gifts . — If the assurance is of land, or personal estate to be laid out in land, it must, under the act of 1888, conform to the following requirements: — (1 ) The conveyance must be, except in the case of copyholds, by deed (q). (2) It must be executed in the presence of at least two wit- nesses (r) . (3) It must be executed twelve months before the donor’s death, inclusive of the days of making the assurance and of the death (s) . (4) It must be enrolled within six months of execution in the Central Office of the Supreme Court of Judica- ture (i t). section prevents the exercise of even an express power of sale in the trust deed. (p) See Tudor, Charitable Trusts, 4th ed. 558. ( 2 ) s - 4 ( 6 ). ( r ) Ibid. 0) s. 4 (7). (<) s. 4 (9). Exceptions to general rule. Conveyances to charities. 9 G-eo. 2, c. 36. Requirements of the act. Requisites to a valid gift of land to a charity. 22 Requisites for a valid gift of stock to a charity. Requisites to a valid sale of land to a charity. Exceptions : Parks, museums, BK. I., PT. I. — SALES, EXCHANGES AND GIFTS. (5) It must take effect in possession immediately from the making thereof (u). (6) It must be without any power of revocation, reservation, condition, or provision for the benefit of the donor or of any person claiming under him ( x ) . With regard to the last condition, however, the act allows the reservation of a nominal rent, of minerals, of gn easement, of covenants as to buildings, streets, or nuisances, or similar pro- visions for the enjoyment as well of the premises conveyed as of adjacent premises, or of a right of entry on non-payment of rent or breach of covenant, or similar stipulations for the donor’s benefit (y). If 1 the assurance is of stock in the public funds, unless it is made in good faith and for full and valuable consideration, it must be made by transfer thereof in the public books kept for the transfer of stock at least six months before the death of the assuror, including the days of transfer and of death (z) . Secondly , as to sales for valuable consideration. — If these are made in good faith and for full and valuable consideration, the deed need not he executed twelve months before the vendor s death (a), hut all the other formalities set forth above are to he observed. “Valuable consideration” may consist wholly or in part of a rent, rent-charge or other annual payment in per- petuity or for any term of years, or other period, with or with- out a right of re-entry for non-payment, or it may consist of a sum part paid in a lump and part reserved as above (6). The deed in this case also must be attested by two witnesses and enrolled, but the omission to enrol it may in a proper case be cured by an order of the High Court (c ) . These provisions as to gifts and sales to charities are, however, like those relating to conveyances to corporations, subject to numerous exceptions. These are as follows: — (1) By Part III. of the 1888 act (just as in the case of (u) s. 4 (2). See, however, the (a) s. 4 (7). Charity Lands Act, 1863. (5) s. 10 (iv). ( x ) s. 4 (3). (c) s. 5. This only applies ( y ) s. 4 (4). where value has been given. M B. 4 (8). CAPACITY OF PARTIES. 23 conveyances to corporations), it is provided that land may be given by deed or will, without complying with the usual formalities, for the purpose of a public park, museum, or school-house; but the deed, or will, when not supported by value, must be executed twelve months before the donor’s death, and the document must be enrolled with the Charity Commissioners within six months of execution in the case of a deed, and within six months of the testator’s death in the case of a will. Moreover, in cases of gifts by will, the acreage given must not, for a public park exceed twenty acres, for a museum two acres, and for a school-house one acre (d). (2) By the same part of the act, no formalities are required in the case of conveyances to or for the Universities of Oxford and Cambridge, London, Durham, and the Victoria University, and any of their colleges; and the colleges of Eton, Winchester, Westminster, and Keble College (e). (3) By the same part of the act, none of the provisions of the act apply to an assurance (otherwise than by will) to trustees of societies formed for religious purposes or for the promotion of education, art, literature, science or other like purpose, of land not exceeding two acres, to be used for the erection of a building for the pur- poses of such societies, provided the assurance be made in good faith and for full and valuable consideration. So that two acres of land may be conveyed to institu- tions of this sort without any formalities. The trus- tees may, if they think lit, enrol the deed, but are not bound to do so (/). (4) By Part III. of the 1888 act, s. 8, and the undermen- tioned statutes, the provisions above mentioned are either wholly or partially inapplicable to the Found- ling Hospital (g), the British Museum (h), the Marine (g) 13 Geo. 2, c. 29. ( h ) 26 Geo. 2, c. 22; 5 Geo. 4, c. 39. and school - houses. Universities and colleges. Sales to religious bodies. Institutions exempted by special statutes. ( d ) s. 6. (e) s. 7. (/) s. 7. 24 BK. I., FT. I. SALES, EXCHANGES AND GIFTS. Working Classes Dwellings Act, 1890. 53 & 54 Viet, c. 16. The amending act of 1891. 54 & 55 Viet, c. 73. Society (£), Queen Anne’s Bounty (Jc) y the Seamen’s Hospital Society (Z), the Ecclesiastical Commissioners (in respect of gifts, &c. for endowment of clergy, or building or repairing churches (m)), and some other objects for which reference must be made to the Index of Statutes Revised. (5) By the Working Classes Dwellings Act, 1890, lands may be conveyed by deed or will without compliance with the provisions of the act of 1888, if the object of the conveyance is to provide dwellings for the working classes of populous places, provided that no more than five acres be given by will , and that the deed or will be enrolled with the Charity Commissioners; the time for enrolment being, in the case of a deed, within six months of its execution, and, in the case of a will, within si,x months after probate thereof. (6) By the Mortmain and Charitable Uses Act, 1891, it is provided that “land” in the act of 1888 shall not include money secured on land, nor other personal estate arising from or connected with land (w), which therefore can now be given by will to a charitable use; and that land may be assured by will to or for a charitable use; but that the land so given is to be sold within a year after the testator’s death (o), unless a judge of the High Court, or the Charity Commis- sioners, being satisfied that the land is required for actual occupation for the purposes of the charity, and not as an investment, order the retention of the land (p). If the land remains unsold at the end of a year without any such order having been obtained, it will vest in the official trustee of charity lands, and the Charity Commissioners will see to its being sold (g) . The act, however, does not apply where land is devised on trust for sale, and only the proceeds of (i) 12 Geo. 3, c. 67. ( n ) s. 3. (k) 43 Geo. 3, c. 107. (o) s. 5. (Z) 3 & 4 Will. 4, c. 9. (p) s. 8. (m) 14 & 15 Afict. c. 97. (q) s. 6. CAPACITY OF PARTIES. 25 sale are given to the charity; in such a case the trustees need not sell within a year, though they must sell within a reasonable time (r). With regard to money directed by will to be laid out in land for the benefit of any charitable use, the statute provides that, unless an order is made by the judge or Charity Commis- sioners that the land is required for actual occupation for the purposes of the charity, the money shall not be so laid out, but shall be held for the charitable use as if no such direction to lay it out iji land had been given (s). This act applies to the will of a testator dying after 5th August, 1891, even though the will was made prior to that date (t). The restrictions im- posed on assurances by s. 4 of the 1888 act do not apply to gifts by will under this act, so that a gift of land in remainder will be good, but the reversionary interest must be sold within a year of the testator’s death ( u ) . (7) Further, by the Mortmain and Charitable Uses Act Amendment Act, 1892, land may be assured by deed to any local authority (as defined in the act) for any purpose for which such local authority is empowered by statute to acquire land without any of the formali- ties specified in the act of 1888, except that the deed if made otherwise than in good faith and for valuable consideration must be enrolled with the Charity Com- missioners within six months of execution. (8) Lastly, by the Technical and Industrial Institutions Act, 1892, the formalities prescribed by Part II. of the act of 1888 are not required for assurances made to an institution to which the act applies ( x ), nor does the provision of the act of 1891 that land assured by will shall be sold within a year from the death of the testator apply; but every such conveyance or assur- (r) Re Bidebottom, (1902) 2 pital v. Lewis, (1894) 1 Oil. 297. Ch. 380. ( u ) Re Hume, Forbes v. Hume, (s) s. 7. (1895) 1 Ch. 422. (£) Re Bridger, Brompton Hos- ( x ) Sec s. 2. 55 & 56 Viet, c. 11. 55 & 56 Yict. g. 29. 26 Trustees’ power to sell usually de- pends on trust instru- ment. Statutory power of sale where testator charges his land with debts and legacies. 22 & 23 Viet, c. 35. BK. I.j PT. I. — SALES, EXCHANGES AND GIFTS. ance must be enrolled as soon as may be in the books of the Charity Commissioners. VIII. Persons acting in a Fiduciary Capacity. Sales by persons aclmg\ in a fiduciary capacity . When property is being purchased from a trustee, the pur- chaser must ascertain that the trust instrument confers a power to sell, either expressly or impliedly by giving a power to vary investments («/), or that he has a power to sell by virtue of some statute, or that the property was purchased by the trustee in breach of trust, and the beneficiaries have not all elected to take the property in specie. In the last-mentioned case, it is the duty of the trustees to sell unless all the beneficiaries, being all sui juris , wish the property retained; so that the purchaser must complete on the trustee securing the concurrence of one of the beneficiaries, or proving that they are not all sui juris (z) . The following are cases in which a trustee has a statutory power to sell: — Ss. 14 — 17 of 1 the Law of Property Amendment Act, 1859, provide that where a testator has charged his real estate with the payment of debts or legacies, and has devised the estate so charged to a trustee for the whole of his interest, and has not made any express provision for raising the debts, &c. out of the estate, the trustee may raise the same by sale or mortgage of the land; if he has not vested the estate in a trustee for his whole estate and interest, then the executor may sell. And purchasers or mortgagees are not required to inquire whether the powers given by the act have been duly exercised by tire person to whom they are given. It was decided in Re Clay \ and Tetley (a) that this act does not apply to administrators even with the will annexed. In Tanqueray- Willaume V. Landau (&■), it was held that a purchaser from (; y ) Re Pope, (1911) 2 Ch. 442; Re Gent and Eason , (1905) 1 Ch. 386. (z) Re Jenkins and Randall's Contract, (1903) 2 Ch. 362. Pos- sibly, since the Conveyancing Act, 1911, s. 10 (3), the concurrence of a beneficiary is not necessary even though they aie all sui juris, (a) (1880), 16 Ch. D. 3. (&) (1881), 20 Ch. D. 465. CAPACITY OF PARTIES. 27 executors who are selling realty under this act is neither bound nor entitled to inquire whether any debts remain unpaid, pro- vided the sale takes place within twenty years of the testator & death; but after that time a presumption would arise that the debts had been paid, and a purchaser would not be safe in completing without inquiry. This time limit, however, does not apply to a sale of 1 property vested in an executor or adminis- trator by virtue of his office, so that it has no application to a sale of freeholds by an executor or administrator under the Land Transfer Act, 1897, Part I. ( 0 ), nor does it apply to a sale of leaseholds, a purchaser of which from an executor is safe, even if more than twenty years have elapsed from the testator’s death (d ) ; unless the executor-vendor admits that no debts remain unpaid, and furnishes no other reason for selling (e). Again, by the Settled Land Act, 1882, s. 60, where a tenant for life or a person having the powers of a tenant for life under the act, is an infant, or an infant would, if he were of full age, be a tenant for life, or have the powers of a tenant for life under the act, the powers of a tenant for life under the act may be exercised on his behalf 1 by the trustees of the settle- ment . Further, by s. 9 of the Conveyancing Act, 1911, where any property, vested in trustees by way of security, becomes, by virtue of the statutes of limitation, or of an order for fore- closure or otherwise, discharged from the right of redemption, the trustees are to hold the property on trust for sale, with power to postpone the sale for such a period as they may think proper. And by s. 10 of the same act, where a settlement, within the meaning of s. 63 of the Settled Land Act, 1882, or other settlement of property as personal estate, contains a power to invest money in the purchase of land, such land, unless the settlement otherwise provides, is to be held by the trustees on trust for sale with power to postpone the sale. Executors and administrators also may be able to sell realty (c) See post, p. 87. (e) Re VerrelVs Contract, (c£) Re Venn and Furze's Con- (1903) 1 Ch. 65. tract, (1894) 2 Ch. 101. 45 & 46 Viet, c. 38. 1 & 2 Geo. 5, c. 37. Executors’ and adminis 28 BK. I., PT. I. SALES, EXCHANGES AND GIFTS. trators’ power of sale under 44 & 45 Viet, c. 41, and under 60 & 61 Viet, c. 65. Trustees may sell together or in lots. 56 & 57 Viet, c. 53, s. 13. Aaid subject to any conditions. 56 & 57 Viet, c. 53, s. 14. Trustees may sell land without minerals, and vice versa. 56 & 57 Viet, c. 53, s. 44. When consent of tenant for life necessary to sale by trustees. under s. 30 of the Conveyancing Act, 1881, and in the case of persons dying since the 31st December, 1897, under the Land Transfer Act, 1897, Part I. The provisions of these statutes will be considered more fully on a subsequent page. Where a trust for sale or power of sale is vested in a trustee, he may, by s. 13 of the Trustee Act, 1893, sell or concur in selling all or any part of the property, together or in lots, and by public auction or private contract, and subject to any con- ditions, without responsibility for loss. But this section does not justify the trustee in selling subject to conditions of sale of a more stringent character than the state of the title warrants, and if he does he will be liable in damages to his cestui que trust for breach of trust. It is, however, now provided by s. 14 of the Trustee Act, 1893/, that no cestui que trust shall impeach a sale made by his trustee on the ground that the conditions of sale were unnecessarily depreciatory, unless it also appears that the consideration for the sale was thereby rendered inadequate; and no sale made by a trustee can after the execution of the conveyance be impeached on the ground that the conditions were depreciatory, unless it also appears that the purchaser was acting in collusion with the trustee at the time of 1 the contract of sale. And no purchaser is at liberty to make any objection to the title on this ground . Trustees and others authorized to dispose of land by way of sale may now sell the surface of the land apart from the minerals, or vice versa, without any special power in that behalf, provided the leave of the court is obtained (/), and exe- cutors or administrators may do so under the Land Transfer Act, 1897, Part I., without obtaining leave (g ) . Since the Settled Land Act, 1882, trustees who are merely empowered to sell land the subject of a strict settlement must obtain the consent of the tenant for life (A) ; if there are several persons, forming together the complex tenant for life, then the consent of any one of these persons is sufficient (i ) . (/) See the Trustee Act, 1893, s. 44, as extended by s. 3 of the Trustee Act, 1894. ( g ) He Cavendish and Arnold's Contract, W. N. (1912) 83. As to a mortgagee’s power, see infra, p. 224. ( [h ) Settled Land Act, 1882, s. 56. (i) Settled Land Act, 1884, s. 6 (2). CAPACITY OF PARTIES. 29 The purchaser is not entitled to insist on the tenant for life joining in the conveyance if there is evidence that he in fact consents to the sale, even though the consent is not in writ- ing (Jc ) . If the land is vested in trustees upon trust to sell , the consent of the tenant for life is not necessary to the sale unless the settlement requires such consent (l) . Again, in purchasing from a mortgagee, the mortgage must be referred to in order to ascertain the nature of his power of sale; but even if the mortgage gives no power to sell, the mortgagee will have one by virtue of Lord Cranworth’s Act, if his mortgage deed is dated between the 28th August, 1860, and the 1st January, 1882, and by virtue of the Conveyancing Act, 1881 (s. 19), and the Conveyancing Act, 1911 (s. 4), if the mortgage was executed after the 3ilst December, 1881. But, notwithstanding these statutes, the mortgage itself ought to be referred to; for it is possible that the powers given by the acts may be excluded or modified by the deed. Mortgagee’s power of sale. 23 & 24 Yict. c. 145. Sales to Persons in a fiduciary Relation. The fact that the grantee of property stands in a fiduciary relation to the grantor has likewise an important bearing on the validity of the transaction. The following is a summary of the rules affecting persons in a fiduciary position: — (1) A trustee who is selling property under a trust or power of sale must not either directly or indirectly buy the trust property or any interest in it, or take a mortgage or lease thereof either from himself or a co-trustee (m), unless (i) he is expressly authorized to do so by the trust instrument (n), or (ii) he obtains the leave of the court (o) . But a trustee may buy or otherwise acquire for value the interest of the beneficiary in the trust property provided that he complies with the following How a fiduciary relationship affects the validity of the sale. (1) Trustee and cestui que trust ; (k) Re Pope , (1911) 2 Oh. 442. (Z) Settled Land Act, 1882, s. 63; and Settled Land Act, 1884, s. 6. See Taylor v. Poncia (1884), 25 Ch. D. 646; Re Earle and Webster (1883), 24 Ch. D. 144. (m) Fox v. Mackreth (1788), 2 Bro. Ch. 400; 2 Cox, 320. See more fully Hart, Digest of the Law of Trusts, 278 et seq. (n) See Allen v. Taylor (1880), 16 Ch. D. 355. (o) Campbell v. Walker (1800), 5 Yes. at p. 682; Tennant v. Trenchard (1869), L. R. 4 Ch. App. 537; Boswell v. Coaks 30 BK. I., PT. I. — SALES, EXCHANGES AND GIFTS. (2) Parent and child ; (3) Guardian and ward ; (4) Minister and member of congrega- tion ; conditions, namely, (a) lie gives a fair price therefor; (b) he makes a full disclosure to the beneficiary of all facts within his knowledge relating to the trust property and the circumstances of the transaction; and (c) the beneficiary has competent and independent advice in respect of the transactions (p ) . And generally it may be stated that, in order that such a purchase may be sustained, the court must be satisfied that the fiduciary relationship had been at the time completely shaken off, and that the cestui que trust was in as favourable a position as regards the transaction as if that relationship had never existed (g). And a trustee cannot generally retain a gift made to him by the beneficiary (r) . There is nothing to prevent an ex-trustee purchasing the property of which lie was a trustee, provided some considerable period has elapsed since he ceased to hold office (s) . (2) A parent can purchase or take a gift from his child, but if the sale or gift is made within a short period after the child has come of age it is presumed to be made under undue influence and may be impeached within a reasonable time, unless the parent can prove that the child had independent advice (t) . (3) A guardian cannot purchase or take a gift from his ward while the relationship of' guardian and ward is still subsisting. And even where the ward has come of age, if but a short time has elapsed since the ward attained his majority, the onus will bo on the guardian to show that he has reaped no advantage from the influence his former position with regard to the ward must be presumed to have given him (u) . (4) On the same ground a conveyance or gift inter vivos to a minister of religion from one of his flock is liable to be set aside (x). (1883), 23 Oh. D. 302, affd. H. L. s. n. Coahs v. Boswell (1886), 11 App. Cas. 232. (p) Coles v. Trecothick (1804), 9 Yes. at p. 247; Denton v. Donner (1856), 23 Beav. 285; Wright v. Carter, (1903) 1 Ch. 27. (a) Douqan v. Macpherson, (1902) A. C. 107. (r) See Hatch v. Hatch (1804), 9 Ves. 292; Vaughton v. Noble (1861), 30 Beav. at p. 39. (s) Be Boles, (1902) 1 Ch. 244. (t) See Wright v. Vanderplank (1856), 8 D. M. & G. 136; Powell v. Powell, (1900) 1 Ch. 243. (it) Hatch v. Hatch (1804), 9 Yes. 292; Maitland v. Irving (1846), 15 Sim. 437. ( x ) See Huguenin v. Baseley CAPACITY OP PARTIES. '31 (5) A solicitor may buy property from his client subject to the rule in Simpson v. Lamb («/), that a purchase by a solicitor from a client of the subject-matter of a pending action is void; but, like a trustee, the solicitor must be able to prove (1) that the price given was a fair one; (2) that the client was fully informed; and (3) that he had competent independent ad- vice (z). The same rule applies to a barrister (a). With regard to gifts inter vivos , the rule is far stricter. There is always a presumption that a gift by a client to a solicitor was unduly influenced by the fiduciary relation subsisting between them. This presumption is not irrebuttable, but it is exceedingly difficult to rebut it. The mere fact of the client having em- ployed a separate and independent solicitor is not enough. It must be shown that the influence arising from the relation has ceased to exist before the gift can be supported (<&). The same thing applies to a gift by a client to his solicitor’s wife (e), and possibly to any member of his family (d ) . This rule likewise applies to a barrister (e) . It is more difficult to impeach these gifts after the death of the donor than it is in his lifetime. (6) A conveyance or gift from a patient to his medical ad- viser is on much the same footing as a conveyance or gift from a client to his solicitor, though it appears to be less difficult to rebut the presumption of undue influence in the case of a gift to a medical adviser (/) . (7) A mortgagee with a power of sale, though he is not as regards the exercise of his power a trustee for the mortgagor ( g ), (1807), Wli. & Tud. L. C. Eq. 8th ed. vol. i. 259; Allcard v . Skinner (1887), 36 Cli. D. 145; Morley v. Loughnan, (1893) 1 Ch. 736. (y) (1857), 7 Ell. & Bl. 84. ( 2 ) Wriglit v. Carter, (1903) 1 Ch. 27; see also Tomson v. Judge (1855), 3 Drew. 306; McPherson v. Watt (1877), 3 App. Cas. 254. (a) Carter v. Palmer (1842), 8 01. & Ein. 659. (b) Morgan v. Minett (1877), 6 Ch. D. 645; Tyarsv. Alsop (1889), 61 L. T. 8; Wright v. Carter, (1903) 1 Ch. 27; L. Q. R. vol. lxxiv. 123. (c) Liles v. Terry and Wife, (1895) 2 Q. B. 679. (d) Willis v. Barron, (1902) A. C. 271. (e) Broun v. Kennedy (1863), 33 Beav. 133. (/) See Mitchell v. Homfray (1881), 8 Q. B. D. 587. ( g ) See below, p. 228. (-5) Lawyer and client ; ( >) Medical man and patient ; (7) Mortgagor and mort- gagee. 32 BK. I., PT. I. SALES, EXCHANGES AND GIFTS. yet cannot buy from himself under the power. He may, how- ever, sell to a company in which he holds shares (h). More- over, he may purchase the equity of redemption in property from the mortgagor (i ) . Where a sale is set aside on the ground of confidential relationship existing between the parties, the purchaser is en- titled to have back his purchase-money with interest, and he must account for any profits received without interest (1c) . Proceedings to set aside these transactions must be insti- tuted within a reasonable time (l). ( h ) Farrar v. Farrars, Limited (k) Silkstone, &c. Co. v. Edey, (1888), 40 Ch. D. 395. (i) Knight v. Marjorihanks (1849), 2 M. &G. 10. (1900) 1 Ch. 167. ( l ) Clanricarde v. Henning, 50 L. J. Ch. 865. CONTRACTS FOR SALE GENERALLY. 33 CHAPTER II. CONTRACTS FOR SALE GENERALLY. A sale of property may be made either by public auction or Contract for by private treaty; but in whichever way it is carried out, where the subject of the sale is an interest in land, the contract must (unless made by the court (a)) comply with the 4th section of the Statute of Frauds. The section provides that “ no action shall be brought where- 29 Car. 2, by to charge .... any person upon any contract or sale of ' ' h ’ lands, tenements, or hereditaments, or any interest in or con- cerning them .... unless the agreement upon which such action shall be brought, or some memorandum or note thereof, shall be in writing, and signed by the party to be charged therewith or some other person thereunto by him lawfully au- thor i zed A What is an Interest in Land within the Section. Some difficulty has been experienced in determining what Fructus natu- e . . rails is ; amounts to ,an interest m or concerning land within the meaning of this section. In the case of contracts for the sale of growing crops a distinction is made between crops which are “fructus naturales and those which are “ fructus inclus- tricdes A contract for the sale of a “ fructus naturalis, such as growing grass, timber, or underwood, is within the section, and must be in writing (&); but a contract for the sale of a “ fructus industrialist i.e ., a crop produced annually Fructus indus- by the labour of man, e.g ., corn, potatoes, or turnips, is not, * n ^ ?slsnot; so that writing is not necessary under this section ( c ) . (а) Att.-Gren. v. Day, 1 Yes. Sen. 218. (б) Crosby v. Wadsworth (1805), 8 East, 602. (c) Parker v. Staniland (1809), 11 East, 362; Evans v. Roberts (1826), 8 D. & R. 611. G. — C. D 34 BK. I., PT. I. — SALES, EXCHANGES AND GIFTS. Hops and clover ; Growing timber ; Mortgages and leases ; Furnished lodgings ; Easements ; Tenant's fixtures ; Whether a contract for the sale of hops or clover is within the section is doubtful. A sale of hops is probably not a sale of an interest in land, as hops pass, under the head of “ emble- ments,” to a deceased owner’s next of kin(^); while a sale of clover, which is not an emblement, as it does not come to perfection within a year of sowing, is probably a sale of an interest in land within the clause (e). A contract for the sale of growing timber is within the statute, unless by the terms of the contract it is to be cut at once either by the vendor or purchaser; in the latter event, the contract is one for the sale of goods (/) . A contract for a mortgage of land (g), or for the sale of debentures charged on land (h), is within the section; so is a contract for a lease of land, or the sale or surrender of a lease- hold interest (i ) . Contracts for taking or letting furnished lodgings are within the statute, if any specific rooms are let (fc); but a contract to live in a boarding-house is not within it, where there is no inten- tion to give the lodger the right to the exclusive occupation of any particular part of the house (l ) . Whether a contract to grant an easement is within the statute seems not quite clear, but probably it is (m) . An agreement for the sale of tenant’s fixtures is not within the section (n ) ; although a charge on machinery, so fax as it ( d ) See, however, Waddington v. Bristow (1801), 2 Bos. & P. •152; Rodwell v. Phillips (1842), 9 M. & W. 501, cases on the Stamp Act, 23 Geo. 3, c. 58, which show that contracts for the sale of hops or fruit are not contracts for the sale of goods, wares and merchan- dizes within that act. (e) See Graves v. Weld (1833), 5 B. & Ad. 105. (/) Marshall v. Green (1875), 1 C. P. D. 35; Smith v. Surman (1829), 9 B. & C. 829; Sale of Goods Act, 1893, s. 62, s. v. “ goods,” infra, p. 35. (g) Pattle v. Anstruther (1893), 69 L. T. 175; Ex parte Broderick, In re Beetham (1887), 18 Q. B. D. 766. ( h ) Driver v. Broad, (1893) 1 Q. B. 744. (i) Woodfall, Landlord and Tenant, 19th ed. 101. ( k ) Inman v. Stamp (1815), 1 Starkie, 12. (Z) Wright v. Stavert (1860), 2 El. & El. 721. (m) McManus v. Cooke (1887), 35 Ch. D. 681. (n) Lee v. Gaskell (1876), 1 Q. B. D. 700. CONTRACTS FOR SALE GENERALLY. 35 affects trade fixtures, has been held to be within it (o) ; nor is an agreement to build a house, though implying a licence to go on the land (p 1 ), but a contract for the sale of the building materials of a house to be taken down and cleared away by the purchaser within a given time does require writing and signa- ture within the section (q ) . It must be remembered with regard to all kinds of crops and some other of the things mentioned above, that though they may not be an interest in land within the meaning of s. 4 of the Statute of Frauds, they may be goods within the meaning of the Sale of Goods Act, 1893, and in that case the contract for the sale of them must comply with s. 4 of that statute. The term “goods” here includes emblements, in- dustrial growing crops and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale (r) . An agreement for the sale of land and personal chattels which is not actionable as to the land for want of writing under s. 4 of the Statute of Frauds is not binding even as to the goods, unless the agreement forms two distinct contracts (s) . What the Memorandum must contain. The written memorandum in order to satisfy the statute must show — (a) the names or description of the vendor and pur- chaser; (b) the subject-matter of the sale; (c) the considera- tion; (d) the terms on which the property is to be sold, if any special terms are agreed upon; and must be signed by the party to be charged or his agent (who may be appointed verbally) ; it is not necessary that it should be signed by both parties (t). It is not necessary for either buyer’s or seller’s name to appear in the memorandum; a description of them is sullicient, provided it be clear enough to identify them (u). ( o ) Jarvis v. Jarvis (1893), 63 L. J. Oh. 10. (p) Per Hill, J., in Wright v. S tavert (1860), 2 El. & El. at p. 728. (g) Lavery v. Pur sell (1888), 39 Oh. D. 508. (r) s. 62. (s) See Dart’s Vendor and Purchaser, 7th ed. p. 229. (£) Seton v. Slade (1802), 7 Ves. 265. (u) Carr v. Lynch, (1900) 1 Ch. at p. 615. Agreement to build. Contracts for sale of goods. 56 & 57 Viet, c. 71, s. 4. Meaning of “ goods.” Contract for sale of land and chattels together. Particulars which must appear in the memo- randum. Description of parties. D 3H BK. I., PT. I. SALES, EXCHANGES AND GIFTS. Memorandum may be made out by several documents. Position of signature. It is not, however, sufficient to describe the vendor as “ vendor ” (%), or as the “landlord” of the property (y ) . On the other hand, “proprietor” has been held suffi- cient (0), as also has “ trustee selling 1 under a trust for sale ” (a); and apparently “mortgagee” will be sufficient (b). If the names of both parties do in fact appear on the memo- randum, it is sufficient to satisfy the statute, notwithstanding' that it subsequently appears that one of the contracting parties was only the agent of an undisclosed vendor ( do so under an open contract; and it is only effective to deprive a purchaser of any right to compen- sation when he is insisting on specific performance with com- pensation: lie is then bound by the condition (/). The stipulation that the condition shall only relate to errors discovered before completion is made to meet the decision in Palmer v. Johnson (m), where it was held that, when the con- tract provides that compensation shall be made for errors, the fact that the purchaser does not discover the error till after the conveyance is executed does not prevent him from taking ad- vantage of the condition (pc ) . Trustees and mortgagees are allowed to sell subject to a condition as to errors, as such a condition is not considered to be depreciatory (y), though the condition cannot be enforced to the injury of the beneficial owner in a case where the misdescription arose from negligence (z ) . (q) Whittemore v. Whittemore (1869), L. E. 8 Eq. 603; Jacobs v. Revell, (1900) 2 Ch. 858. This case shows that the purchaser can also recover his deposit. (r) Re Beyfus and Masters (1888), 39 Ch. D. 110. (s) Debenham v. Sawbridge (1901), 70 L. J. Ch. 525. ( t ) See Cordingley v. Gliees- borough (1862), 4 D. E. & J. 379; and Re Terry and White's Con- tract (1886), 32 Ch. D. 14, per Esher, M. E., at p. 24; and per Lindley, L. J., at p. 30. (u) (1884), 13 Q. B. D. 351. (x) Compare Clayton v. Leech (1889), 41 Ch. D. 103, ante, p.45; and see Debenham v. Sawbridge, supra, where the purchaser was refused compensation after con- veyance under the condition on the ground that it did not apply to a defect in the title. (?/) See Dunn v. Flood (1885 , 28 Ch. D. 586, and Hobson v. Bell (1839), 2 Beav. 17. (z) White v. Cudden (1842), 8 Cl. & Fin. 766, 787. THE CONDITIONS OF SALE. (>o As to Unstamped Documents. If any document executed before the 17th day of May, 1888, shall be found to be unstamped or in- sufficiently stamped, no objection or requisition shall be made on that account; and any document which the purchaser requires to be stamped or further stamped shall be so stamped at his expense [but the vendor is not aware of any such document]. By the Stamp Act, 1891, s. 117, it is provided that every Expenses of condition framed with the view of precluding objections to title on the ground of absence or insufficiency of stamps on any documents, instrument executed after the 16th May, 1888, and every con- tract, arrangement, or understanding for assuming the liability' on account of the absence or insufficiency of stamps on any such instrument, or indemnifying against such liability, absence, or insufficiency, shall be void. The condition, however, is valid if it be limited to documents executed before the 17th May, 1888; but as the Inland Revenue authorities refuse, except upon payment of the penalty, to stamp a contract under hand only, after signature, if it contains this condition it should be signed across an adhesive 6d. stamp. If the lands sold are in Yorkshire or Middlesex, the condi- tion should be extended to meet the case of any deed or docu- ment not being registered, and in the case of leaseholds it should cover documents not registered with the lessor’s soli- citors as required by the lease. As to Time for making Requisitions and Rescission. All objections and requisitions in respect of the title, or evidence of title, or the abstract, or the particulars, or these conditions, or anything appear- ing therein, shall be stated in writing and sent to the vendor’s solicitors within days from the delivery of the abstract. Any objection or requisition not stated and not sent within the time aforesaid shall be considered waived, and the vendor’s answer to an ob- jection or requisition shall be considered satisfactory G. — C. F BK. I., PT. I. — SALES, EXCHANGES AND GIFTS. 6*G if not replied to in writing within days from the receipt thereof, and in these respects time shall he deemed of the essence of the contract. If the pur- chaser shall make any objection or requisition in respect of any of the matters aforesaid (6), or as to the conveyance, which the vendor shall he unable or unwilling 1 to remove or comply with, and shall not withdraw the same within seven days after being required so to do in writing, the vendor shall be at liberty (notwithstanding any intermediate negotia- tion or litigation on the subject of such objection or requisition, or attempts to remove or comply with the same), by notice in writing, to rescind the sale; in which case the purchaser shall receive back the deposit and shall return to the vendor the abstract of title and any other papers in his possession be- longing to the vendor; hut he shall have no claim for interest, or costs, or otherwise. As to Requisitions. The words “ delivery of the abstract ” in the condition above mentioned mean the delivery of a perfect abstract — that is to say, an abstract which sets out truly and sufficiently every document which forms a link in the vendor’s title, and states every fact material thereto. Unless such an abstract is fur- nished to the purchaser, there will be no “ delivery of an abstract ” at all for the purpose of estimating the time within which the requisitions are to be sent in (c). For instance, the abstract will be imperfect if it sets out a marriage settlement, but omits the covenant to settle after-acquired property which alone affects the subject of the sale ((2). But the abstract is not imperfect merely because it shows that the vendor’s title is defective. If the vendor does not deliver a perfect abstract (5) See hereon Re Leng and Oakden v. Pike (1865), 11 Jur. White (1886), 32 Cli. D. at p. 34. N. S. 666. (c) See Blackloiv v. Laws ( d ) Burnaby v. Equitable, &c. (1842), 2 Hare, 40; see also Society (1885), 54 L. J. Ch. 466. What amounts to delivery of the abstract. THE CONDITIONS OF SALE. 67 time within the time stipulated in the conditions (if any), the pur- chaser will not be bound to send in his requisitions within the time named (e). It is sometimes the practice to guard against this by stipulating that the time shall be computed from the delivery of the abstract, whether it be perfect or not; but such a condition is not to be recommended, as it may deter an astute purchaser. In Compton v. Bctgley (/ ! ) no time was fixed for the delivery Right of of the abstract, and it was held that the purchaser could give ^hen^ iioti a reasonable notice (in that case, a fourteen days’ notice was for delivery of held sufficient) to the vendor to deliver it, and, if he failed to abstract, do so, the purchaser could rescind and obtain a return of' his deposit and the payment of 1 his expenses. It is probably not necessary to add that time shall be of the Time the essence of the contract to the condition that requisitions and contract^ ^ objections not made within a specified time are to be taken to be waived (ayable, and to assess the duty (if any), and, if required, furnish security for the payment of the duty, and on completion shall hand over the conveyance with a stamps thereon in ( u ) Re Sander and Watford's ( y ) Re Sansom and Narbcth's Contract (19C0), 83 L. T. 316. Contract , (1910) 1 Oh. 741 ; Re ( x ) Re Willett and Argenti Sparrow and James, (1910) 2 (1889), 60 L. T. 735. Ch. 60. 74 When increment value duty is payable. 10 Ed. 7, c. 8 1 Geo. 5, c. 2 2 & 3 Geo. 5, c. 8. BK. I., PT. I. SALES, EXCHANGES AND GIFTS. accordance with s. 4 (3) of the Finance ^1909-10) Act, 1910. And after completion the purchaser shall, if required, produce to the Commissioners, free of cost, any documents which may be handed over to him. This condition is inserted to prevent the purchaser from repudiating the contract or refusing to pay interest on his purchase-money Owing to delay in completion caused by any difficulties which may arise in connection with the payment of increment value dutyty). This is a duty of 20 per cent., imposed by the Finance (1909-10) Act, 1910, in respect of any increase of site value occurring after the 30th April, 1909. There are three occasions on which it is levied: — (1) On a transfer on sale of land or any interest in it, or the granting of a lease for more than fourteen years; (2) on the death of any person on whose death estate duty has to be paid on the fee simple, or any interest in the land; (3) periodically by bodies corporate or unincorporate which are exempt from death duties (a). The ayt, as amended by the Revenue Act, 1911, ss. 1 — 7, and the Finance Act, 1912, s. 10, contains elaborate provisions for fixing the original site value, and the site value on the occasion on which the duty is collected, and for the collection and recovery of' the duty. The duty is not a charge on the land except where it is payable on death (b), and, perhaps, also where it is payable periodically by bodies cor- porate or unincorporafe (c), and it must be paid by the trans- feror or lessor, notwithstanding any agreement to the con- trary (d). It is the duty of the transferor or lessor to produce to the Commissioners the instrument by means of which the transfer or the lease is effected or agreed to be effected (ei) . The purchaser or lessee, however, should on completion see that the instrument is duly stamped with one of the stamps men- tioned in s. 4 (3) of the act, since otherwise it is not admissible in evidence. The stamps arc — (1) a stamp denoting that the ( z ) See Prideaux, Precedents, 20tli ed. vol. i. pp. cv, 217. ( а ) Finance (1909-10) Act, 1910, s. 1. (б) lb. s. 5. (c) lb. s. 6. (d) lb. s. 4 (1); Revenue Act, 1911, s. 1. (e) Finance (1909-10) Act, 1910, s. 4 (2). THE CONDITIONS OF SALE. 75 duty has been assessed and paid; (2) a stamp denoting that all necessary particulars have been delivered to enable the duty to be assessed, and that security has been given, if 1 required, for payment of the duty; (3) a stamp denoting that no increment value duty is payable. The second is the one usually impressed in practice, and security is not, as a rule, required. The pur- chaser or lessee must also remember that it is to his interest that the duty should be assessed as high as possible, since in assessing the amount of the increment value duty payable on a subsequent sale or lease by him or on his death, the amount already paid will be taken into account. Power for Vendor to Re-sell on Purchaser’s Default. If the purchaser shall neglect or fail to comply with these conditions, his deposit shall be forfeited to tire vendor, who shall be at liberty (without tendering a conveyance to the purchaser) to re-sell the property either by public auction or private contract, with or without notice to the purchaser at the present sale, and the deficiency, if any, arising on the re-sale, and all expenses attending a re-sale or attempted re-sale, shall be recoverable by the vendor from the purchaser at this present sale as liquidated damages. Even in the absence of stipulation, if the contract is not ^ e ^ or s completed owing to the purchaser’s default, the deposit is for- default by feited (/), but it appears to be doubtful whether the vendor of P urchaser - land has the right to re-sell and recover any deficiency ( g ) . It is only the deficiency which the vendor is entitled to recover, so that in an action under this condition credit must be given for the deposit (h). It seems doubtful whether a tender of a conveyance is necessary before exercising' the right to re-sell; so it is better to state in the condition that it is unnecessary. This condition, though invariably used on sales by auction, is seldom inserted in contracts for sale by private treaty. (/) Howe v. Smith (1884), 27 As to the sale of goods, see the Ch. D. 89; Hallv. Burnell, (1911) Sale of Goods Act, 1893, s. 48. 2 Ch. 551. ( 'll ) Howe v. Smith (1884), 27 ( g ) See Williams, Vendor and Ch. D. at p. 104; Shuttlewortli v. Purchaser, vol. i. 42, and Webster, Clews, (1910) 1 Ch. 176. Conditions of Sale, 3rd ed. 419. 76 BK. I., PT. T. — SALES , EXCHANGES AND GIFTS. Special conditions. As to titles registered under the Land Transfer Acts. As to inclosed land. As to land exchanged. The above conditions are applicable to almost all sales of land. In addition, the particular circumstances of the title may render it necessary to make special provisions. The more likely instances of this are the following: — II. SPECIAL CONDITIONS. When the subject of the sale is land the title to which has been registered under the Land Transfer Acts, an owner may be registered with an absolute, a qualified, a good leasehold, or a possessory title. In the case of an absolute or good lease- hold title, it will seldom be necessary to make any special con- ditions; but, as registration with a qualified or a possessory title does not guarantee the title, it may often be necessary to make special provision restricting the purchaser’s rights to have tho title proved — such as that he shall assume that at the date of registration no estate, right, or interest adverse to or in derogation of the vendor’s title was subsisting or capable of arising. In the case of lands inclosed or allotted by an award made under the Inclosure Act, 1845, or by any general Inclosure Act, the purchaser, in the absence of stipulation, is entitled to have shown to him the title to the original estates in respect of or in exchange for which they were allotted, as such allotted lands become liable to the uses of the estate in respect of which they were allotted. The purchaser is also entitled to be satis- fied as to the regularity and validity of the award. The vendor should provide against this by a proper condition. When property was the subject of a common law exchange before 1845, the vendor had to show the title to the land given in exchange as well as to that taken; but if an exchange has been effected under the Inclosure Act, 1845, s. 147, the title to the land given in exchange is transferred to that taken; so that if the exchange took place less than forty years ago, it will be necessary to show so much of the title to the land given in exchange as is necessary to make up the forty years’ title re- quired by law. A condition may be advisable again here to restrict the purchaser’s rights. THE CONDITIONS OF SALE. 77 In case the title to the property offered for sale is derived As to laud 1 1 . held under from a grant from the crown, which has been lost or cannot g ra nt from be produced, the purchaser’s right to call for the grant should the crown - be negatived. In the case of leasehold property, it has been shown (k), Astolease- that the lease which is being sold must be produced with the mesne assignments for the forty years previous to the date of tho sale; and as the provisions of the Vendor and Purchaser Act, 1874, and the Conveyancing Act, 1881, do not pre- vent objections being made to the validity of the lease on grounds appearing on the face of it or discovered aliunde, the vendor should, when he cannot produce the lease, stipulate for its non-production and debar the purchaser from making any objection or requisition as to the lessor’s or the previous title, and require him to assume that the lease was duly granted. And when mesne assignments made during the period over which the abstract extends are not produced, he should be further required to assume that such assignments operated to vest in the vendor a good title for the residue of the term. Again, if the original lease required a licence to be obtained previously to assigning, it will be advisable, on a sale by an assignee, to require it to be taken for granted that such licence was duly obtained; for the acceptance of rent by the lessor where no licence had been obtained would only amount to a waiver if he had notice of the assignment. Again, if the sub- ject of the sale is a lease which has been renewed, the pur- chaser’s right to call for the surrendered lease ought to be negatived. Having reg-ard to the provisions of the Convey- ancing Act, 1881, s. 3, sub-ss. 4 and 5 (7), it is unnecessary to require the purchaser to assume that the rent has been paid and the covenants and conditions of the lease have been per- formed, unless the rent be a peppercorn or other nominal rent ( m ). Some conveyancers, however, do not think these pro- visions stringent enough, and still use the old common form condition, which makes the last receipt for rent conclusive (m) Re Moody and Yates' Con- tract (1885), 30 Ck. D. 314. (&) Ante, p. 49. ( l ) Ante, p. 53. 78 BK. T., PT. I. SALES, EXCHANGES AND GIFTS. When the root of title is a devise. evidence that the rent has been paid and the covenants and con- ditions performed (n). If the title commences with a general devise in a will, the purchaser should he required to assume that the testator was seised in fee at the date of his death, and be precluded from requiring any other evidence of the fact than a statutory declaration, to be furnished at his expense (o). When deed has been executed under a power. If any deed has been executed under a power of attorney which does not come within ss. 8 or 9 of the Conveyancing Act, 1882, and consequently is not irrevocable, a condition should be inserted requiring the purchaser to assume that the donor of the power was alive at the date of the execution of the deed, and had not revoked the power (p). Where there is no receipt indorsed on a deed. If in any deed dated before 1882 there is no receipt for the purchase-money indorsed and signed by the proper parties, it should be provided that no objection is to be made on that ground, though it may be doubted whether any objection on the score of the absence of an indorsed receipt could be usefully taken after the lapse of time. As to deeds executed after 1881, if there is no such receipt as is specified in s. 55 of the Con- veyancing Act, 1881 (q), even though there may be a statement that the conveyance was made in consideration of £ paid by A. to B., a condition should be inserted precluding the purchaser from calling for evidence that the money passed (r). In the absence of a proper receipt, unless a condition has been inserted negativing the purchaser’s right to call for evidence that the money was duly paid, the vendor will have to bear the expense of procuring evidence of the fact. When the legal estate is outstanding. When there is outstanding a bare legal estate, e.g., where the legal estate is in some trustee whose active duties as such have ended, or in a mortgagee who has been paid off, but who has not executed a reconveyance — if in subsequent dealings with the property the fact that the legal estate is outstanding has (n) See for an example of the (o) Ante, p. 60. advisability of this. Re Highett (p) Post . p. 102. and Bird's Contract, (1902) 2 Oh. ( q ) Ante, p. 55. 214; (1903) 1 Ch. 287. (r) See Renner v. Tolley (1893), 68 L. T. 815. THE CONDITIONS OF SALE. 79 been disregarded, or it has been treated as got in, the conditions should provide that it shall be joresumed to have been recon- veyed. If the property is sold as free from land tax or tithe rent- charge, and in either case the evidence of their redemption cannot be produced, the conditions should preclude the pur- chaser from making any objection on this ground. Where it is possible to obtain such a declaration it is advisable to stipulate that a declaration of' the land tax collector or by some other person that the land is free, or, at any rate, that no land tax or tithe rent-charge has been paid for twelve years or upwards next before the day of sale, to be furnished at the purchaser’s expense, shall be accepted as conclusive evidence. If any of the originals of the deeds appearing on the abstract are missing, the purchaser should be required to accept an attested copy or some other such evidence in proof of thern(s). When there are incumbrances on the property which the vendor cannot discharge, careful provision must be made for his protection. The fact and nature of such incumbrance must be clearly stated, and the purchaser required to make no objec- tion on account of it. It is only fair, where the incumbrance is likely to be enforced, to offer to give him an indemnity against any charge, the terms and nature of which should be clearly stated. It should be borne in mind that, in the absence of stipulation, he cannot be forced to complete a contract to buy land which turns out to be subject to irremovable incum- brances, even on being offered an indemnity ( t ). To meet cases where an incumbrance cannot be paid off, and an indemnity is refused, the Conveyancing Act, 1881, s. 5, as read with the Conveyancing Act, 1911, s. 1, enables the court on a sale to make an order discharging the land from the incum- brance on payment into court of the amount specified in the section ( n ). (s) See ante, p. 49. O Per Lord E don, Balmanno v. Lumley (1813), 1 Y. & B. 224, at p. 225; and see Re Weston and Thomas's Contract, (1907) 1 >Ch. 244. (w) For the construction of this section, see Dichin v. Dichin (1882), 30 W. R. 887; Great Northern Rail. Co. v. Sanderson (1884), 25 Ch. D. 788; and Re Fr erne's Contract, (1895) 2 Ch. When evidence of redemption of land tax or tithe lost. When original deeds are missing. When incum- brances exist which cannot be discharged. Provisions of the Convey- ancing Acts, 1881 , lull, as to discharging- incum- brances. 80 Condition as to apportion- ment of rent when pro- perty subject to lease is sold in lots. Generally, the written condi- tions cannot be verbally altered . In actions of specific per- formance : (a) Plaintiff may not give verbal evi- dence to vary the condi- tions ; (b) Defendant may give verbal evidence. BK. I., PT. I. SALES, EXCHANGES AND GIFTS. When property subject to a lease at an entire rent is sold in lots, or a part only of it is sold, the conditions should provide for the apportionment of the rent, and the purchaser should be precluded from taking objection in the event of the tenant refusing to concur in the apportionment. Verbal Variation of the Conditions at the Sale. As a general rule, the written conditions of sale cannot be affected or altered by any verbal amendments made at the time of sale or otherwise, unless the amendments are embodied in the memorandum of the contract signed by the parties. This rule holds good even though the purchaser has agreed in writing to abide b y the supplementary conditions and declarations made at the sale ( 2 c). The reason is that the Statute of Frauds requires the contract to be in writing, and to admit verbal evidence to vary the written memorandum would be to disregard the statute. An exception, however, has been admitted in actions for specific performance. In such actions the following rules have been held to apply: — (a) The plaintiff, whether vendor or purchaser, cannot set up a parol variation alleged to have been made in the written con- ditions, unless, (1) the variation is in favour of the defendant, or (2) the defendant has been guilty of fraud, or (3) there has been such a part performance of the variation as would justify the court in ordering specific performance had the variation been a new contract. (b) But either vendor or purchaser resisting specific per- formance may give parol evidence to show that by fraud or mistake the written contract does not contain the real terms agreed on by the parties, on the ground that the Statute of Frauds does not say that a written contract shall bind the party who has signed it, but that an unwritten one shall not bind him (//) . 256; lie Evans and Beckett' s Con- ( y ) W oo 7 lam v. Hearn (1802), tract, (1910) 2 Oh. 438. Wh. & Tub L. C. Eq. 8th ecL (x) Higginson v. Clowes (1808), vol. ii. 517 and notes. 15 Yes. 516. THE CONDITIONS OF SALE. 81 A discussion of this subject will be found in Fry on Specific Performance (z), where it is suggested (a) that owing to the provisions of the Judicature Act, 1873, s. 24 (7), there is now no difference between the position of a plaintiff and a defen- dant in this respect (b). ( z ) 5th ed., §§ 751 — 820. in May v. Platt, (1900) 1 Oh. 616, (а) §§ 811, 818. seems, however, to be in conflict (б) The decision of Farwell, J., with this view. E fleet of Judicature Acts on theae rules. G. — C. G 82 BK. I., PT. I. — SALES, EXCHANGES AND GIFTS. CHAPTER V. SALE By PRIVATE CONTRACT, AND THE POSITION OF THE PARTIES AFTER THE AGREEMENT FOR SALE. Private con- tracts for sale. Effect of contract for sale. In treating of the stipulations which should be inserted in the conditions of sale, we have anticipated all that need be said with regard to the provisions which should be inserted in a private contract for sale. For, with the exception of the conditions relating to the auction, nearly the same stipulations should be included in a private contract. We have still, however, to consider the effect of the contract, whether it be by public auction or private treaty, on the position of the parties, and the remedies for its breach. (a) The Position of the Parties after the Contract. Contract makes vendor of property trustee for purchaser. Purchaser entitled to gains, The result of a valid contract for the sale of property is that the beneficial ownership passes to the purchaser, and the vendor becomes a trustee of the property for him, the vendor having a right to the purchase-money, a lien on the property to secure it, and a right to retain possession of the property until it is paid ( a ). The purchaser being in equity the owner of the property, is entitled to any benefits that may accrue to the estate between the contract and the conveyance — such as an increase or im- provement in the value of the land (&), even though it arise ( a ) Per Selborne, L. C., in Phillips v. Silvester (1872), L. R. 8 Ch. App. at p. 176; per Jessel, M. R., in Lysaght v. Echvards (1876), 2 Ch. D. at p. 506; see also Shaw v. Foster (1872), L. R. 5 H. L. 0. 338; Clarke v. Ramuz, (1891) 2 Q. B. at p. 462. He is, however, a trustee in only a quali- fied sense: see Rayner v. Preston (1881), 18 Ch. D. 1. (6) Harford v. Furrier (1816), 1 Madd. 532, see especially at p. 539. SALE BY PRIVATE CONTRACT, ETC. 83 through the expenditure of the vendor (c); and, subject to and must • "bostr losses what is said below, will have to sustain any loss or deteriora- tion which results to the property between contract and con- veyance (S). So that if a man contracts to buy a house, and before the -destruction .... .by fire of conveyance of it to him it is accidentally burnt down, he will property sold. still have to perform his contract (e). Further, even where the house has been insured, and the vendor has received the insurance money, he is entitled to retain it as against the pur- chaser, for he is not a trustee of' it for the purchaser (/'); and though, since a contract of lire insurance is one of indemnity and the assured can recover no more than the amount of his loss, after payment of the purchase-money, the insurance com- pany are entitled to recover from the vendor a sum equal to the insurance money (g), yet the purchaser has no claim to it against them. The purchaser’s proper course is, therefore, to get his name entered in the books of' the insurance company as being interested in the premises insured; or, if this is not practicable, or not desirable owing to the existing policy of in- surance having nearly expired, to effect a new policy in his own name. It is not unusual for the vendor to agree to hold the policy, and any money he may receive in respect of' it, as trus- tee for the purchaser; but, in the interests of the vendor, this is not to be recommended unless the consent of the insurance company is obtained, as otherwise it may put him in the position of being obliged to hand the policy money to the purchaser, and after completion to hand an equivalent amount out of the purchase-money to the insurance company, and so perhaps get little or nothing for the property. Where a purchaser has neglected to take some such step, and u Geo. 3, the property bought is destroyed by fire after the contract, and c * 78 ’ before completion, possibly he may be able to procure the benefit of an existing policy effected by the vendor by giving notice to the insurance company, as a person interested in the premises (c) Per Wigram, V.-O., Monro v. Taylor (1848), 8 Hare, atp. 60. (d) See note (6), p. 82. (e) Paine v. Metier (1801), 6 Ves. 349. (/) Rayner v. Preston (1881), 18 Ch. D. 1. (q) Castellainv. Preston (1883), 11 Q. B. D. 380. 84 BK. I., PT. I. — SALES, EXCHANGES AND GIFTS. Duty of vendor as trustee. Cannot deduct arrears of rent. within the meaning of s. 83, of the Fires Prevention (Metro- polis) Act, 1774, to lay out the money in rebuilding the de- stroyed premises, instead of' paying it over to the vendor. It is not clear, however, whether the statute applies to such a case, and even if it does, whether it applies outside the metropolitan area (li ) . On a sale of a leasehold house where the lease contains a covenant to insure and rebuild, the purchaser indirectly gets the benefit of the insurance (i ) . What is said above is, however, subject to the purchaser’s right to compensation from the vendor for loss or deterioration which the latter ought to have prevented. The vendor being a trustee of the property for the purchaser is bound to take reason- able care of it (j) . The purchaser will therefore be entitled to compensation if the vendor wantonly lets buildings on the land go to ruin (A:), or if' it has been damaged by a trespasser though without the consent or knowledge of the vendor (Z). It is a further consequence of the vendor’s trusteeship that if lie remains in possession after the day fixed for completion and receives rent he is not entitled as against the purchaser to retain thereout arrears of rent whether due before the date of the contract or subsequently (m ) . Trustee iu bankruptcy will stand in place of vendor or purchaser ; (b) The Effect of Bankruptcy of one of the Parties. When a man becomes bankrupt all his property (which includes the benefit of any contract he may have entered into) passes to his trustee. The result is, that the trustee in bank- ruptcy of an insolvent vendor will stand in his place, and can compel the purchaser to pay the purchase-money and take a conveyance of the estate; except that where a day is fixed for ( h ) There is a decision that it applies generally in Ex parte Goreley (1864), 4 D. J. & S. 477. This was doubted by Lord Watson in Westminster Fire Office v. Glasgow Provident, &c. Soc. (1888), 13 App. Cas. at p. 716, but followed by Swinfen Eady, -J., in Re Quiche's Trusts, (1908) 1 Oh. 887, see at p. 893, and by Par- ker, J., in Sinnott v. Bowden (1912), 28 T. L. E. 594. (i) Westminster, &c. Office v. Glasgow, &c. Society (1888), 13 A. C. 699. ( j ) Per Jessel, M. E .,Lysaght v. Edwards (1876), 2 Ch. D. 507; Kay, L. J., Clarke v. Ramuz, (1891) 2 Q. B. at p. 462. (7r) Phillips v. Silvester (1872), L. E. 8 Ch. App. 173. ( l ) Clarke v. Ramuz, (1891) 2 Q. B. 456. (m) Plews v. Samuel, (1904) 1 Ch. 464. SALE BY PRIVATE CONTRACT, ETC. completion, and time is of the essence of the contract, the pur- chaser can rescind and recover his deposit if' the vendor has committed an available act of bankruptcy, and there is no trus- tee in a position to execute a conveyance at the date fixed (w). And conversely (subject to the trustee’s right of disclaimer), the purchaser, on tendering the purchase-money, can require the trustee to complete the contract (o). On the other hand, where the purchaser becomes bankrupt, the vendor cannot enforce specific performance against his trustee owing to his right of disclaimer (p), although, apparently, the purchaser’s trustee, on paying the purchase-money in full, can require the vendor to convey to him. The vendor, however, has a lien on the estate, and is not bound to relinquish it unless he gets payment in full, and if the trustee disclaims the vendor can retain any deposit which has been paid, even in the absence of stipulation as to forfeiture (q). The trustee in bankruptcy has power to disclaim an unpro- but has a fitable contract (r) . A disclaimer will, in effect, put an end to disclaimer, the contract, and any person injured by the disclaimer will be deemed a creditor to the extent of the injury, and may prove the same as a debt under the bankruptcy. But, as a bankrupt’s property Vests in his trustee subject to all equities affecting it, the vendor’s trustee in bankruptcy cannot escape the obligation of carrying out the contract for sale by disclaiming it, unless he also disclaims the property, as he might in the case of lease- holds. Even then the purchaser’s equitable interest would be unaffected, and he might apply to the Bankruptcy Court for a vesting order ($) . (c) The Effect of the Death of either Party. As to the death of the vendor . — When the vendor dies his On death of representatives will be entitled to the purchase-money in personal re- ( n ) Powell v. Marshall, Parkes & Co., (1899) 1 Q. B. 710. (o) Pearce v. Bastable's Trustee, (1901) 2 Ch. 122. (p) Holloway v. York (1877), 25 W. R, 627. (q) Ex parte Barrell (1875), 10 Ch. 512. (r) Bankruptcy Act, 1883, s. 55 ; Bankruptcy Act, 1890, s. 13. (s) Be Bastable, Ex parte The Trustee, (1901) 2 K. B. 518; Bankruptcy Act, 1883, s. 55 (6). 8 <> presentatives have right to purchase- money. Who conveys, (a) lease- holds ; (b) freeholds ; 44 Sc 45 Viet, c. 41, s. 4. 60 & 61 Viet, c. 65. BK. I., PT. I. SALES, EXCHANGES AND GIFTS. trust for the next of kin, or the residuary legatee under his will, unless he has, subsequently to the contract, specifically devised the land sold (£), or, having so devised it previously to the contract, has subsequently confirmed the devise by a codicil (m) . As to the person to execute the conveyance there is more diffi- culty. Leasehold property has always vested in the personal representatives, and the purchaser must therefore take his assignment from them, or one of them, their authority over personalty being several as well as joint. But freehold pro- perty vested at common law in the devisee under the vendor’s will, or, if he died intestate, in his heir. The heir or devisee, therefore, was the only person who could convey freehold j^ro- perty to the purchaser, and difficulties often arose owing to his disability or absence or unwillingness to execute a convey- ance from which he could derive no benefit. A partial remedy for this difficulty was provided by s. 4 of the Conveyancing Act, 1881, which gave the personal repre- sentatives of a vendor dying after 1881 power to convey the land to the purchaser, though they could not he compelled to do so, and the conveyance might still have been executed by the heir or devisee. Now, however, in the case of persons dying after 1897, the legal estate is vested in the personal representatives by virtue of the Land Transfer Act, 1897, s. 1, notwithstanding any testamentary disposition, and they may be compelled to convey, and are in fact the only persons who can convey, the land to the purchaser, unless they have assented to any devise contained in the will, or conveyed the land to the devisee or to the heir, as they may under s. 3 of the act, in which case the purchaser must take his conveyance from the heir or devisee as before the statute. The act provides (x) that some or one only of several joint representatives cannot sell or transfer realty without the authority of the court, and on this provision it was held that even an executor who had not proved must join in the conveyance unless he had formally re- (t) Brant v. Vause (1842), 1 De G. & 8m. 722; Re Pyle , Pyle Y. & C. C. 0. 580. v. Pyle, (1895) 1 Oh. 724. («) Emuss v. Smith (1848), 2 ( x ) s. 2 (2). 87 SALE BY PRIVATE CONTRACT, ETC. nounced (y). But this decision has now been reversed by the Conveyancing Act, 1911, s. 12, and at the present time the l & 2 Geo. 5, proving executor or all the proving executors can dispose of c ‘ the property. This enactment applies to all probates when- ever granted, but only to dispositions made after 1911 . Special executors appointed for foreign property need not be joined ( 2 ). When the property sold is copyhold, the conveyance must (c) copyholds; usually be taken from the customary heir or devisee, since s. 1 (4) of the Land Transfer Act, 1897, expressly excludes from its operation land of copyhold tenure or customary free- hold in any case in which an admission or any act of the lord of the manor is necessary to perfect the title of a purchaser from a customary tenant, and s. 4 of the Conveyancing Act, 1881, seems not to apply to copyholds, as it speaks of “ a con- tract for the sale of the fee simple or other freehold interest.’’ If, however, the vendor’s interest was equitable only, his per- sonal representatives are the proper persons to convey, as the Land Transfer Act, 1897, applies to equitable estates in copy- hold (a) . If the vendor is selling as trustee or mortgagee, and the (d) Trust and property is leasehold or freehold, the assignment or conveyance estates^ must he taken from his personal representatives, leaseholds having always, and freeholds being now, vested in them by virtue of s. 30 of the Conveyancing Act, 1881. If there are several personal representatives, they need not all join, for the section gives them the same several authority over freeholds as they have always had over leaseholds, and the provisions of the Land Transfer Act, 1897, apparently have no application to trust or mortg'age estates. Where the trust or mortgage property is of copyhold or customary tenure, and the deceased had been admitted as tenant on the court rolls, his customary heir or devisee must complete the purchase, since owing to s. 88 of the Copyhold Act, 1894, s. 30 of the Conveyancing Act, 1881, does not apply in that case. But, if lie had not been (y) Re Pawley and the London ( z ) Re Cohen's Executors, and Provincial Bank , (1900) 1 Ch. (1902) 1 Ch. 187. 58. (a) Re Somerville and Turner's Contract , (1903) 2 Ch. 583. 88 On death of purchaser, heir or devisee becomes entitled to land ; but takes it cum onere. 17 & 18 Viet, c. 113; 30 & 31 Viet, o. 69 ; and 40 & 41 Viet, e. 34. (i) As to the remedy in damages. BK. I., PT. I. — SALES, EXCHANGES AND GIFTS. admitted, his personal representatives would be the persons to complete. As to the death of the purchaser . — If the purchaser dies intestate the right to the land passes (subject to the Land Transfer Act) to his heir; if he makes a will, the land, even if the contract for purchase be after the date of the will, passes, with a similar qualification, to the devisee. Formerly the heir or devisee was entitled to require the purchase-money to be paid out of the personal estate of the deceased by his executor or adminis- trator; but the effect of the Real Estate Charges Acts, 1854, 1867, and 1877, is that the heir or next of kin or devisee will take the land (whether it be freehold, copyhold or leasehold (6)) subject to and charged with the unpaid purchase-money, unless in case of a devise a contrary intention is expressed by the testator. A general direction that the testator’s debts shall be paid out of his residuary real or personal estate, or out of his residuary real estate, does not amount to the expression of a “contrary intention.” These acts do not, however, affect the right of the vendor to compel payment by the personal repre- sentatives in the first instance; they only throw the burden ultimately on the heir, next of kin, or devisee. xAnd the acts, though they apply to leaseholds, have no application to pure personal property, so that a specific legatee, say, of shares which are subject to a mortgage or charge is still entitled to have the same paid out of the residuary estate. (d) The Remedies for Breach of the Contract. Upon breach of a contract for the sale of land the injured party will in general be entitled to either — (i) damages; or (ii) specific performance; we have therefore to consider shortly each of these remedies, and in connection with them, (iii) the time within which such remedies must be enforced; and (iv) the lien of the parties on the estate. When the contract is broken by one party, the other may recover as damages all loss which may be fairly and reasonably ( b ) Re Kershaw , Brahe v. Kershaw (1888), 37 Cli. D. 674. 89 SALE BY PRIVATE CONTRACT, ETC. considered ns arising in the natural course of things from the breach, or such as may be reasonably supposed to have been in the contemplation of both parties at the time of making the contract, as the probable result of the breach (c). Therefore, in action by . . , , /i\ii the purchaser; ordinary cases, a purchaser is entitled to recover (1 ) the deposit he has paid, if any, and, in the absence of stipulation, interest thereon; (2) interest on the purchase-money, if it has been kept lying idle awaiting the completion, and the vendor has notice of the fact; and ,(3) expenses incurred in investigating the title; but he cannot recover damages for the loss of his bargain if the vendor has acted in good faith (d) . The vendor, how- ever, is liable to pay damages if he can make a good title and will not, or will not do what he can and ought to do in order to obtain one(e). If' the purchaser is the defaulter the vendor can, it would actl °-Jor 7 seem, recover the difference, if any, between the price he would have obtained had the contract been carried out and the market price of the property, as ascertained by ,a re-sale within a reasonable time, and the expenses he has incurred; or he can keep the deposit which was paid on signing the contract; indeed, he can keep this even if he has suffered no loss at all (/) . But he cannot apparently both sue for damages and keep the deposit, so that if he brings an action for damages he must give credit for any deposit that has been paid him (g 1 ) . Besides his remedy in damages the injured party has the alternative remedy of specific performance. Specific perform- specific per - ance of a contract to sell land will be enforced a,t the suit of formance: the purchaser almost as a matter of course, for in the case of these contracts damages are generally insufficient to com- pensate the disappointed party; and as the court acts on the (c) See Hadley v. Baxend.ale (1854), 9 Ex. 341. ( d ) Bain v. Fothergill (1873 — 1874), L. R. 7 II. L. 0. 158, affirming Flureau v. Thornhill (1776), 2 W. Bl. 1078; and see Morgan v. Russell, (1909) 1 K. B. 357. (e) Day v. Singleton, (1899) 2 Ch. 320; and see Jones v. Gar- diner, (1902) 1 Oh. 191. (/) Howe v. Smith (1884), 27 Ch. D. 89. See ante, p. 75. (g) See Webster, Conditions of Sale, 3rd ed. 421; Howe v. Smith (1884), 27 Ch. D. at p. 104; Shut- tleworth v. Clews, (1910) 1 Ch. 176. BK. I., PT. I. — SALES, EXCHANGES AND GIFTS. 90 it must be mutual. Court has discretion to grant. 21 & 22 Viet, c. 27. Before action purchaser must tender conveyance. (iii) As to the time within which the remedies must be sought. principle that the remedy should be mutual, it will specifi- cally enforce the contract at the instance of the vendor though his claim is only to obtain payment of the purchase-money. For the reason that the remedy must be mutual, the court will not decree specific performance at the suit of an infant, because it would not decree such performance against him (li). There are, however, many grounds on which cause may be shown why a decree should not be granted (i), and as the remedy of specific performance is discretionary, the court is not bound to grant it, even where the plaintiff makes out his right to it. The court was empowered by Lord Cairns’ Act to award damages in an action, either in addition to or in lieu of specific per- formance, and though this act is repealed by the Statute Law Revision Act, 1883, s. 3, there is a still wider jurisdiction to 'grant damages under the provisions of the Judicature Acts (1c). In any action on a contract for the sale of land, whether the action be for specific performance or for damages only, the purchaser must be able to show that there is a valid contract, and, in most cases, that he has tendered a conveyance to the vendor, who has refused to execute it (7); but he need not tender a conveyance when the vendor fails to deduce a good title, or wrongfully resells the property. In the same way the vendor must prove that he has shown, or offered to show, a good title, and has been always willing and ready to execute a conveyance to the purchaser in the terms of the contract. It is not necessary for the vendor to tender a conveyance, unless the contract provided that he was to prepare it (7). An action on a simple contract must be brought within six years next after the cause of action has arisen, but if at the time the right to bring the action accrues the plaintiff is an infant or of unsound mind, or the defendant is beyond the seas, the action may be brought within six years after the removal of the plaintiff’s disability or the return of the defendant (m). ( h ) Flight v. Holland (1828), 4 15 Ch. D. 215; White v. Bohy Russ. 298. (1877), 26 W. R. 133. (i) See Fry, Specific Perform- (Z) Poole v. Hill (1844), 6 M. ance, 5th ed. Part III. & W. 835. ( k ) Tamplin v. James (1879), (m) Limitation Act, 1623, ss. 3 SALE BY PRIVATE CONTRACT, ETC. 91 The statute begins to run immediately upon the breach of the contract. When a time is fixed for completion, the breach will occur on default in conveying, or paying the purchase- money at that time, so that the statute will commence to run from the date fixed for completion. Where no time is fixed for completion, the time will run as against the purchaser from a distinct refusal by the vendor to convey, or from some act or occurrence which renders it impossible for him to convey; and as against the Vendor time runs from the purchaser’s refusal to complete. The operation of the statute may be prevented by a sufficient acknowledgment in writing signed by the party to be charged or his agent duly authorized ( n ). The statutes do not apply to actions for specific performance, but the rule in equity is that the party seeking relief must be prompt in claiming the remedy; so that an application for specific performance must be made at the earliest opportunity, and lapse of time is one of the grounds on which the court will refuse a decree (o). Generally, more than a year’s delay is fatal to the plaintiff’s suit; and where one party gives the other notice that he does not intend to perform the contract, a very brief delay by the other in bringing an action for specific per- formance will cause the court to refuse to make the decree (p ) . But in order to bar the plaintiff’s right the delay must arise from his culpable or unwarrantable laches; so that where the purchaser is in possession of the property and lias got the equitable estate, and the only object of the action is to obtain the legal estate, the vendor will not be allowed to set up the defence of laches; for in such a case the plaintiff has not been sleeping on his rights, but relying on his equitable title without thinking it necessary to have his legal right perfected (g); and and 7; 4 & 5 Anne, c. 16, s. 19; Mercantile Law Amendment Act, 1856, s. 10. ( n ) Statute of Frauds Amend- ment Act, 1828, s. 1; and Mer- cantile Law Amendment Act, 1856, s. 13. (o) Eads v. Williams (1854), 4 De G. M. & G. 674; Southcomb v. Bishop of Exeter (1847), 6 Hare, 213; Mills v. Haywood (1877), 6 Ch. D. 196; Levy v. Stogdon, (1898) 1 Ch. 478. (p) Huxham v. Lleiuellyn (1873), 21 W. R. 570. (■ q ) Fry, Specific Performance, When time begins to run. Statute 6aved by acknow- ledgment ; and does not apply to specific performance ; but this remedy is lost by laches. 92 BK. I., PT. I. — SALES, EXCHANGES AND GIFTS. likewise when the delay is caused by the defendant, he cannot set it up as a defence (r) . Again, the defendant may deprive himself of the right to allege the plaintiff’s delay by continuing to act as if he meant to carry out the contract (s) . (iv) As to the j n addition to the remedy by action, each party may have lien of the . J J 1 J parties on the an equitable lien on the property. estate. The vendor’s The Vendor's Lien. — When the vendor of land has conveyed 1 • it to the purchaser before having received the whole of the pur- chase-money he has a lien on the land for the amount remaining unpaid (£), which he retains even after delivery of posses- sion to the purchaser, and which he may enforce by applying to the court either for a sale of the property, or even for an order restoring the possession of it to him (?«) . And a vendor of personal property has a similar lien (x ) . The pur- The Fur chaser's Lien . — When the purchaser has paid the chaser b hen. _ 1 # t A whole of his purchase-money, or a jiart of it — as in the case of a deposit (y ) — before the conveyance of the property to him, he has a lien on the land for the amount so paid. As Lord Cranworth said in Rosev. Watson(z), he acquires a lien exactly in the same way as if, upon payment of part of the purchase- money, the vendor had executed a mortgage to him of the estate to that extent. This lien extends to all instalments of the pur- chase-money paid, with interest thereon, to sums paid under 5th ed. § 1111 ; see, however, Mills v. Haywood, supra, where possession was held not sufficient explanation since it was not by virtue of the contract. (r) Per Lord St. Leonards, Ridgeway v. Wharton (1857), 6 H. L. C. at p. 292. Lord St. Leonards was in a minority in this case, and the decision of the House was not in accordance with his opinion, but probably he was right on this point. (s) Seton v. Slade (1802), 7 Yes. 265; Wh. & Tud. L. C. Eq. 8th ed. vol. ii. 478. ( t ) Mackreth v. Symmons (1808), 15 Ves. 329; Wh. & Tud. L. C. Eq. 8th ed. vol. ii. 946. ( u ) Williams v. Aylesbury Rail. Co. (1873), 21 W. ft. 819. As to the vendor’s lien when the pur- chase-money is to be paid by in- stalments, see Nives v. Nives (1888), 15 Ch. D. 649. ( x ) Davies v. Thomas, (1900) 2 Oh. 462; Re Stucley, Stucley v. Kekewich, (1906) 1 Ch. 67. (y) Whitbread v. Watt, (1902) 1 Oh. 835. (z) (1864), 10 H. L. 0. 671, at p. 684 SALE BY PRIVATE CONTRACT, ETC. the contract as interest on the unpaid purchase-money, and tho costs of an unsuccessful action for specific performance (if any) by the vendor against him. Similarly, an intended lessee, who has entered under the contract to grant him a lease and ex- pended money on the land, has a lien on it for the money so expended in the event of the lessor failing to grant a lease(a). When the contract is abandoned by reason of a defect of title, the purchaser’s lien extends not merely to the deposit and interest, but also to the costs of investigating the vendor’s title and the costs of any proceedings in court to enforce specific performance, and the costs of a summons under s. 9 of the Vendor and Purchaser Act, 1874 (b). A lien may be enforced against the land in the hands not Against what only of the vendor or purchaser, as the case may be, and his Ken" will heirs, and volunteers claiming through him, but also in the P reval1 - hands of purchasers for value who have notice of the lien; and even against the trustee of a bankrupt, although he has no notice, for he takes subject to all equities (c). The lien may be lost by negligence (d) or abandonment. The mere taking of a security for the payment of the purchase-money will not amount to abandonment by the vendor, unless it can be con- strued into an expression of an intention to rely no longer on the estate, but on the purchaser’s personal credit (e). When the purchase goes off through the purchaser’s fault the lien is gone (/) . It should be remembered that although the possessory lien is Etfeot of not barred by the Limitation Act, 1623, which merely extin- Limitation guishes the remedy and not the obligation (g), an equitable lien on land is barred by the provisions of s. 8 of the Peal Property Limitation Act, 1874 (h). (a) Middleton v. Magnay (1864), 2H.&M. 233. (5) Kitton v. Hewitt , (1904) W. N. 21; Furneaux v. Aird, (1906) W. N. 215. (c) Ex parte Hanson (1806), 12 Ves. at p. 349. ( d ) Rice v. Rice (1853), 2 Drew. 73. (e) Mackreth v. Symmons (1808), Wh. & Tud. L. 0. Eq. 8tli ed. vol. ii. 946. (/) Driver v. Grant (1852), 5 De G. & Sm. 451. (g) Spears v. Hartley (1800), 3 Esp. 81. (Ji) See Toft v. Stephenson (1848), 7 Hare, 1, a decision on the 94 BK. I., FT. I. — SALES, EXCHANGES AND GIFTS. Registration of contract not necessary. Stamps. 54 & 55 Viet, c. 39. Separate contracts on sale in lots. Contract under seal. When pro- perty vests by contract A contract for the sale and purchase of land in a register county cannot be registered, as it is not a “ conveyance ” within the Local Registry Acts ( i ). But in Yorkshire a lien must be registered under s. 7 of the Yorkshire Registry Act, 1884 v Stamp Duty on Contract. Lastly, it must be remembered that a contract for the sale of land above 51. in value if under hand only requires to be stamped with a 67. stamp, in the usual ease where the contract is intended to be carried into effect by a subsequent conveyance. An adhesive stamp of' that value may be affixed to the contract, but it must be so affixed before the contract is signed, and must be cancelled by the person who first executes the contract (fc); if not, the stamp is allowed, by grace but not as of right, to be impressed at any time within fourteen days of the date of the signing of the contract, but afterwards only on the payment of the penalties imposed by the Stamp Act, 1891 . If the agree- ment consists of several letters it is sufficient to stamp one of them (7). If several lots are sold by distinct contracts to one purchaser, the agreement must bear as many 67. stamps as there are lots over the value of 51. sold to him (m)\ but if the lots are com- bined in one written contract and the purchase-money is aggre- gated only one stamp is required. If the contract is under seal, the stamp will be 10s., which, if not impressed at the time of contract, can be impressed at any time within thirty days after execution (w). When the property sold is of such a character that it will vest in the purchaser simply by the contract, without a formal conveyance or assignment, e.g., an equitable interest in pro- perty, the contract requires an act valorem duty as a conveyance on sale; and if a formal conveyance or assignment is afterwards equivalent provision in s. 40 of the Real Property Limitation Act, 1833. (i) Rodger v. Harrison and others , (1893) 1 Q. B. 161. ( h ) Stamp Act, 1891, ss. 8, 22. ( l ) Stead v. Liddard (1834), 1 Bing. 196. (m) See James v. Shore (1876), 1 Stark. N. P. C. 426; Roots v. Dormer (1832), 4 B. & Ad. 77; Westall v. Hall (1883), W. N. 158. (n) Stamp Act, 1891, s. 15. SALE BY PRIVATE CONTRACT, ETC. made, it is stamped with a denoting stamp; but since for the purposes of obtaining specific performance of the contract, or damages for breach thereof, this provision does not apply, and the ordinary stamp duty of 1 6d., or 10s. if the contract is under seal, will suffice; to stamp the contract with an ad valorem duty is usually neither necessary nor desirable (a) . When the contract bears a 6d. stamp (or 10s. stamp, if under seal) only, care should be taken to get the conveyance executed within six months of the contract if possible, as, if this cannot be done, the purchaser must be prepared to satisfy the Commis- sioners that there has been no unreasonable delay in comple- tion. The question of affixing ad valorem duty to the contract, as apart from the conveyance, as a rule arises in connection with the sale of a business to a company. It should be remembered that the stamp duty is not payable in respect of assets which pass by delivery, and therefore the value of such assets should be ascertained and deducted from the amount of the purchase consideration, and ad valorem duty will only be payable on the balance. Care should be taken, when drawing the assur- ance of the property, not to convey the articles passing by delivery, as, if the conveyance purports to convey such articles, the authorities insist on stamp' duty being paid on the value of such articles, as they contend that the articles are not transferred by delivery, but by a deed. (o) See Stamp Act, 1891, s. 59, as amended by the Revenue Act, 1909, s. 7. BK. I., PT. I. — SALES, EXCHANGES AND GIFTS. CHAPTER VI. THE ABSTRACT OF TITLE AND REQUISITIONS. Vendor must deliver a perfect abstract. Outstanding- mortgages do not make abstract imperfect. On a sale of land the vendor is bound, unless otherwise agreed, to prove his title to the purchaser. For this purpose he must deliver to the purchaser an abstract of his title, i.e., an epitome of the documents and facts which constitute his title. Unless the contract otherwise provides, the abstract must show a per- fect title, i.e., it must show that the vendor can either himself convey to, or can procure to be vested in, the purchaser the legal and equitable estates of the property sold free from incum- brances (a). It is not necessary to show that he has this power at the date of the delivery of the abstract, if it appears that he will be in a position to do so at the time fixed for comple- tion (b); but if the abstract shows that there are any incum- brancers whose concurrence he cannot insist upon, the title is imperfect (c) . The fact that the abstract discloses the existence of mort- gages and other incumbrances to which the sale has not been made subject do,es not render the title imperfect, because these are regarded as matters of conveyance only; they still leave the vendor the power to procure the legal estate if he uses the necessary means ( d ) . So that even in a case where the incum- brances were not mentioned in the contract, and no notice had been given of intention to pay them off, it was held that they did not constitute a defect in the title (e). If the vendor will (a) Dart, Vendors and Pur- chasers, 7th ed. 315 — 317. (5) Cattell v. Corral (1840), 4 Y. & C. 228; Chamberlain v. Lee (1840), 10 Sim. at p. 450. (c) See Lewin v. Guest (1828), 1 Russ. 325. ( d ) Avarne v. Brown (1844), 14 Sim. 303. ( e ) Savory v. Underwood (1854), 23 L. T. 141. THE ABSTRACT OF TITLE AND REQUISITIONS. 97 be able to acquire a clear right to the legal and equitable estates before completion, it seems not to be a defect in the title that the conveyance may be delayed by the fact that he has not those estates legally vested in himself and ready to be trans- ferred to a purchaser. Thus in Cattell v. Corral (/) a good title was held to be deduced where it appeared by the abstract that the vendor was a tenant in tail in possession and therefore able to convey the estate in fee according to his contract by a deed enrolled . It seems to have been thought unnecessary that he should disentail the property before the time fixed for com- pletion, so as to put himself in possession of an estate in fee simple ready to be conveyed to the purchaser when the time arrived; yet if the vendor died before the disentailing assur- ance had been executed it is evident that the purchaser would lose the property; for the issue of a tenant in tail is not bound by the contract of his ancestor (g ) . The vendor must, however, show that he has the power to Purchaser vest the property in the purchaser, or, at any rate, that persons take^iSe^rom whose concurrence he has the right to compel can do so. This any one but is illustrated by Re Bryant and Barninghams Contract (h), ' en or ’ where trustees contracted to sell the trust property, but the purchaser discovered that they had no power of sale, and re- fused to complete. Thereupon the tenant for life of the land offered to assist them by conveying the land to the purchaser under the powers conferred upon him by the Settled Land Acts. The purchaser refused to accept a conveyance from the tenant for life; and the court refused to decree specific perform- ance against him on the ground that to do so would be to force the purchaser to enter into a new contract with the tenant for life(i). But in Re Baker and Selmons Contract (k), where trustees, in whom the legal estate was vested, but who had no power of sale, entered into the contract with the consent of all the beneficiaries, the court held that the vendors had shown (/) (1840), 4 Y. & C. 228. ( g ) He might contract to sell now, however, as a person having the powers of a tenant for life under the Settled Land Acts, and this contract would be binding on his successors in title. (70 (1890), 44 Ch. D. 218. (0 Compare Re Thompson and Holt (1890), 44 Ch. D. 492. (7b) (1907) 1 Ch. 238. G. — C. II 98 BK. I., PT. I. SALES, EXCHANGES AND GIFTS. a good title, since they could compel the beneficiaries to join in the conveyance, and thereby vest both legal and equitable estates in the purchaser. Root of title. Lord St. Leonards’ rule. Legal mort- gages must be abstracted. Expired leases. Equitable mortgages. Criminal liability for The abstract must commence with some instrument which deals by way of conveyance with both the legal and the equit- able estate. A mortgage deed or purchase deed is the best root of title, as such a document indicates that at the time of its execu- / tion the title must have been investigated; and the former is perhaps the better of the two . A general devise in a will should not be made the root of title since it does not identify the pro- perty, and it would be necessary to show that the testator was in possession at the time of his death, or else to run the risk of damping the sale with a condition that the purchaser shall not require such evidence, nor should an appointment under a power since its validity depends on the instrument creating the power ( l ). Lord St. Leonards, in his book on Vendors and Pur- chasers (m), says, that “wherever the vendor’s solicitor begins the root of the title he ought to abstract every subsequent deed.” So, a legal mortgage which has been discharged should be abstracted although there has been a re-conveyance, for it is not for the vendor to assume that the title has been re-vested by the re-conveyance; this is a matter upon which the purchaser is entitled to satisfy himself. But expired leases may be excepted from the rule, since their provisions cannot affect the purchaser. Whether a memorandum of an equitable mortgage by deposit of deeds which has been discharged, or which is intended to be discharged before completion, should be abstracted does not appear to be settled; the general practice appears to be to keep such a charge off the abstract if it be under hand only, and so framed that it cannot affect the legal estate (w). In this connection it must be remembered that, by the Law (?) This is so notwithstanding s. 3 (3) of the Conveyancing Act, 1881, ante, p. 52; see Williams, Vendor and Purchaser, vol. i. 88. (m) 14th ed. 407. (n) See Williams, Vendor and Purchaser, vol. i. 91, 92; see, how- ever, the remarks of Page Wood, V.-O., in Drummond v. Tracey (1860), Johns, at p. 612; 1 Prideaux, 20th ed. vol. i. p. 61. THE ABSTRACT OF TITLE AND REQUISITIONS. 99 of Property Amendment Act, 1859, s. 24, a seller or mortgagor or his solicitor who conceals any instrument material to the title or any incumbrance from the purchaser or mortgagee, or who falsifies any pedigree on which the title may or does depend, with intent to defraud, is guilty of a misdemeanour, and also liable to an action for damages. Every document which forms a link in the vendor’s title ought to be abstracted in chief. If a document forms a link in the title it is insufficient to abstract an instrument containing a recital of it, however full(o). The instruments should be abstracted in chronological order, except in the case of a will, which should be placed immediately before the date of the testator’s death; while statements of marriages, births, deaths, heirships and other facts on which the title depends should be inserted in their proper order of time. The abstract should give tracings of the plan on any deed or document abstracted (p), otherwise the abstract may be considered imperfect, at any rate in a case where the parcels are not clearly identified by the description in the body of the deed. The abstract should also refer to any endorsements there may be on the docu- ments abstracted. Where the land sold is in Yorkshire or Middlesex, the abstract should state at the foot of each docu- ment the memorandum of registration with reference to the year, book, and number. Where the title is registered under the Land Transfer Acts, a note of registration will be found indorsed on the last purchase deed. The vendor must bear the expense of the abstract, although, in order to prepare it, he may require the production of docu- (o) Re Ebsworth and Tidy's Contract (1889), 42 Oh. D. 34; Re Stamford, &c. Banking Co. and Knight's Contract, (1900) 1 Oh. 287. (p) The abstract is usually written on brief paper with three inner margins. The outer margin is left clear for the person in- vestigating the title to insert his notes. The abstract commences with a heading written from the third margin which states the name of the vendor or other per- son, and a description of the pro- perty. Then follow the instru- ments and facts on which the title depends. Recitals are written from the first inner margin, the testatum from the outer margin, and the habendum from the second inner margin; powers, provisoes and declarations from the outer margin. 2 non-dis- closure. 22 & 23 Viet, c. 35. Manner of preparing abstract. Abstract is at vendor’s expense. loo Only oue abstract necessary. Purchaser’s rights as to abstract. Duty of purchaser’s solicitor on receipt of abstract. Two objects of examina- tion of title. Vendor’s obligation to produce deeds. BK. I., PT. I. — SALES, EXCHANGES AND GIFTS. ments not in his possession; s. 3 (6) of the Conveyancing Act, 1881, does not relieve him from the obligation to deliver a proper abstract (g). Formerly, when property was sold in lots, the purchaser was entitled to as many copies of the abstract as there were lots, but the Conveyancing Act, 1881, s. 3 (7), provides that, when the lots are held wholly or partially under the same title the purchaser shall not have a right to more than one abstract of the common title, except at his own expense. A purchaser is entitled to be f urnished with an abstract, even though he has agreed to accept the title; if' the sale is com- pleted it becomes his absolutely; but if the sale goes off he must return it to the vendor, and must not even take a copy of it (r ) . The purchaser’s solicitor is bound carefully to examine the vendor’s title; and if through his failure to perform his duty his client acquires a defective title he will be liable in damages for negligence. The law does not, however, compel the solicitor to take the property off his client’s hands (s). In practice it is usual for the purchaser’s solicitor on receipt of the abstract to indorse it with the date of delivery as a memorandum of the time for the delivery of the requisitions on title. The examination of the title involves the inquiry (1) whether the abstract shows that the vendor has a good title, or rather the title he has contracted to sell; and (2) assuming that the abstract shows a good title, whether the vendor can prove the title as abstracted. For the latter purpose it must be compared with the deeds and documents abstracted to see that it states their effect accurately. Production of the Deeds. Subject to the provisions of s. 3 (6) of the Conveyancing' Act, 1881 (£),and of the contract the vendor must, at his own (g) Re Johnson and Tustin (s) British Investment Co. v. (1885), 30 Oh. D. 42. Cobbold (1875), L. E. 19 Eq. 627. (r) Dart, Vendors and Pur- (t) Ante, p. 53. chasers, 7th ed. vol. i. 315. THE ABSTRACT OF TITLE AND REQUISITIONS. 101 expense, produce the deeds and documents abstracted for inspec- tion and examination by the purchaser. The vendor may produce the deeds at his own residence, or upon or near the land sold, or at the office of his solicitor, or of the solicitor’s London agent (w); if he produces them at any of these places, the purchaser has to pay for the neces- sary journeys of his solicitor to inspect them. If, however, the deeds are in London, and the office of the purchaser's solicitor is in the country, the purchaser’s solicitor should in- struct his London agents to make the examination; he cannot charge the cost of a journey against the purchaser (%). If the deeds are at some other country town, he may go himself, or send a clerk, to examine them (;?/). If the deeds are not in the possession of the vendor, as prima facie they ought to be, their possession by the person who has them must be satisfactorily accounted for; and if the vendor has a covenant or acknowledgment for their production, he must give the necessary authority to enable the purchaser to obtain their production (2). Proof of the Execution, A ttestation , and Validity of the Deeds and Documents abstracted. The mere production of the abstracted deeds and documents, however recent they may be, is generally deemed sufficient proof of them. In strictness the purchaser is entitled to have the due execution of every document proved, but this is seldom insisted on unless there are suspicious circumstances attending the execution. His right of proof is also subject to the rule that deeds and documents thirty years old prove themselves, provided they come from the proper custody, and possession has been held consistently with their provisions ( a ) . Attestation is unnecessary unless it is required by an instru- ( u ) See Sugden, V. & P. 14th ed. 429; Dart, V. & P. 7th ed. 481. The common practice now is to produce them at the vendor’s solicitor’s office. (a?) Alsop v. Lord Oxford (1833), 1 M. & K. 564. ( y ) See Hughes v. Wynne (1836), 8 Sim. 85. (z) JUpvinqall v. Lloyd (1833), 2 N. & M. at p. 419. ( a ) Doe v. Wolley (1828), 8 E. & C. 22. As to place and expenses of production. Where not in vendor’s possession . As to proof of — (a) ordinary- deeds ; (i) execution ; (ii) attesta- tion ; 102 BK. I., PT. I. SALES, EXCHANGES AND GIFTS. (iii) registry tion : (iv) stamps ; (v) deeds executed under a power of attorney. 45 & 46 Yict. c. 39. ment creating a power or by some statute (&). Many instru- ments are required by statute to be attested. Thus, bills of sale must be attested (c) ; conveyances within the Mortmain Acts require two witnesses (d) ; appointments by deed of guardians to infants by their fathers require two witnesses (e); memorials for registration of instruments in the Middlesex and Yorkshire Registries require to be witnessed (/) ; and wills of real property, executed before 1838, require three (g), and wills of any property, executed since 1837, two, witnesses (h). When a deed requires registration in Middlesex or York- shire, a memorandum signed by the registrar indorsed on the deed is evidence of its due registration. The documents must be duly stamped. If they are not, the purchaser can require the vendor to stamp them properly, unless the expense as to documents dated even before 16th May, 1888, be thrown on the purchaser by the contract (i) . This applies not only to the documents of title, but also to a lease or agree- ment subject to which the property is sold (1c) . If a deed has been executed under a power of attorney, the purchaser can require the power (which must be under seal) to be produced in order to see that the exercise of the power is in accordance with its terms (?), and proof that the donor was alive at the time it was acted upon. The production of a cer- tificate of the death of the donor, showing him to have died subsequently to the execution of the deed, will generally suffice. There will be a presumption that the power was not expressly revoked until the contrary be shown. The necessity for requiring evidence of the non-revocation of a power has, however, been to a certain extent removed by the provisions of the Conveyancing Act, 1882, which by s. 8 provides, that if (6) Per Lord Selborne, Seal v. Claridge (1881), 7 Q. B. D. at p. 519. (c) Bills of Sale Act, 1878, s. 10; Bills of Sale Act, 1882, s. 8. ( d ) Mortmain and Charitable Uses Act, 1888, s. 4 (6). (e) 12 Car. 2, c. 24, s. 8. (/) Land Registry (Middlesex Deeds) Act, 1891, Schcd., rr. (2) and (3) ; Yorkshire Registries Act, 1884, s. 6. ( g ) Statute of Frauds, s. 5. (h) Wills Act, 1837, s. 9. (i) Ante, p. 65. (7r) Coleman v. Coleman (1898), 79 L. T. 66. (1) For an instance of the ne- cessity of this, see Re Dowson and Jenkins's Contract, (1904) 2 Ch. 219. THE ABSTRACT OF TITLE AND REQUISITIONS. 1 o: a power of attorney is given for valuable consideration, and is in the instrument creating it expressed to be irrevocable, then, m favour of a purchaser, the power cannot be revoked expressly, Irrevocable without the donee’s concurrence, or by the donor’s death, mar- attorney, riage, lunacy, unsoundness of mind, or bankruptcy, but the donee may act in spite of such occurrences. And further, neither the donee nor the purchaser is to be prejudicially affected by notice of an express revocation, or of facts which would otherwise constitute an implied one. Sect. 9 of the same act provides, that if a power of attorney, whether given for valuable consideration or not, is by the instrument creating it expressed to be irrevocable for a fixed time not exceeding a year from the making thereof, then in favour of a purchaser the power cannot be revoked expressly, without the donee’s con- currence, or impliedly, during that fixed time, and the donee may do any act under it during that fixed time, notwith- standing anything amounting to revocation; nor will notice of express revocation or of the donor s death, marriage, lunacy, unsoundness of mind, or bankruptcy prejudice the purchaser or the donee. The act only applies to powers created after 1882. The donee of a power of attorney ought to exercise it Mode of not in his own, but in the donor’s name; and formerly, if be 0 used his own name only, he, and not his principal, would be bound. But by s. 46 of* the Conveyancing Act, 1881 (which applies to powers created by instruments dated either before or after the commencement of the act), the donee may execute any assurance or instrument in his own name if he thinks fit. and the instrument so executed will be binding on the donor. When a deed is not produced, and its loss is set up as the (vi) lost deed reason for non-production, the purchaser is entitled to evidence of the alleged loss, or that diligent search for the lost deed has been made without success. He is also entitled to evidence of the contents and execution of the deed. If a copy is tendered as evidence, it must be a copy of the original; a copy of a copy is not evidence ( m ) . A private act of parliament which is directed to be noticed (b) Private acts ; (m) Re Halifax Commercial Banking Co. and Wood (1898), 79 L. T. 536. 104 (c) Awards. (d) Copyhold assurances. (e) Acknow- ledged deeds. (f) Enrolled deeds. ( g ) Crown grants. (h) Wills. BK. I., PT. I. — SALES, EXCHANGES AND GIFTS. as a public one is proved by production of a king’s printers’ copy(w). In other cases the act must be proved by a copy examined with the parliament roll. Every act passed since 1850 is a public act, and is judicially noticed as such unless the contrary is expressly provided by the act (a). Awards under an Inclosure act are proved by a copy or extract signed (1) by a proper officer of the court, if the enrol- ment has been made in the High Court; (2) by the clerk of the peace of’ the county or his deputy, if it has been made with the clerk of the peace. Copyhold assurances are proved by copies of the court roll signed by the steward; as a rule, evidence of his handwriting is not insisted on. In the case of deeds acknowledged by married women before the 1st January, 1883, under the Fines and Recoveries Act, the purchaser should see that the certificate of acknowledgment has been properly completed, and require proof that it has been duly filed. With regard to deeds acknowledged since 1882, it must be seen that the proper memorandum, signed by the com- missioner who took the acknowledgment, is indorsed as required by s. 7 of the Conveyancing Act, 1882. Disentailing assurances and other deeds enrolled in Chancery are proved by certificates of enrolment, signed by the proper officer, and such certificates are sufficient primd facie evidence of due enrolment. Office copies of enrolments, stamped with the seal of the Enrolment Office, are, by a number of statutes, made as good evidence as the original enrolments (p) . A grant from the crown is proved by an exemplification or certified copy. A will of real estate is proved by the production of the pro- bate or letters of administration with the will annexed, or an office copy thereof, notwithstanding the same has not been proved in solemn form, or declared valid in a contentious cause or matter (q). If probate of the will has not been obtained (ft) Evidence Act, 1845, s. 3; (p) See Phipson, Evidence, 5th Documentary Evidence Act, 1882, ed. 504. s. 2. ( q ) Court of Probate Act, (o) Interpretation Act, 1889, 1857, s. 64. s. 9. THE ABSTRACT OF TITLE AND REQUISITIONS. 105 and the testator died before the 1st January, 1898, a purchaser of real property devised by it must be satisfied with production of the will itself and evidence of its due execution in accordance with the Wills Act, 183,7; for, as far as regards real property, probate was formerly unnecessary. If the testator died since the 31st December, 1897, probably the point will not arise having regard to the provisions of Part I. of the Land Transfer Act, 1897. But since s. 1 (3) of the act merely makes it per- missible to grant probate or letters of administration in respect of a will of real estate only, it may be that the production of the original will is still sufficient, even where the executor is the vendor . If' copyholds have been voluntarily enfranchised either under the now repealed acts of 1841, 1843/, and 1844, or under the existing Copyhold Act of 1894, the enfranchisement must have been carried out by deed, and the deed will be proved in the ordinary way. If it has been compulsorily effected under the repealed acts of 1852, 1858, and 1887, or under the act of 1894, there will be simply an award of the Board of Agricul- ture, which must have been duly confirmed (r) . Proof of other Facts. Evidence that the parcels as described in the deeds are identical with those contracted to be sold, if 1 the purchaser is entitled to require it ($), may be given by means of old plans, leases, parish assessments, declarations of old persons as to the identity of the property, and as to the uninterrupted enjoyment of it by the vendor and his ancestors, or the person from whom he bought it. Seisin may be proved by circumstances showing that the person whose seisin has to be proved dealt with the land in the character of a man who had taken legal possession of it; thus, the production of leases granted by him, which have been followed by possession or the payment of rent (£), assessment (r) See more fully p. 523 (£) See Clarkson v. Woodhouse et seq., below. (1783), 5 T. E. 412, n. (•s) See above, p. 62. (i) Enfran- chisements of copyhold*. Evidence of other facts. (a) Identity of parcels. (b) Seisin. 106 BK. I., PT. I. SALES, EXCHANGES AND GIFTS. (c) Births, deaths and marriages. (d) Pedigree. to the poor rates, land tax, and other evidence of this nature, will be deemed sufficient. Births, deaths and marriages may be proved by recitals in deeds, or other documents twenty years old under s. 2 of the Vendor and Purchaser Act, 1874 (w), or by certificates obtained from the proper registrars ( x ), or certified extracts from non- parochial registers deposited with the Registrar-General (y). When certificates cannot be obtained, declarations by members of the family, and entries in family bibles and other books, if made by a member of the family, are receivable as evidence. These may be corroborated by statutory declarations of mem- bers of the family or relations. The reason for requiring the entries in books, and declarations to be made by a member of the family, is that the law presumes that not only are they the persons most likely to know the truth, but at the same time they are the least subject to the temptation to exceed or fall short of it (z) . But as between vendor and purchaser, declarations of persons not actually members of the family, but well acquainted with them, may be accepted. The proof of a pedigree includes the births, marriages, and deaths of the persons who, from the pedigree, appear to have been born, married, or died. It may also involve the negative proof that a person died without having been married or without having had issue. The first thing to be proved is that the person from whom the descent is traced was a “purchaser” in the legal sense of the word. Next, the death and intestacy of the ancestor must be shown ; then the relationship of the person alleged to be the heir must be proved by declarations and other such secondary evidence. It seems that there is a presumption that a person shown to be dead died unmarried and without issue (a ) ; and the presumption may be corroborated by a statutory declaration. Then the legitimacy of an heir may he ( u ) Above, p. 51. (cc) See the Births and Deaths Registration Act, 1836, ss. 35, 38, amended by the Births and Deaths Registration Act, 1874, ss. 30, 32, 38. (y) The Non-parochial Registers Act, 1840, ss. 9, 17. (z) See per Lord Eldon, White- loche v. Baher (1807), 13 Yes. 514; see also Haines v. Guthrie (1884), 13 Q. B. D. 818. (a) Doe v. Wolley (1828). 8 B. & C. 22. THE ABSTRACT OF TITLE AND REQUISITIONS. 107 required to be established. There is a presumption that a marriage proved to have taken place was valid and that a child born in wedlock is legitimate even though born the day after marriage, and the presumption may be strengthened by cer- tificates of birth, declarations, or other similar evidence. Some- times the register of a baptism states the fact of illegitimacy ; such a statement, however, does not seem entitled to much weight. Nor are the declarations of the parents themselves after the birth evidence that can be relied on to prove legiti- macy (&■). Strict proof' of a pedigree is not frequently insisted on, in consequence of the difficulty of procuring it. Redemption of the land tax is proved by the production of the certificate of the commissioners, with the receipt of the cashier of the Bank of England, and memorandum of registra- tion, or a copy of the register (c). The certificate of the steward of the manor is generally received as evidence of the existence and nature of the custom of the manor, but strictly the presentment of the homage and proof from the rolls ought to be furnished. Evidence of repu- tation is also admissible. The production of letters of administration to a deceased person’s estate is generally accepted as evidence that he died intestate. If letters of administration are not produced, a declaration that deceased did not make a will should be re- quired. Search for a will may also be made in the probate registry . The award of the Tithe Commissioners, or Board of Agri- culture, will be evidence of the freedom of the land from tithes or tithe rent-charge {d ) . Payment of succession duty may be proved by production of the receipt for the duty, but the proper evidence of payment of estate duty is a certificate of discharge under s. 11 (1) of the Finance Act, 1894, and not the certificate of payment or receipt for the duty (e) . (b) Phipson, Evidence, 5th ed. 184. (c) Land Tax Redemption Act, 1802, s. 38; see Poppleton v. Buchanan (1858), 4 0. B. N. S. 20. ( d ) See Jackson and Gosset, In- vestigation of Title, 3rd ed. p. 383. (e) Williams, Vendor and Pur- chaser, pp. 1284, 1322. See post, p. 116. (e) Redemp- tion of land tax. (f) Custom in copyholds. (g) Of intes- tacy. (h) Of freedom from tithes. (i) Of pay- ment of death duties. 108 (j) Of the non- barring of an estate tail. Proceedings in the High Court. Proceedings in bank- ruptcy. Appointment of trustee. BK. I., PT. I. — SALES, EXCHANGES AND GIFTS. In cases where it is necessary to prove that an estate tail has not been barred— for instance, where the title is traced through a person who took as heir to a tenant in tail — the fact that the ancestor did not bar the entail can be ascertained by a search in the Central Office of the High Court for a disentailing deed. Proof of Proceedings in Courts of Justice. Proceedings affecting the estate may have taken place in the old courts of law or equity or in the High Court, or in lunacy. Proceedings in the old courts of law and equity are proved by exemplifications under the seal of the court, or authenticated by the signature of the judge if the court had no seal. Proof of the seal or signature is rendered unnecessary by 8 & 9 Viet, c. 43. By the Ilules of the Supreme Court, 1883, office copies of all records, pleadings, and documents filed in the High Court are admissible in evidence in all causes and matters, and between all persons or parties, to the same extent as the original would be admissible (/). The Bankruptcy Act of 1883, s. 134, provides that any peti- tion, or copy of a petition, any order or certificate or copy thereof, any instrument or copy of any instrument, affidavit, or document made or used in the course of any bankruptcy pro- ceedings, or other proceedings had under that act, shall, if it appears to be sealed with the seal of any court having jurisdic- tion in bankruptcy, or purports to be signed by any judge thereof, or is certified as a true copy by any registrar thereof, be receivable in evidence in all legal proceedings whatever. The appointment of a trustee in bankruptcy is conclusively proved by the certificate of the Board of Trade that he has been appointed (g ) ; and all documents purporting to be orders or certificates made or issued by the Board, and to be sealed by the Board or signed by any person authorized by the President of the Board, are to be received in evidence, and deemed to be such orders or certificates without further proof, unless the con- trary is shown (h). (/) Ord. XXXVII. r. 4. 138. (g) Bankruptcy Act, 1883, s. ( h ) Ibid. s. 140. THE ABSTRACT OF TITLE AND REQUISITIONS. 109 In lunacy proceedings also every office copy of the whole of an order, or report confirmed by fiat, purporting to be signed by a master, and sealed or stamped with the seal of the Master’s Office, and every office copy of a certificate in lunacy is evidence of the order, report, or certificate of which it purports to be a copy, without further proof thereof (i). Presumptions in favour of Vendor. In many cases in whicli the vendor has been unable to supply strict legal proof the court has required the purchaser to be content with inferior species of proof, or has insisted on his pre- suming a condition of affairs which is favourable to the title. Thus, when a right which must have had its origin by virtue of a deed has been long enjoyed, it may be presumed that the necessary deed was executed, unless there is something to nega- tive the presumption ( k ). As an instance of this, in Killary v. Waller (7), a re-conveyance of the legal estate was presumed from trustees in a case where the property had been dealt with for 110 years without reference to the fact that it was outstand- ing. Again, in Cooke v. Soltau (m), payment of a mortgage debt and re-conveyance of the legal estate were presumed, an interval of eighty years having elapsed, and the mortgage not having been mentioned subsequently in the title deeds, and the deeds having been in the vendor’s possession for twenty-five years without any claim for interest or principal; and in Bidlake v. Arundel (n) payment of the purchase-money was presumed after the lapse of forty years. Again, an enfran- chisement of copyholds will be presumed where for a great length of time the lord of the manor has not claimed any of his manorial rights (o). It will also be presumed that the form- alities requisite to a deed have been duly observed; thus, if a deed with the attestation in the usual form and showing the (i) Lunacy Act, 1890, s. 144. (&) Lyon v. Reed (1844), 13 M. & W. 285, per Parke, B., at p. 303. (Z) (1805), 12 Ves. 239. (m) (1824), 2 Sim. & Stu. 154. (n) (1636), 1 Ch. R. 50. ( o ) Re Lidiard and Jackson's Contract (1889), 42 Ch. D. 254; and see Ecclesiastical Commis- sioners v. Parr , (1894) 2 Q. B. 420. Proceedings in lunacy. Presumptions limiting purchaser’s rights : (a) as to existence and execution of deeds ; no BK. I., FT. I. — SALES, EXCHANGES AND GIFTS. (b) as to seisin of testator ; (c) as to death ; (d) as to woman being past child- bearing. signature of the person conveying is produced, the sealing and delivery of it will be presumed (p ) . Again, where a document hears a date, it is presumed to have been executed on the day of such date, and if two or more deeds of a series are dated the same day, they are presumed to have been executed in the order necessary to effect the object to be attained (g); and there will he a presumption that an instrument duly executed, which is lost, was also duly stamped (r ) . This is subject to the quali- fication that there will be no presumption that prescribed formalities have been complied with, when the law has specially prescribed them on the grounds of general policy. Conse- quently, no presumption will arise as to the due enrolment of a deed specially required by statute to be enrolled (s) . F urther, where alterations, erasures, or interlineations are found in a deed, the presumption is that they were made before execution, though in the case of a will they are deemed to have been made after execution (t). Again, when the actual seisin of a testator cannot be proved it will be presumed from facts which show that he acted as owner of the property, e.g., by the production of leases granted by him. Further, a presumption arises under the rule, laid down in Nepean v. Doe, that a person who has been unheard of for seven years is dead, but there is no pre- sumption as to the time of death (u), and the particular circum- stances of each case must be considered (aj) . In spite of the generally recognized rule that a woman is not, however old, to be considered past child-bearing, as between vendor and purchaser, a presumption will sometimes be raised that a female of an advanced age is past the age of child-bearing. It has been presumed, for instance, that a woman of sixty-eight and un- married was one who was not likely to have any issue (//) ; and ( p ) Taylor, Evidence, 10th ed. p. 149. ( q ) Gartside v. Silkstone, &c. Co. (1882), 21 Ch. D. 762. (r) JI art v. Hart (1811), 1 Hare, 1. (s) Doe v. Waterton (1819), 3 B. & Aid. 149. (t) Fitzgerald v. Fauconberge (1731), Fitzgibbon, at p. 214. (u) (1837), 2 M. &W. 894. (cc) See Rhodes v. Rhodes (1887), 36 Ch. D. 586. ( y ) Miles v. Knight (1848), 17 L. J. Ch. 458; and see Re Wi- dow's Trusts (1871), L. R. 11 Eq. 408. THE ABSTRACT OF TITLE AND REQUISITIONS. Ill that a woman of nearly fifty, who had been married for twenty- six years without having had children, would not have any ( z ), but the court has refused to make the presumption in the case of a woman married only three years, though she was more than fifty-four years of age ( a ) . Requisitions and Observations on Title. A purchaser is entitled, subject to the provisions of the con- tract, to deliver to the vendor written requisitions and objec- tions with reference to any defect in the title which may appear upon the abstract, or be disclosed by examination of the deeds, and the vendor is bound to comply therewith. Requisitions must be framed with a regard to the nature of the particular title in respect of which they are made, and also to the restrictions under which the purchaser is placed by the contract, or by law, although in practice unenforceable requisitions are often made in the hope of obtaining some in- formation. In stating the evidence to which a purchaser is entitled in proof of the vendor’s title, the points upon which requisitions and objections should be made have been indi- cated. The following may be mentioned in addition as matters upon one or more of which it is necessary to make requisitions in the case of most titles: — When it is found that the land has been charged with pay- ment of an annuity or rent-charge, inquiry should be made whether the annuitant is alive, and the production of receipts, to show that the annuity has been duly paid, required. If any annuitant is living, he should, unless the property has been sold subject to the annuity, be required to join in the convey- ance and release the estate; if alleged to be dead, proof of his death, and of due payment of the annuity up to the date of death, should be required (h). Satisfaction of any registered annuity may be entered up at the Land Registry, and certifi- cates of such entry issued (c ) . (z) Be Milner's Estate (1872), (5) Jackson and Gosset, Inves- L. R. 14 Eq. 245. tigation of Title, 3rd ed. p. 34. (a) Croxton v. May (1878), 9 (c) Crown Debts and Judg- Ch. D. 388. ments Act, 1860, s. 2; Land Charges Act, 1900, s. 1. Right of purchaser to make requi- sitions. Requisitions generally. As to charges for annuities, &o. 112 As to legacies. As to pay- ment of death duties. (a) Succession duty. 16 & 17 Viet, c. 71. When payable ; BK. I., PT. I. — SALES, EXCHANGES AND GIFTS. When any legacy lias been charged on the land, the vendor should be required to produce a stamped receipt, signed by the legatee or other person entitled. The conditions of sale often preclude the purchaser from requiring evidence of the pay- ment of any legacy or sum of money charged on the land which became payable twelve years or more before the date of the contract (d ) ; but in the absence of such a condition the purchaser should require a receipt for the legacy, even though more than twelve years have elapsed since it became payable, because, although after that time it will as a rule be barred by the Ideal Property Limitation Acts of 1833 and 1874, yet it might still be subsisting by reason of the legatee or other person being under some disability, such as infancy, and so entitled to an extension of time, or by reason of an acknowledg- ment given by the executor (e) . The receipt must be duly stamped, for, by s. 28 of the Legacy Duty Act, 1796, no written receipt or discharge for any legacy, on which duty is payable, shall be received in evidence unless duly stamped. After thirty years it may be assumed that the legacy or other sum has been discharged, for this is the maximum period allowed for bringing an action to recover a legacy, whether there is disability or not, and even though the legacy is charged on the land so as to create an express trust in favour of the legatee (/). Subject to what is stated below, in every case in which it is found that there has been a devolution of property on death, on or after the 19th May, 1853, proof must be required that succession duty has been paid, and also if the death occurred on or after the 1st August, 1894, that estate duty has been paid . The liability to pay succession duty arises under the Succes- sion Duty Act, 1853, the general effect of which is to impose the duty on any beneficial interest in property accruing to one person on the death of another in all cases except those in which legacy duty is payable. Legacy duty is payable only on pure personalty passing under a will or intestacy, or as a donatio ( d ) Sec, c.g., Ilopkinson v. 3 Jur. 950. Chamberlain, (1908) 1 Cli. 853. (/) Beal Property Limitation (e) See Shields v. Rice (1839), Act, 1874, s. 10. TIIE ABSTRACT OF TITLE AND REQUISITIONS. 11:3 mortis causa , so that succession duty is payable on realty and leaseholds, whether settled or not, and upon pure personalty if it passes on death under a settlement made otherwise than by will. To carry out this general idea, the act provides that duty shall be paid by anyone who succeeds to property or the income thereof on the death of another, whether he succeeds by the effect of some instrument or by operation of law(^r); that a joint tenants ; surviving joint tenant must pay duty on the beneficial interest accruing to him by survivorship (h ) ; that anyone who has a powers of general power of appointment under a disposition taking effect d PP ollltment • on death must pay duty if he exercises the power, and that anyone to whom property is appointed under a limited power under such a disposition must pay duty (i ) ; that duty must be of paid on the extinction or determination on death of any charge, estate or interest in property (7c), or of any interest reserved to the grantor or any other person on a disposition which is not a bond fide sale (7); and provision is made to prevent evasion of the duty (m ) . The rate of duty depends upon the relationship of the “ sue- Rates of cessor ” to the “predecessor,” and varies from 1 to 10 per cent. In the case of deaths occurring on or after the 30th April, 1909, the following are the rates: — A husband or wife, or lineal ancestor or descendant, pays 1 per cent.; a brother or sister, or descendant of a brother or sister, pays 5 per cent.; any other person or a charity pays 10 per cent. (w). Where there has been a transmitted succession, that is, where transmitted the successor before becoming entitled in possession has died, succe ^ 10ns ’ (9) s. 2. ( h ) s. 3. ( i ) s. 4. (7c) s. 5. (7) s. 7. (m) s. 8. ( n ) Finance (1909-10) Act, 1910, s. 58; Succession Duty Act, 1853, ss. 10, 11, 16. For the rates formerly payable, see Succession Duty Act, 1853, ss. 10, 11, 16; Customs and Inland Revenue Act, 1881, s. 41; Customs and Inland Revenue Act, 1888, s. 21 (1); Finance Act, 1894, s. 1. G. — C. I 114 transferred successions ; exemptions ; BK. I., PT. I. SALES, EXCHANGES AND GIFTS. and the property has thus passed to some one else, the trans- mittee — the new successor — if the property the subject of the succession is personal property (not including leaseholds), will pay only one duty, but the crown can claim the higher rate of duty — that is to say, if the original successor would have paid at the rate of 5 per cent, on the value of his succession, and the transmittee would have to pay 10 per cent, on the value, the crown could claim the latter rate of duty, and so vice versa (o). If the property consists of realty or leaseholds, s. 14 doeis not apply, and it would seem that both duties would be payable (p). Where a succession, before falling into possession, has be- come vested, by alienation, or any title not conferring a new succession, in any other person, that is to say, where there is a transferred succession, the duty is payable just the same as if no such alienation had been made; such, also, will be the case where the title to any succession has been accelerated by the extinction or surrender of any prior interest (q). No succession duty is payable where the whole successions derived from the same predecessor are not of the value of 100Z., or where the property has j;>aid legacy duty (r), or where the net value of the property, real and personal, in respect of which estate duty is payable, exclusive of property settled otherwise than by the will of the deceased, does not exceed 1,000Z. (s). Formerly, no duty was payable where the successor was the husband or wife of the predecessor (t), or was a lineal ancestor or descendant succeeding to property chargeable with estate duty (u) ; but such successors now pay duty where the death occurred on or after the diOtli April, 1909, except where the principal value of the property passing on the death of the deceased, in respect of which estate duty is payable, does not exceed 15,000L, or where the total value of the benefits derived by the successor from the predecessor do not exceed 1,000£., or, (o) s. 14. (p) See Wolverton v. A.-G., (1898) A. C. 535; Northumber- land v. A.-G., (1905) A. C. 406. (?) s - 15 - (r) s. 18. (s) Finance Act, 1894, s. 16 (3). (£) Succession Duty Act, 1853, s. 18. ( u ) Finance Act, 1894, s. 1. THE ABSTRACT OF TITLE AND REQUISITIONS. 115 if the successor is the widow or infant child of the predecessor, 2,000/. (x). The duty becomes due (subject to s. 20) on the successor becoming entitled in possession. The Succession Duty Act, 1853 (s. 21), provided that the interest of the successor in real property (with a few exceptions) was to be considered to be the value of an annuity equal to the annual value of the pro- perty after making certain allowances and valued according to the tables in the schedule to the act; and the duty was to be paid in eight equal half-yearly instalments, the first of which was to be paid at the expiration of twelve months next after the successor has become entitled, provided that if he died before aJl the instalments had become due any instalment not due at his death ceased to be payable, except in the case of a successor competent to dispose by will of a continuing interest in such property. Since the Finance Act, 1894, where the successor is competent to dispose of the property, the value is the princi- pal value of' the property after deducting estate duty and the expenses properly incurred in raising and paying the same, and it may be paid either (1) in a lump sum; or (2) by eight yearly instalments or sixteen equal half-yearly instalments, the first being paid at the end of the year from the time of the successor becoming entitled in possession. When the payment is made by instalments, the unpaid instalments carry interest at 3' per cent. (y). A person is to be deemed competent to dispose of property if he has such an estate or interest therein, or such general power as would, if he were sui juris, enable him to dispose of the property, including a tenant in tail, whether in possession or not (z). The principal value of the property is usually the price which, in the opinion of the Inland Revenue Commis- sioners, the property would fetch if sold in the open market at the death of the predecessor after making certain de- ductions (a ) . ( x ) Finance (1909-10) Act, and 18. 1910, s. 58. (z) Finance Act, 1894, s. 22 (2). ( y ) Finance Act, 1894, ss. 6 (8) (a) See Succession Duty Act, i 2 duty when payable ; how it should be paid. Who is “ competent to dispose.” 116 BK. I., PT. I.— SALES, EXCHANGES AND GIFTS. duty is a charge on the property ; except where land is sold under a trust for or power of sale ; effect of receipt ; when barred. Succession duty is a first charge on the interest of the suc- cessor, and of all persons claiming in his right in all the real property ( b ) in respect whereof such duty is assessed, and also on the interest of the successor in personal property (b) on which it is assessed while the property remains in the ownership or control of the successor or his trustee, or of the husband of any wife who shall be successor (c) ; it will have priority over all charges and interests created by the successor, but will not affect or charge any of his real property other than that comprised in the succession. But where settled real property comprised in a succession is subject to any power of sale exerciseable with the consent of the successor or by the successor with the consent of another, he is not disqualified by the charge of the duty on his succession from authorizing the exercise of the power or exercising the power with consent, the duty being then charged on the substituted property (d ) . As the duty is charged on the successor’s interest, a purchaser from trustees who are selling under a trust for sale, whether contained in a deed or in a will, is not concerned to see to the payment of succession duty; and the position is the same when the sale takes place under an express power of sale or under the powers conferred by the Settled Estates Act, 1877, or the Settled Land Act, 1882, the duty in all these cases being charged on the proceeds of sale (e). Sect. 52 of the act of 1853 provides that the receipt for the duty and a certificate of payment shall exonerate a bond fide purchaser from such duty, notwithstanding any suppression or misstatement in the account. By the Customs Act, 1889, s. 12, property ceases as against a purchaser or mortgagee to be charged with succession duty 1853, s. 22, and Finance Act, 1894, ss. 7 (5), 18; Finance (1909-10) Act, 1910, ss. 60, 61. (6) “Real property” here in- cludes leaseholds, “ personal pro- perty ” does not. Succession Duty Act, 1853, s. 1. (c) The duty is also made a charge on real property by the Finance Act, 1894, s. 18 (1). (d) Act of 1853, s. 42. (e) Dugdale v. Meadows (1870), L. R. 6 Ch. App. 501 ; Re Warner's S. E. (1881), 17 C. D. 711; and see Williams, Vendor and Pur- chaser, 2nd ed. pp. 1286 et seq. THE ABSTRACT OF TITLE AND REQUISITIONS. 117 after the expiration of six years from the date of notice to the Commissioners of Inland Revenue of the fact of the succession or from the first payment by the successor of any instalment of the duty, or in the absence of any such notice or payment after the expiration of twelve years from the happening of the event which gave rise to an immediate claim to such duty (/). In addition to succession duty, all property, real or personal, settled or unsettled, which passes, or is deemed to pass, on the death of anyone dying after the 1st August, 1894, is liable to “ estate duty ” by virtue of the provisions of the Finance Acts, 1894 — 1912, the rates of duty varying from 1 to 15 per cent, -according to the net aggregate value of the property. If the property is settled, an additional 2 per cent, estate duty, called “ settlement estate duty,” has also to be paid in certain cases (g ) . By s. 9 (1) of the act estate duty is made a charge on the pro- perty if, and if only, it does not pass to the executor as such. A purchaser, therefore, of leaseholds which have passed under a will or intestacy need not concern himself with the question whether the duty has been paid, since they pass to the executor or administrator as such (h ) . But it is otherwise in the case of realty, which, even since the Land Transfer Act, 1897, is not property passing to the executor as such for this purpose (i). Where the property does not pass to the executor as such, the liability of the purchaser to see that the duty has been paid exists whether the vendor is a beneficial owner, a trustee selling under a trust for or a power of sale, or an executor or administrator (fc), and the provisions of the act exempting a bond fide purchaser for valuable consideration without notice from liability to pay the duty should not be relied upon, as it is not clear whether the notice referred to is notice of the death or notice of the non-payment of the duty (7). If, however, (/) As to the notice referred to, see s. 15 of the act. ( g ) Finance Act, 1894, s. 5. ( [h ) See ss. 6, 8, and 9 of the Finance Act, 1894; and Re Cul- verhouse, (1898) 2 Ch. 251. ( i ) Re Palmer, (1900) W. N. 9 : In re Sharman, (1901) 2 Ch. 280. (A) See Law Notes, vol. xvii. pp. 176 and 219, and vol. xviii. p. 332. (Z) Finance Act, 1894, ss. 8 (18), 9 (1), 11 (4). (b) Estate duty. When a charge on the property. 118 BK. I., PT. I. — SALES, EXCHANGES AND GIFTS. When barred. Increment value duty. As to volun tary settle- ments. twelve years have elapsed since the death, the purchaser is pro- tected, since by the Finance Act, 1894, s. 8 (2), the provision of the Customs and Inland Revenue Act, 1889, s. 12, above, by which succession duty is barred, applies also to estate duty. Increment value duty, which was imposed by the Finance (1909-10) Act, 1910, appears not to be a charge on the land where it is payable on the occasion of a transfer on sale (m), though, as we have seen, the purchaser must see that the con- veyance to him is duly stamped with one of the stamps men- tioned in s. 4 (3) of the act (w). But where the duty is pay- able by reason of the land passing on death, the duty is to be assessed, collected and recovered as if it were estate duty, except that the duty is to be payable out of the land even if it passes to the personal representative as such, so that in all cases it will be a charge on the land, and the purchaser must see that it has been duly paid (o) . Whether the duty payable periodically by bodies corporate or unincorporate is charged on the laud or not is not clear from the act (p). If a voluntary settlement were found on the title, and the deed were less than ten years old, it used to be thought that the purchaser ought to decline to complete, even though evi- dence was produced to him that the vendor was solvent at the time (g). For by s. 47 of the Bankruptcy Act, 1883, a volun- tary settlement is void against the trustee in bankruptcy if the settlor becomes bankrupt within two years of its date, and is void against the trustee if he becomes bankrupt within ten years thereafter, unless the parties claiming under it can prove that he was able to pay all his debts without the aid of the property comprised in the settlement, and that the property passed to the trustee of the settlement on its execution. But in the ease of Re Carter and Render dine' s Contract (r), the Court of Appeal held that the section does not render a voluntary settlement (m) See s. 1 and s. 4 (4) of the act. in) Ante, p. 74. (o) See s. 1 (b); s. 5. (p) See s. 1 (c); s. 6, and Napier’s New Land Taxes, 2nd ed. p. 125. ( q ) Be Briggs and Spider,. (1891) 2 Oh. 127. (r) (1897) 1 Oh. 776. THE ABSTRACT OF TITLE AND REQUISITIONS. 119 void ab initio, but only voidable, so that if the property com- prised in the settlement has been sold to a purchaser before it has been avoided, the latter will have a good title, even though he bought after the commencement of the bankruptcy (s). Further, a conveyance made with intent to defeat, hinder or delay creditors is void under 13 Eliz. c. 5; and, in the absence of any evidence to the contrary, a voluntary deed will be pre- sumed to be made with intent to defraud within the meaning of the act if its effect is to deprive the settlor of the means of paying his debts (£). But it has been decided that s. 5 of the act protects a purchaser of any interest under the deed, whether legal or equitable, if he is without notice, and prevents the deed being void against him (u ) . Since these decisions, therefore, a purchaser cannot refuse to complete on the ground of the existence of a voluntary settlement, unless he has notice that the settlor has committed an act of bankruptcy. When the property sold is a renewable lease, and the ab- stract shows it to have been surrendered and renewed, pro- duction of the surrendered lease, and evidence that no beneficial interest in it "which would attach to the new lease is outstanding 1 , and that the surrenderor was the legal as well as the equitable owner, must be required. For the reference to the old lease is constructive notice of its contents (x ) ; and when a trustee renews a lease, it enures to the advantage of all who were beneficially interested in the old lease, so that it is necessary to see that there are no such persons. A general inquiry should be made whether roads and foot- paths abutting on the property have been taken over by the local authorities; and evidence required that all charges (if any) for making, repairing, and draining the same have been fully satisfied ( y ) . (s) Be Hart , Ex parte Green, (1912) 3 K. B. 6. (£) Freeman v. Pope (1870), L. R. 5 Ch. App. 538; see also below, Part V., p. 450. (u) Halifax Joint Stock Bank- ing Co. v. Gledhill, (1891) 1 Ch. 31. (as) Coppin v. Fernyhough (1788), 2 Bro. C. C. 291; Hodg- kinson v. Cooper (1846), 9 Beav. 304. {y) See Dickens, Requisitions on Title, 2nd ed. 5, 7, 16, and 61; Jackson and G osset, Investigation of Title, 3rd ed. 372; see also Be As to sur- rendered leases. As to roads abutting* on property. 120 As to ease- ments. As to notices by local authorities. As to incum- brances generally. Notice generally. BK. I., PT. I. — SALES, EXCHANGES AND GIFTS. A general inquiry should be made whether there are any rights of way, water, or other easements affecting the property sold. Strict proof that there are none cannot, of course, be insisted on, for the presumption is that they do not exist, and the vendor cannot be expected to prove a negative ( z ) . A general inquiry should also be made, where the subject- matter of the purchase consists of house property, whether any parochial or other notices under the Public Health Acts, or otherwise, have been served on the vendor or the tenant of the property (z). At one time it was the practice to conclude the requisitions with a general inquiry if there were any annuities, lis pen- dens, or any lease, mortgage, writ of execution, bankruptcy, or insolvency, or deed or document, or any charge or incum- brance affecting the property sold, known to the vendor or his solicitor, and not disclosed by the abstract. But, in Re Ford and Hill ( a ), it was held that this was a requisition that neither the vendor nor his solicitor was obliged to answer . - To require an answer to such a searching inquiry would only tend to increase the expense and delay in the investigation of titles . Notice of Defects in Title. The purchaser and his solicitor must not, however, rely solely on the abstract of title furnished by the vendor, and the in- formation disclosed by the deeds and documents produced in verification of it, and the answers to his requisitions on title. If the purchaser or his agent ought to have discovered an in- cumbrance or any other fact adversely affecting the title by making such inquiries as a prudent man would have made, he is deemed to have notice of it, and he cannot avoid being affected by it merely because the vendor has not expressly dis- closed it (b). Allen and Driscoll's Contract, (1904) 1 Ch. 493, as to when the charge for paving, &c. under the Public Health Act, 1875, arises. ( 2 ) See Dickens, Bequisitions on Title, 2nd ed. 5, 7, 16, and 61; Jackson and Gosset, Investigation of Title, 3rd ed. 132, 372, 391. (а) (1879), 10 Ch. D. 335. (б) See Berwick & Co. v. Price, (1905) 1 Ch. 632. THE ABSTRACT OF TITLE AND REQUISITIONS. 121 Notice may be either actual, constructive, or imputed. The subject of notice as between vendor and purchaser (which term includes mortgagee and lessee) is now codified by s. 3 of the Conveyancing Act, 1882, which is as follows: — (1 .) A purchaser shall not be prejudicially affected by notice of any instrument, fact, or thing, unless — (i) It is within his own knowledge, or would have come to his knowledge if such inquiries and inspec- tions had been made as ought reasonably to have been made by him; or (ii) In the same transaction, with respect to which a question of notice to the purchaser arises, it has come to the knowledge of his counsel as such, or of his solicitor or other agent as such, or would have come to the knowledge of his solicitor or other agent as such, if such inquiries and inspections had been made as ought reasonably to have been made by the solicitor or other agent. (2.) This section shall not exempt a purchaser from any liability under or any obligation to perf orm or observe any covenant, condition, provision or restriction con- tained in any instrument under which his title is derived, mediately or immediately; and such liability or obligation may be enf orced in the same manner and to the same extent as if this section had not been enacted. (3;.) A purchaser shall not by reason of anything in this section be affected by notice in any case where he would not have been so affected if this section had not been enacted. Par. (i) of the first sub-section contains the law of actual and constructive notice strictly so called; par. (ii) that of imputed notice. With regard to actual notice , it is sufficient to say that (1) it must be given by a person interested in the property and in the course of the negotiations (c); (2) it must be given to a person authorized to receive it. Notice to the solicitor of Notice actual, constructive, or imputed. 45 & 46 Viet, c. 39, s. 3. Effect of the statutory provision. (c) Barnhart v. Greenshields (1853), 9 Moo. P. C. 18. 122 BK. I., PT. I. SALES, EXCHANGES AND GIFTS. trustees, for instance, is not necessarily notice to the trustees, there being no such relation between a man and his solicitor as to make the latter his agent for all purposes (><#) . And (3) the notice must he clear and distinct; mere vague reports from persons not interested in the property will not affect the purchaser (e). If' he has notice of an outstanding equitable mortgage, he must see that it is discharged, and ought not to rely on an assurance from the vendor or the vendor’s solicitor that it has been discharged (/) . With regard to constructive notice , a purchaser of real property “ought reasonably” to- make such inquiries as are usually made. “Ought” does not imply a legal duty. “ The expression bought reasonably ’ must mean ought as a matter of prudence, having regard to what is usually done by men of business in similar circumstances” (g). He ought to inquire into the vendor’s title, and is affected with notice of what appears on the title if he does not inquire, and apparently he will have notice of everything which appears on the vendor's title during the last forty years, even though the contract under which he buys jorovides for a shorter title only being shown (Jo ) . He ought also to inquire into circumstances which he knows of affecting the property which may adversely affect his interest. For example, if he finds the property in the possession of a tenant, he ought to inquire into the terms of' the tenancy, for he will have constructive notice of the rights of the tenant, but he is not bound to inquire with reference to any other thing than the right of the tenant (i). He need not inquire, for instance, to whom the tenant pays rent, so that the omission to do so does not fix him with constructive notice of the right of the payee (k). With regard to imputed notice, it should he remembered that notice to a solicitor will not be notice ( d ) Saffron Walden Building Co. v. Rayner (1880), 14 Ch. D. 406. (e) Barnhart v. Greenshields (1853), 9 Moo. P. 0. 18. (/) Jared v. Clements, (1903) 1 Oh. 428. ( g ) Per Lindley, L. J., in Bailey v. Barnes, (1894) 1 Oh. at p. 35. ( [h ) Be Cox and Neve, (1891) 2 Oh. 109; Re Nisbet and Potts , (1906) 1 Ch. 386. (y) See note (e), supra. (k) Hunt v. Luck, (1902) 1 Ch. 428. THE ABSTRACT OF TITLE AND REQUISITIONS. 123 to the client if the solicitor is a party to a fraud (7), and the section has narrowed the law by confining the liability for knowledge received by a solicitor or agent to knowledge re- ceived in the same transaction as that in which the question of notice arises (m) . Waiver of Objections to the Title. Any objections made to the title, or the right to have a good title shown, may be waived, either expressly or impliedly, before the conveyance of the property. First, as to express waiver. A purchaser who accepts a title of course waives all objections (A); but an acceptance of the title as abstracted does not amount to a waiver of the right of having the abstract properly verified (nj. For does his accept- ance of the title bind him if the vendor keeps back any material fact (oj. Secondly, a waiver may he inferred from the acts of the pur- chaser. If he takes possession primd facie he waives all objec- tions appearing on the abstract; but it depends on the circum- stances. If 1 possession be taken in accordance with the terms of the contract or by the vendor’s consent, it will of itself not amount to waiver (p). On the other hand, where the purchaser took possession under agreement, retained the abstract for a long time, altered and let the premises, and apologised to the vendor for his delay in paying the purchase-money, his conduct was held to amount to an admission that the title was ap- proved (g) . But even when a presumption of waiver does arise from the taking of possession, it may be rebutted by other evidence (r). Further, possession taken with a knowledge of Waiver may be express or implied. (i) As to ex- press waiver. (ii) As to implied waiver — (a) taking- possession ; (Z) Cave v. Cave (1880), 15 Oh. D. 639. (m) See Re Cousins (1886), 31 Oh. D. 203. {n) Southby v. Hutt (1837), 2 My. & Or. 207. (o) Bousfield v. Hodges (1863), 33 Beav. 90; see especially p. 94; Re Haedicke and Lipski, (1901) 2 Ch. 666. (p) Dart, Vendors and Pur- chasers, 7th ed. 515. ( q ) Margravine of Anspach v. Noel (1816), 1 Madd. 310. (r) Hyde v. Warden (1877), 3 Ex. D. 72. 124 (b) tendering draft con- veyance ; (c) attempt to resell. Provisions of Vendor and Purchaser Act, 1874, as to disputes on requisitions. BK. I., PT. I. SALES, EXCHANGES AND GIFTS. defects in the title is not a waiver of the right to have those defects removed by the vendor if he can remove them (s) . The preparation and tender to the vendor of' the draft con- veyance does not necessarily amount to a waiver of objections to title, but it may help to prove it. For instance, where after the requisitions had been sent in and answered, and a draft conveyance tendered to the vendor without prejudice to the requisitions, the purchaser had taken no objection to the replies to requisitions, and the only negotiation pending between the parties was as to the payment of the purchase- money, it was held that the title must be deemed to have been accepted (t). An attempt by the purchaser to resell is not conclusive that he has accepted the title; but in conjunction with other facts it may lead to that inference (■ u ) . Disputes between Vendor and Purchaser. If any dispute arise in respect of any of the requisitions or objections, or any claim for compensation, or upon any other question arising out of or connected with the contract (not being a question affecting the existence or validity of the con- tract), a summary method of obtaining a decision is provided by s. 9 of the Vendor and Purchaser Act, 1874, which enables the vendor or purchaser, whether the property is real or lease- hold estate, to apply to a judge in chambers in the Chancery Division, and the judge may make such order as to him shall appear just and direct how and by whom the costs of the appli- cation shall be borne. The section is intended to enable a decision to be obtained on distinct isolated points arising out of or connected with the contract, and not a general declaration as to the soundness of the vendor’s title (a;). Where the vendor’s title depends upon a question of construction involving real difficulty, the proper mode of procedure is to issue an originating summons for con- (s) Re Gloag and Miller (1883), 23 Oh. D. 320. (t) Sweet v. Meredith (1862), 8 Jur. N. S. 637. (• u ) Simpson v. Sadd (1855), 24 L. J. Oh. 562. (cc) Re Wallis and Barnard , (1899) 2 Oh. 515. THE ABSTRACT OF TITLE AND REQUISITIONS. 125 struction, since an order made on such a summons will be bind- ing on all the parties interested; if in such a case the vendor insists on proceeding by summons under this section the court may declare the title too doubtful to be forced on the pur- chaser^). The court has power under the section to decide disputed questions of fact(z); and may direct such things to be done as are the natural consequences of its decision (a) . Applications have been made under it to decide whether an attempted limitation was void for remoteness (6); whether suc- cession duty was payable, and upon what events (c); whether a condition of sale was misleading as distinct from fraudu- lent (d ) ; whether a vendor had shown a title to the soil or only to rights of pasturage (e); whether the vendor was entitled to rescind the contract (/) ; whether the vendor, failing to show a good title, ought to return and pay interest on the deposit (g); and to settle the form and contents of the conveyance (h ) . And the court may order the rescission of the contract and deposit to be returned even on a summons taken out by the vendor (i ) . The costs will generally follow the event, but they are in the discretion of the court (1c ) ; and even a successful applicant may be ordered to pay costs (7); and there is jurisdiction to order the vendor to pay the purchaser’s costs of investigating the title, and to charge them on the vendor’s interest in the (y) Be Nichols and Von Joel's Contract, (1910) 1 Ch. 43. ( z ) Be Burroughs, Lynn and Sexton (1877), 5 Ch. D. 601. (а) Be Hargreaves and Thomp- son's Contract (1886), 32 Ch. D. 454. (б) Be Brown and Sihly's Con- tract (1876), 3 Ch. D. 156. (c) Be Cooper and Allen's Con- tract (1876), 4 Ch. D. 802; Be Kidd and Gibbon's Contract, (1893) 1 Ch. 695. (d) Be Marsh and Earl Gran- ville (1883), 24 Ch. D. 11; com- pare Be Sandbach and Edmond- son's Contract, infra. (e) Be Burroughs, Lynn and Sexton, supra. (/) Be Jackson and Woodburn's Contract (1887), 37 Ch. D. 44. ( g ) Be Hargreaves and Thomp- son's Contract (1886), 32 Ch. D. 454. ( h ) Be Agg-Gardner (1884), 25 Ch. D. 6C0; Be Lander and Bagley's Contract, (1892) 3 Ch. 41. (t) Be Walker aid Oakshoit's Contract, (1901) 2 Ch. 383. ( k ) Be Hargreaves a id Thomp- son's Contract (1886), 32 Ch. D. 454. (l) Be Cooper and Allen's Con- tract (1876), 4 Ch. D. 802. 126 BK. I., PT. I. — SALES, EXCHANGES AND GIFTS. property (m) . But the court cannot decide whether the vendor is hound as to the disposition of the purchase-money by ,a clause in restraint of anticipation, since the question does not concern the purchaser (w). Nor will the court entertain the question whether a condition of sale is fraudulent, as this is a matter involving the validity of the contract (o) . (o) Re Sandbach and Edmond- son's Contract , (1891) 1 Oh. at p. 102 . (m) Re Yielding and Westbrook (1886), 31 Oh. D. 344. (ft) Re Tippetts and Newbould’s Contract (1887), 37 Oh. 444. FORM AND CONTENTS OF A PURCHASE DEED. 127 CHAPTER VII. THE FORM AND CONTENTS OF A PURCHASE DEED. After having examined the abstract of title with the deeds, and obtained satisfactory replies to his requisitions, the pur- chaser or his solicitor prepares a draft of the conveyance and submits it to the vendor or his solicitor for his approval. The preparation of the draft conveyance involves a con- sideration of the following points: — The Date. The date of a deed is not an essential part of it, so that even if it is undated, or the date is an impossible one — the 30th of February, for example — the deed is good, and takes effect from its delivery; as it does also where it is dated, but the date stated in the deed is not the date on which delivery was made (a). But the date stated is presumed to be correct until the contrary be shown, so care should always be taken to state it correctly. The Parties. 1. The Portias conveying. Who are the proper parties to the conveyance must depend on the circumstances of the case. Every person whose con- currence is necessary to vest in the purchaser the estate or interest contracted to be sold must be made a party. When the vendor is the sole legal and beneficial owner of the pro- perty free from incumbrances, he alone will be the conveying (a) Goddard's Case (1584), 2 Rep. fo. 5; see generally Norton, Deeds, 173. Preparation of conveyance. Immateriality of date. The vendor is generally the only convey- ing party. 128 On sale by mortgagee, mortgagor’s concurrence cannot be required. Concurrence of trustees may be compelled. Conveyance by direction of purchaser to sub- purchaser. BK. I., PT. I. SALES, EXCHANGES AND GIFTS. party. When the vendor is under any of the disabilities men- tioned in the first chapter he must convey through his proper substitutes, or with the proper concurrence. The vendor cannot be required to obtain the concurrence of parties who are unnecessary, even though he has the power to do so (&), unless he has expressly contracted that he w T ill(c). Thus, on a sale by a mortgagee under a power of' sale, the pur- chase]' cannot require the Vendor to obtain the concurrence of the mortgagor, notwithstanding that the mortgagor has in the mortgage deed agreed to join in any sale if required (b). The express power of sale ordinarily inserted in mortgages, as well as that conferred by the Conveyancing Acts, 1881 and 1911, exonerates the purchaser from inquiring whether a case has arisen to authorize a sale, and makes the mortgagee’s receipt for the purchase-money a sufficient discharge, so that there is no necessity, and therefore no right to insist on the concurrence of the mortgagor. On the other hand, it is scarcely necessary to say that, sub- ject to the terms of the contract, the vendor may be compelled to obtain the concurrence of parties who are necessary and are bound to convey at his request, such as trustees of the legal estate (d). Sometimes one party may convey by the direction of another party, as, for example, in the common case where the vendor has sold before he has obtained a conveyance of the land to himself from the person from whom he bought. Here, instead of getting his vendor to convey to him, and then conveying to the sub-purchaser, he often requests his vendor to convey direct to the sub-purchaser, while he himself joins in the deed to pass his equitable interest and to give covenants for title as regards his own acts(e). It appears that the purchaser may require the property to be conveyed in any number of lots, and to any number of persons, and the vendor has no ground of (6) Corder v. Morgan (1811), 18 Ves. 314. (c) Benson v. Lamb (1846), 9 Beav. 502. (d) See Costigan v. Hastier (1804), 2 Sell. & Lef. 160. (e) The stamp duty on the con- veyance in this case is reckoned on the consideration for the sub- purchase, and not on the original purchase-money. See Stamp Act,. 1891, s. 58 (5). FORM AND CONTENTS OF A PURCHASE DEED. 129 objection so long as lie is paid any additional expense occa- sioned by his providing several conveyances instead of one only (/). Sometimes it may be found of advantage to join persons as parties for the purpose of giving covenants for title. For instance, where the trustee of' a will is selling it will be desir- able, if possible, to obtain covenants for title from the bene- ficiaries entitled to the proceeds of the sale (g ) . Similarly, where a sale is made under a power in a settlement exerciseable with the consent or by the direction of the tenant for life, the purchaser should make the tenant for life a party so as to obtain covenants for title from him limited to his interest (g ) . On a sale by a trustee in bankruptcy the bankrupt need not be made a party, and no advantage is gained by joining him, since his covenants are of' little or no value, but when the liquidator of a company conveys under ss. 151, 186 of the Companies (Consolidation) Act, 1908, the company must always be made a party, since the property is not vested in the liquidator. When a sale takes place by order of the court all persons having a legal interest in the property, whether parties to the action or not, concur in the conveyance, but the purchaser is not entitled to the concurrence of any persons being parties to the suit or otherwise, and to the proceedings therein, whose interests are merely equitable (h). Parties are not often joined for the mere purpose of giving them notice of the deed, since the cost thereby occasioned is generally out of proportion to the advantage derived, and direct notice by a separate instrument is more usually given. How- ever, if the persons to whom notice of the assurance ought to be given will join in the deed and thus acknowledge receipt of notice, it is useful, as enabling the purchaser on a subsequent sale to dispense with the necessity of proving the service of notice. Parties joined for the pur- pose of giving covenants for title : (a) benefi- ciaries under a will ; (b) tenant for life ; (c) sale by trustee in bankruptcy or liquidator (d) sale under order of court. Parties joined in order to affect them with notice. (/) Earl of Egmont v. Smith (1877), 6 Oh. D. 469. ( g ) See further on this point, infra, p. 143. ( h ) Dart, 7th ed. 1182 et seq. See also s. 70 ol the Conveyancing Act, 1881, and Jones v. Barnett, (1900) 1 Oh. 370. G. — C. K ISO B K. I., PT. I. SALES, EXCHANGES AND GIFTS. Conveyanoe to partners. Conveyance for the benefit of persons not parties. 8 & 9 Viet, c. 106. Recitals should be cautiously used : (1) because they may control the operative part ; and 2. The Parties to whom the Conveyance is made. When the purchasers are partners, purchasing property for partnership purposes, it may be advisable, with a view to keeping the fact of the partnership off the title deeds, to convey to them as tenants in common; but there is an objection to this course, viz., that should they wish to sell, in case of the death of a partner, it would be necessary to obtain the concurrence of his representatives. The more usual form of conveyance now is to the partners as joint tenants, as part of the partnership estate, with a proviso that the survivors or sur- vivor of them shall have full power to convey and give effectual receipts. An alternative is to make the conveyance to trustees on behalf of the partners, the deed subsequently declaring that the trustees are to hold the property for the partners as part of the capital or joint stock of their partnership business, in proportion to their several shares in the same. This method may have advantages if there is a likelihood of changes taking place in the constitution of the firm (i). In former times no person could take an interest under an indenture who was not named as a party therein. But now, by s. 5 of the Beal Property Act, 1845, under an indenture an immediate estate or interest in any tenements or hereditaments, and the benefit of a condition or covenant respecting the same, may be taken, although the taker is not named as a party (k). Recitals. Recitals are of two kinds — narrative recitals, and introduc- tory recitals. Narrative recitals relate the past history of the property conveyed; while introductory recitals indicate the purpose of the deed in which they are contained. Recitals should be inserted with caution, because they may control the operative part of the deed, and because the doctrine of estoppel applies to them. As to the first point, if there is a discrepancy, between the recitals and the operative words, the latter will (i) See Sol. Jour. vol. xxxiii. ( h ) See e.g. Dyson v. Foster, 103. (1909) A. C. 98. FORM AND CONTENTS OF A PURCHASE DEED. 131 prevail if they are clear and unambiguous; but where the operative part of a deed is ambiguous it may be controlled by clear and unambiguous recitals (l). As to the second point, a recital in a deed will estop the ( 2 ) because of x . P the doctrine parties to the deed and persons claiming through them from 0 f estoppel. showing the existence of a different state of things from that stated in the recital. But to have this effect the recital must be precise and unambiguous (m ) ; thus, while a recital that the grantor “is legally seised” will create an estoppel, a recital that “ he is seised or entitled at law or in equity ” does not create one (w), and it must appear on the face of the deed that the parties against whom the estoppel is set up intended to bind themselves by the recital (o). Further, there is no estoppel when the element of fraud or duress enters, or where the party executing the deed is under disability, e.g., is an infant (p). And a person is not estopped from denying a statement in a deed executed by him in a subsequent action between the parties not founded on the deed but wholly collateral to it (q ) ; nor by a recital or statement of a fact wholly immaterial to the purpose of the deed (r) . Recitals are often necessary to show the state of the title, and Recitals used . p . . . , p l . for various may be usefully employed lor various purposes. purposes: Thus, having regard to the provision of the Vendor and Pur- (a) as evi- dence ; (l) Elphinstone, Norton & Clark, Interpretation of Deeds, rules 36 and 37; Norton, Deeds, 181 et seq.; Jenner v. J enner (1866), L. R. 1 Eq. 361; see also Hammond v. Hammond (1854), 19 Beav. 29; Dent v. Clayton (1864), 10 Jur. N. S. 671. (m) See per Lord Cairns, L. C., in Heath v. Crealock (1874), L. R. 10 Ch. App. at p. 30; per Sir G. Jessel, M. R., General Finance Co. v. Liberator Building Society (1878), 10 Ch. D. at p. 21 et seq.; per Bowen, L. J., Onward Build- ing Society v. Smithson, (1893) 1 Ch. at p. 14. (ft) Wight v. Bucknell , 9 L. J. K. B. 304. (o) See S. E. Rail. Co. v. Warton (1861), 6 H, & N, 520; Stroughill v. Buck (1850), 14 Q. B. 781. ( p ) Taylor, Evidence, 10th ed. vol. i. 97, § 93. Coverture is apparently not a disability for this purpose. See Re Fiddey, Jones v. Frost (1872), L. R. 7 Ch. App. 773. ( q ) See. Fraser v. Pendlebury (1861), 31 L. J. C. P. 1. (r) Per Parke, B., in Carpenter v. Butler (1841), 8 M. & W. at p. 213. K 2 132 (b) for ex- plaining the purposes of the deed ; (c) to connect with earlier deeds. Reasons for stating the consideration. BK. I., PT. I. SALES, EXCHANGES AND GIFTS. chaser Act, 1874, s. 2 (2), that recitals of facts in documents twenty years old must be taken to be sufficient evidence of the truth of such facts, and also the provision of s. 3 (3) of the Conveyancing Act, 1881, that recitals contained in any abstracted instruments of any documents prior to the root of title are correct, they may be inserted with a view to being used as evidence on subsequent sales of the property; and in order to get the advantage of the decision in Bolton v. The London School Board (s), in case the law of it may eventually be held sound, that a recital in a deed twenty years old, that the then vendor was seised in fee simple, precluded the purchaser from requiring the vendor to carry the title further back, it lias become common for a purchaser’s solicitor to insert such a recital in a conveyance of the fee. Again, recitals may be used to explain the purposes which the parties intend to effect by the deed, and to explain the operative part of the deed, by stating all circumstances necessary to render its effect intelligible (t). Lastly, recitals are used, when the deed in which they occur is effectual only by virtue of its complying with the terms of some other deed, to show that the terms have been duly complied with. Thus, where the deed is executed in pursuance of a power given by some previous deed, that previous deed' should be recited, so as to show what formalities, if any, are required to be observed in the execution of the power; and by comparing the recital of the power with the terms of the deed, it may at once be seen whether or no the requisite formalities, have been duly observed (u ) . The Consideration. A deed is not void for want of a consideration, but there are several reasons why the consideration, if there be one, should be stated either in the recitals or in the body of the deed. The (s) (1878), 7 Ch.D. 766; but see Midland Rail . Co., (1894) 1 Oh. Re Wallis and Grout's Contract, 11; below, p. 144. (1906) 2 Ch. 206; ante , p. 52. ( u ) See as to rentals generally, ( t ) As to the effect of recitals Williams, Vendor and Purchaser, on covenants for title, see Page v. vol. i. 555. FORM AND CONTENTS OF A PURCHASE DEED. 133 first reason is that on a grant of a freehold without considera- tion, a presumption of a resulting use arises. If before the Statute of Uses came into operation, A. enfeoffed B. of land without any consideration passing, in equity B. held the land to the use of A., and since the statute, A., who has the use, becomes immediately clothed with the legal estate; so the result is that the conveyance is inoperative and passes nothing, or at most is useful to ‘‘break the descent.” But where either a consideration is expressed, or a use is expressed, the equitable doctrine of a resulting use does not apply, and in practice not only is the consideration set forth, but the habendum is gene- rally made “ unto and to the use of ” the grantee and his heirs, whether the deed be for value or not (x ) . By these means all chance of a resulting use is avoided . Another reason for stating the consideration is, that by the Stamp Act, 1891, s. 5, a penalty of 1(U. is imposed on any person who, with intent to defraud, does not fully and truly set forth all facts and circumstances affecting the liability of the instrument to or the amount of ad valorem duty chargeable. Again, by s. 54 of the Conveyancing Act, 1881, a receipt for consideration money in the body of a deed will, in deeds executed after the 31st December, 1881, operate as a sufficient discharge to a purchaser, the payer thereof, without any further receipt being indorsed. And again, by s. 55 of the same act, the receipt in the body of the deed will (equally with the indorsed receipt), in deeds executed after the same date, be sufficient evidence of such payment in favour of a subsequent purchaser who has no notice that the money has not been paid. And, moreover, we shall see hereafter (?/), that by s. 56 of the same act, as read with s. 17 of the Trustee Act, 1893, the receipt, whether in the body of or indorsed on the deed, will operate as an authority to the purchaser to pay the money to the solicitor who produces such deed. ( x ) See form of conveyance, infra, p. 153. (a) to prevent a resulting use ; (b) to avoid penalties under the Stamp Act ; (c) to avoid the necessity of the indorsed receipt. (y) Below, p. 167. 184 Lavish use of operative words in old conveyances. ‘ ‘ G-rant ’ ’ is the proper operative word, 8 & 9 Viet, c. 106 ; but is not indispensable. When new, description of parcels should be framed. BK. I., PT. I. SALES, EXCHANGES AND GIFTS. Operative Words. In perusing old deeds it will be found that the conveyancers of former days, who were almost always extravagantly verbose, were specially lavish in the case of operative words. Generally the conveying party was not content with merely “ granting and conveying' 7 the property, but would “grant, bargain, sell, alien, convey, release and confirm 77 it to the purchaser, and sometimes would say both that he had done so, and that he “ by these presents doth 7 ' do so. The reason for the employment of so many words was no doubt partly due to the idea that, if the nature of the assurance or of the property was such that some special words of conveyance might be Accessary to pass the, property, the draftsman, by using all the operative words known, might be sure of including the one applicable to the circumstances of the case; and since the conveyancer was then paid by the length of the document he drew, it is not surprising that he was rather inclined to verbiage than otherwise. All the above words have their proper significance, and each of them is appropriate to some special kind of assurances; but since the Real Property Act, 1845, the word “grant” has been the appropriate word to pass all hereditaments, corporeal and in- corporeal ( 2 ), though it is not, and never has been, indispens- able (a ) ; any words indicating an intention to grant being sufficient. In the forms in the schedule to the Conveyancing Act, 1881, the word “convey” is used throughout, and this word is commonly used in modern deeds. The Parcels. Too great care in describing the property to be conveyed cannot be taken, and it is not always advisable to take the description of the parcels from that in the abstract ; if, owing to that description being an old one, it is difficult to verify the admeasurements there given, it is very advisable to frame a new description founded on a new survey of the land. (a) Conveyancing Act, 1881, s. 49. ( z ) See s. 2. FORM AND CONTENTS OF A PURCHASE DEED. 135 In such a case the draftsman should incorporate in the deed not only the new but the old description, and refer to the fact that the property was lately held under the old description; other- wise trouble in identifying the premises to the satisfaction of a purchaser on a future sale may arise. Schedules describing the property conveyed are often extremely useful, and in the conveyance of land plans should be resorted to, but only as an adjunct to the description of the property in the body of the deed or in the schedule. With reference to erroneous descriptions of the parcels, we Defective de- may remind the reader of the maxim, “Falsa demonstrate non p C a r r iP eis n8 ° f nocet ,” i.e., where the description of 1 the property is sufficiently clear and certain to put it beyond a doubt what is intended to be passed by the deed, a subsequent erroneous addition to this description will have no prejudicial effect. For example, if A. grants the farm of Blackacre to B., and subsequently describes it (contrary to the fact) as in the occupation of X., this false addition will be considered as mere surplusage. Again, if A. conveys to B. all his meadow Blackacre, described as containing ten acres, whereas in fact it contains twenty acres, the whole twenty acres will pass to B. If technical words are used, the draftsman must take care that The meaning , • n of certain he employs them m their proper signihcance. technical Manor will pass all the demesne lands of the manor, and words: the freehold of the copyholds as well as the seigniory; and the anor ’ grant of a manor with the appurtenances will pass an advow- son appendant, except when the conveyance is by the crown (b). Messuage will pass a dwelling-house with the curtilage and Messuage ; garden attached (c) . House will include the curtilage and buildings forming part House; of or appurtenant to it, and also a garden attached to it, but probably not a detached garden belonging to it ( d ) . (6) Att.-Gen. v. Sitwell (1835), 1 Y. & 0. Ex. 559; Att.-Gen. v. Ewelme Hospital (1853), 17 Beav. 366; Hicks v. Sallitt (1853), 3 De Or. M. & Gr. 782. (c) Encyc. Eng. Law, s. v. “ Messuage,” ( d ) Stroud, Jud. Diet. s. v. “House”; Kerjord v. Seacombe, &c. Bail. Co. (1888), 57 L. J. Ch. 270. “ House ” and “ Messuage ” appear to have the same meaning. See per Ashurst, J., Doe\. Collins (1788), 2 T. R. at p. 502. 136 Farm ; Land ; Tenement ; Water ; Gateway. Ownership of highways and river beds. Ownership of ditches. BK. I., PT. I. SALES, EXCHANGES AND GIFTS. Farm will pass the farmhouse and the land held there- with (e). Land includes not only the surface of the earth, but every- thing under it or over it, such as mines, woods and houses (/). Tenement includes lands and everything- which may be the subject of tenure, whether corporeal or incorporeal, real, per- sonal, or mixed (g ) . Water will only pass the right to the water and a right of fishing, and not the land it covers. The proper word to use, if it is wished to pass the land as well as the water, is the word “ pool,” or the land may be conveyed and described as “ covered with water ” (h) . Gateway has been held in a conveyance of 1 land with the exclusive use of a gateway to pass the land covered by the gate- way («). A conveyance of land which abuts on a highway, in the absence of evidence to the contrary, passes the soil over which the highway runs up to the centre line of the highway, although the land is described by reference to a plan or by quantity which does not comprise the road or any part of it (1c) . This rule applies to streets in a town as well as to country roads (Z), but it is thought not to apply to a road where there has been no sort of' dedication to the public (m). Simi- larly, a conveyance of land which abuts on a non-tidal river or stream passes the adjoining bed of the river or stream to the centre line (n) . Where two plots of land are separated by a hedge and an (e) Stroud, Jud. Diet. s. v. “ Farm.” (/) 2 Black. Com. 18. (g) Ibid. 17. ( h ) Encyc. Eng. Law, s. v. “Water”; Stroud, Jud. Diet, s. v. “Pool.” ( i ) Reilly v. Booth (1890), 44 Oh. D. 12. ( k ) Berridge v. Ward (1861), 10 C. B. N. S. 400; Pryor v. Petre (1894), 69 L. T. 795. (?) Re White's Charities (1898), 78 L. T. 550. (m) Leigh v. Jack (1879), 5 Ex. D. 264; and see Thompson v. Hickman , (1907) 1 Ch. 550. (ft) Micklethwait v. Newlay Bridge Co. (1886), 33 Ch. D. 133; Great Torrington v. Moore Stevens , (1904) 1 Ch. 347. FORM AND CONTENTS OF A PURCHASE DEED. 137 artificial ditch, there is a presumption that the hedge and ditch belong to the owner of 1 the land on that side of the ditch on which the hedge is (a). If after a particular description general words are introduced, what is often called the ejusdem generis rule applies. The rule is shortly as follows: — If a particular description sufficiently clear to render certain what is intended is followed by general words, the general words will not be construed to signify any- thing of a higher nature or of more importance than, or of a different description from, what is before expressed. For ex- ample, if A. grants to B. the premises comprised in a specified deed “ being real estate in the county of M., and all other his lands, tenements and hereditaments (if any) in the county of M.” of which he was seised, real estate in M. not comprised in the deed will not pass to B. (p). Fixtures, and growing timber, will pass with the freehold without mention; as will mines and minerals; and if mines are to be excepted from the grant, an express reservation of them must be made. There are, however, exceptions to this rule; for instance, the mines do not pass unless they are ex- pressly mentioned in purchases by railway or canal companies under their statutory powers (g); nor do they pass under an enfranchisement of copyholds effected under the Copyhold Act, 1894, without the express consent of the lord (r). General Words. A grant of land passes not only the land itself, but all the means of enjoying it, and all its incidents and accessories; so that all easements and privileges legally appurtenant to the land will pass without being expressly mentioned. Ease- ments and privileges are said to be legally appurtenant when they have been annexed to the land or made part of the means (o) See Marshall v. Taylor, (1895) 1 Oh. 641. ( p ) See Elphinstone, Norton and Clark, Interpretation of Deeds, r. 46, p. 173 et seq.; Norton, Deeds, 227. ( q ) See the Railways Clauses Act, 1845, s. 77 ; and Errington v. Met. District Rail. Co. (1882), 19 Ch. D. 559. (r) Copyhold Act, 1894, s. 23. Ejusdem generis rule. Fixtures and mines, &c. pass wiihout mention. Exceptions. Legal appur- tenances pass under a grant of land. What are legal appur- tenances. 138 Quasi ease- ments do not pass without mention ; except in deeds exe- cuted since 44 & 45 Viet, c. 41, s. 6. Sale ‘ ‘ with the appur- tenances. ’ ’ The “ all the estate ” clause now implied. BK. I., PT. I. SALES, EXCHANGES AND GIFTS. by which enjoyment of the lands is obtained, either by express grant or by prescription, or by long user. But sometimes there are quasi profits a prendre or quasi easements which have been enjoyed with or reputed or known as part and parcel of the land, though not legally appurtenant to it. These used not to pass without being expressly mentioned, and it was to pass them that general words were formerly inserted after the parcels. The necessity, however, of using any general words is now in most cases removed by s. 6 of the Convey- ancing Act, 1881, which implies in a conveyance of land, buildings and a manor respectively a list of general words sufficiently comprehensive to pass all kinds of appurtenances, legal or otherwise. It should be observed in connection with this section, how- ever, that in Be Peck and The School Board for London (s), where there was a sale of lands “ with the appurtenances,” it was held that the purchaser was only entitled to have inserted in the conveyance such general words as he would have been entitled to before the Conveyancing Act, 1881; and as far as the general words implied by s. 6 of 'that act are more ex- tensive than the contract, the vendor is entitled to have them limited accordingly; thus, in the case last cited, it was held that the general words must be restricted in order not to pass to the purchaser a way which did not exist as of right, but which was enjoyed de facto (t). Formerly in every conveyance after the general words there was inserted the “All the estate” clause, by which all the estate, right, title, interest, claim and demand whatsoever of the grantor in the premises was expressed to be conveyed. There never was any need for it, however, and now by the Conveyanc- ing Act, 1881, s. 63, it is implied in every conveyance made after the 31st December, 1881. 0) (1893) 2 Oh. 315. Ashley's Contract , (1900) 2 Oh. (t) See also Be Hughes and 595. FORM AND CONTENTS OF A PURCHASE DEED. 139 Exceptions and Reservations. If the grantor intends to except or reserve any right or in- terest over property granted, he must do it expressly (u ) . Technically there is a distinction between an exception and a reservation: an exception is a subtraction from what has pre- viously been expressed to be granted, of a part of the thing granted, so that the thing excepted must be in esse at the time of the grant. The exception must be of a part only, and not of the wdiole, of the thing granted; and, moreover, the exception must not be repugnant to the grant, so that in the case of a convej-ance of a house and shops, excepting the shops, the excep- tion would be void as being repugnant. A reservation , on the other hand, can only be of something new out of the thing granted; a rent or right of way, for instance, may be properly reserved. Strictly speaking, a man cannot “reserve” to himself anything that forms part of the land itself, such as a right of common, he can only “except” it; but this is not material, since in practice both words “ ex- cepting and reserving” are invariably used. Nor can a mere privilege, like a right of sporting over the land, be either “ excepted ” or “ reserved ”; but this again is of small moment, since if the purchaser executes the deed the purported reserva- tion is allowed to operate as a re-grant by him ( x ) . As a reservation operates as a new grant by the grantee to the grantor, the conveyance should be executed by the purchaser, otherwise no legal easement is created, but only an equitable right ( y ). Both an exception and a reservation must be defined with certainty, otherwise they will be void (z ) . Reservations are, however, in some cases, implied by law: thus, where a vendor retains a portion of the property and sells the rest, the law will presume, in the absence of anything in the conveyance to negative the presumption, a reservation of all (u) Wheeldon v. Burrows ( y ) May v. Belville, (1905) 2 (1879), 12 Ck. D. 31. Oh. 605. (#) See Wickham v. Hawker (z) Savill Bros. Ld. v. Bethell, (1840), 7 M. & W. 63. (1902) 2 Ch. 523. The distinc- tion between exceptions and reser- vations. Certainty. Implied reservations. 140 BK. I., PT. I. SALES, EXCHANGES AND GIFTS. such rights and easements over the part conveyed as are essen- tial to the due enjoyment of the part which is retained, such as rights of way and support (a) ; but where the owner of a house and land adjoining sells the land and retains the house, there is no implied easement of light granted to him over the land sold (6); though if he sold the house and retained the land, the purchaser would ; obtain a right of light over the land retained by the vendor. The Habendum. The function of the habendum. Words of limitation. 44 & 45 Viet, c. 41, s. 51. Construction of the section. The purpose of the habendum is to define the estate, i.e., the amount of interest, taken by the grantee. Formerly, if it was intended to confer an estate in fee simple on the grantee it was necessary to limit the property to him “ and his heirs,” or in the case of a corporation sole (other than the crown) to him “and his successors”; and if it was in- tended to confer an estate tail it was necessary to use the words “heirs of his body” for an estate tail general, or “heirs male of his body ” and “ heirs female of his body ” for an estate in tail male or an estate in tail female respectively. But now, by s. 51 of the Conveyancing Act, 1881, in a deed it is suffi- cient to use the words “in fee simple,” “in tail,” “in tail male” or “in tail female,” as the case requires. The section applies only to deeds executed after the commencement of the act. The section does not seem to apply to a grant to a corpora- tion, and apparently it is still necessary to use the word “ suc- cessors ” when limiting property to a corporation sole other (a) See Pinnington v. Galland (1853), 9 Exch. 1; Richards v. Rose (1853), 9 Ex. 218; and Davies v. Bear (1869), L. R. 7 Eq. 427 ; compare Union Lighterage Co. v. London Graving Dock Co., (1902) 2 Oh. 557. (5) See White v. Bass (1862), 31 L. J. Ex. 283; Wheeldon v. Burrows (1879), 12 Ch. D. 31; Ray v. Hazeldine, (1904) 2 Ch. 17; and compare Allen v. Taylor (1880), 16 Ch. D. 355 (a case of contemporaneous grants of the house to one, and the land to another) ; and Phillips v. Low, (1892) 1 Ch. 47 (a case of con- temporaneous devise), in both of which it was held that the grantee of land was not entitled to obstruct the access of light to the house. FORM AND CONTENTS OF A PURCHASE DEED. 141 than the crown; and whenever it is intended to rely on the section the actual words of limitation used in it must be em- ployed; a limitation unto and to the use of the grantee “ in fee/’ for example, has been held to confer only a life estate (c) . Covenants. Following the habendum come the covenants. A. — Vendor's Covenants. When the vendor is the beneficial owner of the land, and the Covenant* land is freehold or copyhold, he is usually bound to enter into w h 0 i 8 a four covenants for title; these are: — beneficial 7 owner. 1 . That he has a good right to convey. 2. That the purchaser shall have quiet possession. 3. That the property is free from incumbrances. 4. For further assurance. If the subject-matter of the conveyance be leasehold property, the vendor further covenants that the lease is a valid and sub- On convey ance of leaseholds. sisting one, and that the rent has been paid, and the covenants and conditions have been performed up to the date of the con- veyance ( d ) . If the vendor is merely a trustee, a mortgagee, the personal representative of a deceased person, or the committee of a lunatic so found, the only covenant for title entered into is, that he personally has done nothing to incumber the estate. A trustee cannot be compelled to enter into any other covenant, not even a covenant for further assurance (e), provided, at any rate, the purchaser was aware of the capacity in which he sold. But where a committee of a lunatic sells the land of the lunatic, Covenant when vendor a trustee, mortgagee, personal representative or committee of a lunatic. he can, with the sanction of the judge having jurisdiction in lunacy, give the usual covenants for title on behalf of and so as to bind the lunatic (/) . (c) Be Ethel and Mitchells and Butler's Contract , (1901) 1 Ch. 945. (d) Williams, Vendor and Pur- chaser, vol. i. 575. (e) Worley v. Frampton (1846), 5 Ha. 560. As to covenants by the beneficiaries, see infra, p. 143. (/) Re Bay, (1896) 1 Ch. 468. J 42 EK. I., PT. I. SALES, EXCHANGES AND GIFTS. Usual cove- nants implied under 44 & 45 Viet. c. 41, 8. 7. Statutory- covenants are qualified, not absolute. On whom they are binding. With whom deemed made. Formerly, these covenants for title were set out in extenso in the conveyance, but since the Conveyancing Act, 1881, they may now be omitted altogether if certain specified phrases are used in the operative part of the conveyance. For by s. 7 (1) of that act, in a conveyance for valuable consideration, the usual covenants for title are implied, when the party conveys and is expressed to convey as beneficial owner, or conveys and is expressed to convey as trustee, mortgagee, personal repre- sentative of a deceased person, or committee of a lunatic so found, or under an order of the court as the case may be. And by sub-s. (2) where a person is expressed to direct as beneficial owner another person to convey, he is deemed to convey and to be expressed to convey as beneficial owner, and the covenants on his part will be implied accord- ingly. Further, by sub-s. (3) of this section, where a husband and wife both convey, and are both expressed to convey as benelicial owners, the wife is placed in the same position as a person expressed to be conveying by the direction of the husband, so that there will be — (1) (as the wife expressly conveys as beneficial owner) a set of covenants for title by her binding her separate estate; (2) (as the husband expressly con- veys as beneficial owner) a set of covenants for title by him; (3) a set of covenants on his part in the same terms as the covenants implied on the part of the wife. The covenants implied by the act are not absolute, but are qualified and only extend to the acts or omissions of the vendor or those claiming by, through, under, or in trust for him, and of persons through whom the vendor derives title otherwise than by purchase for value, a purchase here not including a convey- ance in consideration of marriage. The covenant will be by the person or by each person who conveys as far as regards the subject-matter, or share of subject-matter, expressed to be conveyed by him, and will be impliedly entered into with the person (if one) to whom the conveyance is made, or with the persons (if more than one) to whom the conveyance is made jointly as joint tenants, or with each of the persons (if more than one) to whom the conveyance is made as tenants in common (g). Moreover, the benefit of ( 9 ) s. 7 (1). FORM AND CONTENTS OF A PURCHASE DEED. 143 these covenants will be annexed and incident to and will go with the estate or interest of the implied covenantee, and be capable of being enforced by every person in whom that estate or interest is for the whole or any part thereof from time to time vested (h); that is to say, they will run with the land. If, for example, A. conveys land to B. “as beneficial owner,” thus giving him covenants for title, and B. sells the land to C., and C. is disturbed by reason of A.’s title being defective, C. can sue A. for breach of the covenant for quiet enjoyment given by A. to B. (i). These implied covenants may be varied or extended by deed, and as so varied or extended will, as far as may be, operate in the like manner and with the like incidents, effects, and con- sequences as if such variations or extensions were directed in the section to be implied (/c); but the implied covenants are so comprehensive that it is seldom necessary to vary them. There are some special cases of covenants for title which should be noticed. Thus, when trustees are selling it used to be the practice of conveyancers to insist on covenants for title being given by the beneficiaries to the extent of their bene- ficial interests, but this practice was never adopted by the court in sales under its order, and it is now usual on a sale by trustees to stipulate expressly that the purchaser shall not be entitled to such covenants, and it seems that he would have no right to them even in the absence of such a stipulation (l). When trustees are selling by the direction of the tenant for life the latter must give the usual covenants for title (m), and would do so impliedly by “ directing as beneficial owner.” The tenant for life must do this, even though the contract may have ex- pressly provided that the vendors being trustees would only covenant against incumbrances (n). When an incumbrancer (A) s. 7 (6). (i) See David v. Sabin, (1893) 1 Ch. 523. W s. 7 (7). (Z) Cot'.rell v. Cottrell (1868), L. R. 2 Eq. 330; Prideaux, Prec. 20th ed. vol. i. 114; Williams, Vendor and Purchaser, 2nd ed. p. 656. (m) Re The London Bridge Acts (1842), 13 Sim. 176; Earl Poulett v. Hood (1868), L. R. 5 Eq. 115. (n) In re Sawyer and Baring's Contract (1884), 53 L. J. Ch. 1104. Implied cove- nants may be varied. Covenants in special cases : (a) when trustees sell ; (b) on release of incum- brance ; 144 BK. I., PT. I. SALES, EXCHANGES AND GIFTS. (e) when co- owners sell : (d) when crown sells ; (e) 'when tenant for life sells. Construction of covenants for title : (a) of cove- nant for good right to convey ; 3 & 4 Will. 4, c. 42. (b) of cove- nant for quiet enjoyment ; releases the estate from his charge he will merely covenant that}, he has done no act to incumber. When the vendors are tenants in common, the covenants are limited to their several shares;, but if they are joint tenants they must, apparently, in the absence of agreement give joint and several covenants (o) . When the vendor is the crown or a person selling under compul- sion by the Lands Clauses Consolidation Act, 1845, there will be no covenants for title by the vendor at all. When a tenant for life conveys under a statutory power,. e.c?., under the Settled Land Acts, he must give the usual covenants for title, but limited, it would appear, as regards the remainder expectant on his life estate to his own acts and the acts of persons claiming under him (p). The following rights and obligations are conferred by the usual covenants for title: — A. covenant for good right to convey is broken if 1 the covenantor has not a good right to convey, even though the defect in title which constitutes the breach appears on the face of the deed (g). The breach occurs immediately upon the exe- cution of the deed of conveyance, so that the time for suing on the covenant, which by s. 3‘ of the Civil Procedure Act, 1833, is limited to twenty years, begins to run against the purchaser from the date of the conveyance (r). A covenant for quiet enjoyment is not broken unless there is some disturbance of the covenantee’s enjoyment, although actual eviction is not necessary. So, where after the sale a decree was made in a suit in chancery that the land sold was subject to a right of common, it was held that the decree alone, without any entry or actual disturbance of' the purchaser, did not amount to a breach of the vendor’s covenant for quiet en- joyment (s). Nor is the covenant broken by a wrongful evic- tion by a stranger, but it is broken by such an eviction by the (o) National Society, &c. v. Gibbs, (1900) 2 Ch. 230. (p) Dart, Vendor and Purchaser, 571; but see Be Tyrell (1900), 82 L. T. 675. ( q ) Page v. Midland Bail. Co., (1894) 1 Ch. 11; and see May v. Platt, (1900) 1 Ch. 616. (r) Darby and Bosanquet, Statutes of Limitations, 2nd ed. 147; Hewitt, Statutes of Limita- tions, 19. (s) Howard v. Maitland (1883), 11 Q. B. D. 695. FORM AND CONTENTS OF A PURCHASE DEED. 1 45 vendor or anyone claiming through him. The twenty years within which an action for breach of this covenant must he brought runs from the time of the disturbance, and not from the execution of the deed (t ) — which furnishes a reason why this covenant is required, as well as the covenant for good right to convey, which of course implies that the purchaser will not be disturbed. Under a covenant against incumbrances by an heir-at-law selling his expectancy, no indemnity against succession duty can be required (u) . Under the covenant for further assurance, a vendor who has sold a defective title can be called upon to convey such title as he afterwards acquires, even though he acquires it by purchase for valuable consideration (cc) ; and can be required to com- plete the title, or to discharge an incumbrance (;/). Under this covenant, too, the covenantor may he compelled to produce title deeds, and perhaps may be compelled to give a covenant or acknowledgment for their production (z), though this is doubtful (a). The Court of Appeal has ruled that covenants for title must be construed literally and without importing into them any exception which the parties themselves have not introduced by express words contained in the covenants themselves, even though the exception may be gathered from the recitals (b). The mere fact that defects of title appear on the face of the conveyance, or are known to the purchaser, does not (c) of cove- nant for free- dom from in- cumbrances ; (d) of cove- nant for f urth er assurance. The cove- nants con- strued literally. (t) Hewitt, Statutes of Limita- tions, 19. ( u ) Re Langliam and the Lang- ham Hotel Co. (1890), 60 L. J. Ch. 110. (cc) Taylor v. Debar (1675), 1 Ch. Ca. 274; 2 Ch. Ca. 212. ( y ) King v. Jones (1814), 5 Taunt. 418; Farrington v. For- rester, (1893) 2 Ch. 461, atp. 471; compare Davis v. Tollemache (1856), 2 Jur. N. S. 1181, where it was held that a mortgagee of an estate tail in remainder was not entitled to have a disentailing deed executed under the covenant. ( 2 ) Fain v. Ayers (1826), 2 Sim. & Stu. 533. (а) See note to Hallett v. Mid- dleton (1826), 1 Russ. 243, at p. 259. (б) Page v. The Midland Rail. Co., (1894) 1 Ch. 11, overruling Hunt v. White (1868), 37 L. J. Ch. 326. G. — C. L 146 BK. I.. PT. I. SALES, EXCHANGES AND GIFTS. 8 & 9 Viet, c. 106, s. 4. No covenant implied by the word “ grant.” Exceptions. prevent them coming within the ordinary Covenants for title, unless the property is conveyed subject to them (c). Before the Beal Property Act, 1845, exchanges and par- titions at common law implied conditions or warranties of title; and the words “give” or “ grant” in other convey- ances implied similar warranties; but by s. 4 of this statute those assurances are not in future to imply any condition in law, and. those words are not to imply any covenant except so far as they may do so by virtue of some act of parliament. As a result of this exception, covenants for title are still implied by the use of the word “ grant ” in conveyances of land by pro- moters under s. 132 of the Lands Clauses Consolidation Act, 1845. Further, by s. 22 of the Queen Anne’s Bounty Act, 1838, the word “grant” implies covenants for title in con- veyances to the governors of Queen Anne’s Bounty. B . — Pur chaser' s Covenants . Purchaser bound to enter into covenants : (a) property subject to liabilities ; (b) sale of an equity of redemption ; In certain cases the purchaser of land must enter into cove- nants with the vendor: thus, if the property is subject to restric- tive covenants, and the purchaser had notice of the fact when he bought, he must covenant with the vendor to observe the restrictions if the vendor will still remain liable after convey- ance. The covenant should be prefaced by some such words as “with the object and intention of affording the vendor, his heirs, executors and administrators, a full and sufficient in- demnity in respect of [the restrictive covenan's[ but not further or otherwise ” (J). And on the sale of an equity of redemption, as the vendor remains liable on the covenant to pay the mort- gage debt and interest, the purchaser always expressly covenants to indemnify the vendor therefrom (e), though such a covenant is implied (/). If an express limited covenant to indemnify is (c) G. W. By. Co. v. Fisher, (1905) 1 Ch. 316. ( d ) Be Boole and Clark's Con- tract, (1904) 2 Ch. 173; see Wil- liams, Vendor and Purchaser, 2nd ed. p. 670. (e) See Key and Elph instone, Precedents, 8th ed. vol. i. 522; Dodson v. Downey, (1901) 2 Ch. 620. (/) Waring v. Ward (1802), 7 Ves. 332. FORM AND CONTENTS OF A PURCHASE DEED. 147 inserted in the conveyance, no absolute covenant to indemnify will be implied (g). Again, on the assignment of leaseholds by the original lessee, the assignor remains liable to pay the rent and to perform the covenants and conditions of the original lease, so that the assignee must indemnify him against breaches of covenants in the lease committed during the continuance of the term (h ) . Where a reversion, which the vendor derives through the death .of some person dying after 19th May, 1853, and so subject, when the reversion falls in, to succession duty, is sold, if the arrangement is that the purchaser is to bear the duty he must covenant to indemnify the vendor, since succession duty is a debt due from the successor as well as a charge on the lands. In practice the obligation is generally thrown on the purchaser, and even in the absence of agreement it would fall upon him (i ) . If, therefore, the vendor is to pay the duty he must covenant to do so and indemnify the purchaser. It is un- necessary for the purchaser to covenant to indemnify the vendor against estate duty since by s. 8 (4) of the Finance Act, 1894, the vendor in such a case is under no liability to pay it. Where a vendor of land sells only part of his property and retains land adjoining the part sold, and desires to protect the latter from being depreciated by acts of the purchaser, the purchaser may be required to enter into covenants restricting his right to use the land in any manner he thinks fit. Three different questions arise in connection with restrictive covenants of this kind. First, are assignees of the covenantor bound by them; secondly, can assignees of the covenantee en- force them; and, thirdly, if several purchasers from the same ( g ) Mills v. United Counties Bank, (1912) 1 Ch. 231. In that case Eve, J., held ( (1911) 1 Ch. 669) that no covenant to indem- nify could be implied on a sale of a contingent reversionary in- terest until the interest fell into possession, but the Court of Appeal, without deciding the point, L were not disposed to agree with his decision. (Ji) Moule v. Garrett (1872), L. R. 7 Ex. 101; and see below, p. 176. (i) See Cooper v. Trewby (1860), 28 Beav. 194; Re Lang- ham and the Langham Hotel Co. (1890), 60 L. J. Ch. 110. o /O (c) tale of a lease ; (d) sale of a reversion subject to succession duty ; (e) restrictive covenants. Operation of restrictive covenants. 14K BK. I., PT. I. — SALES, EXCHANGES AND GIFTS. Do not run with the land at law ; but bind subsequent purchasers in equity. vendor have entered into similar restrictive covenants with him, < an they enforce them against each other? First, it is settled that restrictive covenants do not run with the land at common law (k). But such a covenant will be enforced in equity by injunction against all persons who sub- sequently take the land, independently of the question whether it runs with the land, unless they obtain the legal estate for value without notice, actual or constructive. This was estab- lished by the case of Tulk v. Moxhay (Z), as exjidained in Re Nisbet and Pott's Contract (m). A lessee, therefore, is bound by such a covenant (w), and so of course is a volunteer. In fact, the rule applies to every one in possession (o). And a purchaser cannot claim exemption on the ground that, not having investigated the title, he has not had notice of the cove- nant, when a proper investigation would have disclosed it (p) . The principle on which Tulk v. Moxhay proceeded was that the purchaser gave a smaller price for the land by reason of the restrictive covenant, and it would be unconscientious for him or any one deriving title under him with notice of the covenant to attempt to make use of the land except subject to the obliga- tion of the covenant (q). But the true principle is that such covenants impose an equitable charge on the property in respect of which they are entered into, in the nature of a negative easement which runs with the land in equity. Consequently an assign of the covenantor who has not the legal estate is bound by the restriction, even though he may have acquired the land without notice of it; in short, every assign is bound, except a purchaser without notice who has the legal estate (r), (k) Keppell v. Bailey (1834), 2 M. & K. 517. {1) (1848), 2 Ph. 774. (m) (1906) 1 Ch. 386. (n) Wilson v. Hart (1866), L. E. 1 Ch. App. 463; Patman v. Harland (1881), 17 Ch. D. 353; JIall v. Ewin (1887), 37 Ch. D. 74; Holloway Bros. v. Ilill, (1902) 2 Ch. 612. (o) See Mander v. Falcke, (1891) 2 Ch. 554; Abbey v. Gutteres (1910), 55 S. J. 364 ; Wilkes v. Spooner, (1911) 2 K. B. 473. ( p ) Wilson v. Hart (1866), L. E. 1 Ch. App. 463; Patman v. Harland (1881), 17 Ch. D. 353. (q) See per Lord Cottenham, in Tulk v. Moxhay (1848), 2 Ph. at p. 778; and per Jessel, M. E., in Cato v. Thompson (1882), 9 Q. B. D. at p. 618. (r) Be Nisbet and PotVs Con- FORM AND CONTENTS OF A PURCHASE DEED. 140 and except certain public bodies, such as a school board pur- chasing, under the L. C. C. Act, 1845, for the purposes of the Elementary Education Act, 1870, which take free from restric- tive covenants, even though they have notice (s) . In such a case, however, the restriction is not extinguished, but revives on a re-sale to an ordinary individual (£), unless compensation is paid to the covenantee under s. 68 of the act referred to. Secondly, whether or not the benefit of such a covenant runs when assigns with the land of the covenantee so as to be enforceable by an ^ enforce 6e assignee of the land depends on whether it appears upon the restrictive construction of the covenant that it was intended to run with the land. When the benefit of the restrictive covenant has once been clearly annexed to a piece of land, it passes on an assign- ment of that land without express assignment, and even though the assign was not aware of its existence at the time of the covenants. assignment. In any other case an assign can only enforce the covenant if the benefit of it has been expressly assigned to him, or if, having regard to the circumstances under which he took his assignment, it appears to have been the intention that he should have the benefit of it, which cannot be the case where he did not know of its existence (u). Accordingly where the owners of land conveyed a plot of it to a purchaser, who cove- nanted that not more than one dwelling-house should be erected on it, and it was stated that the covenant was entered into with the intent that it might so far as possible bind the premises thereby conveyed, and every part thereof, into whose- soever hands the same might come, and might enure for the benefit of the covenantees, their heirs and assigns, and others claiming under them, all or any of their lands adjoining or near to the said premises; an assignee from the covenantees of another plot was granted an injunction restraining the erection tract, (1906) 1 Ch. 386; following dicta of Jessel, M. R., in L. & S. W. Bail. Co. v. Gomm (1882), 20 Ch. D. atp. 583; Collins, L. J., in Rogers v. Ilosegood, (19C0) 2 Ch. at p. 404; Farwell, J., in Osborne v. Bradleij, (1903) 2 Ch. at pp. 451, 452; and Vaughan Williams, L. J., in Formby v. Barker, (1903) 2 Ch. at p. 552; contra, Rigby, L. J., (1900) 2 Ch. at p. 401. (s) Ellis v. Rogers (1884), 29 Ch. D. 661. ( t ) Kirby v. The Harrogate School Board, (1896) 1 Ch. 437. {u) Rogers v. Ilosegood, (1900) 2 Ch. 388. 160 BK. I., PT. I. SALES, EXCHANGES AND GIFTS. When pur- chasers can enforce of a block of flats on the first plot (v). But where the owners of an estate sold part of it to the defendant, who covenanted with them, their heirs and assigns, restricting his right to build, and the owners then sold part of the remainder of the estate to the plaintiff, there being nothing in the original conveyance to show that the benefit of the restrictive covenants was in- tended to enure to each portion of the land retained, and there being no reference in the latter conveyance to the restrictive covenants, it was held that the plaintiff was not entitled to re- strain the defendant from building in contravention of the covenant (x). In another case, A., the owner of two adjoining plots of land, leased one plot to B., who covenanted not to build in a certain way, and afterwards leased the other plot to C., who entered into similar covenants with A. B. afterwards, with A.’s approval, built so as to contravene the covenant and darken C.’s windows. C. then brought an action to restrain B. from committing a breach of the covenant with A., but it was held that the covenant, not being mentioned in the lease to him, did not enure for his benefit, and consequently he could not enforce it (?/). It may be added that when the vendor retains no land to which the benefit of a restrictive covenant can be incident, any such covenant entered into by the pur- chaser is purely personal to the vendor, and cannot be enforced by injunction at the instance of anyone claiming under him like his personal representative (z ) . Thirdly, it was laid down by Parker, J., in Elliston v. Readier (a), that restrictive covenants may be enforced by one ( v ) Rogers v. Hosegood, (1900) 2 Ch. 388. (a?) Renals v. Cowlishaw (1879), 11 Ch. D. 866. ( : y ) Master v. Hansard (1876), 4 Ch. D. 718; see also Ideates v. Lyon (1869), L. R. 4 Oh. App. 218. (z) Formby v. Barker , (1903) 2 Ch. 539. (a) (1908) 2 Ch. 374; approved by Court of Appeal, (1908) 2 Ch. 665; and see Renals v. Cowlishaw (1878), 9 Ch. D. 125; 11 Ch. D. 866; Nottingham Patent Brick Co. v. Butler (1886), 16 Q. B. D. 778; Collins v. Castle (1887), 36 Ch. D. 243; Shepherd v. Gilmore (1887), 57 L. J. Ch. 6; Spicer v. Martin (1888), 14 App.Cas.12; MacKenzie v. Childers (1889), 43 Ch. D. 265; Tyndall v. Castle (1893), 62 L. J. Ch. 555; Reid v. Bickerstaff, (1909) 2 Ch. 305; and see Harri- son v. Good (1871), L. R. 11 Eq. 338; Tucker v. Vowles, (1893) 1 Ch. 195. FORM AND CONTENTS OF A PURCHASE DEED. purchaser or his successor in title' against another or his successor if (1) both plaintiff and defendant derive title under a common vendor; and (2) before selling the lands now owned by plaintiff and defendant the vendor laid out his estate or a defined portion of it (including the lands of the plaintiff and defendant) for sale in lots subject to restrictions intended to be imposed on all the lots, and which, though varying in details ns to particular lots, are consistent, and consistent only, with a general scheme of development; and (3) if those restrictions were intended by the common vendor to be, and were, for the benefit of all the lots intended to be sold — whether or not for the benefit also of the land retained by the vendor — the vendor’s object in impos- ing the restrictions being in general to be gathered from all the circumstances, including in particular the nature of the restrictions, and it being easily inferred from the fact that a general observance of the restrictions is calculated to enhance the Value of the several lots offered for sale that the vendor intended the restrictions to be for the benefit of all the lots, even though he may retain other lands, the value of which might be similarly enhanced; and (4) both plaintiff and de- fendant, or their predecessors, purchased from the common vendor on the footing that the restrictions were to enure for the benefit of the other lots included in the scheme, whether or not for the benefit of the land retained by the vendor, this fourth point being readily inferred if the first three points be established, provided the purchasers have notice of the facts involved in them, but difficult, if not impossible, to establish if the purchase is made in ignorance of any material part of those facts. The vendor also, if such appears to have been the inten- tion (which is a question of fact to be deduced from all the circumstances of the case), can be restrained from using the land or permitting it to be used contrary to the restrictive covenants (b); and he may be required to enter into an express covenant for that purpose by the purchaser, though he would be bound without it (c) . ( b ) Be Birmingham District Leicester, (1894) 2 Oh. 208. Land Co. and Allday, (1893) 1 Gh. (c) Be Birmingham District 342; Davis v. Corporation of Ljancl Co. and Allday, supra. 151 restrictive covenants against each other, and against vendor. 162 BK. I., PT. I, SALES ? EXCHANGES AND GIFTS. Practice note. Affirmative covenants not enforceable against assigns. Restrictive covenants relating to goods. Notice of restrictive covenants may be indorsed on vendor’s title deeds. So that there may be no doubt in the matter, it is desirable either to have a general deed containing such covenants executed by the vendor and by each purchaser as he completes, or to insert in the conveyance to each purchaser not only covenants by him with the vendor, but also a declaration that he shall be entitled to the benefit of the similar covenants entered into by the other purchasers, and that as regards any lots not already sold and conveyed the same shall be subject to the like restric- tions (d). The principle of Talk v. Moxhay only applies to restrictive covenants, and not to positive or affirmative covenants, e.g., a covenant by a purchaser of the fee simple that he will repair buildings on the land; such a covenant is one in gross only, i.e., it is personal to the covenantor, and subsequent purchasers are not bound, even though they may have notice of it(e); and to make such a covenant run with the land the relation- ship of landlord and tenant should be created, that is, a long term of years instead of the fee simple should be granted to the purchaser. Further, the rule seems to be confined to restrictive covenants relating to land. The cases seem to show that restrictive con- ditions relating to goods are not enforceable against any except the covenantors (/) . By the Conveyancing Act, 1911, s. 11, it has been expressly provided that where land having a common title with other land is disposed of to a purchaser (other than a lessee or a mortgagee) who does not hold or obtain possession of the documents form- ing the common title, such purchaser, notwithstanding any stipulation to the contrary, may require that a memorandum giving notice of any provision contained in the disposition to him restrictive of user of, or giving rights over, any other land comprised in the common title, shall, where practicable, be indorsed on, or, where impracticable, be permanently annexed (d) See 1 Prideaux, 2 Otli ed. 120 . (e) Haywood v. Brunswick Building Society (1881), 8 Q. B. D. 403; Austerberry v. Corporation of Oldham (1885), 29 Oh. D. 750; Hall v. Ewin (1887), 37 Oh. D. 74. (/) McGruther v. Pilcher, (1902) 2 Oh. 306 ; Taddy & Co. v. Sterious & Co., (1904) 1 Oh. 354. FORM AND CONTENTS OF A PURCHASE DEED. 153 to some one document selected by the purchaser but retained in the possession or power of the person who makes the dis- position, and being or forming part of the common title. Purchasers will no doubt always take advantage of 1 this en- actment, but should they omit to do so the act provides that the title of any person omitting to require an indorsement to be made or a memorandum to be annexed shall not, by reason only of this enactment, be prejudiced or affected by the omission. The enactment does not apply to disjiositions of land regis- tered under the Land Transfer Acts, 1875 and 1897, and it may be here noticed that mere registration of restrictive con- ditions under these Land Transfer Acts does not annex them to the land, so as to make them enforceable against subsequent purchasers or the original vendor, at least in those cases where there is no “building scheme” (g). Lastly, it may be mentioned that a restrictive covenant, though it hampers the free alienation of the property, is not obnoxious to the perpetuity rule (Ji) . The following is a form of purchase deed as commonly framed in simple cases: — This Indenture made the day of 19 between A. [ vendor ] of of the one part, and B. [ purchaser ] of of the other part. Whereas the said A. is seised of the heredita- ments intended to be hereby conveyed for an estate in fee simple in possession free from incumbrances and has agreed to sell the same to the said B. for the sum of £ . Now this Indenture witnesseth that in consideration of the sum of £ now paid by the said B. to the said A. (the receipt whereof the said A. hereby acknowledges) the said A. as beneficial owner hereby conveys unto the said B. All that, &c. [parcels ]. To hold unto and to the use of the said B. in fee simple. [Add, if required , And the said A. hereby acknowledges the right of the said B. to production of the documents of title mentioned in the schedule hereto and to delivery of copies thereof and hereby undertakes for the safe custody thereof.] In witness, &c. [The Schedule above referred to. To contain list of documents retained by A .] ( g ) Wille v. St. John, (1910) ( h ) Mackenzie v. Childers 1 Oh. 325. (1889), 43 Ch. D. 265. Limitation of the enact- ment. Such cove- nants not within per- petuity rule 154 The necessity for searching. Searches when vendor beneficial owner. Where made. 63 & 64 Viet, o. 26. BK. I., PT. I. — SALES, EXCHANGES AND GIFTS. CHAPTER VIII. SEARCHES FOR INCUMBRANCES. It is the duty of the purchaser’s solicitor immediately, or as nearly as possible immediately, before the completion of a sale of land, to make a search for such incumbrances affecting the title as are required by law to be registered; and a solicitor is liable for any loss occasioned by his omission to make such searches as are proper in the circumstances of the case, unless his client expressly authorises him not to search (a). I. Usual Searches. Before the 1st July, 1901, the searches commonly made on a sale of land in fee simple, wherever situate, if the vendor was a beneficial owner, were for: — (a) Judgments; (b) Crown Debts; (c) Lis pendens; (d) Annuities; (e) Writs and Orders affecting Land; (f) Deeds of Arrangement; (g) Statutory Land Charges; and (h) Proceedings in Bankruptcy. The first four of these — that is, for judgments, crown debts, Us pendens, and annuities — were formerly made in the central office of the Supreme Court, where the registration of these charges was effected; but by the Land Charges Act, 1900, s. 1, and the order made thereunder, the registers were, as from the 1st September, 1900, transferred to the Land Registry, and such of the first four searches as are still made, as well as the searches for writs and orders affecting land, deeds of arrange- ment, and statutory land charges, are now made in the Land Registry in Lincoln’s Inn Fields, London. Searches for pro- fa) Sugden, Vendors and Pur- Williams, Vendor and Purchaser, chasers, 14th ed. 547; Elpliin- vol. i. 533; Cooper v. Stephenson stone and Clark, Searches, 4; (1852), 21 L. L Q. B. 292. SEARCHES FOR INCUMBRANCES. 155 ceedings in bankruptcy are made at the Bankruptcy Court in Carey Street, London. As appears below, searches for judg- ments and crown debts are no longer made. If the vendor is a trustee or mortgagee selling under a trust or power of sale the only search made against him is for lis pendens ; but the searches stated above should be made against the settlor or the mortgagor, as the case may be, and a search should be made for statutory land charges against the bene- ficial owner in possession where the vendor is a trustee. II. Special Searches. In addition to the above, searches may be required: — (1) In County Registers; (2) In Copyhold or Customary Land Court Rolls; (3) For Disentailing Deeds; (4) For Deeds Ac- knowledged; and (5) For Registration of Title. I. Usual Searches. (a) Judgments. It is provided by s. 2 (1) of the Land Charges Act, 1900, that a judgment or recognizance whether obtained or entered into on behalf of the crown or otherwise, and whether obtained or entered into before or after the commencement of the act, shall not operate as a charge on land or any interest in land, or on the unpaid purchase-money for any land, unless or until a writ or order for the purpose of enforcing it is registered under s. 5 of the Land Charges Registration Act, 1888. The result is that a purchaser need not search for judgments, but ho should search for writs and orders issued for the purpose of enforcing them registered under the Land Charges Registra- tion Act, 1888 (fr). (b) Crown Debts. By the Land Charges Act, 1900, s. 2 (2), crown debts, what- ever their date, are not to operate as a charge on land at all unless or until a writ or order for the purpose of enforcing them is registered under s. 5 of the Land Charges Registration When vendor a trustee or mortgagee. 63 & 64 Viet c. 26. Search for j udgments not needed. 63 & 64 Viot c. 26. (6) See below, p. 158. 156 BK. I., PT. I. SALES, EXCHANGES AND GIFTS. Search for crown debts not needed. A lis pendens is not a charge on property, only notice. Registration of lis pendens. Not applicable to chattels. Against whom search for lis pendens should be made. Act, 1888. When a writ or order for the purpose of enforcing it is so registered the debt will become a charge on the land immediately on registration. It follows that as in the case of judgments it is no longer necessary to search for crown debts. (c) Lis Pendens. A lis pendens , i.e ., a pending action respecting the property, is not in itself an incumbrance on the property, but if pro- perly registered in the Land Registry it fixes the purchaser with notice of an adverse claim or unsatisfied charge against the property, and a purchaser will he bound by the decree made, whether he has actual notice of the pending proceedings or not (c) . But notice of' the existence of a registered lis pendens creates no charge on the property, and the only effect of the registration is to make it necessary for the purchaser to look into the claims of the plaintiff who registers it. Therefore, if on inquiry the suit turns out to be founded on a claim which is not sustainable, the purchaser cannot refuse to complete (d). The purchaser will not be affected by notice of a pending action which does not directly affect the land itself; for instance, where the action relates to the right to money secured on land, it does not affect the land on which it is secured, and a purchaser from the mortgagor will not be affected by the decree made (e). Registration of a lis pendens is required by the Judgments Act, 183.9, s. 7, or a purchaser without notice will not be bound by it; and by the same statute re-registration every five years is made necessary (/) . The doctrine of lis pendens only applies to land, including leaseholds, and has no application to chattels personal ( g '). The result is, that a search for lis pendens should be made for five years back before the date of completion against the last (c) Bishop of Winchester v. (e) Worsley v. Earl of Scar- Paine (1805), 11 Ves. 195. borough (1746), 3 Atk. 391. ( d ) Bull v. Hutchens (1863), 32 (/) ss. 4 and 7. Bcav. 615. (< 7 ) Wig ram v. Buckley , (1894) 3 Ch. 483. SEARCHES FOR INCUMBRANCES. 157 purchaser for a pecuniary consideration, and every person who has been owner of, or had a power of disposition over, the land sold subsequently to him; if a registered Us pendens is found, the purchaser should require to be satisfied that the pending action or matter is not one which affects the vendor’s power to dispose of the property; if it is, he should decline to complete (Ji ) . (d) Annuities. Annuities granted after the passing of the Judgments Act, 1855, are required by s. 12 of 1 that statute to be registered. The annuities comprehended by this act are “ annuities or rent-charges created otherwise than by marriage settlement or will, for one or more life or lives, or for any term of years or greater estate determinable on a life or lives.'’ If these are not duly registered in the name of the person whose estate is in- tended to be affected, they will not affect any purchaser or mortgagee without notice. But a purchaser who, at the time of completing his purchase, has notice of such an annuity will be bound by it, although it is not registered (i), for there is nothing in the section to exclude the doctrine of equity, that the object of the legislature in requiring registration is to give notice to the purchaser, so that a purchaser who has notice has all that the statute was intended to give him. And an unre- gistered annuity is good against a judgment creditor or a trus- tee in bankruptcy whether he has or has not notice of it. The practice is to make the search for annuities against the last purchaser for a pecuniary consideration, and persons claim- ing under him. There is no provision for re-registration of annuities, so that the search must be from the date when the person searched against acquired the property or attained twenty-one, whichever last happened (k) . ( h ) Elphinstone and Clark, Cli. D. 563. Searches, 93. ( k ) Elphinstone and Clark, ( i ) Greaves v. Tofteld (1880), 14 Searches, 108. What annui- ties must be registered . 18 & 19 Viet, c. 15. In whose name regis- tered. Against whom search for annuities should be made. 158 What writs and orders must be registered. ■51 & 52 Viet, c. 51. 63 & 64 Viet, c. 26. against whom search for writs and orders should be made. What deeds of arrangement must be registered. Against whom search for deeds of arrangement should be made. What a land charge is. BK. I., PT. I. SALES, EXCHANGES AND GIFTS. (e) Writs and Orders affecting Land. Under the Land Charges Registration and Searches Act, 1888, ss. 5 and 6, as amended by the Land Charges Act, 1900, s. 3-, every writ or order affecting land issued or made by any court for the purpose of enforcing a judgment, statute, or recognizance, whether obtained on behalf' of the crown or otherwise, and any order appointing a receiver or sequestrator of land, and every delivery in execution or other proceeding thereunder, is void as against a purchaser for value of the land unless the writ or order is registered in pursuance of the act, and re-registered every five years. A search should accordingly be made for such writs and orders for five years before completion in the names of the vendor and all other persons mentioned in the abstract as his predecessors in title (or as having any such interest as would be subject to process of execution) back to and including the last purchaser for value (l). (f) Deeds of Arrangement . The act of 1888 (ss. 8 and 9) also provides that deeds of arrangement affecting land shall be registered, otherwise they are to be void as against a purchaser for value of any land comprised therein. Search for deeds of arrangement should accordingly be made against the vendor and (if he did not acquire the property by purchase for value) his predecessors in title back to and including the last purchaser for value. Since there is no provision for re-registration the search should be carried back to the date when the person searched against acquired the property or attained the age of twenty-one, or back to the 3,1st of December, 1888, whichever period is the shorter. (g) Statutory Land Charges. A land charge is defined by the Land Charges Registration and Searches Act, 1888 (m), as a rent or annuity or princi- (Z) Elpkinstono and Clark, ( m ) 6. 4. Searches, App. 18. SEARCHES FOR INCUMBRANCES. 159 pal moneys payable by instalments or otherwise, with or with- out interest, charged ( otherwise than by deed) on land under the provisions of any act of parliament for securing to any person either the moneys spent by him, or the costs, charges and expenses incurred by him, under such act; or the moneys advanced by him for repaying the moneys spent or the costs, charges and expenses incurred by another person under the authority of an act of parliament, and a charge under s. 35 of the Land Drainage Act, 1861, or ss. 15 — 19 of' the Agricultural Holdings Act, 1908, but does not include a rate or scot. The section only applies to charges created on the application of the owner of the land, and therefore does not include a sanitary authority’s charge in respect of paving expenses under s. 257 of the Public Health Act (ti). Land charges within the act created after 31st December, 1888, are now to be registered in the Land Registry, other- wise they will be void as against a purchaser for value of the land charged (o). Moreover, one year after the first assign- ment by act inter vivos occurring after 31st December, 1888, of a land charge created before the commencement of the act, the person entitled to the charge cannot recover it as against a purchaser for value of the land charged unless he registers the charge ( p ). Orders of the Board of Agriculture charging land under the Improvement of Land Act, 1834, were formerly re- quired to be registered at the Land Registry under s. 58 of that act, as well as under s. 12 of the act of 1888; but by the Im- provement of Land Act, 1899, s. 5, the provision requiring registration under the act of 1834 is repealed, but registration under the act of 1888 is still necessary. Accordingly, search should be made for land charges against all persons appearing on the abstract as being persons in whose names an entry in the register could be made under s. 10 of the act. The search should be carried back to the date of the last purchase or the 31st of December, 1888, whichever is last, and even this will not fully protect the purchaser from land charges (n) It. v. Vice- Registrar of (o) ss. 10 and 12. Land Registry (1889), 24 Q. B. D. ( p ) s. 13. 178. Land chargee to be regis- tered . Against whom search for land ch ars’es should he made. 160 BK. I., PT. I. — SALES, EXCHANGES AND GIFTS. created before the 1st of January, 1889 (g). If any such land charge is registered, the purchaser should refuse to complete until the vendor has removed it or given a satisfactory indem- nity in respect of it. (h) Proceedings in Bankruptcy . Searches for bankruptcy proceedings. Importance of search in bankruptcy. A search should be made in the registers at the Bankruptcy Court, to ascertain whether a petition has been presented or a receiving order or adjudication made against the vendor or (if he did not acquire the property by purchase for value) any of his predecessors in title back to and including the last pur- chaser for value, or whether lie has made a scheme of arrange- ment for the benefit of his creditors (r) . It is usually made for a period of five years back from the date of the search, but it is better to carry it back for twelve years, for the trustee’s title would be barred by the Beal Property Limitation Act, 1874, after twelve years from the time when the property vested in him, and if a search for twelve years discloses no bankruptcy the purchaser will generally be safe, though it will not ensure absolute safety. It should be added that the registers at the Bankruptcy Court in London are never quite up to date, and in circumstances of suspicion it may therefore be well to search also in the county court of the district in which the person searched against resides or carries on business. The necessity for searching at the Bankruptcy Court is ex- emplified by the case of Re New Land Development Association and Gray (s), where the Court of Appeal expressed the opinion that a purchaser of real estate from a vendor who is an undis- charged bankrupt has no title as against the trustee in bank- ruptcy, even though he had no knowledge of the bankruptcy at the time he completed his purchase; but this decision is not ( q ) Elphinstone and Clark, Searches, App. 22, 24. (r) See Cooper v. Stephenson (1852), 21 L. J. Q. B. 292. In (his case the court appeared to think that a solicitor need not make this search unless there were something to excite suspicion of the solvency of the vendor. (s) (1892) 2 Ch. 138; see also The London and County Contracts v. Tallack (1903), 19 T. L. R. 156; Official Receiver v. Cooke, (1908) 2 Ch. 661. SEARCHES FOR INCUMBRANCES. 161 applicable to leaseholds acquired by a bankrupt after the com- mencement of his bankruptcy and before the date of his dis- charge, and under the rule in Cohen v. Mitchell (t) a purchaser from a bankrupt of property of this character gets a good title as against the trustee in bankruptcy (u) . II. Special Searches. (1) Searches in County Registers. When the land the subject of the sale is situated in one of the counties which are supplied with local registries, namely, Middlesex and Yorkshire (which includes Kingston-on-Hull), a search should be made in the local register (v) . (a) In the Middlesex Registry. The effect of the Middlesex Registry Act, 1708, which regu- lates registration of assurances of land in Middlesex, may be summarized as follows: — (1) Registration is not of itself notice (a?). (2) An unregistered assurance will bind the purchaser if he or his solicitor has actual notice of it (y ) . (3) If a search is made in the register, the purchaser is deemed to have notice of all assurances registered during the period over which the search extends, but not of those registered outside that period {z). By the Land Registry (Middlesex Deeds) Act, 1891, s. 1, the business of the Middlesex Registry was transferred to the Land Registry, Lincoln’s Inn Fields, where the necessary searches are now made. (t) (1890), 25 Q. B. D. 262. (w) Re Clayton and Barclay's Contract, (1895) 2 Ch. 212; see also Re Kent County Gas, &c. Co., (1909) 2 Ch. 195. (-y) As to what assurances, &c. must be registered, see post, pp. 188, 191. G. — C. (a?) Elphinstone and Clark, Searches, 131, where the authori- ties are cited. ( y ) Le Neve v. Le Neve (1747), Wh. & Tud. L. C. Eq. 8th ed. vol. ii. 187. ( z ) Hodgson v. Dean (1825), 2 Si. & Stu. 221. M Counties having registers. (a) Effect of Middlesex Registry Act. 7 Anne, c. 20. 54 & 55 Viet, c. 64. 162 BK. I., FT. I. SALES, EXCHANGES AND GIFTS. Against whom search in Middlesex Registry- made. Strictly speaking, search ought to be made against every person who is shown by the abstract to have been owner of the land, or to have had power to dispose of it; but in practice search is generally made only against the last purchaser for value and persons claiming under him (a). (h) In the Yorkshire Registry. (b) Effect of Yorkshire Registry- Acts. 47 & 48 Viet, c. 54. 48 & 49 Viet. c. 26. The early statutes relating to registration in Yorkshire, the effect of which was similar to that of the Middlesex Registry Act, 1708, were repealed by the Yorkshire Registries Act, 1884 (5), and the law consolidated and amended. The act of 1884 was supplemented by an amending act in 1885. Shortly the effect of the acts, as regards the necessity for searching the register, is as follows: — (1) Registration is not of itself notice, s. 15 of the act of 1884, which provided that it should be, having been repealed by s. 5 of the act of 1885, but no priority or protection is given or allowed to any estate or interest in land by reason of such estate or interest being protected by or tacked to any legal or other estate even though the person claiming protection is a purchaser for value without notice (c). (2) The act provides that conveyances, &c. which are not registered shall not avail even against a purchaser with notice, whether actual or constructive, of them, in the absence of actual fraud on his part. Consequently, if, after contract for sale and purchase of lands in Yorkshire, the purchaser hears of an in- oumbrance on the property, which on searching he discovers is not registered, he can safely complete his purchase, and by registering obtain priority. The registry office for the North Riding is at Northallerton, that for the East Riding and Hull at Beverley, that for the West Riding at Wakefield. The search should be as in the Middlesex Registry (c?) . ( a ) Elphinstone and Clark, peal of s. 15 of the act of 1884 Searches, 144. seems to be nullified by the omis- ( b ) s. 51. sion to repeal s. 16. See Elphin- (c) s. 16. The effect of the re- stone and Clark, Searches, 144. (d) Elphinstone and Clark, SEARCHES FOR INCUMBRANCES. 163 (2) Searches of Court, Rolls. When the land is customary freehold or copyhold, a search should be made on the court rolls of the manor in which it is situate for incumbrances not appearing on the abstract; such search should extend over the whole period covered by the abstract. In practice, however, this search is seldom made. (3.) Searches for Disentailing Deeds. If the land has been entailed, and there is any reason to suspect that a disentailing deed has been suppressed, a search should be made in the enrolment department of the central office of the Supreme Court for the disentailing deed enrolled under the Fines and Recoveries Act, 183/3, ss. 40, 41. (4) Searches for Acknowledged Deeds. When the property has belonged to a married woman before the year 1883, a search in the central office for the certificate of the enrolment of the acknowledgment of the married woman may sometimes be necessary. Such a search may appropriately be made when it is suspected that she has conveyed away the property by a deed not disclosed by the abstract. (5) Search for Registration of Title. If there is any suspicion that the title to the land sold has* been registered the index map of registered land at the Land Registry should be searched. There is no fee for the search (e). If desired an official search can be obtained, for which a fee must be paid (/) . Mode of Searching. Searches formerly had to be made by the purchaser himself or his solicitor, but an innovation was made by s. 2 of the Searches, 144; as to searches for Transfer Acts, 29. wills, however, see ibid. 145. (/) Land Transfer Rules, 1903, (e) Brickdale and Sheldon, Land r. 289, M 2 Searches in the court rolls. Searches for disentailing deeds. Searchesfor acknowledged deeds. Searches for registration of title. Official searches under 4 5 & 46 Viet. c. 39. 1G4 BK. I., PT. I. SALES, EXCHANGES AND GIFTS. Official searches in Middlesex . Official searches in Yorkshire. Conveyancing Act of 1882, which, as extended by s. 17 of the Land Charges Registration and Searches Act, 1888, and s. 6 (3) of the Land Charges Act, 1900, provides for the making of official searches in the Land Registry for writs and orders affecting land, land charges, annuities, lis pendens and deeds of arrangement. The provisions of the acts are not compul- sory, and it is still open to the purchaser or his solicitor to search in person in the old way; but by obtaining an official search, the trouble and responsibility of a personal search are avoided, and at the same time full protection from errors in the official certificate obtained, since it is provided that the certificate shall be conclusive, affirmatively or negatively, as the case may be, in favour of the purchaser. It is further provided that where a solicitor obtains an office copy certificate of result of search, he shall not be answerable in respect of any loss that may arise from error in the certi- ficate, and that where be is acting for trustees, executors, agents, or other persons in a fiduciary position, those persons shall not be so answerable, and where such persons obtain such an office copy without a solicitor, they shall also be protected in like manner. By the Land Registry (Middlesex Deeds) Act, 1891, s. 2, and No. 11 of the regulations in the schedule thereto, a search in the Middlesex Registry may now be made through the re- gistrar, and his certificate of the result obtained (g). The Yorkshire Registry Act, 1884 (ss. 20 — 23.), likewise contains provisions for the making of official searches nearly identical with the provisions for making searches contained in the Conveyancing Act, 1882. (g) As to mode of searching and (Middlesex Deeds) Rules and Fee fees payable, see Land Registry Orders, 1892 and 1913. THE COMPLETION OF THE PURCHASE. ‘ 16 CHAPTEB IX. THE COMPLETION OE THE PURCHASE. The Execution of the Deed. As a rule, a deed ought to be read over to the parties to it before they execute it; at all events, they ought to be made acquainted with its contents or purport, and more particularly is this the case where there is any question of the party exe- cuting the deed being illiterate. It is doubtful whether signature is necessary to the validity of a deed; but when the case comes within the Statute of Frauds the better opinion seems to be that the deed should be signed. In practice, deeds are always signed. Sealing is certainly an essential formality; but any kind of seal will do, and the mere touching of a seal already affixed is sufficient, and is the mode of sealing usually adopted in practice. Delivery of the deed is also essential; it may be either actual or virtual, or both. Actual delivery consists in handing over the possession of’ the deed by the party executing it to the other party. Virtual delivery consists in a statement by him that he delivers it as his act and deed, which is an effectual delivery even though he retains possession of' the deed. A deed may be delivered as an escrow, i.e., to take effect conditionally only. In this case it should be delivered to some person not a party to the deed, with a statement that it is to be delivered to the grantee or to the party for whose benefit it is made on .the performance of a specified condition or at a specified future time. But even where the deed is delivered to the grantee or his agent, if it is delivered on a condition which suspends its opera- Reading of deed to parties. Signature. Sealing. Delivery : (a) actual ; (b) virtual ; (c) as an escrow. lfifi BK. I., PT. I. SALES, EXCHANGES AND GIFTS. Witnesses not ordinarily necessary to the validity of a deed. Execution of deed in purchaser’s presence. 44 & 45 Viet, c. 41, s. 8. Execution by attorney. How payment is made. tion to some future time or event, it will operate as an escrow ( a ). Often the vendor executes the conveyance and hands it to his solicitor at a time prior to that fixed for completion, and in that case in order to make sure that the legal estate does not jeass at once to the purchaser, care should be taken that he expressly deliver the deed as an escrow to be held by his solicitor until payment of the purchase-money — at any rate, in a case where there is any doubt as to the ability of the purchaser to pay the purchase-money (b). It is not necessary that a deed should be executed in the presence of witnesses unless so required by an instrument creating a power in exercise of which the deed is made, or by statute (e). But in practice the conveyance is usually attested by one or two witnesses, so as to facilitate proof of its due execution in future. Previously to the Conveyancing Act, 1881, it was an un- settled point whether or not the purchaser was entitled to have the deed executed by the vendor in the presence of the pur- chaser or of his solicitor (d) . The eighth section of the act sets this question at rest, by enacting that the purchaser shall not he entitled to require that the conveyance to him be executed in his presence or in that of his solicitor as such, hut shall be entitled to have, at his own cost, the execution of the convey- ance attested by some person appointed by him, who may, if he thinks fit, be his solicitor. In these days it is probable that a purchaser would be obliged to accept an execution under a power of attorney, provided it came within either s. 8 oi s. 9 of the Conveyancing Act, 1882 (e). The purchaser should attend himself at the time fixed for completion with cash or notes or banker’s drafts for the pur- chase-money, as he cannot expect the vendor’s solicitor to accept (a) Watkins v. Nash (1875), L. R. 20 Eq. 262. (5) Buchner v. Keith (1863), 15 0. B. N. S. 40. (c) Seal v. Claridge (1881), 7 Q. B. D. at p. 519; ante, p. 102. (d) See Viney v. Chaplin (1858), 2 De G. & J. 468; Essex v. Daniell (1875), L. R. 10 C. P. 538. (e) But see Wallace v. Cook (1804), 5 Esp. 117. THE COMPLETION OE THE PURCHASE. 167 a cheque, since should the solicitor do so without the vendor’s express authority, and the cheque be dishonoured after he lias parted with the title deeds and the conveyance, he would be responsible to his client for any loss arising (/) . On attending to complete, the purchaser’s solicitor should Increment inspect the purchase deed to see that it is duly stamped with stamp^ust one of the increment value duty stamps mentioned in s. 4 (3) ° u the of the Finance (1909-10) Act, 1910, since otherwise the deed is not admissible in evidence. These stamps are: (i) a stamp denoting that the duty has been assessed and paid; (ii) a stamp denoting that all necessary particulars have been delivered to enable the duty to he assessed, and that security has been given, if required, for its payment; (iii) a stamp denoting that no increment value duty is payable. The second is the one usually impressed in practice. The Payment o f the Purchase-Money. If, as is often the case, the vendor does not attend at the Payment of TI 1 1 T’( • i~l H QP » completion, the question arises whether the purchaser is justi- money to fled in paving the purchase-money to the vendor’s solicitor. vei y\ or s 1 x i/ solicitor : Formerly, lie was not, unless the solicitor produced a written authority from the vendor authorizing him to receive it (g) . Now, however, in ordinary cases, matters are simplified by the (a) in ordinary Conveyancing Act, 1881, s. 56, which provides that “ where 45 y ict a solicitor produces a deed having in the body thereof or in- c. 41 , s. 56; dorsed thereon a receipt for consideration money or other con- sideration, the deed being executed, or the indorsed receipt being signed by the person entitled to give a receipt for that consideration, the deed shall be sufficient authority to the person liable to jiay or give the same for his paying or giving the same to the solicitor without the solicitor producing any sepa- rate or other direction or authority in that behalf from the person who executed or signed the deed or receipt. ' Appa- rently in the absence of notice that the solicitor producing the deed is unauthorized, the purchaser is not only entitled but (/) Pape v. Westacott, (1894) 1 Q. B. 298. (g) Viney v. Chaplin, supra. 108 BK. I., PT. I. SALES, EXCHANGES AND GIFTS. (b) when vendor is trustee. 56 & 57 Viet, c. 53, s. 17. Apportion - ment of income bound to assume that lie is retained by the person to whom the consideration is payable (h ) . Soon after the section came into force it was held that if’ the Vendors were trustees they had no right to authorize their solicitor or any one else to receive the purchase-money (&) . But by the Trustee Act, 1893, s. 17, a trustee may appoint a soli- citor to be his agent to receive and give a discharge for the purchase-money, by permitting the solicitor to have the custody of and to produce a deed containing any such receipt as is referred to in s. 56 of the Conveyancing Act, 1881, and a trustee will not be chargeable with a breach of' trust by reason only of his having made, or concurred in making, such an appointment; and the producing of any such deed by the solicitor will have the same validity and effect under s. 56 as if the person appointing such solicitor had not been a trustee. But this section does not enable an attorney of a trustee to delegate to a solicitor the duty of' receiving the purchase- money (A:). In Re Flower and Metropolitan Board of Works (/), it was held that where there were several trustee- vendors, the purchaser could insist on all the trustees attending personally, or else on their giving a written and signed direc- tion that the money should be paid to their joint account in some bank, and that he was justified in refusing to pay the money to one trustee authorized by the others to receive it. The decision in this case is not affected by the above provision of the Trustee Act, unless the co-trustee were also a solicitor acting professionally in the matter, when the case seems to fall within the act. Before actually paying over the purchase-money there are usually some apportionments of' rent and outgoings to be made. It is comparatively rare, for instance, for a purchase to be com- (Ji) Per Farwell, J., in King v. Smith, (1900) 2 Ch. at p. 431; compare remarks of North, J., in Day v. Woolwich Equitable Build- ing Society (1888), 40 Ch. D. at p. 493; and see Lindley, L. J., in Re Hetling and Merton's Con- tract, (1893) 3 Ch. at p. 280. (i) Re Bellamy and Metropolitan Board of Works (1882), 24 Ch. D. 387. (&) Re Hetling and Merton's Contract, (1893) 3 Ch. 269. ( [l ) Re Flower and Metropolitan Board of Works (1884), 27 Ch. D. 592. THE COMPLETION OF THE PURCHASE. 169 pleted at the date agreed upon, and as a consequence it some- times happens that the vendor has received rent which, or part of which, has accrued due since the date fixed for completion. The purchaser will in such a case be entitled to deduct an equivalent amount from his purchase-money. Conversely, since the vendor is entitled to an apportioned part of any rent accruing at the date fixed for completion, if he has not actually received it before completion he will require an undertaking ffom the purchaser to pay him his proportion when the rent is received. The conditions of sale often provide that the pur- chaser shall pay the vendor his proportion at the time of com- pletion (m). Outgoings are not necessarily apportionable, but they are usually expressly made so by the conditions, and where appor- tionable outgoings have been paid in advance by the vendor, as rates and taxes often are, he will require to be repaid the pro- portion due to be paid by the purchaser. As regards apportion- able outgoings not payable in advance, such as ground rent, the purchaser is entitled to deduct from the purchase-money the proportion payable by the vendor ( n ). The purchaser, on paying the purchase-money, is entitled to the conveyance executed by the vendor, and to have the title deeds relating to the property handed over to him, unless the vendor has the right to retain them by the terms of the contract or under the provisions of s. 2, r. 5, of the Vendor and Pur- chaser Act, 1874 (o). The purchaser is entitled to all the deeds and documents in the vendor’s possession relating to the land sold, and not merely to those set out in the abstract (p) . When the deeds are handed over to the purchaser or his solicitor, his signature should be obtained to a schedule containing a list of the deeds handed over. Formerlv, when the vendor was entitled to and did retain the aud out- goings. Right of purchaser to possession of deeds on completion. Extends to all deeds. Vendor re- taining deeds (m) See ante, p. 69. (w) See on the subject gene- rally, Williams, Vendor and Pur- chaser, vol. i. 626 et seq. ( o ) As to purchaser’s right to have notice of vendor’s restrictive covenant indorsed on deed re- tained, see ante, p. 152. (p) Sugden, Vendors and Pur- chasers, 14th ed. 407; Be Duthy and Jesson's Contract, (1898) 1 Ch. 419. 170 BK. I., PT. I. SALES, EXCHANGES AND GIFTS. formerly gave covenant to produce and keep safe. Acknowledg- ment and undertaking under 44 & 4 5 Viet, c 41, s. 9. Obligations of acknowledg- ment. How enforced. On whom binding. By whom enforceable. deeds relating to the estate, he had to enter into a covenant with the purchaser for the production of the deeds when called for, and for their safe custody in the meanwhile. For this covenant, however, the Conveyancing Act, 1881, s. 9, substitutes, where a person retains possession of' documents, a form of agreement, called an acknowledgment of the right to production, and an undertaking for the safe custody of the deeds. The obligations imposed by an acknowledgment are : — (1) to produce the documents for inspection and comparison with abstracts or copies thereof by the person entitled or any one by him authorized in writing ; (2) to produce the documents at airy trial, &c. in the United Kingdom; (3,) to deliver to him true copies or abstracts of and from the documents (g) . The person who requires production or copies as above must pay the expenses (r) . Any person entitled to the benefit of an acknowledgment may apply to the Chancery Division by sum- mons in chambers for production of the documents, or the delivery of copies thereof or extracts therefrom to the person to he benefited or someone on his behalf (s'). The acknowledg- ment when given operates to satisfy any liability to give a covenant for production and delivery of extracts or copies of documents ( t , ). The acknowledgment binds the documents in the possession or under the control of the person who retains them, and of every other person having possession or control of them from time to time, but binds each individual possessor so long only as he has possession or control thereof; and every jaerson so having possession or control must specifically perform the obligations imposed by (lie acknowledgment unless prevented by fire or other inevitable accident ( u ) . The obligations imposed by the acknowledgment are to be performed at 'the request in writing of — 1. The person to whom the acknowledgment is given: ( q ) Conveyancing Act, 1881, (s) Ibid. s. 9, sub-s. (7). s. 9 (4). (£) Ibid, sub-s. (8). (r) Ibid, sub-s. (5). (u) Ibid, sub-s. (2). THE COMPLETION OF THE PURCHASE. 171 2. Any person (not being' a lessee at a rent) having or claim- ing any estate, interest, or right through or under that person, or otherwise becoming through that per- son interested in or affected by the terms of any docu- ment to which the acknowledgment relates (x ) . The acknowledgment does not give any right of action for loss or destruction of the documents, from whatever cause arising (?/). But sub-s. 9 provides that where a person who retains possession of documents gives to another an undertaking for safe custody of such documents, the undertaking shall oblige the person giving it, and every person having possession or control of the documents from time to time, to keep the docu- ments mentioned in the undertaking safe, whole, uncancelled, and undefaced, unless prevented by fire or other inevitable accident; but each individual possessor is bound as long only as he has possession or control of the documents. The section also provides a summary mode of applying in chambers in the Chancery Division for the assessment of damages for the loss, destruction or injury to any documents included in an undertaking, and empowers the court to direct inquiries as to the amount of damages, and to order payment thereof by the person liable (z) . An undertaking for safe custody satisfies any liability to give a covenant for safe custody of documents (a). Lastly, the section only applies if and so far as a contrary intention is not expressed in the acknowledg- ment or undertaking (b). The acknowledgment or undertaking is usually incorporated in the conveyance, but may be given by a separate instrument. It has become the usual practice for trustees or mortgagees who retain title deeds to give only an acknowledgment for production, and not an undertaking for safe custody, and it maj r bo that it is now too late to question their right to refuse the latter. There is, however, no decision or judicial ex- pression of opinion to support the practice, and as the acknowledgment standing alone gives no right to damages Obligations of undertaking. Summary application in chambers in case of loss of documents, &c. May be in separate document. When vendors are trustees or mortgagees. ( x ) Ibid, sub-s. (3). (y ) Ibid, sub-s. (6). ( z ) Ibid, sub-s. (10). (а) Ibid, sub-s. (11). (б) Ibid, sub-s. (13). 172 BK. I., PT. I. SALES, EXCHANGES AND GIFTS. By whom given when land sold in lots. When deeds are in posses sion of third person. if the deeds are not produced, the acknowledgment without the undertaking may be of no avail. It is suggested, there- fore, that a purchaser from a trustee or mortgagee ought to be entitled to insist on a qualified undertaking at least, that is to say, an undertaking that if, while the documents are in the trustee’s personal custody, as distinguished from the custody of his solicitor or agent, they are lost or destroyed he will be liable for such loss. It is needless to say, however, that this cannot be required if it has been provided by the conditions of sale, as it often is, that the purchaser shall have an acknowledgment only. In a case where an estate is sold in lots, if the conditions are silent, the purchaser who pays the most money will be entitled to the custody of the title deeds; and when the conditions state who is to have the title deeds, they generally give them to the purchaser who pays the most money; but if, as sometimes, they provide that the purchaser of the “largest lot” shall have the deeds, he who buys the lot largest in superficial area will be entitled to the deeds, even as against a purchaser of several lots whose aggregate area is larger than that of the largest lot sold. The purchaser who gets the deeds may be a person “ retaining possession ” of them within s. 9 of the Conveyancing Act, and so able to give to each of the other purchasers the statutory acknowledgment and undertaking, but it must be remembered that when the deeds are not in the possession of the vendor, the section does not apply, and an express covenant must be given (c). If, for instance, a mortgagor sells part of the mortgaged land with the concurrence of the mortgagee, who retains the title deeds, the mortgagee is the only person who can give the statutory acknowledgment and undertaking'. Usually, though willing to give the acknowledgment, the mortgagee objects to give the undertaking, and therefore the mortgagor covenants, and apparently can be compelled to cove- nant, to give the undertaking as soon as the deeds come into his possession, and that in the meantime the person in possession of them shall keep them safe unless prevented by fire or other inevitable accident (d ) . (c) Re Pur sell and D cakin' s ( d ) See Williams, Vendor and Contract, (189.3) W. N. 152. Purchaser, 2nd ed. p. 690. THE COMPLETION OF THE PURCHASE. 17 : It is said that where land is conveyed through a “ grantee to uses,” in order that the acknowledgment and undertaking may run with the land for the benefit of subsequent purchasers, they should be given to the grantee and not to the real purchaser (e). The purchaser is entitled to have all the documents con- tained in the abstract included in the covenant for production or acknowledgment of the right to production, unless they are not in the vendor’s possession, as in the case of copies of court rolls (/); hut it appears to have been decided in an unreported case (g) that he is not entitled to have any others included, even though the vendor may have others in his possession, nor can the purchaser require a memorandum of the acknowledg- ment to be endorsed on the leading title deeds. The acknowledgment should include probates, succession and estate duty receipts, baptismal and marriage certificates, &c., though in practice, it is believed, a vendor generally carries his point in refusing to include these (Ji). The completion being effected, if the conveyance is not already stamped the proper stamp duty must be impressed within thirty days from the date of execution. Conveyances of Special Kinds of Property. Hitherto we have assumed the subject of the conveyance to be a freehold estate in real property. There remain to be discussed a number of other interests in property, real and personal, which require special modes of conveyance; among these are : — 1. Copyholds. 2. Leaseholds. 3.. Choses in Action generally. 4. Policies of Assurance. 5. The Goodwill of a Business. (e) Wolstenholme, Conveyanc- ing Acts, 8th ed. 47. (/) Cooper v. Emery (1844), 1 Phill. 388. ( g ) lie Guest and Worth, Key and Elphinstone, Precedents, 9th ed. vol. i. 487, n. ( [h ) Dav. 4th ed. vol. ii. Part I. 663, n.; Farrer, Conditions of Sale, 212. When conveyance to uses. To what documents it extends. Recorded documents. Time for stamping conveyance. 174 BK. I.. PT. I. SALES, EXCHANGES AND GIFTS. / 7 Conveyance of estates in copyholds. Surrender, admittance. Implied admittance. Payment of fine. (1.) Copyholds. Copyhold land is assured by surrender of the land by the vendor or grantor into the hands of the lord of the manor, and admittance by the lord of the purchaser or grantee. The surrender and admittance are effected by the symbolical deli- very of a rod, and are usually conducted by the steward of the manor. The surrender may be made either in or out of court. If made in court, it is entered on the court rolls, and a copy of so much of the rolls as relates to the surrender and admit- tance is given to the purchaser, and will form the muniments of his title. If the surrender is made out of court, a memo- randum in writing is made of’ it, and signed by the parties and the steward, and it is then entered on the rolls, and no presentment of the surrender to the court prior to enrolment is now necessary. The effect of' the surrender on the vendor is, that though he remains a tenant of the lord until the surren- deree is admitted, he loses all control over the land, and is unable to surrender to anyone else. But it confers merely an inchoate right on the purchaser, which must be completed by admittance, so that the purchaser cannot surrender till he has been admitted, nor can he enter upon the land without, at Least technically, committing a trespass. He can, liowever, assign this right to be admitted by act inter vivos, or by will (/f), and if he dies before admittance, his widow may he entitled to freebench. The admittance must follow the terms of the surrender, so that the admittance of any other person than the surrenderee or his assign will be void; but by the Copyhold Act, 1894, s. 84, any person may now be admitted by attorney, and the purcliaser’s title upon admittance relates back to the surrender. An admittance may be implied, e.g., by the lord of the manor receiving quit rents from a new tenant (/). There is usually a fine payable to the lord of the manor on admittance; this may be either fixed or arbitrary; but even in the latter case tlie fine is limited to two years’ improved value (7c) See Wainewright v. Elwell (7) Ecclesiastical Commissioners (1816), 1 Madd. at p. 632. v. Parr, (1894) 2 Q. B. 420. THE COMPLETION OF THE PURCHASE. 175 of the land (m). The admission of one of several joint tenants or coparceners is the admission of all; but the amount of the fine payable is the same as if all had been admitted ( n ). Tenants in common must be admitted severally, and a fine is payable in respect of the share of each. Again, the admission of a tenant for life generally amounts to the admission of all persons entitled in remainder, an;d one fine only is payable; this the tenant for life usually pays, and he must look to the remainder- men for the repayment of an amount j^’opoidionate to their interests. But, in some manors, the remaindermen must be admitted, and pay fines upon admittance. Where a copyhold estate falls into the possession of a reversioner, he may enter without readmittance or the payment of a fine. The surrender is usually preceded or accompanied by a deed of covenant to surrender by which the vendor covenants to surrender, or cause to be surrendered, the copyhold land to the purchaser at his cost. In this deed the usual covenants for title are incorporated, which may now be done under s. 7 of the Conveyancing Act, 1881, by making the vendor covenant as “beneficial owner,” or as the case may be, the deed being a “conveyance” within that section (o). Equitable interests are not the subject of a surrender (except for the purpose of barring an estate tail (p)), but are usually conveyed by deed of assignment. * ( 2 .) Assignment of Leaseholds. The assignment of leasehold property must, by the joint effect of the Statute of Frauds, s. 3, and the Real Property Act, 1845, s. 3, be by deed, even though the term does not exceed three years. The assignment should contain the usual covenants that the lease is valid and subsisting, and that the rent has been paid, and the covenants and conditions observed and performed, that (m) 1 Wat. Cop. 508. (o) SeeConv. Act, 1881, ss. 2 (v) {n) See Bence v. Gilpin (1868), and 7 (v). -L. R. 3 Ex. 76. (p) Fines and Recoveries Act, 1833, s. 53. Joint, tenants. Tenants in common. Tenant for life. Covenant to surrender. A deed required. Covenants for title. 176 BK. I., PT. I. BALES, EXCHANGES AND GIFTS. Position of lessee after assignment. Position of assignee after assignment. Covenants by assignee. the assignor lias power to assign, for quiet enjoyment, for freedom from incumbrances and for further assurance. These covenants are now implied if the assignor is expressed to assign as beneficial o>vner, under s. 7 of the Conveyancing Act, 1881. Notwithstanding an assignment, the lessee remains liable upon the express covenants which he has entered into in the lease, even though the lessor accept rent from the assignee (g) . On the other hand, the assignee, though not bound by the per- sonal covenants of the lessee, is bound to perform all those covenants which run with the land (r), and to observe all restrictive covenants of which he has notice, actual or con- structive (s ) . But the assignee stands in a better position than the original lessee; for should he, in his turn, assign the lease, he gets rid of all liability to the original lessor as from the date of the assignment (t), except as to breaches prior to the assignment by him (u), though under the express covenant of indemnity given to his assignor he may be liable to him for breaches of covenant committed after assignment by him. This difference in the liability of the lessee and of the assignee arises from the fact that, while privity of contract exists between the lessor and lessee, and lasts during the whole of the term, there is only privity of estate between the lessor and assignee, which ceases directly the assignee assigns to someone else. The assignee must covenant to pay the rent and perform the covenants in the lease, and to indemnify the assignor against the same (x ) . Even in the absence of an express covenant, there is an implied contract by the assignee to indemnify the assignor, and the original lessee also if he is not the immediate assignor (?/); but this does not bind the assignee after he has assigned, as the express covenant does, and therefore in practice an express covenant can be insisted upon where it is the original lessee who is the vendor, or, though not the original lessee, he (g) Thursby v. Plant (1670), 1 Wins. Saund. 6th ed. 237. (r) Spencer's Case (1583), Smith, L. 0. 11th ed. vol. i. 55. (s) Tulk v. Moxhay (1848), 2 Ph. 774; ante, p. 148. (£) Walker v. Peeve (1781), 3 Doug. 19. (u) Harley v. King (1835), 2 C. M. & R. 18. (x) Pember v. Mathers (1779), 1 Bro. C. C. 52. ( y ) Moule v. Garrett (1872), L. R. 7 Ex. 101. THE COMPLETION OF THE PURCHASE. 177 is under the obligation of a covenant entered into by him with a former vendor or otherwise for the payment of the rent and observance of the covenants in the original lease; but in other cases, as- the assignor is not liable after assignment in respect of the rent and covenants, he cannot ask for an indemnity to be inserted in the assignment. Sometimes a lease requires that notice of any assignment of it should be given to the lessor, and this must be borne in mind by the practitioner. (3.) Assignments of C hoses in Action. A chose in action with some exceptions was not assignable at common law, so that to transfer the right to sue for a chose in action in courts of law, it was necessary for the assignor toi give the assignee a power of attorney, enabling him to sue for the chose in his (the assignor’s) name (z). But a chose in action was always assignable in equity, and by the J udicature Act, 1873, s. 25 (6), it is provided that “ any absolute assign- ment by writing under the hand of the assignor (not purport- ing to be by way of charge only), of any debt or other legal chose in action of which express notice in writing shall have been given to the debtor, trustee, or other person from whom the assignor would have been entitled to receive or claim such debt or chose in action, shall be and be deemed to have been effectual in law (subject to all equities which would have been entitled to priority over the right of the assignee if this act had not passed) to pass and transfer the legal right to such debt or chose in action from the date of such notice, and all legal and other remedies for the same, and the power to give a good dis- charge for the same without the concurrence of the assignor. . . . . Provided, that if the debtor has had notice that such assignment is disputed by the assignor, he shall have the right to pay the money into court, or to call upon the parties to interplead.” The term “ absolute assignment ” used in this enactment has given rise to some difficulty. It has been held that an assign- (z) See notes to Row v. Dawson (1750), Wli. & Tud. L. C. Eq. (1749), and Ryall v. Bowles 8th ed. vol. i. 97. G. — C. N Practice note. Choses in action not assignable at law. Assignable — (1) iu equity ; (2) by the Judicature Act. '66 & 37 Viet, c. 66, s. 25. Meaning of “ absolute assignment.” 178 Meaning o ‘ ‘ chose in action.” BIC. I.j PT. I. SALES j EXCHANGES AND GIFTS. rnent by way of mortgage made in the usual form of an absolute conveyance with a proviso for redemption is an “ absolute assignment ’’ (a), as is also an assignment upon trust for the assignee to pay himself a debt due to him from the assignor and pay the surplus to the assignor (&), and an assignment upon trust for the assignor alone (c) . But an assignment which is expressed to be “as security’ for the repayment of a specified sum of money is not an “ absolute assignment ” (d) unless, when the whole instrument is looked at, it appears to be intended to operate as an absolute assignment (e) . It appears that an assignment of a definite part of an entire debt is not within the enactment, and at any rate part of a judgment debt cannot be assigned so as to enable the assignee to issue execution (/), and it has been decided that an assignment of an undefined portion of future debts is not within it (g) . The sense in which the term “ chose in action ” is used in the section, has also given rise to difficulty. It is a term that is always difficult to define (h). “It is an expression large enough to include rights which it can hardly have been intended should be assignable by virtue of the sub-section in question, as, for instance, shares, which can only be transferred as pro- vided by the Companies Acts. It is probably necessary, there- fore, to put some limit upon the generality of the words ” (i) . Accordingly, they have been defined to mean a “right which the common law looks on as not assignable by reason of its being a chose in action, but which a court of equity deals with (a) Tancred v. Delag oa Bay Rail . Co. (1889), 23 Q. B. I). 239; approved by the C. A. in Durham Bros. v. Robertson, (1898) 1 Q. B. 765. (5) Burlinson v. Hall (1881), 12 Q. B. D. 347. (c) Comfort v. Betts, (1891) 1 Q. B. 737. (d) Mercantile Bank v. Evans, (1899) 2 Q. B. 613. (e) Hughes v. Pump .House Hotel Co., (1902) 2 K. B. 190. (/) Forster v. Baker, (1910) 2 K. B. 636; and see Skipper v. Holloway, (1910) 2 K. B. 630; and Durham Bros. v. Robertson, (1898) 1 Q. B. 765. ( g ) Jones sr. Humphreys, (1902) 1 K. B. 10. (7i) See Warren, Choses in Action, 18. (i) Per Channell, J., in Tor- kington v. Magee, (1902) 2 K. B. at p. 403. THE COMPLETION OF THE PUliCHASE. 179 as being assignable ’ ' ; and the term has been held to include a prospective right to sue for damages for breach of a contract to assign a reversionary interest in property (k) . Though the conditions prescribed by the statute are not complied with, however, an assignment may still be good as an equitable assign- ment of the chose in action. “ The statute does not forbid or destroy equitable assignments or impair their efficacy in the slightest degree ” (l). As the assignee of a chose in action takes subject to all the equities affecting it, before he completes his purchase the pur- chaser should ascertain that the debt is owing and not statute- barred, that the debtor has no right of set-off or counterclaim, and that the debt has not been previously assigned or charged. For this purpose inquiry must be made of the debtor or holder of the fund, and if he does not answer (and he cannot be compelled to do so (m)) the assignee may be fairly safely ad- vised not to complete (w) . If the fund assigned is in the hands of several trustees, inquiry should be made of and an answer obtained from each trustee, since one may have received notice of a charge of which the others may have no knowledge (o). In the case of an assignment of a legal chose in action under the statute, express notice in writing must be given to the debtor to perfect the assignment (p). In the case of an equit- able assignment also, notice must be given, though it need not be in writing. For though the assignee's title is complete against the assignor without notice, if the debtor pays the assignor in ignorance of the assignment the assignee has no ground of complaint against the debtor, and as between two assignees he has priority who first gives notice (q ) . The rule Equitable assignments not affected by the statute. Assignee takes subject to all equities. Notice of assignment must be ( k ) Torkingtonv. Magee, (1902) 2 K. B. 427. The decision in this case was reversed by the 0. A., hut on the facts alone, (1903) 1 K. B. 644. ( l ) Per Lord Macnaghten, in William Brandt's Sons & Co. v. Dunlop Rubber Co., (1905) A. 0. at p. 461. (m) See Low v. Bouverie, (1891) 3 Ch. 82. ( n ) Ward v. Duncombe, (1893) A. 0. 369, per Lord Herschell, at p. 383. (o) Ibid. ( p ) The notice may be given after the death of the assignee: Bateman v. Hunt, (1904) 2 I(. B. 530. ( q ) Dearie v. Hall (1828), 3 N 2 180 BK. I., PT. I. SALES, EXCHANGES AND GIFTS. Should be to all trustees. Stop order. Distringas. requiring notice applies even to an assignment by operation of law such as that in favour of a trustee in bankruptcy when an adjudication is made against a person to whom a chose in action belongs — that is to say, the trustee in bankruptcy must give notice in order that he may preserve his priority (r) . But. the rule does not apply to equitable estates or interests in land (s), unless the land has been impressed with a trust for sale (£). Where the money is in the hands of trustees, notice should be given to all the existing trustees, for though notice to one is sufficient, so long as he remains a trustee at the time a later assignment is made (w), yet if at that time the trustee to whom notice has been given is dead, and the second assignee gives notice to all the then existing trustees and they are ignorant of the title of the first, it seems that the second gets priority (x). When, however, an assignee has given notice to all the trustees in existence at the time of his assignment, it is unnecessary, for the purpose of preserving his priority, that he should give any further notice when all the trustees to whom he gave notice have ceased to act and new trustees have taken their place (y) . If the chose in action is a fund in court, there being no person to whom notice can be given, a stop order must be obtained restraining the payment of the funds out of court without notice to the purchaser. This may be obtained upon application by summons. If the chose is stock of any company not registered in the name of the assignor, a distringas should be served. For this Russ. 1, 48; Ward v. Buncombe, ■supra. (r) Palmer v. Locke (1881), 18 Oh. D. 381; Re Stone's Will (1893), W. N. 50. (s) See Wiltshire v. Rabbits (1844), 14 Sim. 76; Lee v. Row- lett (1856), 2 Kay & J. 531; Humber v. Richards (1800), 45 Oh. JD. 589; Ward v. Buncombe, (1893) A. C. 369, per Lord Mac- naghten, at p. 390. (£) Lloyds Bank v. Pearson , (1901) 1 Ch. 865. ( u ) Ward v. Buncombe, supra. (cc) Timson v. Ramsbotbam (1837), 2 Keen, 35. The authority of this case was, however, ques- tioned by Lord Macnaghten in Ward v. Buncombe, supra, at p. 394, but it was followed by Kckc- wicli, J., in Re Phillips, (1903) 1 Ch. 183. (y) Re Wasdcdc, Brittin y. Partridge, (1899) 1 Ch. 163. THE COMPLETION OF THE PURCHASE. 1*1 purpose an affidavit must be made, and a notice prepared in the prescribed form and filed at the Central Office of the High Court. A dujfiicate of each, sealed with the seal of the court, will be given to the applicant, and must be served on the company, and thereupon the funds or stock will stand restricted from being transferred without notice to the assignee or without an order of the court (z). If some part of the chose in action assigned is in the hands of the trustees, and the rest in court, or invested in stocks or shares, notice must be given to the trustees, and in addition a stop order obtained or a distringas notice filed and served, as the case may be (a). (4.) Assignments of Policies of Assurance. A policy of life assurance being a chose in action, was not assignable at law; but it might be assigned in equity, so as to enable the assignee to sue on it in his own name. And now, by the Policies of Assurance Act, 1867, assignees of such policies can sue at law thereon in their own names; but no assignment will confer on the assignee the right to sue for the amount of the policy until a written notice of the date and purport of the assignment be given to the company liable under the policy at their principal place of business; and the date of the receipt of 1 such notice will regulate the priority of claims under any assignment; and further, if the company bona fide pay the assurance money to some third person before receiving such notice they will not be liable to the assignee. For the purpose of facilitating the giving of this notice, companies are required to give an address for the service of it in every policy which they issue, and they may be required, on payment of a fee not exceeding 5s., on a request by the person giving the notice, to deliver to him a written receipt for it, which will amount to conclusive evidence of the due receipt thereof. Under this act it has been held that a mere agreement to assign a policy is not an assignment of a policy within the act (b). In the assignment the vendor generally covenants that the policy is subsisting and valid, that all premiums have been paid (z) R. S. 0., Ord. XLVI. Co. v. Langley (1884), 26 Ch. D. rr. 4—8. 686. (a) See Mutual Life Assurance (6) Spencer v. Clarke (1878), 9 Oh. D. 137. Stop order and dis- tringas. Assignability of life policies. 30 & 31 Viet, c. 144. Notice of assignment. Agreement to assign. Contents of assignment. 182 BK. I., PT. I. — SALES. EXCHANGES AND GIFTS. Precautions to be taken by purchaser. Sales of goodwill. Position of vendor : (1) as to using old name ; (2) as to deal- ing with old customers ; (3) as to soliciting old customers. Precautions to be taken by purchaser. up to date, that he will do nothing whereby it may be avoided or by which the premiums may be increased, and that if he does do so he will pay the advanced premium. On behalf of a purchaser of a policy, evidence should be required that the statements upon which the policy was granted were true, and that the premiums have been duly paid, and if the policy is effected on the life of some person other than the assignor, it must be seen that the assurer had an insurable interest at the time the policy was effected, and inquiry should be made at the assurance office whether notice has been received of any charge or incumbrance on the policy. (5.) Assignments of Goodwill. Where the subject of the sale is the goodwill of a business, regard must be had to the following rules: First, in the absence of stipulation to the contrary, the vendor of the goodwill may set up a precisely similar business to that sold, even next door to the premises where the original business was carried on (c) . But he cannot use the old name under which the business was carried on, even though it happens to be the same as his own, if to do so would interfere with the profits of the business sold (d). And, secondly, he is at liberty to deal with the old customers of the business sold, but he must not represent to them that his is the old business, or that lie has succeeded to that old business (e ) ; and he must not solicit their custom (/). In view of these decisions, some provision should be made in the assignment to protect the rights of the purchaser; for ex- ample, a covenant by the vendor that he will not set up a similar business within a specified distance of the premises where the business the goodwill of which is sold is carried on: in framing such a covenant, the rule that a covenant in restraint of trade is primd facie void must not be forgotten, while at (c) Churton v. Douglas (1859), 1 John. 174; Laboucliere v. Daiv- sov (1872), L. R. 13 Eq. 322. (d) Levy v. Walker (1879), 10 Ch. D. 436. (e) Leggott v. Barrett (18S0), 15 Cli. D. 306. (/) Trego v. Hunt, (1896) A. C. 7 ; overruling Pearson v. Pearson (1884), 27 Ch. D. 145, and Vernon v. Hallam (1886), 34 Ch. D. 748, and restoring Labouchere v. Daw- son (1872), L. R. 13 Eq. 322; see also Walker v. Mottram (1881), 19 Ch. D. 355, and Gillingham v. Bedaow, (1900) 2 Ch. 242. THE COMPLETION OF THE PURCHASE. 183 the same time the covenant must be made sufficiently wide to prevent the vendor being in any way interested or concerned or engaged in a similar business (< 7 ) . The true test whether a covenant in restraint of trade is void or not is whether the covenant is reasonably necessary in the interest of the cove- nantee ( h ). The purchaser of a business and goodwill can use the vendor’s name so long as he does not expose the vendor to any liability by holding him out as the real owner of the busi- ness (i). As this is somewhat indefinite, a covenant defining his rights in the matter is useful. Stamps. The stamp duty on a “ conveyance on sale is now regulated by the Stamp Act, 1891, as amended by ss. 73 and 74 of the Finance (1909-10) Act, 1910. The rates of dutv are as follow: — CONVEYANCE or TRANSFER on sale, £ *. d. Of any property ( except such stock as aforesaid), Where the amount or value of the considera- tion for the sale does not exceed £5 0 1 0 Exceeds £5. , and does not exceed £10 0 9 0 33 £10 33 £15 0 3 0 33 £15 33 £20 0 4 0 33 £20 33 £25 0 5 0 33 £25 33 £50 0 10 0 33 £50 33 £75 0 15 0 33 £75 3 3 £100 1 0 0 33 £100 £125 1 5 0 33 £125 33 £150 1 10 0 3? £150 3 3 £175 1 15 0 33 £175 . . £200 2 0 0 33 £200 33 £225 2 5 0 33 £225 33 £250 2 10 0 33 £250 3 3 £275 2 15 0 33 33 £275 £300 3 3 £300 3 0 0 For every £50, and also for any fractional part of £50, of such amount or value 0 10 0 And see sections 54, 55, 56, 57, 58, 59, 60 and 61. ( g ) See for an instance of the necessity of a wide covenant, Smith v. Hancock, (1894) 2 Ch. 377. ( h ) Nordenfelt v. Maxim Nor- denfelt Guns and Ammunition Co., (1894) A. C. 535; Underwood v. Barker, (1899) 1 Ch. 300. (7) Thynne v. Shove (1890), 45 Ch. D. 577; Burchell v. Wilde, (1900) 1 Ch. 551. Rates of stamp duty. 184 BK. I., PT. I. — SALES, EXCHANGES AND GIFTS. Consideration not exceeding 500 /. Stamp duty on voluntary conveyance. Meaning of “ conveyance on sale.” On compul sory sale. If, however, the amount or value of the consideration for the sale does not exceed 500Z., and the instrument contains a state- ment certifying that the transaction thereby effected does not form part of a larger transaction, or of a series of transactions, in respect of which the amount or value, or the aggregate amount or value, of the consideration exceeds 500Z., the stamp duty will be only half the duty stated above ( k ). Before the passing of the Finance (1909-10) Act, 1910, a voluntary conveyance was usually stamped with a 10s. stamp only, but it must now be stamped ad valorem , as if it were a conveyance or transfer on sale, with the substitution of the value of the property conveyed for the amount or value of the consideration for the sale, and the duty must be adjudicated. But ad valorem duty need not be paid on a conveyance or transfer made for nominal consideration for securing repay- ment of an advance or loan, or for effectuating the appointment or retirement of a trustee, or under which no beneficial interest passes in the property conveyed or transferred or made to a beneficiary by a trustee or other person in a fiduciary capacity under any trust, or a disentailing assurance not limiting any new estate other than an estate in fee simple in the person dis- entailing the property (l ) . The expression “ conveyance on sale ’ includes every instru- ment, and every decree or order of any court, or of any com- missioners, whereby any property, and any estate or interest in any property upon the sale thereof, is transferred to or vested in a purchaser, or any other person on his behalf or by his direction(m). By s. 6 of the Finance Act, 1898, the definition of a conveyance on sale includes a decree or order for or having the effect of' an order for foreclosure. The word “property includes the goodwill of a business ( n ). When land is compulsorily taken under the Lands Clauses Acts, compensation for loss of business forms a part of the consideration (o) ; but it seems that compensation for injury to the adjacent lands does not. (&) Finance (1909-10) Act, 1910, s. 73. (Z) s. 74. (m) Stamp Act, 1891, s. 54. (a) Potter v. Commissioners of Inland Revenue (1854), 10 Ex. 147. (o) Commissioners v. Glasgow THE COMPLETION OF THE PURCHASE. 185 Sections 55 and 56 of the Stain}) Act contain special rules for assessment of the duty where the consideration consists of any stock or marketable security, or of periodical payments to be charged in respect of the consideration (p). By s. 57, where any property is conveyed to any person in consideration, wholly or in part, of any debt duo to him, or subject either certainly or contingently to the payment or trans- fer of any money or stock, whether being or constituting a charge or incumbrance upon the property or not, the debt, money or stock is to be deemed the whole or part as the case may be of the consideration for stamp duty purposes. Consequently, if A. conveys an equity of redemption to B. for 1,000/., and B. takes the property subject to a mortgage debt of 1,000/., the duty will be reckoned on 2,000/., not on 1,000/.; and any interest accruing to the date of the con- veyance must be included as part of the charge if the purchaser is to pay it. Section 10 of the Finance Act, 1900, provides that a con- veyance on sale made for any consideration in respect whereof it is chargeable with ad valorem duty, and in further considera- tion of a covenant by the purchaser to make, or of his having previously made, any substantial improvement of or addition to the property conveyed to him, or of any covenant relating to the subject-matter of the conveyance is not chargeable and shall be deemed not to have been chargeable with any duty in respect of such further consideration. Where a person purchases property, and before conveyance sells it to another to whom the vendor conveys it, the duty is reckoned on the sub-purchase-money, and not on the original purchase-money, whether it be more or less than the original price (g). A contract for the sale of any equitable estate or interest whatsoever, or for the sale of any estate or interest in any property except lands, tenements, or hereditaments, or heri- tages, or property locally situate out of the United Kingdom, and 8. W. Rail. Co. (1887), 12 sioners, (1900) 1 Q. B. 172. App. Cas. 315. ( q ) See s. 58 (4). (p) See Swayne v. Commis- Wbere consideration consists of stock. Stamp on conveyance of property sub- ject to debt. Illustrate m. Stamp on conveyance in consideration of covenant. Stamp on conveyance to sub- purchaser. Stamps on contracts for sale. 186 Stamps on conveyance of copyholds. Stamps on acknowledg- ments and undertakings. Solicitor's remuneration on sales of freehold, copyhold, and leasehold property. On sales of other pro- perty. BK. I., PT. I. SALES, EXCHANGES AND GIFTS. or goods, wares, or merchandise, or stock or marketable secu- rities, or any ship or vessel, or part interest, share, or property of or in any share or vessel is to be charged with the same ad valorem duty to be paid by the purchaser as if it were an actual conveyance; and where a contract so stamped is followed by a formal conveyance, the latter requires a denoting stamp only (r) . When copyholds are conveyed by deed, no surrender being necessary, the stamp duty is impressed upon the deed, ^nd when by surrender, if made out of court, upon the surrender or memorandum thereof, and upon the copy of court roll of the surrender, if made in court ( s ) . When a conveyance to a purchaser contains an acknowledg- ment and undertaking as to deeds, no extra stamp duty is re- quired; but whenever such acknowledgment and undertaking are given in a separate instrument, it is usual to stamp the instrument with a 0>d. stamp if under hand only, and with a 10s. stamp if under seal. Legal Charges. The remuneration of a solicitor in connection with sales and purchases of freehold, copyhold, or leasehold property is governed by the Solicitors’ Remuneration Act, 1881, and the General Order made thereunder; and is in the nature of a commission on the amount of the purchase-money, unless the solicitor, before undertaking any business, by writing commu- nicated to the client, elects to be paid according to the old system (t) . In sales and purchases of property, other than freehold, copy- hold, and leasehold property, e.g on a sale and purchase of a life policy or chose in action, a solicitor’s charges will depend on the work done, the folios drawn, the attendances, &c., in accordance with the old system of charging as altered by Schedule II. to the General Order. (r) See s. 59, and ante, p. 94. (s) See s. 61. ( t ) See Gen. Order, Sched. I., Part T. and Part II. (second scale), and rules, post, Part VIII. THE COMPLETION OF THE PURCHASE. 18 In addition to the profit costs, the client must repay his solicitor all costs out of pocket, unless the latter recovers them from the other contracting party. As between vendor and purchaser the purchaser must bear the cost of the preparation of the conveyance and of all matters relating thereto; but, unless otherwise agreed, the expenses attending the execution of the deed, by and on account of the conveying parties, must be borne by the vendor, and all ex- penses of getting in the legal estate and clearing the estate of incumbrances, subject to which it has not been sold, must be borne by the vendor. The expenses attending the acknowledg- ment of a conveyance by a married woman must be borne by her, but the expense of registering a conveyance in a register county must be borne by the purchaser, though where the scale charge is applicable, no extra fee is payable to his solicitor for the registration ( u ) . Disburse- ments. As between vendor and purchaser. ( u ) Grey v. Curtice, (1899) 1 Cli. 121. BK. I., PT. I. SALES, EXCHANGES AND GIFTS. 188 CHAPTER X. STEPS TO BE TAKEN SUBSEQUENTLY TO COMPLETION. Steps subse- quent to conveyance : Assuming that the conveyance has been duly executed, and that the purchase-money has been paid to the persons entitled to receive it, the next point is to consider what, if anything, needs to be done to perfect the conveyance. As a rule there is nothing more to be done, but there are many cases in which registration or enrolment of a conveyance is necessary, and each of these must be shortly discussed. Registration in County Registers. When land in register oounty. If the subject of the conveyance is land in Middlesex or Yorkshire, including the town of Hull, the conveyance will not be complete until it is registered; since, if not registered, the title of the purchaser is liable to be displaced by the prior registration of some subsequent conveyance or mortgage. (a) The Middlesex Registry. 7 Anne, c. 20. The statutes regulating the registration of assurance of land 55 Viet. Middlesex are the Middlesex Registry Act, 1708, and the Land Registry (Middlesex Deeds) Act, 1891. Assurances The principal act provides that a memorial of all deeds and registered. conveyances (a) and of all wills and devises of or concerning and whereby any honours, manors, lands, tenements, or here- ditaments in the said county may any way be affected in law or equity, may be registered in such manner as is hereinafter (a) An order of adjudication in lie Calcott and Elvin's Contract, bankruptcy is not a conveyance (1908) 2 Ch. 460. within the meaning of the Act: STEPS SUBSEQUENT TO COMPLETION. 18f> directed; and that every such deed or conveyance that shall he made and executed shall be adjudged fraudulent and void against any subsequent purchaser or mortgagee for valuable consideration unless such memorial thereof be registered as by this act is directed, before the registering of the memorial of the deed or conveyance under which such subsequent purchaser or mortgagee shall claim; and that every such devise by will shall be adjudged fraudulent and void against any subsequent pur- chaser or mortgagee for valuable consideration unless a memo- rial of such will be registered at such times and in such manner as is thereinafter directed (6). Six months after death are allowed for the registration of a Time for will if the testator dies in the United Kingdom; or three years ^Ug erin ^ after death if he dies on or beyond the seas (c). But by the Vendor and Purchaser Act, 1874, s. 8, though the will has not 37 & 38 Viet, been registered within the proper time, yet an assurance from c - ' 8 - the devisee, if registered before, will nevertheless have priority over any assurance from the heir-at-law. The result of this is that, on purchasing from a devisee, the will need not be regis- tered if there has been no conveyance from the heir, but the registration of the conveyance from the devisee will be suf- ficient. The act does not extend to copyhold estates, to leases at a Exemptions, rack-rent, or to any lease not exceeding twenty-one years, where the actual possession and occupation go along with the lease, or to chambers in Serjeants’ Inn, the Inns of Court or Inns of Chancery (d ) ; nor does it extend to land the title to which is registered under the Land Transfer Acts, with a few exceptions (e); nor does it extend to land in the City of London; but it applies to a deed of enfranchisement of copy- holds (/). It was provided by the Land Registry (Middlesex Deeds) 54 & 55 Viet. Act, 1891, s. 6, that it should not be necessary, in order to c ‘ 64 ' (6) Middlesex Registry Act, 1708, s. 1. (c) Ibid. s. 8. ( d ) Ibid. s. 18. (e) See s. 127 of that act as amended by the act of 1897, Sclied. I., infra, p. 650. (/) Reg. v. Registrar of Deeds for Middlesex (1888), 21 Q. B. II. 555. 190 63 & 64 Viet c. 26. Method of registration. Stamp duty. BK. I.j PT. I. SALES, EXCHANGES AND GIFTS. give validity to a judgment, statute or recognizance, to register it in the Middlesex Registry as required by the Middlesex Registry Act, 1708; and by the Land Charges Act, 1900, registration in the local registry is abolished in the case of any instrument made after the passing of that act (30th July, 1900) and capable of registration under that act or the Land Charges Registration Act, 1888. By the act of 1891 also the business of the Middlesex Registry, which used to be transacted in Great James Street, Bedford Row, was transferred to the Land Registry, in Lincoln’s Inn Fields (g). The preparation and registration of the memorial are regu- lated by the provisions contained in the first schedule tot thei Land Registry (Middlesex Deeds) Act, 1891, and the rules made under s. 2 of that act. In the case of a deed it must be under the hand of some or one of the parties thereto, or in the case of a will under the hand of some or one of the devisees, or in each case of his heirs, executors, administrators, guardians, or trus- tees, and must be attested by one witness, in the case of a conveyance such witness to be a witness or one of the witnesses to the execution of the conveyance. If every witness is dead, or abroad, or cannot be found, or for some other cause no witness can attest the memorial, a statutory declaration must be left with the memorial stating the reason why the memorial is not witnessed as required by the act. It must contain the date of the instrument being registered, the names and additions, &c. of the parties, and, in the case of a will, of the testator, a description of the lands conveyed, and of all the witnesses to the instrument, with, when possible, the places of their abode. Every deed, conveyance and will, or probate of the same, must be produced at the time of registering the memorial. The filing of the memorial is the registration required by the act. The stamp duty on a memorial is, where the instrument registered is chargeable with any duty not amounting to 2s. 6J., the same duty as the registered instrument; in any other case 2s. 6d. ( h ). The fee for registration of a memorial is 5s. ( i ). (g) Land Registry (Middlesex “Memorial.” Deeds) Act, 1891, s. 1. (i) Rule as to Fees dated the (h) Stamp Act, 1891, Sched., 8th February, 1892. STEPS SUBSEQUENT TO COMPLETION. 191 (b) The Yorkshire Registry. The early statutes relating to registration in Yorkshire, the effect of which was similar to that of the Middlesex Registry Act, 1708, were repealed by the Yorkshire Registries Act, 1884, s. 51, and the law consolidated and amended by that act. The act of 1884 was supplemented by amending acts in 1884 and 1885. The act of 1884 provides that all assurances executed or made after the commencement of the act, and all wills of any testators dying after the commencement of the act by which any lands within the three ridings are affected may be registered (7c) . The term “ assurance ” includes any conveyance, enlarge- ment of term into fee simple, memorandum of charge, deed of consent to the discharge of a trustee, statutory receipt, private act of parliament, award or order of the land commissioners, order of a court, certificate of appointment of trustee in bank- ruptcy, or affidavit of vesting under any act of parliament ( l ). The term “conveyance” includes any assignment, appoint- ment, lease, or settlement made by deed on a sale, mortgage, demise, or settlement of any land, or appointment of a new trustee in respect thereof, which has been executed by one or more of the piarties by whom any interest in such land is thereby conveyed (7). The term “order of a court” means any judgment, decree, writ of execution or sequestration, adjudication in bankruptcy, or other order or process of or issuing from a court of competent jurisdiction, or any order of the Charity Commissioners whereby any interest in any land is or may be affected . The “three ridings” means the north, east and west riding of the county of York, the east riding including the town of Kingston-upon-Hull (7). The mode of registering is provided for by s. 5, and the memorials of assurances and wills must contain the particulars specified in s. 6. Official forms can be obtained. Provision is made for the registration of a memorandum (k) Yorkshire Registries Act, (l) Ibid. s. 3. 1884, s. 4. 47 & 48 Viet, c. 54. 48 & 49 Viet, c. 4. 48 & 49 Viet, c. 26. All assurances to be regis- tered. Meaning of ‘ ‘ assurance’ ’ ; ‘ ‘ convey- ance” ; ‘ ‘ order of a court” ; “ three ridings.” Method of registration. Memorandum of lien or charge. 192 BK. I., PT. I. SALES, EXCHANGES AND GIFTS. Originals to be produced. Caveats. Notices of wills not proved, &c. Priority of assurances and wills. of a lien or charge in respect of unpaid purchase-money, or by reason of a deposit of title deeds; and no such lien or charge will have any effect or priority as against any assurance for valuable consideration registered under the act, unless a memo- randum has been registered in accordance with this section (m) . No deed or document is to be registered unless the original is produced to the registrar at the time of registration ( n ). By s. 3 of the act of 1885 a caveat may be given with respect to any lands within any of the three ridings by any person claiming to be entitled to any interest in such lands in favour of any person named therein, and may be registered under the act; and every caveat so registered, unless removed or cancelled in accordance with the rules, will remain in force for such time as may be specified therein. If within that time any assurance executed by the person by whom such caveat was given in favour of the person in whose favour it was given be duly registered under the act, such assurance will have priority as though it had been registered on the date on which the caveat was registered. Provision is made for the registration of a notice of a will when the jserson claiming an interest under the will cannot register it within six months after the death of the testator, which is effectual if the will is subsequently registered within two years of the testator’s death (o). All assurances entitled to be registered under the act will have priority according to the date of registration, and every will registered (p) will have priority according to the date of the testator’s death, if registered within six months of the tes- tator’s decease; but according to the date of registration, if that takes place after such period of six months. No person is to lose the priority given by registration merely in consequence of his having been affected with actual or constructive notice, except in cases of actual fraud (g); but this is not to confer on (m) Yorkshire Begi tries Act, 1884, s. 7. ( n ) Ibid. s. 8. (o) Ibid. s. 11. ( p ) The word “ registered ” is substituted for the words “ en- titled to be registered ” by the Yorkshire Kcgistries Act, 1885, s. 4. ( q ) This means “ fraud in the ordinary popular sense of the term, i.e., fraud carrying with it grave STEPS SUBSEQUENT TO COMPLETION. 198 any person claiming without valuable consideration under any person any further priority or protection than would belong to the person under whom he claims, and any disposition which, if unregistered, would be fraudulent and void will remain so in spite of registration (r) . Registration does not amount to actual notice, the provision of s. 15 of the act of 1884 to that effect having been repealed by the amending act of 1885, s. 5, though the omission to repeal s. 14 and s. 16, which expressly prohibits tacking, seems to make this repeal practically in- effective (s) . The act does not extend to any copyhold hereditaments, nor Exemptions, to any lease not exceeding twenty-one years, or any assignment thereof when accompanied by actual possession from the making of such lease or assignment (t) ; nor to assurances of land of the Crown (u). Nor does it extend to land registered under the Land Transfer Act, 1875, with a few exceptions (x), nor to land in the city of Y ork . The offices for the registration of deeds are situate at North- Offices, allerton for the north riding; at Beverley for the east riding and Hull; and at Wakefield for the west riding (?/). The stamp duty is, where the instrument registered is charge- Stamp duty, able with any duty not amounting to 2s. 6d., the same duty as the registered instrument; in any other case 2s. 6d. (z). The fee for registration or enrolment of any document except Fees a caveat is 5s., and for a caveat 2s. (a). moral blame, and not what has sometimes been caded legal fraud or constructive fraud, or fraud in the eye of a court of law or a court of equity”: per Stirling, J., in Batlison v. Hobson, (1898) 2 Ch. at p. 412. (r) Yorkshire Registries Act, 1884, s. 14. (s) See ante, p. 162. (t) Yorkshire Registries Act, 1884, s. 28. (w) Ibid. s. 30. (cc) See s. 127 of that act, as amended by the act of 1897, Sched. I. ( y ) See Yorkshire Registries Act, 1881, s. 31. ( 2 ) Stamp Act, 1891, Sched., “ Memorial.” (a) The fees specified in the Yorkshire Registries Act, 1884, Second Sched., have been modified by rules made under the act. See s. 38. G. — C. O 194 BK. I., PT. I. SALES, EXCHANGES AND GIFTS. When land conveyed for charitable purposes, deed must be enrolled. Exceptions. Omission to enrol deed within requi- site time. Special cases : (1) grants of annuities ; (2) btrgains and sales ; Registration of Conveyances to Charities. If the conveyance is in favour of a charity and comes within Part II. of the Mortmain and Charitable Uses Act, 1888 (6), the assurance must be enrolled in the Enrolment Department of the Central Office of the Supreme Court(c). The enrolment must be effected within six months after execution, and is re- quired whether the conveyance be for valuable consideration or not. The fee for enrolment is Is. per folio of seventy-two words, exclusive of maps, plans and drawings, which are charged at their actual cost (d). A conveyance made “ otherwise than in good faith for full and valuable consideration ” of land for the purposes of a public park, school-house for any elementary school, or public museum, or for the purpose of erecting dwellings for the poor of populous places under the Working Classes Dwellings Act, 1890, or to a local authority under the Mortmain Act, 1892, though excepted from Part II. of the act of 1888, must be enrolled with the Charity Commissioners (e); the time for enrolment in each case being within six months of execution. The court may authorize the enrolment of a deed after the time limited for so doing in the circumstances and upon the terms stated in s. 5 of the act. Special Cases of Registration. Other cases in which registration is necessary are: — When a deed grants an annuity for life or lives or for years determinable on a life or lives, it must be regis- tered in the Land Registry (/). The fee for registra- tion is 2s. 6d. ( g ). When a statutory bargain and sale is the form of assur- ance made use of, it must be enrolled in the Enrol- ment Department of the Central Office of the (b) Ante, p. 23. (/) Judgments Act, 1855, s. 12; (c) See Ord. LXI. r. 9 of the Land Charges Act, 19J0, s. 1, Eulcs of the Supreme Court. ante, p. 157. ( d ) Annual Practice, vol. ii. ( g ) Eule as to Fees dated the (e) Ante, p. 25. 8th August, 1900. STEPS SUBSEQUENT TO COMPLETION. 195 Supreme Court, or before the custos rotulorum and two justices of the peace and the clerk of the peace of the county in which the land is, or two of them at least, of' whom the clerk of the peace must be on e(h). When the conveyance operates to bar an entail by a tenant ( 3 ) disentail- . . . . ing deeds. m tail, enrolment is necessary m the Enrolment Department of the Central Office of the Supreme Court (i). The fee for enrolment is Is. per folio of seventy-two words, exclusive of maps, plans and drawings, which are charged at their actual cost (k) . ( h ) 27 Hen. 8, c. 16; Judica- ture Act, 1873, s. 16; Eules of the Supreme Court, Ord. LXI. r. 9. ( i ) Lines and Eecoveries Act, 1833, s. 74; Judicature Act, 1873, s. 16; Eules of the Supreme Court, Ord. LXI. r. 9. ( k ) Annual Practice, vol. ii. 196 BK. I., PT. I. SALES, EXCHANGES AND GIFTS. CHAPTER XI. COMPULSORY SALES UNDER TPIE LANDS CLAUSES CONSOLIDATION ACTS. The object of the statutes. 8 & 9 Viet. c. 18. Enabling- provisions of the statutes. As a rule no person is bound to sell his property against his will; though the sovereign power in every state can and does at times appropriate the property of individuals for purposes of public utility — a right sometimes called “eminent domain.” So a landowner may be compelled to do so if a special act of parliament is obtained for the purpose. In the first half of the nineteenth century applications to parliament for private acts authorizing the compulsory purchase of land for public purposes, or for the purposes of commercial undertakings of a public nature, like railways, waterworks and canals, came to be numerous. Until 1845 every special act had to be self- contained, and always comprised a large number of common- form clauses combined with the special clauses peculiar to the undertaking which it authorized. With a view to diminish the bulk of these special acts, and to ensure precision, brevity and uniformity, these common and indispensable clauses were classified into a general act called the Lands Clauses Consoli- dation Act, 1845, so that they might for the future be incor- porated in any special act by reference. The act has since been amended by the Lands Clauses Consolidation Acts Amendment Act, 1860, the Lands Clauses Consolidation Act, 1869, the Lands Clauses (Umpire) Act, 1883., and the Lands Clauses (Taxation of Costs) Act, 1895, and these are ail to be read together as parts of a single code, and are included in, the citation the Lands Clauses Acts, 1845 to 1895. The act of 1845 enables all parties entitled to land or to any estate or interest therein to enter into all necessary agreements for the sale thereof (a). Particularly it enables corporations,. (a) Lands Clauses Consolidation Act, 1845, s. 6. SALES UNDER LANDS CLAUSES CONSOLIDATION ACTS. 197 tenants in tail or for life, married women seised in their own right or entitled to dower, guardians, committees of' lunatics and idiots, trustees of' charities, executors and administrators, and all parties for the time being entitled to the receipt of the rents and profits of any such land in possession, or subject to any estate in dower, or to any lease for life or for lives and years or for years, or any less interest, to sell their lands, and (with the exception of married women entitled to dower and lessees for life, &c.) to sell them not only on behalf of them- selves, but also on behalf of persons entitled in reversion, remainder, or expectancy after them, or in defeasance of the estates of such parties; and it enables married women and all owners of land who are under disability to deal with the land as if they were respectively under no disability (b). Though, corporations generally are empowered to sell, municipal cor- porations must still get the consent of the Treasury ( money, when obtained, is applied to the proper purposes, but in any other case the mortgagee must ascertain that the power exists, and that it is being properly exercised. When a trustee is proposing to invest trust funds on mort- gage, the provisions of the Trustee Act, 1893,, must be strictly complied with. The effect of s. 8 (1) of this act is, that a trustee who lends money on the security of' any property on which he can lawfully lend will not be chargeable with breach of trust by reason only of the proportion borne by the amount of the loan to the value of the property at the time when the loan was made, provided that it appears to the court that in making the loan the trustee was acting on a report as to the value of the property made by a person whom he reasonably believed to be an able practical surveyor or valuer instructed and employed independently of any owner of the property, and whether such surveyor carried on business in the locality where the property is situate or elsewhere, and that the amount of the loan does not exceed two-thirds of the value of the pro- perty as stated in the report, and that the loan was made under the advice of the surveyor or valuer expressed in the report. The act further provides that a trustee may, in lending on leasehold security, dispense with the production and investiga- tion of the lessor’s title (Ji)\ and that in purchasing, or lending on the security of, property he may accept a shorter title than the title he has a right to require if in the opinion of the court the title accepted be such as a person acting with prudence and caution would have accepted (i). (h) Trustee Act, 1893, s. 8 (2). (i) Ibid. s. 8 (3). CAPACITY OF PARTIES. 205 It is to be observed that the statute only applies to a trustee lending money on the security of any property on which he can lawfully lend. By s. 1 of the Trustee Act, 1893, every trustee may, unless expressly forbidden by the terms of the trust, invest on real or heritable securities in Great Britain or Ireland. And it is expressly enacted by s. 5 of the act, that a trustee having power to invest in “real securities,” unless expressly forbidden by the terms of the trust, may invest and is deemed to have always had power to invest on mortgage of property held for an unexpired term of not less than 200 years, and not subject to a rent greater than a shilling a year, or to any right of redemption, or any condition of re-entry, except for non- payment of rent. Trustees are not, however, justified in lending money on any kind of real security. They must exercise a reasonable dis- cretion. Therefore they should not lend money on the security of business premises if the security is really a business plus the premises upon which it is carried on; and further, if the premises and the business are so inseparably connected that the discontinuance of the business may result in depreciation of the premises, the trustees ought not to advance more than half the value (k). They may, however, lend on a mortgage of freehold ground rents, and in determining the amount of the advance, the value of the houses may be taken into account (7), and there is no rule that they cannot lend on the security of property let on weekly tenancies (m ) . Again, a trustee is not justified in lending money on a con- tributory mortgage unless specially authorized (w), i.e., a mort- gage made to secure a sum of money not lent by one lender, or one set of trustees, but subscribed by several persons, or 1 several sets of trustees; nor on a merely equitable mortgage (o) ; nor on a second mortgage (p ) . (&) Learoydv. Whiteley (1887), 12 App. Oas. 727; Palmer v. Emerson, (1911) 1 Ch. 758. ( l ) Vickery v. Evans (1863), 3 New Reps. 286. (m) Re Solomon, Nore v. Meyer , (1912) 1 Ch. 261. (n) Webb v. Jonas (1888), 39 Ch. D. 660. (o) Webb v. Ledsam (1855), 1 K. & J. 398. (p) Chapman v. Browne, (1902) 1 Ch. 785. The decision of Wright, J., in Want v. Campain 56 & 57 Yict. c. 53, s. 1 . Mortgage of business pre- mises. Ground rents. Contributory mortgage . Equitable mortgage. Second mortgage. 206 BK. I., PT. II. — MORTGAGES. Sub-mort- gage. Trustee must select valuer. Proportion of loan to value of property. There is nothing to prevent a trustee from investing trust funds on a sub-mortgage, i.e., a mortgage of a mortgage, if he gets the legal estate in the property the subject of 1 the mort- gages, and all the powers of the original mortgagee, since the security is then as good as that of the original mortgagee with the addition of a covenant for repayment from him as well as from the original mortgagor (g) . The selection of the surveyor or valuer must be made by the trustees themselves; if 1 they leave the appointment to their solicitor, and the security turns out to be insufficient, they may have to bear the loss. If the trustees do not know a surveyor or valuer, the proper course is for their solicitor to submit a name or names to them and to tell them everything he knows to guide their choice, but to leave the choice to them (r ) . The trustees, if they properly instruct the valuer, need not make inquiries themselves respecting the personality of' the mortgagor or the details concerning the property, nor need they inquire whether he has at any time acted for the mortgagor (s) . Formerly there was no hard and fast rule as to what pro- portion of the value of the property a trustee might advance with safety; but it was generally considered that he would not be liable for any loss that might be sustained provided that he did not advance more than two-thirds of the value of landed property, and one-half 1 of the value of house pro- perty (t). The statute, as will be seen, authorizes a loan up to two-thirds of the value of the property, and makes no distinc- tion between agricultural, house or other property, and there is now no rule that not more than one-half of the value should be advanced on business premises (u). (1893), 9 Times L. R. 254, that a loan on second mortgage is not necessarily a breach of trust, is apparently no longer law. ( q ) Smethurst v. Hastings (1885), 30 Ch. D. 490. (r) Fry v. Tapson (1884), 28 Oh. D. 268, at pp. 277, 281. (s) Re Solomon, Nore v. Meyer, (1912) 1 Ch. 261. (£) See Lewin, Trusts, 12th ed. 376; Fry v. Tapson, supra; Shaw v. Cates, (1909) 1 Ch. at pp. 396 et seq. ( u ) Palmer v. Emerson, (1911) 1 Ch. 758. CONTRACT FOR MORTGAGE AND TITLE OF MORTGAGOR. 207 III. — CONTRACT FOR A MORTGAGE AND TITLE OF THE MORTGAGOR. An agreement for a mortgage of land or any interest in Agreement land is within s. 4 of the Statute of Frauds, and must, there- nmsTb^m^ 6 fore, be evidenced by a note or memorandum in writing signed writing, by the party to be charged or his agent ( x ) . Before agreeing to lend his money, the proposed mortgagee, Valuationof whether he be a trustee or not, should always have the property property 6 offered as security valued by a competent valuer, and should never advance more than will leave an ample margin between his debt and the value of the property. Where the land is subject to a rent-charge, it should be borne in mind that the mortgagee will be liable for the payment of the rent, even though he has never been in possession, if the freehold is con- veyed to him (?/), and it may be advisable in such a case for the mortgage to be made by demise for a long term of years, since a leaseholder is not personally liable for the rent (z ) . It is no part of a solicitor’s duty to act as valuer, and if he gives, his client his idea of the value of the property, and the lattett* acts upon it, and a loss ensues owing to the estimate being too high, the solicitor is not liable in damages for negligence, though the client would have had a claim against a professional valuer had he employed one and been misled by a negligent valuation (a). Similarly, a mortgagee who has acted on a care- less representation of the mortgagor’s agent as to the value of the property and who has sustained loss as a consequence, cannot recover from the valuer unless he can show that he inten- tionally deceived him, since there is no contract between them, and an honest misrepresentation gives no right to damages. He can only succeed, therefore, if he can make out a ca^e of fraud (b). The title to the property to be mortgaged is usually investi- Investigation gated by or on behalf of the mortgagee as on a sale. The mort- mortgaged property. (as) Pattley. Anstruther (1893), 69 L. T. 175, ante , p. 33. 2 Ch. 811. See Law Notes, vol. 30, p. 242. ( y ) Cundiff v. Fitzsimmons , (1911) 1 K. B. 513. (a) Scholes v. Brook (1891), 64 L. T. 674. (z) lie Herbage Rents, (1896) ( b ) Le Lievre and Dennes v. Gould, (1893) 1 Q. B. 491. ^08 BK. I., PT. II. — MORTGAGES. Right of investigating title not controlled by statute. No specific performance of contract for loan. Mortgagor pays costs of mortgage. gagor delivers an abstract of title and verifies it, and the mort - gagee makes requisitions and objections upon it in manner already explained. A mortgagee’s solicitor, in fact, should, if anything, be more strict in his inquiries and requisitions than he would be upon a sale; for the sole object of the mort- gagee is to obtain a safe security for his advance, and he should lend on nothing but an unimpeachable security. A purchaser may have some particular fancy to gratify in acquiring any particular plot of land; and, so long as he gets what he wants, with a reasonably probable assurance that he is not likely to be disturbed in the possession or enjoyment of it, he may be con- tent to accept a title which is subject to technical defects. But a mortgagee is not influenced by any such motives. He does not want the mortgaged property; what he wants is something on which he can confidently rely for repayment of the money he lends, in case the mortgagor does not repay him . In investi- gating the title, a solicitor may be as strict in his requirements as he likes: the mortgagor is at his mercy in this respect, for there will be no conditions or contract to limit the mortgagee’s rights. Nor is the latter restricted by either the Vendor and Purchaser Act, 1874, or the Conveyancing Act, 1881, s. 3., neither of which applies to negotiations for mortgages, but only to sales strictly so called. If the mortgagee is dissatisfied with the mortgagor’s replies to his requisitions, or if he refuses to comply with any of the mortgagee’s requirements, all the latter has to do is to refuse to lend him the money. Of course if a person enters into a contract to lend money on mortgage without stipulating for a good title, and then withdraws, he can be sued for damages for breach of contract, but specific performance of the contract cannot be enforced against him (c). The mortgagee’s costs of investigating the title and pre- paring the mortgage are, upon completion, payable by the (c) Rogers v. Challis (1859), 27 Beav. 175; Sichcl v. Mosentlial (1862), 30 Beav. 371; South African Territories, Limited v. Wallington, (1898) A. 0. 309. This is now subject to the excep- tion contained in s. 105 of the Companies (Consolidation) Act,. 1908. CONTRACT FOR MORTGAGE AND TITLE OF MORTGAGOR. 209 mortgagor, and are recoverable from him as a simple contract debt (d ) ; but where a proposed mortgage goes off owing to the default of the mortgagor, the mortgagee’s solicitor has, in the absence of agreement, no claim for his charges against the mortgagor; he must look to the party retaining him, leaving him to his remedy (if any) against the party who occasioned the fruitless expense (e) . IV. — THE FORM AND CONTENTS OF AN ORDINARY MORTGAGE. Having seen that the mortgagor can make a good title, the mortgagee’s solicitor prepares the mortgage deed. A mort- gage is now generally framed in the form of an absolute conveyance with a proviso for re-conveyance on the repay- ment of the loan. Date, Parties and Recitals. Taking the heads of a mortgage deed as they usually occur, it will be found that after the date, parties and recitals, as to which it is unnecessary to add anything to what has been said in discussing the form of a purchase deed, there will be: — First Testatum.— Covenant for Repayment of Loan and Interest. The first testatum witnesses that in consideration of the sum advanced the mortgagor covenants with the mortgagee to pay him on a specified date (usually six calendar months after the execution of the mortgage) the principal sum with interest thereon in the meantime at the agreed rate, and further, that if the money shall not be so paid, to pay him interest at the rate aforesaid by equal half-yearly (or other) payments on speci- fied days in every year on the principal moneys for the time being remaining due on the security. Generally it is not in- ( d ) See Re Roberts (1889), 43 Longbotliam and Sons, (1904) 2 Ch. D. at p. 54; Wales v. Carr, Ch. 152. (1902) 1 Ch. 860; see also Re (e) Wi hinson v. Grant (1856), 25 L. J. C. P. 233. Costs of abortive investigation. Form of the mortgage deed. Formal parts. First testatum. The covenant to pay. G. — C. P 210 Period of limitation of action on the covenant. 37 & 38 Viet, c. 57. Arrears of interest recoverable. 3 & 4 Will. 4, c. 27. BIv. I., PT. II. MORTGAGES. tended that the money shall be repaid on the day named in the covenant, but the effect of specifying a day for repayment is that from that day the mortgagor is in default, and the mort- gagee acquires important rights as will be explained hereafter. As a rule, the remedy for the recovery of a debt secured by a covenant, or specialty debt, is barred only after the lapse of twenty years after the cause of action arose or from the last payment of principal or interest or acknowledgment in writing by the covenantor (/); but in the case of Sutton v. Sutton (g) it was held that since the Real Property Limitation Act, 1874, s. 8, provides that an action to recover any money secured on land must be brought within twelve years of the cause of action, an action on a covenant for repayment in the mortgage is barred at the expiration of that time. And in Fearnside v. Flint (h) it was held, that it made no difference that the cove- nant for repayment was contained in some separate instrument from the mortgage, as in a collateral bond by the mortgagor, but that the action to recover the money secured both by the mortgage and the collateral bond must be brought within twelve years, for the action still remains one to recover money secured on land. But if there is a collateral bond by a surety an action on the bond may be brought against the surety at any time within twenty years, the action being rather in the nature of an action for damages for breach of covenant than a proceeding to recover the same debt as that secured by the mortgage (y); and perhaps an action against a surety on the covenant in the mortgage is also not barred until the expiration of twenty years (1c). The Beal Property Limitation Act, 1833, s. 42, enacts that no arrears of interest in respect of any sum of money charged upon or payable out of any land shall be recovered by any distress, action, or suit but within six years next alter the same shall have become due. This applies to a foreclosure action, (/) Civil Procedure Act, 1833, s. 3. (g) (1882), 22 Ch. D. 511; see also Kirkland v. Peat-field, (1903) 1 K. B. 756. (h) (1882), 22 Ch. D. 579. (i) Re Powers, Lindsell v. Phillips (1885), 30 Ch. D. 291. ( k ) Re Frisky, Alii on v. Frisky (1889), 43 Ch. D. 106. THE FORM AND CONTENTS OF A MORTGAGE DEED. 211 and consequently in such an action only six years’ arrears are recoverable, but apparently it does not apply to an action on the covenant if there is one; so that in the latter action twelve years’ arrears are recoverable (l ) . The section does not pre- vent a (mortgagee, who sells under his power of sale, from paying himself out of the proceeds of sale all arrears of in- terest (m ) ; nor docs it apply to redemption actions or to pro- ceedings taken by the mortgagor to obtain payment of a fund in court representing the proceeds of sale of the mort- gaged land, in which he must be prepared to pay all arrears of interest (n). Further, since the provisions of the act relate only to interest on money charged on land, in the case of a mortgage of pure personal property all arrears of interest are recoverable in a foreclosure action (o). The mortgagee, with a view to make punctuality in pay- ment of the interest of advantage to the mortgagor, sometimes wishes to provide that if he does not pay it punctually at the time stipulated, he shall be bound to pay interest at a higher rate. He cannot do this directly; for if the covenant provides for interest at the rate of five per cent., but that if it be not paid punctually on the date fixed for payment, then it is to be six per cent., the court would treat the provision as a penalty and relieve the mortgagor against it by allowing him to redeem on repayment of the principal and interest at five per cent. But the object may be effected by stipulating that the rate of interest shall be six per cent., but that, if it is paid punctually, payment at the rate of five per cent, will be accepted, and such a clause is frequently seen in mortgages. It has been decided that payment “punctually" here means payment on the day fixed for payment, and that payment after the fixed day, even though but a few days after, is not sufficient (p). How punctual payment of interest may be insured — (1) by reserv- ing higher rate ; (7) See Coote, Law of Mort- gages, 7th ed. vol. ii. 1187. (m) Be Marshfield, Marshfield, v. Hutchings (1887), 34 Oh. D. 721. {n) Dingle v. Coppen, (1899) 1 Ch. 726; Be Lloyd , Lloydv. Lloyd, p 2 (1903) 1 Ch. 385. (o) Mellersh v. Brown (1890), 45 Ch. D. 225. (p) L/eeds and Hanley Theatre of Varieties v. Broadbent, (1898) 1 Ch. 348. 212 (2) by com- pounding the interest. Provision for securing future advances. Provision for repayment by instalments. BK. I., PT. II. — MORTGAGES. A jmoviso for the reduction of interest on punctual payment does not. apply when the mortgagee takes possession and re- ceives the rents, whether he does so by arrangement with the mortgagor or otherwise, and he is accordingly allowed the higher rate, even though there was no interest in arrear when he took possession (g). Since the usury laws were repealed by 17 & 18 Viet. c. 90, another way to secure the punctual pay- ment of interest is to provide for the payment of compound interest (r) ; but a proviso for capitalization of interest, if in arrear for twenty-one days, does not take effect if the mort- gagee in possession receives sufficient rent before the twenty- one days have expired (s ) . Sometimes the covenant to repay is extended, not only to the actual money lent at the time of the execution of the mort- gage, but also to advances to be made on some future occasion. In these cases it is not the practice to state expressly the total amount beyond which these advances shall not be extended, but the mortgage deed is so stamped as to cover a certain sum in excess of that advanced at the time of execution. Again, provision is sometimes made for the repayment of the advance by instalments. In this case it is the practice to make the money payable at the usual time, and then to add a proviso that if' the instalments be paid punctually on certain days, with interest on the part not paid off, the mortgagee will not call in the part which is not already j^aid off. Or else the covenant may be, in the first case, to pay the money off by instalments, and the proviso for redemption makes the premises redeemable on the payment of the advance and interest in the manner mentioned in the covenant, and this is followed by a proviso giving the mortgagee power to call in all the money secured in event of the instalments and the interest not being duly paid (t). Where some such provision for payment (g) Union Bank v. Ingram (1880), 16 Ch. D. 53; Bright v. Campbell (1889), 41 Ch. D. 388. (r) Clarkson v. Henderson (1880), 14 Ch. D. 348. (s) Wrigley v. Gill, (1906) 1 Ch. 165. ( t ) The mortgagee may also stipulate for a commission of — per cent, on each instalment not paid at the due date for every month or part of a month from the due THE FORM AND CONTENTS OF A MORTGAGE DEED. 213 by instalments is made there should be a proviso that, notwith- standing the provision and without prejudice to it, the principal money shall be deemed to become due, within the meaning of the Conveyancing Acts and for all purposes of those acts, on the day usually fixed, namely, six months after the execution of the deed (u ) . Where the mortgagees were trustees advancing money out of their trust funds, it was formerly necessary to modify the form of covenant, and to insert what was called the “ joint account clause.” The reason for this was, that when several persons advanced money, though they might be joint tenants of the mortgage debt at law, in equity they were considered as tenants in common; so that, on the death of one of them, the mort- gagor, on paying off the debt, had to go for a discharge, not! only to the survivors, but to the personal representatives of the deceased person. This was especially inconvenient in the case of trustees, who form a large proportion of the class of persons who lend on mortgage. It was not desirable to show on the face of the mortgage deed that the lenders were trustees, and that the survivors had power to give receipts, for that would amount to notice that the money was trust property, which would have incorporated the title deeds relating to the trust into the title of 1 the mortgagor ( x ). It was therefore the usual practice to insert this joint account clause, by which it was declared that the money belonged to them upon a joint account, both at law and in equity, and that the receipt of the survivor or survivors of them, or the executors or administrators of the survivor, their or his assigns, should be a valid discharge. But in the case of' mortgages made since the 3.1st December, 1881, the Convey- ancing Act, 1881, s. 61, provides that where the sum advanced is expressed to be advanced by more persons than one out of money belonging to them on a joint account, or a mortgage is made to more persons than one jointly and not in shares, the mortgage money is to be deemed to belong to them on a joint account as between them and the mortgagor, and the receipt in date to the date of payment: (u) See 1 Prideaux, 20th ed. 791. General Credit and Discount Co. (x) Re Blaiberg and Abrahams' v. Glegg (1883), 22 Oh. D. 549. Contract, (1899) 2 Ch. 340. Joint account clause formerly necessary in the case of trustees. 44 & 45 Viet, c. 41, s. 61. 214 Right to sue on covenant after fore- closure. Second testatum. Conveyance of the property. BIC. I., PT. II. MORTGAGES. writing of the survivors or last survivor of them will be a complete discharge, notwithstanding any notice to the payer of a severance of the joint account. The result is, that it is now unnecessary to declare that the mortgagees are joint tenants in equity, or that the receipt of the survivor is to be a discharge, or even that the advance is made “ out of money belonging to them on a joint account,” if' the mortgage is made to them jointly; though in practice the latter words are usually inserted. The mere fact that the mortgage is made jointly does not alter the rights of the mortgagees inter se, so that if the money in fact belonged to them as tenants in common they will, as between themselves, be tenants in common of the money secured (y). A mortgagee, who has sold under his power of sale, can sue on the covenant for any deficiency there may be, but if lie does so after foreclosure decree absolute he opens the foreclosure, and gives the mortgagor a further right to redeem (z ) . If after foreclosure decree he sells the property, he cannot recover a deficiency by suing on the covenant ( zz ) . Second Testatum. — Conveyance of Mortgaged Property to Mortgagee. After the covenant for payment of principal and interest follows the second testatum, by which it is expressed that for the consideration aforesaid the mortgagor, as “ beneficial owner,” conveys to the mortgagee the property the subject of the mortgage (describing it), to hold unto and to the use of’ the mortgagee in fee simple, or as may be according to the nature of the property, subject to the proviso for redemption thereinafter contained. With regard to this part of the deed, it is unnecessary to add anything to what has been said of the operative part in the case of a purchase deed. ( y ) Re Jackson (1887), 34 27 Bcav. 349. Ch. D. 732. {zz) Lockhart v. Hardy (1846), (z) Palmer v. Hendrie (1860), 9 Beav. 379. THE FORM AND CONTENTS OF A MORTGAGE DEED. 216 The Proviso for Redemption. After the conveyance of the property to the mortgagee follows the proviso for redemption or reconveyance. In old mortgages this proviso was to the effect that the con- veyance should he avoided upon the payment of the money secured: but the usual practice of the present day is to pro- vide that upon the mortgage money and interest being paid off the mortgagee will reconvey the premises to the mortgagor or as he shall direct. The mortgagee cannot be compelled to allow the property to be redeemed before the day specified in the covenant for repayment has arrived, even though the mortgagor tenders the principal with interest calculated up to that date (a) . On the day named the mortgagor has, and always had, a right to re- deem both at law and in equity; after the day named there was no right to redeem at law, hut in equity the mortgagor has long been permitted to redeem on payment of principal, interest and costs, notwithstanding that the day named has This “equity of redemption of the mortgagor is an inseparable incident of a mortgage, and no agreement between the parties in the mortgage deed can deprive the mortgagor of it, or prevent its exercise. Once it is shown that a transfer of property is only by way of security for an advance made to the transferor, no agreement the parties can make can prevent the transferor getting his property hack on repaying the amount advanced with interest and costs. “ Once a mortgage always a mortgage ” (b ) . Nor is the mortgagee allowed to make any stipulation which will prevent a mortgagor who has paid principal, interest and costs from getting back his mortgaged property in the condition in which he parted with it. No clog or fetter may be imposed upon the equity of redemption. Consequently in a mortgage of a public-house to a firm of brewers, a covenant that the mortgagor will not during the (а) Brown v. Cole (1845), 14 Wh. & Tud. L. C. Eq. 8th ed. Sim. 427. vol. ii. 11; Salt v. The Marquis (б) Howard v. Harris (1683), ot Northampton, (1892) A. C. 1. Proviso for re- conveyance. The equity of redemption. Once a mort- gage always a mortgage. Equity of redemption cannot be clogged or fettered. 216 Who can redeem. BK. I., PT. II. MORTGAGES. continuance of the term, whether or not any principal money or interest is still owing on the security, sell on the mortgaged premises any malt liquors except such as shall have been pur- chased from the mortgagees, is invalid, since otherwise on pay- ment off the mortgagor would not get his property back un- fettered (c). And it has been held that a condition in a mort- gage of shares in a company, that the mortgagor shall endeavour to secure that the mortgagee shall always thereafter be em- ployed as broker by the company is void for the like reason (d). On the other hand, a mortgagee may stipulate for a collateral advantage at the time, and as a term of the advance, provided that the equity of redemption is not thereby fettered and the bargain is fair and reasonable. So that there is no objection to a provision that the mortgagor will during the continuance of the security buy from the mortgagee only all beers and stout or any other description of malt liquors vended or consumed on or off the mortgaged premises (e); nor to a provision such as is often to be found for continuing the loan for a specified time, namely, that the mortgagor shall not be at liberty to pay off the money before the expiration of a reasonable period (say five years), the mortgagee being at the same time pro- hibited from calling in the money during the same period if meanwhile the interest is punctually paid, for this is a fair bargain between the parties, and does not prevent the mort- gagor getting the property back in its original form when he does redeem (/) . The right to redeem belongs not only to the mortgagor and the persons to whom it is expressly reserved by the provisions (c) Noakes & Co. v. Rice, (1902) A. C. 24; and Samuel v. Jarrah Timber and Wood Paving Corpo- ration, (1904) A. C. 323. (d) Bradley v. Carritt. A fur- ther illustration of the rule is to be found in Browne v. Ryan, (1901) 2 I. R. 653. (e) Biggs v. Iloddinott, (1898) 2 Ch. 307. Compare Santley v. Wilde, (1899) 2 Ch. 474, which, however, was disapproved by Lords Macnaghten and Davey in Noakes & Co. v. Rice, (1902) A. O. at pp. 31, 34, and again in Bradley v. Carritt, (1903) A. C. at pp. 255, 267. (/) Teevan v. Smith (1882), 20 Ch. D. at p. 729; Biggs v. Hoddi- nott, supra; and compare Morgan v. Jeffreys, (1910) 1 Ch. 620; and Be Beers v. British S. A. Co., (1912) A. C. 52. THE FORM AND CONTENTS OF A MORTGAGE DEED. 217 of the mortgage deed, but also to all persons claiming under the mortgagor, and all persons having any interest in the equity of redemption (g ) . This includes the mortgagor’s heir, and where Part I. of the Land Transfer Act, 1897, applies, his personal representatives; a purchaser and a mortgagee of the equity of redemption (h); a trustee in bankruptcy, and a judg- ment creditor of the mortgagor; sureties for the payment of the mortgage debt; and even a pi ere lessee of the premises, whose lease, being made by the mortgagor after the date of the mortgage deed, and without any power to make it, is not binding on the mortgagee ( i ) . If the equity of redemption is settled, the right to redeem belongs to the tenant for life in preference to those entitled in remainder (Ar), who can only redeem with his consent, but a tenant for life who has redeemed cannot compel those in remainder to redeem him. Unless the principal money is repaid at the time lixed in the mortgage, before exercising his right to redeem, the mort- gagor must either give six months’ notice to the mortgagee or pay him six months’ interest in lieu of notice (7); unless, in- deed, the mortgagee has gone into possession (m), or has com- menced foreclosure proceedings or taken other steps to recover his money (w). But if six months’ interest is tendered in lieu of notice, the mortgagee is bound to accept it (o) . Where a notice has been given requiring repayment of the mortgage money, the mortgagor may at any time, whether on or after the expiration of the notice, tender the money with interest to the date of tender. If the time named in the notice has expired, the mortgagor need not give any further notice, or pay interest in lieu of notice (p) . Notice of intention to redeem. ( g ) See generally Coote, Law of Mortgages, 7tli ed. vol. i. 712 et seq. ( h ) See Pearce v. Morris (1869), L. R. 5 Ch. App. 227. ( i ) Tarn v. Turner (1888), 89 Ch. D. 456. (k) Ravald v. Russell (1830), Younge, at p. 21; Prout v. Cock, (1896) 1 Ch. 808. (l) Browne v. Lockhart (1840), 10 Sim. 420; Smith v. Smith, (1891) 3 Ch. 550. ( m ) Bovill v. Endle, (1896) 1 Ch. 648. ( n ) Prescott v. Phipps (1883), 23 Ch. D. 372. (o) Johnson v. Evans (1889), 61 L. T. 18. (p) Edmondson v. Copland, (1911) 2 Ch. 301. 218 On redemp- tion increment value duty and reversion duty payable by mortgagee must be repaid. The right to redeem may be lost — (1) by fraudu- lent conceal- ment ; (2) by lapse of time ; (3) by fore- closure decree ; BK. I., PT. II. MORTGAGES. If the mortgagee has incurred any liability to pay increment, value duty or reversion duty in respect of the mortgaged pro- perty, the mortgagor on redeeming must pay the amount together with any costs or expenses properly incurred by the mortgagee in respect of the payment of the duty (q ) . The mortgagor may lose his right to redeem. First, by the 4 & 5 Will. & Mary, c. 16, it is enacted, that when a person, having once mortgaged, mortgages again, with intention to defraud, without disclosing the first mortgage to the second mortgagee, he will have no right to relief or equity of re- demption as against the second mortgagee, who will be able to hold the land free from the equity as fully as if he had pur- chased the land. But this statute being a penal one is construed very strictly, and it has been held that an equitable mortgage by deposit of title deeds, and a further charge without a proviso for redemption, are not second mortgages within the meaning of the act, and as the act affords no active enforceable remedy, it appears to be of little effect (r) . Secondly, by the Ileal Property Limitation Act, 1874, s. 7, an action to redeem must be brought within twelve years after the time when the mortgagee has obtained possession or receipt of the land, or the rents and profits thereof, unless some acknow- ledgment in writing of his right to redeem has been given to him in the meantime by the mortgagee, "when the action must be brought within twelve years after the date of such acknowledg- ment, and no additional time is allowed for disability ( s ) . Thirdly, the mortgagee may obtain a foreclosure decree at any time after tbe day named for payment in the mortgage deed. By such a decree an account is directed to be taken of what is due under the mortgage, and a time named at the end of which, if the money found to be due is not repaid, the mortgagor will be foreclosed from his equity of redemption. The time fixed is generally six months after the date of the master’s certificate (but it may be enlarged in certain cases), ( q ) Finance (1909-10) Act, (s) See Foster v. Patterson 1910, s. 39 (4). (1881), 17 Ch. D. 132; Kinsman (r) Kennard v. Futvoye (1860), v. Bouse (1881), 50 L. J. Ch. 486. 2 Gift. 81. THE FORM AND CONTENTS OF A MORTGAGE DEED. 219 and if at the end of the time so limited the money is not paid off, then the decree is made absolute, and the result is that the mortgagee becomes absolute owner of the mortgaged property in equity as well as at law. This right of foreclosure is inci- dent to a mere equitable mortgage by 'deposit, with or without memorandum in writing (f), and in this case the judgment orders the mortgagor to convey the legal estate (u), but not to a pledge of personal chattels, e.g., a deposit of bonds not trans- ferred, the remedy in this case being by sale (x). It is, how- ever, available in case of a security on shares with power of sale under which the shares are transferred to the lenders (y ) . Finally, the mortgagee may sell under his power of sale, in which event the mortgagor’s right to redeem will be lost, though he will be entitled to any surplus left after the mortgagee has paid himself principal, interest and costs (z). The court may now order a sale in lieu of a foreclosure under the provisions of s. 25 of the Conveyancing Act, 1881. The mortgagor’s equity of redemption is further subject to the mortgagee’s right to consolidate his securities. This is the right of a mortgagee, who has several mortgages on dif- ferent properties from the same mortgagor, to refuse to permit the redemption of one of the mortgages without being' paid what is due to him in respect of the others; in other words, it is a right to insist on the several properties being, as it were, lumped together and treated as one security for the total of the various amounts advanced upon each one of the securi- ties (a ) . The right is subject to several limitations. Thus, in Jennings v. Jordan (5), where one of the mortgages, which it was sought to consolidate, was not created till after the mort- gagor had sold the equity of redemption of the other to the (4) by sale by mortgagee. Court can order a sale in lieu of foreclosure. 44 & 45 Viet, c. 41, s. 25. Doctrine of consolidation. Limits of the doctrine. Jennings v. Jordan. O Backhouse v. Charlton (1878), 8 Ch. D. 444; Oldham v. Stringer (1885), 51 L. T. 895. ( u ) James v. James (1873), 16 Equity, 153. (as) Carter v. Wake (1877), 4 Ch. D. 606; Fraser v. By as (1895), 13 R. 452. (y) General Credit and Discount Co. v. Glegg (1883), 22 Ch. D. 549. (z) See post, p. 228. (а) Vint v. Padgett (1858), 1 Giff. 448; Pledge v. White, (1896) A. C. 187. (б) (1881), 6 App. Cas. 698. 220 BK. I., PT. II. MORTGAGES. Harter v. Colman. Cummins v. Fletcher. Sharp v. Rickards. 44 & 45 Viet, c. 41, s. 17. Why consoli- dation is still a risk. person claiming to redeem, it was held that the latter could redeem the mortgage on the property assigned to him without also redeeming that created subsequently to his assignment. Again, in Harter v. Colman ( a PP lies * in certain circumstances be surrendered to the mortgagor. By s. 3f of 1 this act it is provided that, for the purpose only of enabling a lease to be granted, a mortgagor of land while in possession has, in like manner as if the legal estate were vested in him and as against every incumbrancer, power to accept from time to time a surrender of any lease of the mort- gaged land or any part thereof 1 comprised in the lease, with or without an exception of all or an} r of the mines and minerals therein, or in respect of mines and minerals, or any of them, and, on a surrender of part only of the land or mines and minerals leased, the rent may be apportioned. And for the same purpose a mortgagee while in possession has, as against all prior and other incumbrancers, and as against the mortgagor, power from time to time to accept any such surrender as aforesaid. On a surrender of part only of the land or mines and minerals leased, the original lease may be varied, and on a surrender and the making of a new lease, the value of the lessee’s interest in the lease surrendered may be taken into account in deter- mining the rent to be reserved, and the nature of the cove- nants. &c. to be inserted in the new lease, but a surrender to a mortgagor cannot be made without the consent of the in- cumbrancers, nor a surrender to a second or subsequent in- cumbrancer without the consent of a prior incumbrancer. To make the surrender valid an authorized lease (i) must bo granted of the whole of the lands or mines and minerals comprised in the surrender, to take effect in possession within a month after ( h ) Robbins v. Whyte , (1906) 1 act of 1881, or any agreement K. B. 125. made pursuant to that section or (i) This expression signifies “A by the mortgage deed.” See 1 & 2 lease authorized under s. 18 of the Geo. 5, c. 37, s. 3, sub-s. (1). ncurrence or me mortgagee, except wner W; but this is no longer andn^IX 238 Practice note. The object of the attorn ment clause. BK. I.j PT. II. MORTGAGES. the date of the surrender, and the term granted by the new lease must not be less in duration than the unexpired term or interest which would have subsisted if' the lease had not been surrendered; and where the whole of the lands, &c. originally leased has been surrendered the rent under the new lease must not be less than would have been payable under the surren- dered lease; and where the surrender is partial only the aggre- gate rents must not be less than the rent payable under the original lease. The provisions only apply to mortgages made on or after 1st January, 1912, unless they are extended by written agreement made on or after that date between mort- gagor and mortgagee to earlier mortgages, and only so far as a contrary intention is not expressed in the mortgage deed, or otherwise in writing, but the provisions, &c. extend and apply so far as circumstances admit, to any letting, and to an agree- ment, whether in writing or not, for leasing or letting. Where the mortgagee has appointed a receiver, the surrender must be accepted by the mortgagee just as if he were in actual possession of the land. If there is a likelihood of the mortgagee appointing a re- ceiver it is useful in a proper case to provide that this statutory power of leasing may be exercised by the receiver as the agent of the mortgagor. The Attornment Clause. Sometimes, besides the provisions above mentioned, the mort- gage deed contains an attornment clause, by which the mort- gagor expressly constitutes himself' a tenant of the mortgagee of 1 the mortgaged premises at a yearly rent equivalent, as a rule, to the annual amount of interest, the mortgagee being given power to determine the tenancy so created at any time without notice (j ) . The advantage of 1 this formerly was that if the mortgagor allowed the interest to fall into arrear, the mortgagee could distrain for it as if he were a landlord distraining for his rent. It was, however, established in the case of' Re Willis, Ex parte (?) See form in Key and Elphin- Prideaux, Prec. 20th ed. vol. i. stone, Prec. 9th ed. vol. ii. 67; 782. THE FORM AND CONTENTS OF A MORTGAGE DEED. 239 Kennedy (Jc), that the insertion of such a clause brings the in- strument within the Bills of Sale Acts (7). Now, a bill of sale Effect of Bills • i pi • . p .-i a p . i *11 of S^-Ig Act on given by way oi security ior money must, by s. 9 oi the JdiIIs the clause. of Sale Act, 1882, be in the form given in the schedule to that act. It has been said, it is true, that an attornment clause is not governed by s. 9 of the Bills of Sale Act, 1882, and so need not be in the statutory form(ra) ; but even if this be correct, it is plainly void as a power of distress unless registered in the Bills of Sale Office; and it is not at all likely that the mort- gagor will consent to that. However, it has been decided that the non -registration of the mortgage as a bill of sale will not invalidate it — as was at one time thought — as far as the land is concerned (n ) ; and that, notwithstanding the Bills of Sale Acts, the clause is still valid for the purpose of creating the relation of' landlord and tenant between the mortgagee and mortgagor ( o ). Therefore where the mortgage contains such a clause, even though it is not registered as a bill of sale, if the mortgagee wishes to recover possession, he can sue by specially indorsed writ under Ord. III. r. 6, and obtain speedy judgment under Ord. XIV. r. 1 of the rules of the Supreme Court (p). The rent reserved should be nominal only, and there should Power of • distress be a power reserved to the mortgagee to determine the tenancy invalid, at any time. It seems clear that to give the mortgagee ex- pressly a power of distress for the recovery of arrears of interest wiil.be equally invalid as constituting the document a bill of sale (g). It has been held that an attornment may be made to a second Attornment . . .... .to second mortgagee (r), even though there is subsisting a previous mortgagee. attornment to a first mortgagee ( 5 ). (Jc) (1888), 21 Q. B. D. 384. (l) Sec Bills of Sale Act, 1878, ss. 4, 6, post, p. 267. (m) Per Kay, L. J., delivering the judgment of the Court of Appeal in Green v. Marsh, (1832) 2 Q. B. at p. 335. See, however, the criticism of this judgment in Weir on Bills of Sale, 179, 180. ( n ) Re Burdett, Ex parte Byrne (1888), 20 Q. B. D. 310. ( 0 ) Mumford v. Collier (1890), 25 Q. B. D. 279. ( p ) Mumford v. Collier (1890), 25 Q. B. D. 279; Kempv. Lester, (1896) 2 Q. B. 162. ( q ) See the Bills of Sale Act, 1878, ss. 4, 6; Pulbrook v. Ashby (1887), 56 L. J. Q. B. 376. (r) Morton v. Woods (1869), L. R. 4 Q. B. 293. (s) Ex parte Punnett (1880), 16 Ch. D. 226. 240 BK. I., PT. II. MORTGAGES. The following is the form of an ordinary mortgage deed of freehold land in a simple case: — Deed of Mortgage of Freehold Land. This Indenture made the day of 19 between A. of [&c.~\ of the one part and B. of [f&c.] and C. of [c 0c.] of the other part Whereas the said A. is seised of the hereditaments intended to be hereby conveyed for an estate in fee simple in pos- session free from incumbrances And whereas the said B. and C. have agreed to lend to the said A. the sum of £ upon having the repayment thereof with interest secured in manner hereinafter expressed Now this Indenture witnesseth that in consideration of the sum of £ paid to A. by B. and C. out of money belong- ing to them on a joint account the receipt whereof the said A. hereby acknowledges the said A. hereby covenants with the said B. and C. to pay to them on the day of the sum of £ with interest thereon in the meantime at the rate of per centum per annum and also as long after that day as any principal money remains due under this mortgage to pay to the said B. and C. interest thereon at the same rate by equal half- yearly payments on the day of! and the day of And this Indenture also witnesseth that for the same consideration the said A. as beneficial owner hereby conveys to the said B. and C. All that \&c\ To hold to and to the use of the said B. and C. in fee simple subject to the proviso for redemp- tion following (namely) that if the said A. shall pay to the said B. and C. on the day of the sum of £ and interest thereon at the rate aforesaid then the said B. and C. will at the request and cost of the said A. re-convey the premises to the said A. or the persons claiming under him And the said A. hereby covenants with the said B. and C. as follows [here add covenants as to fire insurance and repairs , and any other special covenant or clause required]. In witness, &c. V. — THE FORM OF THE MORTGAGE IN SPECIAL CASES. Mortgages of Copyholds. Mortgages of copy holds effected by conditional surrender. A. mortgage of copyhold land is effected by a surrender sub- ject to a condition that it shall become void upon the payment of the debt and interest on a specified day. The mortgagee is not as a rule admitted, for this gives him no advantage, unless ho wishes to realize his security, and until this occurs admit- tance will be unnecessary and will render him subject to the necessity of having to pay the fine due to the lord on admit- THE FORM OF THE MORTGAGE IN SPECIAL CASES. 241 tanoe. The surrender is accompanied or preceded by a deed of covenant to surrender, in which are embodied the usual mortgage clauses, and into which the Conveyancing Act, 1881, imports covenants for title, the power of sale, and all the other clauses which it imports into a mortgage of freehold land. If the loan precedes the surrender by even a short length of time, it is usual to add to the covenant to surrender a declara- tion by the mortgagor that he will stand seised of the premises until the surrender on trust for the mortgagee, his heirs and assigns, subject to the same equity of redemption as they would have been subject to had the surrender been already made; for this will enable the mortgagee to obtain the legal estate under s. 26 of the Trustee Act, 1893, by an order of the court, in case the surrender is not duly made by the mortgagor. This will not he necessary when the money is not advanced (as it should not be) until the surrender is effected. On the mortgagee being paid off, if he has not been admitted, all that is necessary to revest the land in the mortgagor is to enter an acknowledgment of satisfaction on the court rolls, but it is also advisable to endorse a receipt for the money on the covenant to surrender . Mortgages of Leaseholds. Whether a mortgage of leaseholds should be effected by an assignment or an underlease depends on the nature of the rent and covenants contained in the lease. The assignee of a lease becomes liable and remains liable until he assigns over for the rent and covenants contained therein so far as they run with the land, whereas an under- lessee does not. Consequently, if a rent is payable or the covenants in the lease are burdensome, it is obviously dis- advantageous to the mortgagee to take an assignment. On the other hand, if the mortgagee takes an underlease, the mort- gagor may commit some breach of covenant in the lease involving forfeiture. It is true that if he does, the mort- gagee underlessee can now apply for relief under s. 14 of the Conveyancing Act, 1881, as extended by s. 4 of the Convey- ancing Act, 1892; but this entails expense and trouble, and relief can only be given him in the form of vesting the lease G. — C. R Declaration of trust until surrender. Entry of satis- faction on court rolls. Mortgages of leaseholds may be by assignment or underlease. Respective advantages »T>d dis- advantages. 242 BK. I., PT. II. — MORTGAGES. In practice such mort- gages are usually by underlease. Effect of bankruptcy on a mortgage by underlease. in the mortgagee for a term not exceeding the term of the underlease, which puts him in the position of the lessee and subjects him to all the liabilities of the latter; so that where there is no rent or only a nominal rent and the covenants are not onerous, an assignment of the whole term affords the better security of the two. As this seldom happens, however, the mortgage is usually made by underlease; the underlease being for the whole term except the last day or last few days. When this method is adopted, the deed should contain a declaration of trust by the mortgagor of the head term for the benefit of the mortgagee and persons claiming under him, and also a power of attorney authorizing the mortgagee to assign to him- self the head lease subject to the equity of redenrption, if that should be existing at the time it is proposed to exercise the power, and also a power enabling the mortgagee to appoint a new trustee in place of the mortgagor of the head term, and to remove the mortgagor from being trustee. Under the latter power the mortgagee can appoint a nominee of his own to be a trustee, and at the same time make a declaration under s. 12 of the Trustee Act, 1897, vesting the head lease in the new trustee (£). Should the property consist of renewable lease- holds it may be advisable to- insert an express covenant by the mortgagor to renew on the request of the mortgagee, and to assign the property included in the renewed lease to the mort- gagee subject to the subsisting equity of redemption. But such a covenant is not absolutely necessary; for though in its absence the mortgagee cannot compel the mortgagor to renew, lie can effect a renewal in his own name, and hold the renewed lease as a security not only for the mortgage debt and interest, but for the costs of renewal and interest thereon ( u ), and if the mortgagor renews the mortgagee is entitled to the benefit of the renewed term for the purposes of his security (x). In connection with a mortgage by way of' underlease the provisions of s. 55 of the Bankruptcy Act, 1883, as amended by s. 13 of the act of 1890, must be borne in mind. Under (t) London and County Bank 3 Atk. 4; see also Bakestraw v. y. Goddard, (1897) 1 Oh. 642. Brewer (1728), 2 P. W. 511. (u) See Lacon v. Mertins (1743), (x) Smithy. Chichester (1842), 1 0. & L. 486. THE FORM OF THE MORTGAGE IN SPECIAL CASES. 243 these acts, should the mortgagor become bankrupt and his trustee disclaim the lease, the effect on the underlease will be that the mortgagee will either have to lose his security, or will ha\e to take a vesting order, which will render him liable to perform the covenants and pay the rent contained in and reserved by the original lease. For the disclaimer does not prevent the original lessor from entering upon the land under the condition of re-entry contained in the original lease (?/) ; and it is expressly provided that if the underlessee seeks the court’s assistance, the same can only be given him on the terms that the original lease be vested in him, subject to the sarno liabilities and obligations as the bankrupt was subject to under the lease at the date when the bankruptcy petition was filed, or at the discretion of the court as if the lease had been assigned to him at the date when the bankruptcy petition was filed, and (if the case so requires) as if the lease had comprised only the property comprised in the vesting order (z), and then he would become entirely responsible to the lessor on the original covenants as to anything done after the date when the bank- ruptcy petition was filed. The lessor, too, can apply to the court for an order vesting the disclaimed lease in the mort- gagee on terms ( a ). Mortgages of Choses in Action. A mortgage of a chose in action, such as a debt, is made in Form of the same form mutcitis mutandis as a mortgage of freehold X>a?m ° ° f land or a mortgage of leasehold land by assignment. A mort- action- gage of such choses in action as stock or shares is also made in the same form, except that in the case of registered stock or shares the transfer to the mortgagee must be by separate docu- ment in the proper form. The same inquiries must be made and the same notices given as in the case of the sale of a chose f in action (b) . ( y ) Ex parte Walton, Re Levy (1881), 17 Oh. D. 746; Bank- ruptcy Act, 1883, s. 55 (2). (z) Bankruptcy Act, 1883, s. 55 (6) ; Bankruptcy Act, 1890, s. 13. See Re Carter and Ellis, (1905) 1 Iv. B. 735. (a) Re Cock, Ex parte Shilson (1887), 57 L. J. Q. B. 169. (5) See ante, p. 180. R 2 244 BK. I., PT. II. — MORTGAGES. When dis- tringas, &c. necessary. Implied power to sell. Mortgages of life policies, when taken. Covenants required. If the mortgage is of a reversionary interest in stock, a dis- tringas ought to be put upon the stock, and if it is of a fund in court a stop order should be applied for. A mortgagee of choses in action such as stock or shares has implied power to sell them on default being made by the mort- gagor in payment of the amount due at the time appointed for payment, or if no time be fixed, on the expiration of ja reasonable notice by the mortgagee requiring payment on a day certain, and ss. 19 and 20 of the Conveyancing Act, 1881, do not affect the power of sale which is implied in the case of a mortgage of shares not made by deed (c) . Mortgages of Life Policies. A mortgage of a policy of life assurance is generally taken in conjunction with a mortgage of a life estate in land; such a mortgage is sometimes, however, taken alone ; but in this case it is but an inefficient security, as during the mortgagor’s life there is no fund for the mortgagee to rely on, and the mort- gagor may omit to pay the premiums, or do some act which will avoid the policy. If such a policy is taken as a security, inquiry should be made at the office of the assurance company whether notice of any previous incumbrance has been given. The mort- gage will be effected by assignment, and, immediately on com- pletion, notice must be given to the assurance company, other- wise a subsequent incumbrancer who gives notice will obtain priority if he is unaware of the mortgage (d), and this is so, even where the first assignment is made by the insured him- self, and the second by his personal representative (e). The assignment should contain covenants by the mortgagor not to do anything which may avoid the policy; to restore it if by any means it becomes voidable; and to effect a new insur- ance in the name of the mortgagee if it becomes void; and to pay the premiums, and deliver the receipts therefor to the mortgagee; a power to the mortgagee to pay the premiums if (c) Deverges v. Sandeman, v. Newman (1885), 28 Ch. D. 674. Clark & Co., (1902) 1 Ch. 579. (e) Re FreshfLeld (1879), 11 ( d ) See the Po'icies of Assur- Ch. D. 198. ance Act, 1837, s. 3; and Newman THE FORM OF THE MORTGAGE IN SPECIAL CASES. 24 5 he makes default, and a covenant that, on the mortgagee doing so, he, the mortgagor, will on demand repay them with interest and expenses. If the policy is mortgaged in connection with Mortgagee's land, there should be a charge of 1 these expenses on the land premiums* 0 until repayment. But the mortgagee, even in the absence of P aid - stipulation, is entitled to charge the property with any sums he may advance to keep up the policy, with interest thereon at 4 per cent. (/). Statutory Mortgages. In the case of a simple mortgage of freehold or leasehold land When statu - where the amount of' the loan is small, recourse may be had g°age™may with advantage to the short form of statutory mortgage pro- be used - vided by the Conveyancing Act, 1881. By s. 26 of that act, a mortgage of freehold or leasehold land may be made by deed expressed to be made by way of' statutory mortgage, in the form given in Part I. of the Third Schedule to the act with such variations and additions as circumstances may require. And there will then by virtue of the act be implied in the what cove- mortgage deed: — nants, &c. ° ° are implied, (1) A covenant with the mortgagee by the person expressed to convey as mortgagor to pay on the stated day the mortgage money, with interest thereon in the mean- time at the stated rate, and thereafter, so long as the mortgage money or any part remains unpaid, to pay interest thereon at the stated rate, by equal half- yearly payments, the first to be made at the end of six calendar months from the day stated for pay- ment of the mortgage money. (2) A proviso for re-conveyance if the mortgagor pays the principal and interest on the stated day. Besides this, ss. 19 bo 24 of 1 the Conveyancing Act import and what into the statutory mortgage power to sell; to insure; to ap- powers- point a receiver; and to cut timber; and by s. 7, if the mort- gagor is expressed to convey as beneficial owner , the four usual covenants for title are implied. (/) See Bellamy v. Brickenden 552; Falcke v. Scottish Imperial (1861), 2 J. & H. 137; Re Leslie, Co. (1886), 34 Ch. D. 234. Leslie v. French (1883), 23 Ch. D. 246 Practice note. Disadvan- tages of a second mortgage. BK. I., PT. II. MORTGAGES. Even if the mortgage is not prepared exactly in accordance with the statutory form, it may be useful to declare it to be made by way of statutory mortgage,” since, if so made, the security can be transferred by means of the statutory transfer, and the property can be re-conveyed by means of a statutory re-conveyance (g). The following is the form of a statutory mortgage, as given in Schedule III. Part I. to the Conveyancing Act, 1881: — Dead of Statutory Mortgage. This Indenture made by way of statutory mortgage the day of 1882 between A. of [Ac.] of the one part and M. of [Ac.] of the other part Witnesseth that in consideration of the sum of £ now paid to A. by M. of which sum A. hereby acknowledges the receipt A. as mortgagor and as beneficial owner hereby conveys to M. All that [Ac.] To hold to and to the use of M. in fee simple for securing payment on the day of 1883 of the principal sum of £ as the mortgage money with interest thereon at the rate of [four] per centum per annum. In witness, &c. *** Variations to be made, if required , for leasehold land, or for giving effect to special arrangements fgg'). VI. — SECOND AND SUBSEQUENT MORTGAGES. Property may he mortgaged more than once, but a second mortgage, even of a freehold estate in fee simple, is far inferior as a security to a first mortgage. The disadvantages of a second mortgage are: — (1) The second mortgagee does not get the legal estate, and is consequently exposed to the risk of tacking. (2) Other mortgages may in some cases be consolidated against him. (3) He does not get the title deeds. (4) The first mortgagee may exercise his power of sale without consulting any but his own interests, and the second mortgagee may be compelled to redeem the first mortgage or lose his security. (< jg ) Conveyancing Act, 1911, s. 15. (g) 8ee below, pp. 250, 260. SECOND AND SUBSEQUENT MORTGAGES. 247 (5) The first mortgagee may foreclose his security, and again the second mortgagee will either have to redeem or lose his security. Tacking is the right of a legal mortgagee who has made a further advance on the security of the mortgaged property without notice of an intervening incumbrance, or of an incum- brancer subsequent to the second mortgagee who has advanced his money without notice of an intervening mortgage, and has bought up the first legal mortgage, to have both the charges satisfied before he can be compelled to relinquish the security in his favour, and so squeeze out, as it were, the intervening incumbrancer. Suppose, for instance, A. mortgages his estate Whiteacre to B., then to C., and then to D. If at the time of advancing his money D. had no notice of C.’s mortgage, he can pay off B. and take a transfer of the legal esta,te from him, and can then tack the first and the third mortgages together, and thus squeeze out C.’s mortgage (h). The right depends entirely upon the recognition by equity of the power inherent in the legal estate, so that it is only he who has the legal estate, or at least the best right to call for it, who can exercise the privilege of tacking. As between merely equitable mortgagees, therefore, when none of them has a better right to the legal estate than any other there can be no tacking. There can be no right to tack against an incumbrancer of whose charge the party seeking to tack had notice at the time he made his advance. Consequently, a first mortgagee cannot tack a further advance if before he made it he had notice of the second mortgage, even though the original mortgage deed covers future advances (i) or contains a covenant by the first mortgagee- to make them (1c ) . And notice to one of several joint mortgagees is sufficient to prevent the acquisition of the right (7). But the right to tack is not lost by notice before the legal estate is got in, so that a third mortgagee who has ( h ) Marsh v. Lee (1670), Wh. & II. L. 0. 514. Tud. L. C. Eq. 8th ed. vol. ii. (h) West v. Williams , (1899) 1 118; Brace v. Duchess of Marl- Cli. 132. borough (1728), 2 P. Wms. 491. (1) Freeman v. Laing, (1899) 2 (i) Ho'phinson v. Bolt (1831), 9 Ch. 3 55. Tiie doctrine of tacking. Notice defeats the right to tack. 248 BK. I., PT. II. MORTGAGES. A judgment debt cannot be tacked. Restrictions on the right of tacking. Precautions to be taken by second mortgagee. advanced his money without notice of the second mortgage can take a transfer of the first mortgage and tack his own mortgage to it, although he has received notice of the second mortgage before the transfer (m ) . But if a first mortgagee is paid off by the mortgagor he becomes a bare trustee of the legal estate for the second mortgagee, and the third mortgagee, if he has notice of the fact, cannot, by taking a transfer of the legal estate from him, obtain priority over the second; for it is a breach of trust in the first mortgagee to convey the legal estate to the third, and the latter having notice of the breach cannot profit by it {n). A judgment creditor who advances money to his debtor on security of a mortgage, cannot (even though he may have got a charge on the debtor’s land by means of execution) tack his judgment debt to the mortgage debt, because, with regard to the judgment debt, he did not originally lend his money on the security of the land (o<). The right of tacking was abolished by s. 7 of the Vendor and Purchaser Act, 1874, but restored by s. 129 of the Land Transfer Act, 1875; but in the case of mortgages of land in Yorkshire made on or after the 1st January, 1885, it is again abolished by s. 16 of the Yorkshire Registry Act, 1884. And having regard to s. 28 of the Land Transfer Act, 1875, it would appear that there cannot be any right of tacking mort- gages of land the title to which is registered. It is proper, then, in advancing money on a second mortgage, to inquire from the first mortgagee how much is due upon his security, and also, on completion, to give him notice that a second mortgage has been effected, which will have the effect of preventing him from tacking; and if the first mortgagee will permit it, the notice should be indorsed on the mortgage deed, so that it may be notice to a transferee of the first mortgage as well as to the first mortgagee himself. The second mortgagee will, however, still be exposed to the risk of the mortgagor (m) See Marsh v. Lee, supra. Banking Co., (1901) 2 Oh. 231. ( n ) II arpharn v. Shaddock (o) Brace v. Duchess of Marl- (1880), 19 Oh. D. 207; and see borough, supra. Taylor v. London and County EQUITABLE MORTGAGES. 249 making a third mortgage to a person who has no notice of thte second mortgage, and of this third mortgagee taking a transfer of the security of the first mortgagee, and tacking the two securities together . The cases in which the right of consolidation can be exer- Consolidation, cised against the assignee of the equity of redemption have already been discussed (p ) . The third objection to a second mortgage is that the mort- Second mort- l-iii mi i-i p g -agee gets no gagee does not get the title deeds. I he disadvantage of not title deeds, having these is obvious; not only is the second mortgagee exposed to risk of fraudulent dealings with the property by the first mortgagee and the mortgagor, but having no legal evidence of his charge on the estate other than his own mort- gage deed, his security is depreciated in value. VII . — EQUITABLE MORTGAGES. Sometimes a loan is needed for a short time only, and the How created, parties do not think it worth while to incur the expense and formality of a legal mortgage. Sometimes a loan is urgently required, and there is not time to make a legal mortgage. Under these circumstances an equitable mortgage may be taken. Such a mortgage may be created — (1) by an agreement, in writing and signed as required by s. 4 of the Statute of Frauds in the case of a mortgage of land, showing the intention to charge the property, no special words of charge being required so long as the intention is clear (q); or (2) by a deposit by way of 1 security of the title deeds, or documents relating to the property the subject of the security, accompanied by a memorandum of deposit, signed as required in the case of land by s. 4 of the Statute of Frauds; or (3-) by a deposit by way of security of the title deeds or ai (p) See ante , p. 219. Provident Institution (1894), 63 ( q ) See Cradock v. The Scottish L. J. Oh. 15. 250 Form of memorandum. Methods of securing power of sale to equitable mortgagee. BK. I., PT. II. MORTGAGES. material portion of them (r), without any writing (s), provided the deposit amounts to a part perf ormance of the agreement to give security (t). Equitable mortgages by deposit are not confined to title deeds relating to land. An equitable mortgage of stock, shares, debentures, debenture stock, policies of insurance, bonds, and other securities may, without writing, be created by depositing the certificates or instruments relating thereto (w); and in fact such mortgages are common enough among the commercial community. Although no writing is necessary even in the case of land, a mortgage b}^ a deposit of title deeds should always be accom- panied by a memorandum, stating the time for repayment of the loan, the rate of interest to be paid, and containing an agreement by the mortgagor to execute a legal mortgage if required by the mortgagee (x). Generally the memorandum is put under seal in order to give the mortgagee the powers of sale, &c. contained in s. 19 of the Conveyancing Act, 1881. But to enable the mortgagee to convey the legal estate to a purchaser on a sale of the pro- perty, he must be given a power of attorney for that purpose in the memorandum, since the act does not confer any power to convey the legal estate, and consequently, unless he is given the power by the memorandum, he can only transfer his equit- able interest (y ) . Another method of attaining the same result is to make the mortgagor declare in the memorandum of deposit that he holds the property on trust for the mortgagee, and to authorize the mortgagee at any time during the continuance (r) Lacon v. Allen (1856), 3 Brew. 579; Dawv. Terrell (1863), 33 Beav. 218; Dixon v. Muckle- ston (1872), L. li. 8 Ch. App. 155. (s) Russel v. Russel (1783), 1 Bro. 0. 0. 269. (t) Ex parte Broderick, Re Beetham (1887), 18 Q. B. B. 766. {u) Palmer, Company Prece- dents, 11th ed. 687. (x) It may be as well to specify in the memorandum the length of notice to be given by the mort- gagor if he wishes to pay off the mortgage after the time named for payment has passed; in the absence of agreement lie need only give a reasonable notice: Fitz- gerald's Trustee v. Mellersh, (1892) 1 Ch. 385. (y) Re Ilodson and Howe's Con- tract (1887), 35 Ch. B. 668. EQUITABLE MORTGAGES. 251 of the security to remove him from being trustee and to appoint himself or any other person a new trustee. Then, when the mortgagee wants to sell (or at any other time), he can execute a deed appointing himself a new trustee in place of the mort- gagor, and vesting the legal estate in himself as new trustee by declaration in the deed under s. 12 of the Trustee Act, 1893i M- Questions have arisen whether a mere deposit of the deeds without any memorandum will cover subsequent advances, and it has been held that parol evidence is admissible to show that, at the time of the deposit, or of the subsequent advance, it was stipulated that the security should cover the latter as well as the existing debt ( a ). And even if there is a memorandum of deposit which is silent as to whether future advances are to be included, parol evidence is admissible here, too, to show that there was an intention to this effect, and on this being shown the security will extend to them ( b) . The proper remedy of an equitable mortgagee is fore- closure (c). But, under the 25th section of the Conveyancing Act, 1881, he may now, in the foreclosure action, ask for a sale, even though there is no memorandum of deposit (d). An equitable mortgagee, moreover, if his memorandum of charge is by deed and is properly framed, may, as we have seen, sell the property, or appoint a receiver, under s. 19 of the Con- veyancing Act; and whether the Conveyancing Act applies or not, if the mortgagor has expressly agreed to execute a legal mortgage, a receiver of the property can be appointed by the' court (e). He can also sue for the money lent; hut he has not the important right of a legal mortgagee to take possession of the mortgaged property (/). Having regard, A mortgage by deposit may extend to future advances. An equitable mortgagee’s remedy is foreclosure or sale. If memo- randum by deed, mort- gagee can himself sell, or sue for money lent, but cannot take posses- sion. ( z ) London and County Banking Co. v. Goddard, (1897) 1 Ch. 642. (a) Ex parte Langston (1810), 17 Yes. 227. ( b ) Ex parte Kensington (1813), 2 V. & B. 79. (c) James v. James (1873), L. R. 16 Eq. 153; Backhouse v. Charlton (1878), 8 Ch. D. 444; York Union Banking Co. v. Artley (1879), 11 Ch. D. 205. (d) Oldham v. Stringer (1884), 51 L. T. 895. (e) Bodgerw. Badger (1862), 11 W. R. 160. (/) He has therefore no right 252 Solicitor’s remunera- tion depends on amount of loan, in case of mortgage of land ; in case of pure personalty, on work done. Right of election to be paid for work done. Remunera- tion for nego- tiating a loan. BK. I., PT. II. MORTGAGES. therefore, to the deficient character of the mortgagee’s reme- dies, and to the risk he runs of being postponed to others inte- rested in the estate, having an equity superior or equal to his own (g), and having also the legal estate, an equitable mortgage is an undesirable security; it is, however, often accepted by bankers as a security for money lent to their customers, and for temporary loans it is obviously a convenient form of security, and when the money is repaid no reconveyance is required, but a simple receipt for the mortgage money and interest repaid by the mortgagor is all that is necessary, and this receipt does not require an ad valorem duty as a recon- veyance or discharge within the Stamp Act, 1891. Legal Charges on Mortgages. A solicitor’s remuneration for work done in relation to a mortgage of freehold, copyhold, or leasehold property, whether he acts for mortgagor or mortgagee, or for both, depends on the amount of the mortgage money, being regulated by Part I. of Schedule I. of the Solicitors’ Remuneration Order, 1882. The scale charges, however, are only applicable to mortgages of freehold, copyhold, or leasehold property, and in other cases, e.g., a mortgage of a life policy, the remuneration will be re- gulated by the amount of work done, that is, by the system of charging which prevailed prior to the Solicitors’ Remuneration Order, 1882, as altered by Schedule II. of that Order. And a solicitor may in every case elect to be paid for the actual work done, as under the old system, provided that he makes his election by notice in writing given to the client before undertaking the business. If the mortgagee’s solicitor is instrumental in negotiating the loan, he will be entitled to charge the negotiation fee allowed by the scale of charges already referred to. The mortgagor’s solicitor, even though he may have procured some one willing to advance the money, is not entitled to any negotiation fee, though if the facts show that lie acted as a “scrivener ' in to be paid the rents of tlie mort- ( g ) See, for example, London gaged property: Finch v. Tranter, and County Banking Co. v. Nixon, (1905) 1 K. B. 427. (1901) 2 Ch. 231. TRANSFERS OF MORTGAGES. procuring the loan, and not as solicitor, he will be entitled to charge a commission as such (h). The scale fees do not apply to a further charge where the title was investigated prior to the mortgage itself, but the charges are regulated by Schedule II. of the Order of 1882. Formerly, when a solicitor took a mortgage from his own client he could not charge him any costs for the preparation of the deed, but was only entitled to charge him costs out of pocket (z). But in the case of mortgages made since the 6th July, 1895, a solicitor-mortgagee or his firm may, by virtue of the Mortgagees’ Legal Costs Act, 1895, make the same charges as if' the mortgagee had not been a solicitor (k). Since a mortgagee cannot add to the mortgage debt the costs due to his solicitor for negotiating the loan and preparing the mortgage deed, but has to rely on his personal remedy against the mortgagor (Z), the practitioner should always be careful to have these costs deducted from the amount advanced. Remunera- tion for further charges. Remunera- tion of solicitor - mortgagee. 58 & 59 Viet, c. 25. Practice note. VIII . — TRANSFERS OF MORTGAGES. The desirability of the Mortgagor’s Concurrence in the Transfer. As a rule it is not necessary for the mortgagor to join in a Mortgagor’s transfer, the mortgagee having full power to assign the mort- inTtransfer gage debt and interest and the security without his concurrence. ? ot necessary, T • • 1 1 . J . .but advis- It is said, however, that if a mortgagee m possession assigns, able— without the mortgagor’s concurrence, he remains liable to> account to the mortgagor notwithstanding the transfer (m), unless he transfers under the direction of the court (n). And to obtain in any case, if the mortgagor’s concurrence in the transfer accounts 11 ° f (h) Gradwell v. Aitchison (1893), 10 Times L. R. 20. (0 Re Roberts (1889), 43 Ch. 13. 52; Field v. Hopkins (1890), 44 Cb. D. 524; Ex parte Lickorish (1890), 25 Q. B. D. 176; Fisher v. Doody ( Ilibbert v. Lloyd), (1893) 1 Ch. 129. (k) See Re Norris, (1902) 1 Cb. 741. (l) Wales v. Carr , (1902) 1 Ch. 860. (m) See Coote, Law of Mort- gages, 7th ed. vol. ii. 821; Hall v. Heward (1886), 32 Ch. D. 430. (n) Hall v. Heward (1886), 32 Ch. D. 430. *254 Form of transfer. (1) When the mortgagor does not join. BK. I., PT. II. — MORTGAGES. can be obtained, it is advisable to make him a party, because by joining he admits the state of 1 account between the mort- gagee and himself; and thus shuts out, as between him and the transferee, any undisclosed equities which may exist between the mortgagor and the mortgagee. For if the mort- gagor does not join, and a part of the mortgage money has been paid off, the transferee could only compel payment from the mortgagor of what remained owing, as he takes subject to the state of the accounts (o). It has been decided, however, that although the original mortgage money has never been ad- vanced, if it purports to have been by the terms of the mortgage' deed, which contains a proper receipt therefor, and is duly executed by the mortgagor, the transferee of the legal estate can compel the mortgagor to pay the money apparently ad- vanced to him (p ) . Moreover, when a mortgage is transferred without the concurrence of the mortgagor, and without calling upon him to redeem, the costs of the transfer cannot be added to the mortgage debt(g). It was formerly the practice when the mortgagor joined, if he had not incumbered the equity of redemption, to insert a fresh covenant for payment, proviso for redemption and new powers to the mortgagee; but this is not necessary, and they are now usually omitted; though, if the equity of redemption has devolved on some other person since, the mortgage, a new covenant from the owner of it with the transferee for the payment of the mortgage money and interest is desirable. The form of a transfer of mortgage consequently varies ac- cording as to whether (a) the mortgagor is not a party; (b) he is a party. (a) Transfer to which the Mortgagor is not a party . When the mortgagor does not join, the mortgagee assigns the mortgage debt, and the interest thenceforth to become due on the same, and the benefit of the securities therefor. The (o) See Turner v. Smith, (1901) 1 Ch. 213. (p) See Bickerton v. Walker (1885), 31 Ch. D. 151; and French v. Hope (1887), 56 L. J. Ch. 363; overruling Parker v. Clarke (1861), 30 Beav. 54. ( q ) Re Radcliffe (1853), 22 Beav. 201. TRANSFERS OF MORTGAGES. 255 mortgagee then conveys the mortgaged property to the trans- feree, “ subject to such right or equity of redemption as is subsisting in the premises by virtue of the mortgage deed. If the mortgagee transfers expressly “ as mortgagee,” there will be implied by the Conveyancing Act, 1881, s. 7, a covenant on his part that he has not incumbered, and this is all the transferee is entitled to. The power of sale and other remedies of the mortgagee need not be expressly transferred, for if they are expressly conferred by the mortgage deed, and are thereby made exercisable by the mortgagee “ and his assigns,” they will pass to the transferee without mention; if they are not so made they will not be assignable at all (r) ; while if they are the implied powers given to the mortgagee by the Conveyancing Act, 1881, they are exercisable by “ the person for the time being entitled to receive and give a discharge for the mortgage money” under s. 2 (4) of that act. It is, however, the practice to mention them by adding to the assignment of the debt such words as '‘with the benefit of the power of sale, and all other powers, &c. given by the mortgage for the recovery, &c. of the mort- gage debt.” The transferee should give notice of the transfer to the mort- gagor, not to complete his title, but to prevent the mortgagor repaying the original mortgagee, as in the absence of notice he would be justified in doing. (b) Transfer to which the Mortgagor is a party. When the mortgagor is a party to the transfer the debt and interest is assigned by the mortgagee to the transferee, with the benefit of the power of sale, &c. as in the first case; and the mortgagee “as mortgagee” conveys, and the mortgagor “as beneficial owner” conveys and confirms, the property to the transferee, the habendum being made as in the first case "subject to such equity of redemption as is subsisting in the premises by virtue of ” the mortgage deed. Need not assign powers. Notice of transfer to mortgagor. (2) When mortgagor joins. (r) Be Bumney and Smith's Contract, (1897) 2 Ch. 351. 256 Form of transfer of copyhold mortgages- (1) When there has been only a cove- nant to surrender. (2) When there has been a conditional surrender. (3) When the mortgagee has been admitted. On death of mortgagee. Statutory transfers. BK. I., PT. II. MORTGAGES. Transfer of Mortgages of Copyholds. When the property is copyhold, the form of the transfer will vary according to the way in which the mortgage has been effected. If the mortgage has been made by mere covenant to surrender, not followed by the usual conditional surrender, the mortgagee assigns his equitable interest in the premises to the transferee, and the benefit of the same, and the habendum will be made to the transferee, his heirs and assigns, subject to the subsisting equity of redemption, on payment of the money secured to the transferee. When there has been a conditional surrender, satisfaction of the old surrender should be entered up on the court rolls, and a new conditional surrender made by the mortgagor to the use of the transferee; but when the mortgagor does not join, or has incumbered the equity of re- demption, it will be necessary for the mortgagee to be admitted, and then to surrender to the use of the transferee, subject to the equity of redemption then subsisting. Sometimes, to avoid the expense of admittance and the fines due thereon, the trans- feree will not. insist on it, but will be satisfied by a covenant by the mortgagee that he will surrender if required. When the mortgagee has been admitted on the original mortgage, he will have to surrender to the use of the transferee, subject, as in the last case, to the existing equity of redemption. Parties to the Transfer after Death of the Mortgagee. When the mortgagee is dead the transfer must in general be made by the same persons as would execute a re-conveyance. Who these are is discussed below. Statutory Transfers. Three forms of a transfer of a mortgage are given in Part II. of the Third Schedule to the Conveyancing Act, 1881, but they are only applicable to a case where the original mort- gage has been expressed to be made “ by way of statutory mortgage,” and if either of the first two forms is used in other cases the legal estate is loft outstanding in the mortgagee, as these forms purport to transfer only “ the benefit of the said RE-CONVEYANCE OF MORTGAGES. 257 mortgage.” Such a result would not attend the use of the third form, which resembles that of an ordinary transfer (s) . Legal Charges. The charges which a solicitor is entitled to make in connec- tion with the transfer of mortgages if concerned as solicitor with the original mortgage or with any previous transfer in which the title was investigated depend on the work done, and are regulated by Schedule II. of the Solicitors’ Remuneration Order, and not by the scale given in Schedule I. In other cases the scale charges allowed for mortgages are applicable to transfers (£). The provisions of the Mortgagees’ Legal Costs Act, 1895, enabling solicitor-mortgagees and their firms to make the same legal charges in respect of mortgages as if the mortgagee were not a solicitor, apply to the case of a solicitor being a transferee of a mortgage (u ) . The costs of the transfer are added to the mortgage debt in cases where the mortgagor concurs in the transfer (x ) . IX. — RE-CONVEYANCE OF MORTGAGES. When the money secured by a mortgage is paid off, ,the equitable interest of the mortgagee ceases, but the legal estate will generally have to be re-conveyed by a formal deed before it can revest in the mortgagor, and it is the mortgagee’s duty, on tender of principal, interest and costs, at the proper time, to hand over to the mortgagor a duly executed re-conveyance, together with the title deeds (y). If the mortgage is only equitable, no re-conveyance is necessary, so that on the payment off of a second mortgage, for instance, the mortgagee, not (s) See Be Beachey, Heaton v. Beachey, (1904) 1 Ch. 67. (if) See rule 10 to Sched. I. of the General Order under the Solicitors’ Remuneration Act, 1881, post, Part VIII. G. — C. (u) Mortgagees’ Legal Costs Act, 1895, s. 3. (x) See ante, p. 254. (y) Bourke v. Bobinson, (1911) 1 Ch. 480. S Solicitor’s remunera- tion for transfer. 58 & 59 Viet, c. 25. Re -convey- ance neces- sary in the case of a legal mortgage, 258 BK. I., PT. II. — MORTGAGES. (i) but not in a mortgage to a building or friendly society ; (ii) nor after lapse of thirteen years. Form of re- conveyance — (1) of free- holds ; (2) of copy- holds. having the legal estate of the premises in him, cannot be called on to re-convey it (z ) . The same will be the case when the mortgage has been made by a deposit of title deeds. In these cases a receipt for the mortgage money and interest is sufficient to clear the property from the charge of the debt. And even where the legal estate is in the mortgagee, there are cases in which no formal re-conveyance of it is necessary. For example, s. 42 of the Building Societies Act, 1874, provides that a build- ing society may indorse upon or annex to the mortgage a receipt under the seal of the society, countersigned by the secretary or manager, in the form specified in the schedule to the act, and such receipt shall vacate the security and revest the estate in the person for the time being entitled to the equity of re- demption without any re-conveyance (a) . And a somewhat similar provision is made by the Friendly Societies Act, 1875, s. 16 (7), and the Friendly Societies Act, 1896, s. 53 (1). Further, under the Statutes of Limitation, if the mortgagor remains in possession, the mortgagee’s legal estate will be ex- tinguished at the end of thirteen years from the time of the money being repaid to him, the mortgagor, after payment off, being treated for the purposes of these statutes as a tenant at will, and in this case a re-conveyance will be unnecessary and indeed impossible since the mortgagee has nothing to convey (b). A re-conveyance generally recites the mortgage deed and the state of the debt, or is expressed to be supplemental to the mortgage deed, and then re-conveys the estate to the mort- gagor freed from all charges under the mortgage deed. When the subject of the mortgage is copyhold land, and there has been merely a covenant to surrender, a receipt for the mortgage money and interest would, at least in equity, be quite sufficient, although it is usual to release the debt by (z) See, however, Be Moore and ITulme's Contract , (1912) 2 Ch. 105, where it was held that on re- payment of money secured on leasehold property by second mort- gage by demise a surrender was necessary. (а) See Fourth City Benefit Building Society v. Williams (1879), 14 Oh. D. 140; and see Croshie-Hill v. Sayer, (1908) 1 Ch. 866. (б) Sands to Thompson (1883), 22 Ch. D. 614. RE-CONVEYANCE OF MORTGAGES. 259 deed. If there lias been a conditional surrender, the mortgagee gives a warrant to enter up satisfaction on the court rolls, and when this has been done the land will be discharged from the debt. If the mortgagee has been actually admitted he will have to surrender again to the use of the mortgagor, who will be re-admitted as tenant on the court rolls. Parties to the Re-conveyance after the Death of the Mortgagee. When the mortgagee has died before executing a re-con- veyance the proper persons to be made parties to the re-con- veyance vary according to the date of the mortgagee’s death. If he died before 7th August, 1874, the mortgaged land, whether of freehold or copyhold tenure, devolved on his heir or devisee, who was thus the proper person to execute the re- conveyance. If he died on or after that date, his legal per- sonal representative had power to convey or surrender the mortgaged estate (o) . If, however, the death of the mortgagee occurs after 1881, the mortgaged estate, notwithstanding any testamentary dis- position, devolves to, and becomes vested in, his personal repre- sentatives or representative as if the same were a chattel real vesting in them or him; and accordingly all the like powers for one only of several joint personal representatives, as well as for a single personal representative, and for all the personal representatives together, to dispose of or otherwise deal with the same belong to the deceased’s personal representatives or representative from time to time (d ) . The provision of the act of 1881 was held to apply to copy- holds, but they have been excepted from the operation of the section where the mortgagee has been admitted and has died on or after the 16th September, 1887, and in such a case the legal estate devolves upon the devisee or customary heir of the deceased mortgagee (e) . (c) Vendor and Purchaser Act, 1874, s. 4. This provision did not apply to a transfer, Re Spradbery's Mortgage (1880), 14 Oh. D. 514; Re White's Mortgage (1881), 29 W. R. 820. ( d ) Conveyancing Act, 1881, s. 30. (e) Re Mills' Trusts (1887), 37 Ch. D. 312; 40 Oh. D. 14; Copy- Freehold or copyhold heredita- ments. (1) Before 7th August, 1874, the heir or devisee must re- convey. (2) Between 7th August, 1874, and 31st December, 1881, either personal re- presentative or heir or devisee might reconvey. (3) Since 31st De- cember, 1881, legal personal representative must reconvey freeholds. Exception of copyholds by Copyhold Acts, 1887, 1894. 260 BK. I., PT. II. — MORTGAGES. Effect of Land Transfer Act, 1897, Part I. Reconveyance of leaseholds and other personalty. The Land Transfer Act, 1897, Part I. (/), does not appear to affect the provision of sect. 30 of the Conveyancing Act, 1881, and probably one of several personal representatives can. execute an effectual re-conveyance of freehold land. Where the subject of the mortgage is leasehold land or other personal property, the proper parties to execute a re-convey- ance after the death of the mortgagee are, and have always been, his legal personal representatives. Form of Re-conveyance. The following is a short form of re-conveyance of mortgage of freehold land : — This Indenture made the day of between B. of &c. ( mortgagee ) of the one part and A. of &c. ( mortgagor ) of the other part supplemental to an indenture made the day of between &c. (hereinafter called “the principal indenture”), being a mortgage of certain lands and hereditaments situate at for securing repayment by A. to B of the sum of £ and interest thereon Witnesseth that in consideration of all principal money and interest due under the principal indenture having been paid (of which principal and interest B. hereby acknowledges the receipt) B. as mortgagee hereby conveys to A. all the lands and hereditaments now vested in B. under the prin- cipal indenture To hold unto and to the use of A. in fee simple discharged from all principal money and interest secured by and from all claims and demands under the principal indenture. In witness, &c. Statutory re-convey- ances. A form of statutory re-conveyance is given in Part III. of the Third Schedule to the Conveyancing Act, 1881, which is available where the mortgage has been expressed to be made “by way of statutory mortgage ” ( g ). Remunera- tion for re- conveyance. Legal Charges. The charges to which a solicitor is entitled in respect of' a re-conveyance of a mortgage depend on the work done, and are regulated by Schedule II. of the Solicitors’ Remuneration Order, and are not governed by the scale charge depending on the amount of the mortgage money. hold Act, 1887, s. 45; Copyhold ( g ) See remarks, ante, under Act, 1894, s. 88. Transfer, p. 256. (/) Ante, p. 86. MISCELLANEOUS MATTERS. 261 The Mortgagees’ Legal Costs Act, 1895, alreacty referred to, applies also here, and enables all costs incurred in respect of a re-conveyance of a mortgage vested in a solicitor to be recovered by him or bis firm (h). The costs connected with a re-conveyance must be borne by the mortgagor, but any extra costs caused by the mortgagee refusing to hand over a re-conveyance on tender thereof to him by the mortgagor of the money due would be thrown on the mortgagee (i). Stamps on Mortgages, Transfers, and Re-conveyances. The stamp duties on mortgages, transfers and re-convey- ances arc now regulated by the Stamp Act, 1891. The rates of' duty are as follows: — MORTGAGE, BOND, DEBENTURE, COVENANT (except a marketable security otherwise specially charged with duty), and WARRANT of AT- TORNEY to confess and enter up judgment. (1.) Being the only or principal or primary secu- rity (other than an equitable mortgage) for the payment or repayment of money — Not exceeding £10 £ s. d. exceedin g £10 and not exceedin g £25 ... 0 0 >5 £25 5 ? £50 ... 0 1 ?? £50 5? £100 ... 0 2 ?? £100 5? £150 ... 0 3 5? £150 ? ? £200 ... 0 5 5? £200 £250 ... 0 6 >5 £250 5? £300 ... 0 7 0 0 3 3 6 9 0 3 6 For every £100, and also for any fractional part of £100, of the amount secured 0 2 6 (2.) Being a collateral, or auxiliary, or additional, or substituted security (other than an equit- able mortgage), or by way of further assur- ance for the above-mentioned purpose where the principal or primary security is duly stamped : For every £100, and also for any fractional part of £100, of the amount secured 0 0 6 Provided that the whole amount of duty payable shall not exceed 10s. (Jc). ( h ) Mortgagees’ Legal Costs ( i ) Rourke v. Robmson, (1911) Act, 1895, s. 3. 1 Ch. 480. (Jc) Revenue Act, 1903, s. 7. 58 & 59 Viet, c. 25. Rates of stamp duty. 2m BK. I., PT. II. MORTGAGES. (3.) Being an equitable mortgage (l): For every £100, and any fractional part of £100, of the amount secured £ s. d. 0 10 (4.) Transfer, Assignment, Disposition, or As- signation of any mortgage, bond, debenture, or covenant (except a marketable security), or of any money or stock secured by any such instrument, or by any warrant of attorney to enter up judgment, or by any judgment: For every £100, and also for any fractional part of £100, of the amount transferred, assigned, or disponed, exclusive of inte- rest which is not in arrear 0 0 6 And also where any further money is added to the money already secured The same duty as a principal security for such further money. (5.) Re-conveyance, Release, Discharge, Sur- render, Re-surrender, Warrant to Vacate, or Renunciation of any such security as aforesaid, or of the benefit thereof, or of the money thereby secured: For every £100, and also for any fractional part of £100, of the total amount or value of the money at any time secured 0 0 6 And see sections 86, 87, 88 and 89. Several warrants to vacate. Exemption from duty. Where copyholds situate in different manors are mortgaged and there are several warrants to vacate, only one warrant is chargeable with an ad valorem duty (m) . Mortgages by members to unincorporated building societies which are certified under 6 & 7 Will. 4, c. 32, are exempt from stamp duty, provided the amount of the mortgage money does, not exceed 500L (w); hut mortgages to a building society in- corporated under the Building Societies Act, 1874, must be stamped in the same way as other mortgages, the provisions of 6 & 7 Will. 4, c. 32, having been repealed as to these by s. 7 of the act of 1874, and the exemption from stamp duty con- tained in s. 41 of the act not extending to mortgages. ( l ) The expression “ equitable mortgage ” means an agreement or memorandum under hand only: s. 86 (2). ( m ) Alpe, Law of Stamp Duties, 12th ed. 183. ( n ) Stamp Act, 1891, s. 89. 263 Part IIP— BILLS OP SALE. I . — INTRODUCTORY . The legal property in personal chattels can be transferred from Introductory, one person to another inter vivos — (1) by delivery of the chattel; (2) by a deed; or (3) by a contract of sale; and an equitable property can be created by a declaration of' trust, which may be verbal, or in writing, or by deed («). A transfer may be either an absolute assignment by way of Meaning of gift or sale, or an assignment by way of mortgage or security only; but in either case when a written document of any sort is used to effect the transfer, the document is called technically a “bill of sale/’ Whether the assignment is absolute or byway of security, it may happen, and in the latter case generally does happen, that the assignor or grantor remains in possession of the property assigned; and when this is so, the document will, generally speaking, become subject to the provisions of' the Bills of Sale Acts, 1878 to 1891, and must be in conformity with their provisions. The object of these statutes is twofold: that of the act of 1878 is to prevent persons from obtaining false credit from the possession of property apparently their own, but really belonging to others; that of the act of 1882 is also to protect borrowers from oppressive action on the part of those who lend them money (6). (a) Cochrane v. Moore (1890), Central Wagon Co. (1888), 18 25 Q. B. D. 57; Sale of Goods App. Cas. at p. 560; Lord Hals- Act, 1893, ss. 17 and 18. bury in Charlesworth v. Mills, ( b ) See per Lord Hersckell in (1892) A. C. at p. 235. M. S. & L. Rail. Co. v. North 264 BiJls of Sale Acts of 1854 and 1866. Acts of 1878, 1882, 1890 and 1891. Application of acts. What instru- ments are bills of sale. BK. I. j PT. III. BILLS OF SALE. Bills of sale were not subject to any legislative provisions until the 10th of June, 1854, on which day the Bills of Sale Act, 1854, came into operation, and required the registration of all hills of sale made after that date. This statute was supple- mented by the act of 1866, which required the re-registration of a bill of sale every five years. But both these statutes are now repealed, and the law on the subject is at the present time contained in the Bills of Sale Acts of 1878 and 1882, as amended by the Bills of Sale Acts, 1890 and 1891. The act of 1878 applies to all bills of sale, whether absolute or not, registered before November 1st, 1882, and to absolute bills of sale executed on or after that date, while the act of 1882 applies only to bills of sale given by way of security for money (arties to be a common receipt, and no part of the bargain between them(o). Where there is a change in the legal possession of goods, even though there be no change in the physical possession, a document which evidences the transaction is not a bill of sale within the meaning of the acts (p). A bond fide hiring agreement is not a bill of sale, whether it includes a term for purchase or not(g). If, however, what purports to be a hire-purchase agreement is in reality a security for a loan, the agreement must be registered as a bill of sale; and the court will always in these cases go behind the form of the document and inquire what is the real nature of the trans- action (r ) . Again, a “licence” within the act means a licence to take ( n ) Crawcour v. Salter (1880), 18 Ch. D. 30; Re Davis , Ex parte Rawlings (1888), 22 Q. B. D. 193. (o) See Ramsay v. Margrett, (1894) 2 Q. B. 18; Newlove v. Shrewsbury (1888), 21 Q. B. D. 41; Re Hood (1893), 68 L. T. 591; Marsden v. Meadows (1881), 7 Q. B. D. 80; Fox v. Barnett (1886), 2 Times L. R. 233; Grace v. Gard (1889), 6 Times L. R. 74; Wilkinsons. Girard Freres (1891), 7 Times L. R. 266; Stammers v. Margrett (1905), 21 Times L. R. 342. (p) Charlesworth v. Mills , (1892) A. 0. 231. {q) Ex parte Crawcour , Re Robertson (1878), 9 Ch. D. 419; M. S. & L. Rail. Co. v. North Central Wagon Co. (1888), 13 App. Cas. 554. {r ) Re Watson (1890), 25 Q. B. D. 27; Madell v. Thomas & Co., (1891) 1 Q. B. 230; Beckett v. Tower Assets Co., (1891) 1 Q. B. 638; and see McEntire v. Crossley, (1895) A. C. 457; Re Isaacson, Ex parte Mason, (1895) 1 Q. B. 333; Mellors Trustee v. Maas, (1902) 1 K. B. 137; Maas v. Pepper, (1905) A. C. 102. WHAT IS A BILL OF SALE WITHIN THE ACTS. 267 possession of property as a security for a debt (s) ; but not a licence to take possession of it in discharge of a debit. An agreement in a lease giving a landlord power to distrain on goods for money due for goods supplied, or for any debt due to the landlord, is within the acts and requires registration (t). Further, it would seem that an agreement to give a charge upon chattels, unless followed by an actual bill of sale, is in- effective without registration; and that an assignment of such a charge must be registered unless the charge itself has been registered (u) . And so must a mortgage of land with an attornment clause; at any rate, so far as the right to seize chattels thereunder is concerned (x) . In determining whether a document is a bill of sale within the meaning of the acts, the court looks at all the facts and not only at the document itself . Certain kinds of instruments are expressly excluded from the operation of the acts . Sect. 4 of the Bills of Sale Act, 1878, provides that the expression “ bill of sale ” shall not include the following docu- ments:— Assignments for the benefit of the creditors of the person making or giving the same (y) ; marriage settlements; transfers or assignments of any ship or vessel; transfers of goods in the ordinary course of 1 business of any trade or calling; bills of sale of goods in foreign parts, or at sea; bills of lading; India warrants; warehouse keepers’ certificates; warrants or orders for the delivery of goods, or any other documents used in the ordinary course of business, as proof of the possession or control of goods (z), or authorizing, or purporting to authorize, (s) Ex parte Newitt, Re Garrud (1880), 16 Ch. D. 522; Re Round- wood Colliery Co., Lee v. Round- wood Colliery Co., (1897) 1 Ch. 373. (£) Pulbrooh v. Asliby (1887), 56 L. J. Q. B. 376; Stevens v. Marston (1890), 60 L. J. Q. B. 192; and compare Re Roundwood Colliery Co., Lee v. Roundwood Colliery Co., supra. ( u ) Jarvis v. Jarvis (1893), 63 L. J. Ch. 10. This decision is criticised in Weir on Bills of Sale, 65, 323. (as) Re Willis, Ex parte Ken- nedy (1888), 21 Q. B. D. 384; Green v. Marsh, (1892) 2 Q. B. 330; and compare Mumford v. Collier (1890), 25 Q. B. D. 279. {y) Hadley v. Beedom, (1895) 1 Q. B. 646. (z) See Re Hamilton, Ex parte Carter, (1905) 2 K. B. 772. si on, and powers of distress. Agreement for charge. Attornments. Court will consider all the facts. What instru- ments are not bills of sale : (a) exceptions in the act of 1878 : 268 BK. I., PT. III. BILLS OF SALE. either by indorsement or by delivery, the possessor of such document to transfer or receive goods thereby represented. The words “ marriage settlements,” however, only include ante- nuptial settlements, settlements made after the marriage, but in pursuance of ante-nuptial agreement ( a ), and ante-nuptial agreements for a marriage settlement (6) . Any other post- nuptial settlement of personal chattels is a bill of sale within the act of 1878 if the settlor remains in possession, and forms a good example of an absolute bill of sale. It would seem, however, that a settlement made by a husband in favour of his wife of furniture in the house in which they are living together does not require registration as a bill of sale, since on the execution of the settlement the furniture passes out of his pos- session into hers (c). A mortgage of a barge is an “ assignment of a vessel” within the meaning of the exception, and does not require registration under the Bills of Sale Acts (d). (b) exceptions By s 17 0 £ the act of 1882, the act is not to apply to deben- 1882: tures issued by any mortgage, loan, or other incorporated company, and secured on the capital stock or effects of the company. The proper construction of this provision is that the acts do not apply to debentures issued by companies registered under the Companies Act, and their registration elsewhere is now provided for (e) . The exemption, however, does not extend to a society registered under the Industrial and Provi- dent Societies Act, 1862, and the debentures of 1 such a society must therefore be registered under the Bills of Sale Acts(/). (c) exceptions By Bie Bills 0 f' Sale Acts, 1890 and 1891, certain letters of m the acts of 1890 and hypothecation, i.e., those creating a security or the like on imported goods prior to their being deposited in a warehouse, (a) Re Reis , Ex parte Clough, (1904) 2 K. B. 769. ( b ) Wenman v. Lyon, (1891) 2 Q. B. 192. (c) Ramsay v. Margrett, (1894) 2 Q. B. 18; and see Re Satter- thwaite, Ex parte The Trustee (1895), 2 Manson, 52. ( d ) Gapp v. Bond (1887), 19 Q. B. D. 200. (e) Read v. Joannon (1890), 25 Q. B. E). 300; Re The Standard Manufacturing Co., (1891) 1 Ch. 627; Clark v. Balm, (1908) 1 K. B. 667. (/) G. N . Rail. Co. v. The Coal Co-operative Society, (1896) 1 Ch. 187. WHAT ARE PERSONAL CHATTELS WITHIN THE ACTS. 269 &c. or being re-shipped, are excluded from the operation of the acts. Again, a document accompanying the pledge of" goods as a security for money need not be registered to make it valid (p fl ); nor need an agreement entitling an agent to retain goods after they ha\e come into his possession to secure advances made to his principal (h ) ; nor need a building contract which provides that all materials brought on the land by the contractor shall become the property of 1 the contractor’s employer (i ) . But iti has been held that an assignment of a building agreement, with plant and materials on the land, as a security for a loan, is. a bill of sale needing registration as to the plant and materials (Jc) . 111. — WHAT ARE PERSONAL CHATTELS WITHIN THE ACTS. By s. 4 of the act of 1878, the expression “ personal chattels ’ means — Goods, furniture and other articles capable of complete transfer by delivery, and (when separately assigned or charged) fixtures and growing crops; but does not include chattel inte- rests in real estate; nor fixtures (except trade machinery, as hereinafter defined), when assigned together with a freehold or leasehold interest in any land or building to which they are affixed (l); nor growing crops when assigned together with any interest in the land on which they grow; nor shares or interests in the stock, funds, or securities of any government, or in the capital or property of incorporated or joint stock companies; nor choses in action (m); nor any stock or produce (g) Re Hall, Ex parte Close (1884), 14 Q. B. D. 386; Re Cun- ningham & Co., Ltd. (1884), 28 Ch. D. 682; Charlesworth v. Mills, (1892) A. C. 231. (h) Morris v. JDelobbel-Flipo, (1892) 2 Ch. 352. (i) Reeves v. Barlow (1884), 12 Q. B. D. 436. {k) Church v. S age (1892), 67 L. T. 800. (Z) See Small v. National Pro- vincial Bank of England, (1894) 1 Ch. 686. (m) This includes a future in- terest in settled chattels; Re Thynne, (1911) 1 Ch. 282. Pledges of goods, &c. Personal chattels, (a) within the acts ; (b) not within the acts. 270 Fixtures are not within the acts, except trade machinery. Fixtures not separately assigned. BIv. I., PT. III. BILLS OF SALE. upon any farm or lands which, by virtue of any covenant or agreement or custom of the country, ought not to be removed from any farm where the same are at the time of making or giving of such bill of sale. Sect. 7 of the act provides that no fixtures or growing crops shall be deemed to be separately assigned or charged, by reason only that they are assigned by separate words, or that power is given to sever them from the land or building without other- wise taking possession of or dealing with such land or building, if by the same instrument any freehold or leasehold interest in the land or building is also conveyed or assigned to the same person. By s. 5, trade machinery is to be deemed to be per- sonal chattels, and any mode of disposition of trade machinery by the owner thereof which would be a bill of sale as to any other personal chattels is to be deemed to be a bill of sale (n) . Trade machinery means the machinery used in or attached to any factory or workshop, with the following exceptions: — (1) Fixed motive powers, such as water wheels and steam engines, steam boilers, donkey engines, and other fixed appur- tenances to the said motive powers; (2) the fixed power machinery, such as the shafts, wheels, drums, and their fixed appurtenances, which transmit the action of the motive powers to the other machinery, fixed and loose; (3) pipes for steam, gas, and water in the factory or workshop. The excepted machinery, it should be noted, is to be deemed not merely “ not trade machinery,” but “not personal chattels,” from which it follows that an assignment of such excepted machinery is not in any circumstances a bill of sale (o). A factory or workshop means any premises on which any manual labour is exercised by way of trade, or for purposes of gain, in or incidental to the making of any article, or part of an article, or to the alter- ing or repairing, ornamenting or finishing of any article, or to the adapting for sale of any article. It has been decided that where a mortgage is made of land (n) Be Lusty (1889), 60 L. T. 160; Small v. National Provincial Bank, (1891) 1 Oh. 686; Be Brooke, (1894) 2 Cli. 647; and see •Johns v. Ware, (1899) 1 Ch. 359. (o) See Topham v. Greenside Glazed Firebrick Co. (1887), 37 Ch. D. 281. WHAT ARE PERSONAL CHATTELS WITHIN THE ACTS. 271 and there is no express assignment of trade machinery, but such machinery passes as an incident of the land, the mortgage is not a bill of sale of personal chattels (p) . W e may here consider how far a bill of sale can be framed so as to affect after-acquired chattels. To state the matter briefly, it is now useless (subject to the exceptions stated below) to make a mortgage of after-acquired chattels by bill of sale; for by 6. 4 of the act of 1882 the bill must have annexed to it a schedule containing an inventory of the property comprised in the bill, and it will be void (except as against the grantor) as to chattels not so described; and again, by s. 5, such a bill will be void (except as against the grantor) in respect of chattels of which the grantor was not the true owner at the time of execution. Although these provisions would seem to imply that as against the grantor a bill of sale of after-acquired chattels is good, yet it has been held that, owing to s. 9, which invalidates a bill given by way of security altogether, unless made in accordance with the form in the schedule to the act, the bill will be void even against the grantor if it extends to after-acquired chattels, for if the goods are not described in the schedule, the bill is not in the statutory form (g) . However, by s. 6 of the Bills of Sale Act, 1882, nothing in the foregoing sections of the act is to render a bill of sale void in respect of any of the following things: — (i) Any growing crops separately assigned or charged, where such crops are (actually growing at the time when the bill of sale was executed, and (ii) any fixtures separately assigned or charged, and any plant (r) or trade machinery, where such fixtures, plant or trade machinery are used in, attached to or brought upon any land, farm, factory, workshop, shop, house, ware- house or other place in substitution for any of the like fixtures, plant or trade machinery specifically described in the schedule to such bill of sale. And, since the statutory form permits the insertion of any terms which the parties may agree to “ for How far after- acquired chattels can be covered by bill of sale. Crops, fixtures and plant can still be assigned. (p) Batcheldor v. Yates (1888), App. Cas. 506. 38 Cb. D. 112; Be Brooke, supra ; ( r ) Cab-borses are not “plant”: Be Lusty, supra ; Be Bargen, London and Eastern Counties Loan (1894) 1 Q. B. 444. • and Discount Co. v. Creasy, (1897) ( q ) Thomas v. Kelly (1888), 13 1 Q. B. 768. 272 BK. I., PT. III. BILLS OF SALE. Absolute bills may extend to after- acquired property. Requirements of the 1878 act. Result of failure to comply with them. the maintenance of the security,” where a bill of sale of fur- niture to secure money contained a covenant by the grantor to replace any of the goods described in the schedule, if worn out, by other goods of a similar nature, it was held that the bill of sale was good, the covenant being merely a term “ for the maintenance of the security” (s). Further, since the provisions of the act of 1882 only apply to bills to secure money, an absolute bill of sale of after-acquired chattels can still be validly made. IV. — THE REQUISITES OF THE ACT OF 1878 AS TO THE EXECUTION AND ATTESTATION OF ABSOLUTE BILLS OF SALE. Absolute bills of sale are, as already stated, governed solely by the act of 1878, and though ss. 8, 10 (1), and 20 of that ,act are repealed by the act of 1882, as regards bills of sale given by way of security on or after the 1st November, 1882, their provisions still apply to absolute bills whenever executed, and to bills given by way of security before that date(£). An absolute bill of sale must, therefore, comply with s. 8 of the act of 1878, which provides that every bill of sale to which the act applies must be duly attested, and must be registered within seven days after the making or giving thereof, and must set forth the consideration for which it is given. The result of not complying with these requirements is that the bill of sale will be void as against all trustees or assignee^ of the estate of the person whose chattels, or any of them, are; comprised in the bill, under the bankruptcy law or under any assignment for the benefit of the creditors of such person, and also as against every person on whose behalf' process of execu- tion has been issued. But the bill is only void as against these persons so far as regards the property in or right to the posses- 0) Seed v. Bradley , (1894) 1 (1883), 23 Ch. D. 409; Swift v. Q. B. 319; Coates v. Moore, Pannell (1883), 24 Ch. D. 210; (1903) 2 K. B. 140; 72 L. J. Iv. B. Casson v. Churchley (1884), 53 539. L. J. Q. B. 335. ( t ) Ex parte Izard, Be Chappie AS TO THE EXECUTION AND ATTESTATION OF BILLS OF SALE. 273 sion of any chattels comprised in such hill which at or after the filing of the bankruptcy petition, or of the execution of such assignment, or of' executing such process, and after the expiration of such seven days, are in the possession or apparent possession of the person making the bill of sale. The chattels' will be deemed to be in his apparent possession so long as they remain or are in or upon any house, mill, warehouse, building, works, yard, land, or other premises occupied by him, or are used and enjoyed by him in any place whatsoever, notwith- standing that formal possession may have been taken by or given to any other person (u ) . With regard to attestation, s. 10 requires the execution to be attested by a solicitor, and the attestation to state that before the execution of the bill the effect thereof was explained to the grantor by the attesting solicitor. But a bill not so attested will not be void as against the grantor; it will only be void against an execution creditor or trustee in bankruptcy, or trustee under a deed of assignment, if the goods are allowed to remain in the possession of the grantor as apparent owner (x ) . Curiously enough, it has been held that though the attesta- tion must contain a statement that the attesting solicitor ex- plained the effect of the bill to the grantor before execution, it is not necessary to the validity of the bill that any such expla- nation shall in fact have been given (y ) . And further, it is not necessary that such a statement shall be contained in the affidavit, which, as explained hereafter, has to be filed upon the! registration of the bill ( 2 ) . The attesting witness must be a solicitor; but it does not seem to bo necessary that he should be practising for himself or even that he should have a certificate (a). The grantee of 1 “ Apparent possession.” Bill of sale under the 1878 act must he attested by solicitor. How far explanation before execu- tion is required. Attesting solicitor need not be prac- tising nor have certi- ficate. ( u ) s. 4. See Ancona v. Rogers (1876), 1 Ex. D. 285; Ex parte Saffery (1881), 16 Ch. D. 668; Re Eales, Ex parte Steel (1905), 54 W. R. 202; see also Ex parte Homan (1871), L. R. 12 Eq. 5S8; Smith v. Wall (1868), 18 L. T. 182. ( x ) Davis v. Goodman (1880), 5 0. P. D. 128. (; y ) Ex parte National Mercan- tile Bank, Re Haynes (1880), 15 Ch. D. 42. (z) Ex parte Bolland, Re Roper (1882), 21 Ch. D. 543. (a) Hill v. Kirkwood (1880), 42 L. T. 105. T 274 Effect of subsequent bill on prior unregistered bill. Bills of sale given as security for money. BK. I., PT. III. BILLS OF SALE. the bill, even if he is a solicitor, is disqualified from acting as the attesting witness (6). But a solicitor who acts for both parties to the bill (c), or even for the grantee only (d), may attest the bill. If an absolute bill of sale is not registered, and the grantor subsequently executes another absolute bill, which is duly re- gistered, the latter will take priority over the former (e); but, if the second bill of sale were given as a security, it would be void, and the title of the assignee under the unregistered absolute bill would prevail, owing to s. 5 of the act of 1882,, which renders void (except as against the grantor) a bill of sale to secure money comprising goods of which at the time the grantor is not the true owner (/). And the absolute bill would still have priority, although it was not duly attested or did not set forth the consideration truly, for, as explained above (g), failure to comply with the requirements of the act of 1878 does not make the bill void between the parties, but only against the grantor’s trustee in bankruptcy, or a trustee under a deed of assignment, or an execution creditor, so far as the goods remain in the grantor’s apparent possession. V. — THE REQUISITES OF THE ACT OF 1882 AS TO THE CONTENTS, EXECUTION AND ATTESTATION OF BILLS OF SALE BY WAY OF SECURITY. We must now turn to the act of 1882, and see what its re- quirements are with respect to I for money and registered on or (5) Seal v. Claridge (1881), 7 Q. B. D. 516. (c) Vernon v. Cooke (1880), 49 L. J. C. P. 767. ( d ) Penwarden v. Roberts (1882), 9 Q. B. D. 137. (e) Act of 1878, s. 10. Conelly v. Steer (1881), 7 Q. B. D. 520; nils ol sale given as a security after 1st November, 1882 ( h ). Lyons v. Tucker (1881), 7 Q. B. D. 523. (/) Tuck v. Southern Counties Deposit Bank (1889), 42 Ch. D. 471. ( g ) Supra, p. 273. (^) Hickson v. Darlow (1883), 23 Ch. D. 690; Swift v. Pannell (1883), 24 Ch. D. 210. CONTENTS, EXECUTION AND ATTESTATION OF BILLS OF SALE. 275 The first of these is contained in s. 4, which requires every Every bill bill of sale to have “annexed thereto or written thereon” a schedule of schedule containing an inventory of the chattels comprised in the bill, and provides that the bill shall only have effect in respect of the chattels specifically described in such schedule, and shall be void except as against the grantor in respect of any chattels not so described. We have seen that it was decided in Thomas v. Kelly (i) that if the bill extends to goods not specifically described in the schedule to the bill it will be void altogether under s. 9 of the act, since it is then not in the form given in the schedule to the act. This is subject to the quali- fication illustrated by Seed, v. Bradley explained above. This schedule need not contain a detailed description of each article, but it must contain such an inventory as is usual in business; a mere general description, such as “ household furniture and effects,” has been held insufficient (1c ) ; on the other hand, the words “my farming stock, comprising four horses,” have been held a sufficient description of two mares, a horse and a pony (l). Secondly, the bill will be void, except as against the grantor, Grantor must in respect of any chattels, even though specifically described in of true owner the schedule, of which the grantor was not the true owner at chattels, the time of the execution of the bill (m ) . But a mortgagor remains, sufficiently, the “true owner” of goods comprised in a bill of sale to be able to make a valid second bill of sale of them (n). And where one of two partners with the assent of his co-partner mortgaged the partnership goods for a loan for the benefit of the partnership, it was held that he was the true owner to the extent of his share in the partnership goods, but the bill was held void as to the goods which belonged to his co-partner (o). ( i ) (1888), 13 App. Cas. 506. ( k ) Roberts v. Roberts (1884), 13 Q. B. D. 794. ( l ) Jones v. Roberts (1890), 34 Sol. Jour. 254. See also Car - penter v. JDeen (1889), 23 Q. B. D. 566. (m) s. 5. (ft) Thomas v. Searles, (1891) 2 Q. B. 408. (o) Re Tamplin , Ex parte Bar- nett (1890), 59 L. J. Q. B. 194; see also Re Field, Ex parte Pratt (1890), 63 L. T. 289; Tuck v. Southern Counties Deposit Bank (1889), 42 Oh. D. 471; Re Sari, Ex parte Williams, (1892) 2 Q. B. 591. 276 BK. I., PT. III. BILLS OF SALE. Exceptions. The provisions of the two foregoing sections are subject to the qualifications contained in s. 6 of the act stated above (p). Bill must be attested, re- gistered, and truly set forth consideration. Attestation must be by one or more witnesses. The next requirements of the act are contained in s. 8, and are that every bill shall be duly attested; shall be registered within seven clear days of execution, or, if executed in any place out of England, then wdthin seven clear days after the time at which it would, in the ordinary course of post, arrive in England if posted immediately after execution; and shall truly set forth the consideration. These requirements will be found discussed more fully below (q ) . Where they are not complied with, the bill of sale is not wholly void as it is when not in the statutory form (r) ; it is merely void as to the chattels comprised in it, and a covenant to repay the money, contained in the bill remains good, and can be sued upon (s) . Sect. 10 provides that the execution of the bill by the grantor shall be attested by one or more credible witness or witnesses not being a party or parties to the bill. By repeal- ing s. 10 of the act of 1878, the section makes it unnecessary that the execution of the bill shall be attested by a solicitor, and that the attestation shall state that before the execution the effect of the bill has been explained by the attesting wit- ness in the case of a bill given as security for money. There is nothing to prevent the grantee from being appointed the attorney of the grantor to execute the bill(£); but the mode of attestation must comply w r ith the statutory form by which the witness must sign his name and add his address and de- scription (u). The business address of the witness suffices (%), and the address will be sufficient even though it be neither the witness’s residential nor his business address, provided it is one at which he is known, and where information regarding him may be obtained (jj) . When the same witness attests the signa- (p) Ante , p. 271. (q) Infra, p. 283 et seq. ( r ) See Davies v. Dees (1886), 17 Q. B. D. 408. (s) Heseltine v. Simmons, (1892) 2 Q. B. 547. (£) Furnivall (1893) 1 Cli. 335. ( u ) Parsons v. Brand (1890), 25 Q. B. D. 110; Sims v. Trollope, (1897) 1 Q. B. 24. (x) Simmons v. Woodward, (1892) A. 0. 100. ( y ) Dolcini v. Dolcini, (1895) 1 Q. B. 898. v. Hudson, CONTENTS, EXECUTION AND ATTESTATION OF BILLS OF SALE. 277 tures of two grantors, and separate attestation clauses are used, it is not necessary that he should add his address and descrip- tion twice ( 0 ) . Sect. 12 provides that every bill of’ sale made or given in> consideration of any sum under 3.01. shall be void. A curious case (a) was decided under this section. A loan of 1 15/. only was to be made, and in order to avoid the section in the bill of sale given to secure the loan the consideration was stated to be 30/., of which 15/. was to be repayable on demand. Imme- diately after the execution of the bill the grantee demanded repayment of 15/., which was repaid. It was held that, in the absence of evidence to show the transaction was a sham, the bill was Valid. But such a bill of sale would now be held void alto- gether, as it has been since decided that the money must not be repayable on demand nor a certain time after demand (&•), though it may be made payable “on or before” a certain day (c). Lastly, by s. 9, a bill of sale made or given by way of security for the payment of money is Void, unless made in ac- cordance with the form in the schedule to the act. If it is not in accordance with the statutory form it is void not merely as a security over the chattels comprised in it but void altogether, so that the covenant for the repayment of the money and interest cannot be sued upon, though the principal money might be recovered in a common law action for money lent with interest at 5 per cent. (d). Apparently a bill of sale is not “in accordance with the form” if its legal effect, had it been enforceable, would have been in any respect different from the legal effect of the form, or if the departure from the form is reasonably calculated to deceive (e,). It has been said that a bill is not in accordance with the statutory form when it departs from that form in any- Consideration must be not less than 30?. Bill of sale must be in the statutory- form. Construction of this provision. (z) Bird v. Davey, (1891) 1 Q. B. 29. (a) Davis v. Usher (1884), 12 Q. B. D. 490. (&) Hetherington v. Groome (1884), 13 Q. B. D. 789; Bishop & Sons v. Beale (1884), 1 Times L. R. 140. (c) De Braam v. Ford, (1900) 1 Oh. 142. (d) Davies v. Rees (1886), 17 Q. B. D. 408. (e) Re Barber, Ex parte Stan- ford (1886), 17 Q. B. D. 259. 278 Illustrations. BK. I., PT. III. BILLS OF SALE. thing which is a characteristic of that form (f) . The instruc- tions in the brackets in the form itself, however, allow terms to- be inserted “as to insurance, payment of rent or otherwise* which the parties may agree to, for the maintenance or de-: feasance of the security ” (g); and it is a good rule to observe in drafting a bill of sale to secure money, “ not to insert any- thing not reasonably within those brackets” (h). If an advance of money is made subject to certain conditions forming part of the bargain between the lender and the bor- rower, as where the lender signs a letter saying that the loan has been made ,on the faith of his representation that the chattels comprised in the bill are his own property free from any charge, and undertaking not to create any further mortgage on them, the bill of sale will not be in the statutory form if the conditions are not inserted, since they operate as a defeasance of the security, and should, therefore, be inserted (£). The following is a table showing the cases in which, where the form has not been strictly complied with, the bill has been held good, and where held void. Table of Cases decided under Sect. 9 of the Act of 1882. As to Description of Chattels comprised in the Bill. Good. Bill assigning goods which may be substituted for the goods speci- fically assigned. ( Bouchette v. Attenborough (1887), 3 Times L. R. 813.) Bill containing a clause that the grantor shall provide, for articles of furniture, set forth in the schedule, which shall be “ worn (/) Thomas v. Kelly (1888), 13 App. Cas. 536; and see Topley v. Corsbie (1888), 20 Q. B. D. 350. ( g ) See Seed v. Brad'ey, (1894) 1 Q. B. 319; Peace v. Brooks, (1895) 2 Q. B. 451. Void. Bill comprising after-acquired chattels not specifically described in the schedule held void even as against the grantor. ( Thomas v. Kelly (1888), 13 App. Cas. 506.) Bill comprising chattels real as- well as personal chattels. ( Coch- rane v. Entwistle (1887), 25 Q. B. D. 116.) ( h ) See Melville v. Stringer t (1884), 13 Q. B. D. 392. (■ i ) Hall v. Whiteman, (1912). 1 Iv. B. 683; Smith v. Whiteman,. (1909) 2 K. B. 437. TABLE OF CASES DECIDED UNDER 1882 ACT. 279 Good. out,” other similar articles. ( Seed v. Bradley, (1894) 1 Q. B. 319; Coates v. Moore, (1903) 2 K. B. 140. Bill assigning besides goods certain title deeds specified in the schedule. ( Swanley Coil Co. v. Denton, (1906) 2 K. B. 873.) Void. Bill which describes goods as “at 47, Mortimer Street; 450 oil paintings in gilt frames ” ( Witt v. Banner (1887), 20 Q. B. D. 114; but compare Cooper v. Huggins (1889), 34 Sol. Jour. 96.) As to the Repayment of the Money secured and Interest thereon . Good. Bill reserving a monthly in- stead of a yearly rate of interest. ( Lumley v. Simmons (1886), 34 Ch. D. 698.) Bill reserving payment of in- terest by amounts varying from time to time. ( GoMstrom v. Tal- lerman (1886), 18 Q. B. D. 1.) Bill reserving interest at five per cent, per month, the grantor agreeing to repay the loan by specified monthly instalments till a certain date, when the balance is to be paid. ( Edwards v. Marston, (1891) 1 Q. B. 225.) Bill to secure 150?. and interest at 4 1. per cent, per annum, the grantor agreeing with the grantee to pay the principal money by equal yearly instalments of 30?. until the whole of the principal and interest is fully paid, and the grantor further agreeing to pay interest on the said sum of 150?. at the rate of 4?. per cent, per annum, such interest being pay- able by quarterly payments in each year. (JFearc?a?e Coal and Iron Co. v. Ilodson, (1894) 1 Q. B. 598.) Bill making the loan repayable Void. Bill to secure future advances, where time for repayment thereof and dates of payment of interest not stated. ( Cook v. Taylor (1887), 3 Times L. R. 800.) Bill which does not show at what rate interest is reserved. ( Myers v. Elliott (1886), 16 Q. B. D. 526.) Bill reserving compound in- terest. ( Go'dstrom v. Tallerman (1886), 18 Q. B. D. 1.) Bill reserving a lump sum by way of interest. ( Blankenstein v. Robertson (1890), 24 Q. B. D. 543.) Bill given to secure 300?. and interest, accompanied by a mort- gage of land to secure the same 300?. and compound interest, is void under s. 10 of the 1878 act as to the chattels comprised in it, though not void altogether under s. 9 of the 1882 act. ( Edwards v. Marcus, (1894) 1 Q. B. 587.) Bill given as security against moneys the grantee might be called on to pay under an indemnity given by him. ( Hughes v. Little (1888), 18 Q. B. D. 32.) 280 BK. I., PT. III. BILLS OF SALE. Good. by mixed instalments of principal and interest ( Goldstrom v. Toiler- man (1886), 18 Q. B. D. 1; Rose- field v. Provincial Union Bank , (1910) 2 K. B. 781) or by unequal instalments ( Re Cleaver; Ex p arte Rawlings (1887), 18 Q. B. D. 489), even though the document does not on its face show how many instal- ments will be necessary to satisfy the amount secured, and notwith- standing the repayments in this way may involve complicated cal- culations. ( Re Bargen, (1894) 1 Q. B. 444; Linfoot v. Pockett, (1895) 2 Ch. 835.) Bill making the money repay- able “on or before ” a certain date. ( Be Braam v. Ford , (1900) 1 Ch. 142.) Bill in which, on the whole, the amount of interest payable is stated, though this does not at first clearly appear on the face thereof. ( Haslewood v. Consolidated Co. (1890), 63 L. T. 71.) Bill to secure loan of 70 1. and interest at Is. in the pound per month, containing covenant to pay principal and interest “ by monthly instalments of seven.” ( Mourmand v. Le Clair, (1903) 2 K. B. 216). Void. Bill providing that the bill itself should remain in the hands of the grantee after payment off of the amount secured. ( Watson v. Strickland (1887), 19 Q. B. D. 391.) Bill to secure a sum uncertain, e.g., to indemnify a surety. ( Re Hill, Official Receiver v. Ellis (1895), 2 Manson, 208.) Bill whereby the money secured is made payable “ on demand,” or within a certain time after de- mand. ( Melville v. Stringer (1884), 13 Q. B. D. 392; Hetlier- ington v. Groome (1884), 13 Q. B. D. 789; Re Williams (1883), 49 L. T. 475; Bishop & Sons v. Beale (1881), 1 Times L. B. 140; and see Furnivall v. Hudson, (1893) 1 Ch. 335.) As to the Insertion of Special Clauses. Good. Bill declaring that the power of sale conferred by the Conveyanc- ing Act, 1881, shall bo exercisable by the mortgagee as if s. 20 of the act had not been enacted. (Re Morritt (1883), 18 Q. B. D. 222.) Void. Bill with clause that out of moneys to be realized by a sale the expenses of the sale and the security shall be first discharged. (Calvert v. Thomas and Lloyd (1887), 19 Q. B. D. 204.) TABLE OF CASES DECIDED UNDER 1882 ACT. 281 Good. Bill containing clause empower- ing the mortgagee, for the purpose of seizing the good-;, to break open doors and windows. (Ibid.; and Lumley v. Simmons (1887), 34 Ch. D. 098.) Bill containing the ordinary covenant for further assurance. (lie Cleaver, Ex parte Rawlings (1887), 18 Q. B. D. 489.) Bill with covenant by grantor not to remove goods without the consent of the grantee, and to make repayment by insta’ments. (Re Coton, Ex parte Payne (1887), 56 L. T. 571.) Bill giving the grantee the right lo sell the goods by private treaty or by public auction on or off the premises. (Bournev. Wall (189 1), 64 L. T. 530.) Bill which contains a covenant by the grantor to insure, and pro- vides that if he does not produce the policy, or the receipt for the current premiums, the grantee shall be at liberty to enter and seize. (Hammond v. Hocking (1884), 12 Q. B. D. 291; and see Briggs v. Pike (1892), 61 L. J. Q. B. 418.) Bill giving grantee power to seize for whole of money secured if grantor makes default in pay- ment of any of the instalments by which the money is repayable. (Re Wood, Ex parte Woolf e, (1894) 1 Q. B. 605.) Void. Bill in which the grantor cove- nants for himself and “ for any other person claiming any interest in the chattels assigned.” (Liver- pool Commercial, &c. Soc. v. Richardson (1886), 55 L. J. Q. B. 455 n.) Bill in which grantor assigns “ as beneficial owner,” thereby in- corporating the covenants for title under the Conveyancing Act. (Re Barber, Ex parte Stanford (1886), 17 Q. B. D. 259.) Bill empowering the creditor to seize if debtor fails on demand (without the words “ in writing ”) to produce last receipt for rent, or if he compounds with his creditors (Barr v. Kingsford (1887), 56 L. T. 861), unless it is expressly provided that the chattels shall only bo liable to be seized for the causes specified in s. 7 of the 1882 act. W ear dale Coal & Iron Co. v. Hodson, (1894) 1 Q. B. 598; Cartwright v. Regan, (1895) 1 Q. B. 900; Re Bullock, Ex parte Ward, (1899) 2 Q. B. 517.) Bill giving the grantee authority to “ affix such bills and placards having reference to the said chat- tels and things as he or they may think fit on any premises for the time being in the occupation of the grantor.” (Bar dell v. Daykin (1886), 3 Times L. R. 526.) Bill with clause that on a sale by the grantee the purchaser need not inquire as to the validity of the seizure. (Blaiberg v. Parsons (1886), 17 Q. B. D. 336; Blaiberg v. Beckett (1886), 18 Q. B. D. 96.) 282 BK. I., PT. III. BILLS OF SALE. Good. Void. Bill allowing seizure upon tlie grantor taking the benefit of any Bankruptcy Act. ( Gilroy v. Bowey (1888), 59 L. T. 223.) Bill with clause providing that sums paid by the grantee for rent may be added to the principal moneys. ( Bianchi v. Offord (1886), 17 Q. B. D. 484.) Bill requiring the grantor to pay the rent of a house in which the goods are, and, in default, adding such rent to the amount of the loan. ( Beal and Personal Advance Co. v. Clears (1887), 20 Q. B. D. 304.) Bill containing a covenant by the grantor to pay rates and taxes, with a proviso that in default the grantee may pay them and add them to the security. ( Macey v. Gilbert (1888), 57 L. J. Q. B. 461.) Miscellaneous. Good. Bill given by two grantors with separate attestation clauses, but the same witness who in the first attestation clause gives his name, address, and description, and in the second only gives his name. ( Bird v. Davey, (1891) 1 Q. B. 29.) Bill made subject to a former registered mortgage bill of sale. ( Thomas v. Searles, (1891) 2 Q. B. 408.) Void. Bill attested by a witness of no occupation, and mere'y giving his name and address, and not adding the description of “ gentleman.” ( Sims v. Trollope, (1897) 1 Q. B. 24.) Bill containing no covenant to repay the principal. {Re Moore , Ex parte Official Receiver (1897), 4 Manson, 51.) Bill accompanied by a bill of exchange or promissory note. ( Monetary Advance Co. v. Cater (1888), 20 Q. B. D. 785; and see Counsell v. L. & W. Loan and 28 & PROVISIONS OF ACTS AS TO CONSIDERATION, ETC. Good. Void. Discount Co. (1887), 19 Q. B. D. 512; Griffin v. Union Deposit Bank (1887), 3 Times L. R. 608; Onn v. Fisher (1889), 5 Times L. R. 504.) Bill omitting to give the address of the grantee. ( Altree v. Altree, (1898) 2 Q. B. 267.) Bill omitting to give a receipt for the consideration money. {Davies v. Jenkins , (1900) 1 Q. B. 133.) Bill given by two grantors who are not jointly interested in the goods, but are each owner of a portion. {Saunders v. White, (1902) 1 K. B. 472.) Bill the terms of which are sub- sequently modified by written agreement {Petitt v. Lodge, (1908) 1 K. B. 744), or which contains no reference to conditions set out in a contemporaneous document forming part of the bargain between the parties, the effect of which conditions, if in- serted, would have been to operate as a defeasance of the security. {Smith v. Whiteman (1909), 78 L. J. K. B. 1073; Hall v. White- man, (1912) 1 K. B. 683.) VI. — THE PROVISIONS OF THE ACTS AS TO THE CONSIDERATION, REGISTRATION AND RE-REGISTRATION OF A BILL OF SALE. The Consideration. The greatest care must be taken in stating the consideration Consideration for which the bill is given, whether it be absolute or by way of security (fc); a statement of it which does not comply with the set forth. {k) See s. 8 of both acts. 284 BK. I. ? PT. III. BILLS OF SALE. All the cir- cumstances attending the payment must he set out. Cases illus- trating rule. statutory provision will not be remedied by the correct state- ment of it in a receipt appended to the bill; for such a receipt forms no part of the bill, and so cannot be looked to for the purpose of curing any defect in the statement of the considera- tion in the body of the bill (Z) . In order to satisfy the statutory provisions, the manner of payment of the consideration, and all the circumstances attend- ing it, must be set out in the fullest possible way, especial care being taken to show what sum of money is actually paid to and received by the grantor for the making of the bill. For this really constitutes the consideration for which the bill is given. On this subject it lias been decided (1) that money in fact owing at the time of the bill of' sale being given from the mort- gagor to the mortgagee may be properly stated as a sum of money then advanced and paid(m); but (2) that where the consideration is stated to consist of “money owing/' and part of it is money secured by a promissory note not due at the date of the bill of sale, the consideration is not truly stated (w) ; nor (3) is it truly stated where money advanced at the time of the bill of sale is improperly stated to be money “now owing" (o); (4) if part of the money for which the bill of sale is given is retained by the mortgagee for interest or a bonus (p). or to pay some debt not yet due (g), or even to pay the expense of the preparation of the bill of sale (this debt not arising until after the mortgage is complete (r)), the money must not be merely expressed to be paid, but the facts must be clearly stated or the bill of sale is void; but (5) if the money expressed to be paid (or a part of it) is in fact by the direc- tion of the grantor, or as a condition of the advance, applied in payment of the mortgagor’s debts, or in discharge of the (Z) Be Parker, Ex parte Charing Cross Bank (1880), 16 Ch. D. 35. (m) Credit Co. v. Pott (1880), 6 Q. B. D. 295. (n) Mayer and Fulda v. Min- dlevich (1888), 59 L. T. 400; Barlow v. Bland, (1897) 1 Q. B. 125; see also Ex parte Bolph, Be Spindler (1881), 19 Ch. D. 98. (o) Davies v. Jenkins , (1900) 1 Q. B. 133. (p) Ex parte Charing Cross Bank (1880), 16 Ch. D. 35. ( q ) Be Spindler, Ex parte Bolph (1881), 19 Ch. D. 98. (r) Ex parte Frith (1882), 19 Ch. D. 419; but see In re Cann (1884), 13 Q. B. D. 36. 285 PROVISIONS OF ACTS AS TO CONSIDERATION, ETC. mortgagor’s liability to a third party though not a debt already due, the consideration is considered sufficiently truly stated (s ) . If a bill of sale is governed by the act of 1878, .and not by, Difference the act of' 1882, the omission to state the consideration truly o-oterned^by will not render it void as between grantor and grantee (£);, act of 1878 but if the bill of sale falls within the act of 1882, the omission governed by makes it void altogether as to the chattels comprised in it, act ot 1882 - though it does not prevent the grantee suing on the covenant contained in the bill to repay the money (u ) . Registration. Upon applying to register the bill, not only must a true copy True copyof thereof (x), and of elyery schedule or inventory annexed to it, filed with and of every attestation of its execution, be filed, but also an affidavl t- affidavit proving the date of the execution, the due execution, and attestation of the bill, and containing a description of the residence and occupation of' the grantor and of every attesting witness (y ) . This affidavit may be sworn before a master of the High Court or a commissioner (z ) ; and wilf ully to make a false affidavit for the purposes of the act is a misdemeanour (,a) . It is not necessary for the grantor to be precisely and Description minutely described, so that an error in his name will be immaterial so long as he can be identified from the descrip- tion (b). But it is necessary for the grantor’s residence and occupation to be accurately described. A misdescription, how- be stated, ever, to be fatal, must be one which is calculated to mislead of grantor. Residence of grantor must (s) Be Wiltshire , (1900) 1 Q. B. 96. (t) Davis v. Goodman (1880), 5 C. P. D. 128; ante , p. 273. (w) Heseltine v. Simmons , (1892) 2 Q. B. 547. (cc) See Thomas v. Boberts, (1898) 1 Q. B. 657; Coates v. Moore, (1903) 2 K. B. 140. (; y ) s. 10 (2) of the act of 1878. (z) The solicitor of the grantor must not take the affidavit, even though he be a commissioner: Baker v. Ambrose, (1896) 2 Q. B. 372. (а) Perjury Act, 1911, s. 2, repealing and replacing s. 17 of the act of 1878. (б) See Ex parte M‘ Hattie, Be Wood (1878), 10 Oh. D. 398; Central Bank v. Hawkins (1890), 62 L. T. 901; Stokes v. Spencer, (1900) 2 Q. B. 483; Downs v. Salmon (1888), 20 Q. B. D. 775; compare Lee v. Turner (1888), 20 Q. B. D. 773. 286 BK. I., FT. III. BILLS OF SALE. $ creditors. If it is but a slight one, and one which is, on the face of it, a mistake and would deceive nobody, it will not invalidate the bill (c) . It has been held that it is sufficient to state the place where the person can be found during the day, and it is not essential to state the place where he sleeps ( d ). And it is sufficient to give one of several residences (e). The place to be given is the residence at the date of the making of the affidavit, and this address is to be given if it should happen that the grantor has changed his place of residence between the execution of the bill of sale and the making of the affidavit (/). Occupation of An accurate description of 1 the grantor’s occupation tnust be^tated nUSt a ^ so given in the affidavit ( g ). Thus, it has been held that “gentleman” is not a sufficient description of a solicitor or a solicitor’s clerk (7^), or, as a rule, of any person who has a recognised profession, business, or avocation (i). At the same time, it is not necessary to mention, when he is out of business, any occupation which he has only temporarily or casually followed (7c) . If the grantor has more than one occupation, it would seem that it is not necessary to mention them all, but the principal occupation should be selected; at any rate, the bill is not void if only one is referred to, provided that there was no intention to deceive and no likelihood of deceiving (7). (c) Hewer v. Cox (1860), 30 L. J. Q. B. 73; but see Murray v. Mackenzie (1857), L. R. 10 0. P. 625; compare Blount v. Harris (1878), 4 Q. B. D. 603. (d) Attenborough v. Thompson (1857), 2 H. & N. 559. (e) Greenham v. Child (1889), 24 Q. B. D. 29. (/) Button v. O'Neil (1879), 4 O. P. D. 354. ( g ) See Neverson v. Seymour (1908), 97 L. T. 788. ( h ) Tuton v. Sanoner (1858), 27 L. J. Ex. 293; Beales v. Tennant (1860), 29 L. J. Q. B. 188. (i) See Ex parte Homan, Be Broadbent (1871), L. R. 12 Eq. 598; Allen v. Thompson (1856), 1 H. & 1ST. 15; Matthews v. Buchanan (1888), 5 Times L. R. 373. ( k ) Smith v. Cheese (1875), 1 O. P. D. 60; see also Morewood v. South Yorkshire Co. (1858}, 28 L. J. Ex. 114; Feast v. Robin- son (1894), 63 L. J. Ch. 321. ( l ) Ex parte National Mercan- tile Bank, Re Haynes (1880), 15 Ch. D. 42; Throssell v. Marsh (1885), 53 L. T. 321. 287 PROVISIONS OF ACTS AS TO CONSIDERATION, ETC. If there is a discrepancy between the descriptions in the bill Discrepancy and in the affidavit, the bill will be invalidated as a rule. lit 0 f sale and has, however, been held that if the description of the grantor’s a ®^* vlt ' residence or occupation be insufficient in the affidavit, the pro- bill, visions of the act are satisfied if the description in the bill be alluded to in it (m). But Murray v. Mackenzie (n) and Marks v. Derrick (o) seem to show that the bill will be invalidated if no such allusion is made. The affidavit must also state that the bill was duly attested Affidavit must by the attesting witness, which has been interpreted to mean wa^attested. that it must state that he was present and witnessed the due execution. If the affidavit omits to make this statement the registration is invalidated (p). Again, if the jurat to the affidavit omits to give the name of the commissioner before whom the affidavit was sworn, the registration is void (q). When there are several witnesses, the affidavit must give the description and occupation of each witness (r). In order to effect registration, the bill, with any schedule or How regie- inventory annexed to it or referred to in it, must be presented effected, to the registrar within seven clear days of execution, and a true copy of the bill, and of every schedule or inventory, and of every attestation to its execution, and of the affidavit, must be filed with the registrar at the same time. And if the bill is given subject to any defeasance or condition, or to any declara- tion of trust not contained in it, such defeasance, &c. is deemed part of the bill, and must be written on the same paper as the bill before registration, and must be truly set forth in the copy filed (s). The functions of the registrar are ministerial, not (m) Jones v. Harris (1871), L. R. 7 Q. B. 157. (n) (1857), L. R. 10 0. P. 625. (o) (1899), 80 L. T. 60. {p) Sharpe v. Birch (1881), 8 Q. B. D. Ill; Ford v. Kettle (1882), 9 Q. B. D. 139. ( q ) Brown v. London and County Advance Co . (1889), 5 Times L. R. 199. ( r ) Pickard v. Marriage (1876), 1 Ex. D. 364. (s) s. 10 of the act of 1878. See Edwards v. Marcus , (1894) 1 Q. B. 587; Smith v. Whiteman, (1909) 2 K. B. 437; Hall v. Whiteman, (1912) 1 K. B. 683. The fee for filing a bill of sale and affidavit is 5s. when the con- sideration for the biil does not exceed 100k, and 10s. if it ex- ceeds 100Z. and does not exceed 200Z., and 1Z. above 200Z. 288 Time for registration. Successive bills of sale on same chattels to secure same debt not now allowed. BK. I., PT. III. BILLS OF SALE. judicial, so that lie must receive and file the papers, though they are insufficient; their validity or otherwise is to be decided by the court, and not by the registrar ( t ). It is his duty to enter in the register the name, residence, and occupation of the grantor of every bill filed, and certain other particulars, and he must also keep an index of the names of the grantors. As we have said, the registration must be effected within seven clear days of execution, or (at least in the case of bills of sale within the act of 1882) if executed abroad within seven clear days of the time the bill of sale would have reached England if posted immediately after execution (u). If this time expires on a Sunday, or other day on which the registrar’s office is closed, the bill may be registered on the next following day on which the office is open ( x ) ; and the time for registra- tion may be extended by the court when the omission to register has been purely accidental (y ) . Before the seven days have expired the bill is good, though not registered. So that if within these seven days the grantee takes possession of the goods he will get a good title to them, though the grantor has meanwhile become bankrupt, or the goods have been seized by an execution creditor ( 2 ) . But after the seven days have expired, if the bill be not then registered, it will be void as against an execution creditor, notwithstanding the fact that the creditor has had notice that the bill of sale has been given before his debt was contracted (a) . Formerly, in order to avoid the necessity of registration, the device of giving successive bills of sale was resorted to. Imme- diately before the expiration of the period allowed for the registration of the first bill, a second bill was given for the same debt and comprising the same property. Then, again, just before the time for registering this second bill expired, a third bill was given in its place, and so on, the bills being renewed from time to time, but always within the time allowed for registration (6) . But this device is now of no use; for by (; t) Needham to Johnson (1867), 8 B. & S. 190. (u) s. 8 of the act of 1882. (cc) s. 22 of the act of 1878. ( y ) s. 14 of the act of 1878. ( 2 ) See Marples v. Hartley (1861), 3 E. & E. 610. (a) Edwards v. Edwards (1876), 2 Ch. D. 291. ( b ) Ramsden v. Lupton (1873), L. E. 9 Q. B. 17. 289 PROVISIONS OF ACTS AS TO CONSIDERATION, ETC. s. 9 of the act of 1878 it is provided that if a second bill is executed within seven days from the execution of an unregis- tered bill, and includes the same chattels, or some of them, then if the second bill be given as a security for the same debt or part of it, it shall be absolutely null and void (c) . The act of 1878, s. 10, provides that the transfer or assign- ment of a registered bill of sale need not be registered. This provision, and also the provision as to the manner of registra- tion, apply to all bills of sale, and not merely to those governed by the act of 1878. Re-registration. Besides registration in the first instance, the bill must be re- registered every five years, or the registration will become void. The re-registration is effected by filing an affidavit mentioning the date of the bill, and of the last registration thereof, and the names, residences, and occupations of the parties to it, and stating that it is still a subsisting security. The affidavit may be in the form in the Schedule A. to the act of 1878 (<7). This affidavit must, if the grantor’s residence has not been changed, give the same description of the grantor’s address as that contained in the bill itself; or if that is erroneous, it should allude to it as being so, and give the correct address (e). These provisions also apply to all bills. The Result of Omission to Register and Re-register a Bill of Sale. The consequence of an omission to register or re-register a bill of sale within the act of 1882 is to make it void as to the chattels comprised in it (/), so as to prevent any title thereto (c) In Re Bargen, (1894) 1 Q. B. 444, it was held that a second bill of sale given under a mistake of fact on the part of the grantee, after the bankruptcy of the grantor, was mere’y nugatory, and did not cancel a prior bill of sale in the same terms. ( d ) s. 11 of the act of 1878. The fee for filing the affidavit for re-registration is 10s. (e) Ex parte Webster, Re Morris (1882), 22 Ch. D. 136. (/) s. 8 of the act of 1882. Transfers need not be registered. Bill must be re-registered every five years. If a bill of sale is not ' registered it is void, as to chattels com- prised in it. G. — C. U 290 Power of court to cure omission to register. Action for malicious registration of bill of sale. BK. I., PT. III. BILLS OF SALE. being acquired by the grantee, hut the covenants in the bill can be sued upon. The consequence of an omission to register or re-register a bill of sale within the act of 1878 is merely to make the bill of sale void as against certain persons as to the chattels comprised in it, and not to invalidate it as between grantor and grantee ( g ) . Besides being good as between the parties, if the grantor dies insolvent, and his estate is being administered, the bill, though unregistered, will be good as against the unsecured creditors, and, notwithstanding s. 10 of the Judicature Act, 1875, the rules in bankruptcy will not apply in this case ( h ) . To meet the case of' an accidental omission to register or re-register a bill of sale or of a defective registration, it is pro- vided by s. 14 of the act of 1878 that any judge of the High Court, on being satisfied that the omission to register a bill of' sale or an affidavit of 1 renewal thereof within the time pre- scribed, or the omission or mis-statement of the name, resi- dence, or occupation of 1 any person was accidental or due to inadvertence, may order such omission or mis-statement to be rectified by the insertion in the register of the true name, &c., or by extending the time for registration on such terms as he may think fit. It has been held that the court’s discretion under this section can only be exercised so long as, at the time of application, no third party, e.g., a trustee in bankruptcy, has acquired a right to the chattels comprised in the hill (i). It is obvious that the publicity arising from the registration of a document as a bill of sale may prejudicially affect the grantor, and an action may lie against a person who registers a document not requiring registration; but in order to be suc- cessful the plaintiff must prove malice and want of probable cause as well as damage (7r). ( g ) s. 8 of the act of 1878. ( i ) Be Parsons, Ex yarte ( h ) Be Knott (1877), 7 Oh. D. Furber, (1893) 2 Q. B. 122. 549, n. (k) Horsley v. Style (1893), 69 L. T. 222. UPON WHAT EVENTS THE GOODS CAN EE SEIZED. 201 VII . UPON WHAT EVENTS THE GOODS CAN BE SEIZED WHEN THE BILL IS BY WAY OF SECURITY FOR THE PAYMENT OF MONEY ONLY. The act of 1882 restricts the power of the parties to stipu- late at their pleasure upon what events the usual power to seize the goods comprised in a bill given by way of security shall be exercisable. By s. 7 it is provided that the goods shall not be liable to be seized or taken possession of by the grantee for any other than the following causes: — (1) If the grantor makes default in payment of the money secured at the time provided for payment, or in the performance of any covenant or agreement con- tained in the bill and necessary for maintaining the security (Z) ; (2) If the grantor becomes bankrupt or suffers the goods to be distrained for rent, rates, or taxes (in)\ (3<) If the grantor fraudulently either removes or suffers the goods, or any of them, to be removed from the premises ; (4) If the grantor does not, without reasonable excuse, upon demand in writing by the grantee, produce to him his last receipts for rent, rates and taxes (n); (5) If execution is levied against the goods of the grantor under any judgment at law. Moreover, when the grantee has seized, the grantor may, within five days from the seizure, apply to the High Court, or to a judge in chambers, and such court or judge, if satisfied that by payment of 1 money or otherwise the cause of seizure no longer exists, may restrain the grantee from removing or; selling the chattels, or make such other order as may seem just ( 0 ). (l) Be Wood, Ex parte Woolf e, (1894) 1 Q. B. 605; Ex parte Ellis, (1898) 2 Q. B. 79. (m) See Gilroy v. Bowey (1888), <59 L. T. 223. ( n ) See Hammond v. Hocking (1884), 12 Q. B. D. 291; Barr v. Kingsford (1887), 56 L. T. 861; Cartwright v. Began, (1895) 1 Q. B. 900; Ex parte Wichens, (1898) 1 Q. B. 543. (o) See Ex parte Cotton (1883), On what events the grantee can seize. Grantor may within live clays after seizure apply to restrain sale ; BK. I., PT. III. BILLS OF SALE. 292 chattels cannot be removed for five days. Grantor’s rights after removal. This section is supplemented by s. IB, which provides that all chattels seized, or of 1 which possession is taken, after the commencement of the act, under or by virtue of any bill, shall remain on the premises where seized or taken possession of, and shall not be removed or sold until after the expiration of five clear days from the day they were seized or taken. But the grantor can waive this provision, since it is merely intended for his benefit (p ) . Even after the goods have been removed with a view to their sale, the grantor may redeem them on payment of 1 all that is owing for principal, interest, and costs of seizure and of redemption (q ) . VIII. — HOW FAR THE ORDER AND DISPOSITION CLAUSE OF THE BANKRUPTCY ACT IS AFFECTED BY REGISTRATION. Reputed ownership clause applies to bills under the 1882 act, not under the 1878 act. Notwithstanding that a bill of sale is duly made and regis- tered in accordance with the acts, it may nevertheless be in- effective against a trustee in bankruptcy of' the grantor if the goods to which it relates fall within the “ order and disposi- tion ” clause of the Bankruptcy Act (r); for s. 20 of the Bills of Sale Act, 1878, which provides (in effect) that the doctrine of reputed ownership shall not apply to bills executed on or after the 1st January, 1879, provided they are duly registered under the act, is repealed by s. 15 of 1 the act of 1882; so that the doctrine is again applicable to goods comprised in a bill of sale given to secure money on or after 1st November, 1882, even though duly registered (s). But as the order and disposi- tion clause only applies to goods in the possession, order, or disposition of’ the bankrupt in Ms trade or business, the grantee 11 Q. B. D. 301; Ex p arte Wickens, supra; and distinguish Ex parte Ellis , (1898) 2 Q. B. 79. ( p ) Lane v. Tyler (1887), 56 L. J. Q. B. 461; Tomlinson v. Consolidated Credit Co. (1889), 24 Q. B. D. 135. (q) See Johnson v. Diprose, (1893) 1 Q. B. 512; Re Wood, Ex parte Woolf e, (1894) 1 Q. B. 605. (r) Bankruptcy Act, 1883, s. 44 (2) (iii). (s) Re Ginger, Ex parte London and Universal Bank, (1897) 2 Q. B. 461. ORDER AND DISPOSITION CLAUSE. 293 of a bill of sale in due form, and projDerly attested and regis- tered, is protected even though the goods remain in the grantor’s possession at the commencement of his bankruptcy, if the goods are not used by the grantor in his trade or business. Further, the holder of an absolute bill of sale, whether registered before or after 1st November, 1882, if attested and registered as re- quired by the act of 1 1878, is also fully protected as against the trustee in bankruptcy, even though the goods are trade goods; for the repeal of s. 20 of the act of 1878 does not apply to these bills (^) . By the Bills of Sale Acts, 1890 and 1891, certain letters of hypothecation are not bills of sale within either the 1878 or 1882 act (w), but the order and disposition clause in the Bankruptcy Act applies to the goods comprised in such letters ( x ) . IX .—MISCELLANEOUS MATTERS . Entry of Satisfaction. Provision is made by s. 15 of the act of 1878 for the entry Entry of of satisfaction, on its being proved that the debt for which sati>,faction * the bill was given has been discharged, and the registrar may order a memorandum of satisfaction to be written on any re- gistered copy of the bill. To procure this order a consent to satisfaction given by the person entitled to the bill of sale, and verified by affidavit, must be produced to the registrar, and filed in the Central Office. The affidavit need not be made by a solicitor ( y ). Searches. By s. 16 of the act of 1882, the provisions of which on this Searches, point supersede those contained in the act of 1878, any person ( t ) See Hickson v. Harlow (1883), 23 Oh. D. 690; Swift v. Pannell (1883), 24 Oh. D. 610. (il) See ante, p. 268. (cc) s. 2 of the act of 1890. ( y ) See White to Rubery, (1894) 2 Q. B. 923; and Rules of the Supreme Court, 1883, Ord. LXI. rr. 26, 27. The fee for filing fiat of satisfaction is 5s. 294 Transmission of particulars to county court. Means by which the grantee’ s right may be defeated. BIC. I., PT. III. BILLS OF SALE. may at all reasonable times search the register on the payment of the prescribed fee, and subject to the prescribed regulations; and may inspect, examine, and make extracts from any regis- tered bill without being required to make any written applica- tion or to specify any particulars in reference thereto; but these extracts are to be limited to the dates of execution, registration, renewal of registration, the names, addresses and occupations of the parties, the amount of the consideration, and other pre- scribed particulars . To render it possible, without the necessity of searching in London, to discover whether a bill of sale has been given by a person residing in the provinces, s. 11 of 1 the 1882 act pro- vides that when the affidavit describes the grantor’s residence as being in some place outside the London bankruptcy dis- trict, or where the bill of sale describes the chattels as being out of such district, the registrar must, within three days after registration, transmit an abstract of the contents of the bill to the county court registrar in whose district such places are situate, and if such places are in the districts of different regis- trars, then to each such registrar; which abstract is to be filed, kept and indexed, and any person is to be at liberty to search, inspect, make extracts from, and obtain copies of the abstract. The Risks attending a Bill of Sale. Although a bill of sale is in the statutory form, properly executed, attested and registered, it is not a perfect security. For in the first place the grantor remains in the possession of the goods, and may defeat the grantee’s right by selling the goods in market overt; secondly, the goods are liable to depreciate in value (z); thirdly, if the goods are in the pos- session of the grantor in his trade or business, and bankruptcy ensues before the grantee has taken the goods out of the order and disposition of the grantor, the goods will pass to the trustee in bankruptcy of the grantor (a); and lastly, the goods may ( 2 ) This may to some extent be (a) Re Ginger, Ex parte London met by adopting the plan resorted and Universal Bank, (1897) 2 to in Seed v. Bradley, ante, p. 272. Q. B. 461. MISCELLANEOUS MATTERS. 295 be taken by way of distress for rent, rates or taxes, and so lost to the grantee (6). For these reasons, apart from the numerous pitfalls attending the preparation, execution, and attestation of the instrument, a mortgage of personal chattels cannot be regarded as a good form of security for the loan of money . The Statutory Form of Bill of Sale. The following is a copy of the form of a bill of sale given in the schedule to the act of 1882: — Form of Bill of Sale. This Indenture, made the day of , between A. B. of of the one part, and C. D. of of the other part. Witnesseth that in consideration of the sum of £ now paid to A. B. by C . D., the receipt of which the said A. B. hereby acknow- ledges [or whatever else the consideration may be], he the said A. B. doth hereby assign unto C. D., his executors, administrators and assigns, all and singular the several chattels and things speci- fically described in the schedule hereto annexed by way of security for the payment of the sum of £ , and interest thereon at the rate of per cent, per annum [or whatever else may be the rate]. And the said A. B. doth farther agree and declare that he will duly pay to the said C. D. the principal sum aforesaid, together with the interest then due, by equal payments of £ , on the day of [or whatever else may be the stipulated times or time of payment]. And the said A. B. doth also agree with the said C. D. that he will [ here insert terms as to insurance , payment of rent, or otherwise, which the parties may agree to for the maintenance or defeasance of the security]. Provided always that the chattels hereby assigned shall not be liable to seizure or to be taken possession of by the said C. D. for any cause other than those specified in section seven of the Bills of Sale Act (1878) Amendment Act, 1882. In witness, &c. Signed and sealed by the said A. B. in the presence of me, E. F [Add ivitness s name, address, and description.] The Schedule. (6) Goods comprised in a bill of sale given by a tenant are ex- pressly excepted from the Law of Distress Amendment Act, 1908, which in most cases allows a stranger, whose goods are dis- trained for rent, to recover the goods. Form of bill of sale. 296 BK. I.j PT. III. BILLS OF SALE. Rates of stamp duty on bills of sale. Stamps, &c. Absolute bills of sale must be stamped as conveyances of property at the ad valorem rate. Bills of sale to secure money are liable to stamp duty as mortgages. An affidavit made on registering or re-registering a bill of sale requires no stamp . Solicitor’s remuneration . Legal Charges. A solicitor’s charges for preparing a bill of sale will be regulated by the work done, in accordance with Schedule II. of the Solicitors’ Remuneration Order, 1881, and not by the scale of charges in Schedule I. of the Order. 297 Part IV. — LEASES. I . — INTRODUCTORY . A lease is a “ demise” or grant of' land or other heredita- ments by one person, called the lessor, to another, called the lessee, for an interest less than a freehold and less than that of the grantor, the interest which remains in the grantor being called a reversion. The interest of the lessee may he a tenancy at will, or from year to year, or for years, and is personal property. A so-called lease for a life or lives is the grant of a freehold, and stands on a somewhat different footing. The subject-matter of a lease must he real estate or a chattel real. The creation of a similar interest in pure personal property is not generally called a lease . II. — CAPACITY OF PARTIES. Upon a lease of property, just as upon a purchase or mort- gage, the first point for consideration is the capacity of the parties to enter into the transaction. As a rule, a person who has power to sell his land has also power to lease it; but there are cases in which a person can make a lease, although he can- not dispose of the land by way of sale. It is necessary, there- fore, to consider the powers of leasing possessed by persons who are under disability, or who are limited owners of land. Leases by and to Infants. By the common law a lessor, who has made a lease while an infant, may repudiate it when he attains full age, and his representatives tnay do the same if he dies under age; nor can Definition of lease. Nature of lessee’s interest. General rule. Leases by infants : (i) At com- mon law ; 298 (ii) Under 11 Geo. 4, c. 65 ; (iii) Under 44 & 45 Viet, c. 41, s. 41 ; (iv) Under 45 & 46 Viet, c. 38, ss. 59 and 60. Leases to infants. BK. I., PT. IV. LEASES. his guardian grant a lease which will be binding on him when he attains majority; and, indeed, a guardian by nature or for nurture only can make no better lease than one at will (a ) . But a lease granted by an infant is binding unless he repudiates it within a reasonable time after attaining majority (b) . By the Infants’ Property Act, 1830, the court was em- powered to authorize an infant or his guardian to make a lease of the infant's land for such term of years and subject to such rents and covenants as the court should direct (c) . Later, by the Conveyancing Act, 1881, s. 41, it was enacted that “where a person in his own right seised of or entitled to land for an estate in fee simple, or for any leasehold interest at a rent, is an infant, the land shall be deemed to be a settled estate within the Settled Estates Act, 1877." The effect of this pro- vision is, that the court may, under s. 4 of that act, authorize leases of the infant’s land on the terms stated in that section; and direct what person shall execute the lease as lessor; and possibly that the infant’s guardian, under ss. 46 and 49, may make leases for not exceeding twenty-one years, without any application to the court. These acts are, however, practically superseded by the Settled Land Act, 1882, under s. 59 of which, where a person who is in his own right seised of or entitled in possession to land is an infant, for the purposes of the act the land is settled land, and the infant is to be deemed a tenant for life thereof; and by s. 60, the powers given by the act to tenants for life may be exercised on an infant’s behalf by the trustees of the settle- ment, and, if there are none, by such person and in such manner as the court may order. Under that statute, as we shall see hereafter, tenants for life can make leases in different cases for terms of ninety-nine, sixty, and twenty-one years (d ) . Similarly, although an infant may take a lease, he is entitled to avoid it on attaining majority, though he cannot recover ( а ) Wood fall. Landlord and Tenant, 19tli ed. 46, 47. (б) See Edwards v. Carter , (1893) A. C. 360. (c) s. 17. See Re Letchford (1876), 2 Oh. D. 719. ( d ) See Re Duke of N etc castle's Estates (1883), 24 Ch. D. 129. CAPACITY OF PARTIES. any rent which he has paid '(e); but he must do so within a reasonable time, or he will become liable to pay the rent and the arrears of it, and to perform the covenants contained in it (/) . By s. 12 of the Infants’ Property Act, 1830, men- tioned above, an infant or his guardian may by the direction of the court surrender a lease and accept a new one. Leases by and to Persons of Unsound Mind. A lease by a person of unsound mind is apparently binding on him, unless the lessee knew of his insanity at the time the lease was made (g) . When the fact of insanity is known, it is necessary to have recourse to the provisions of the Lunacy Acts, 1890 and 1908, which provide that leases may be granted by the lunatic’s committee with the sanction of the judge, or, if he is not so found by inquisition, by such person as the judge, or, subject to rules, the master, may direct (h). Further, by the Settled Land Act, 1882, provision is made for the granting of leases of a settled estate of which a lunatic is tenant for life (i) . Presumably, a lease to a person of unsound mind is also binding unless the lessor knows of the insanity. The Lunacy Acts, 1890 and 1908 (h), provide for the surrender of a lease and the acceptance of a new one. Leases by and to Married Women. A married woman can grant a valid lease of property which is her separate estate. If the property is not separate estate, a lease of freehold land ought to be made by a married woman with her husband’s (e) Ketsey's Case (1614), Cro. Jac. 320; Valentini v. Canali (1889), 24 Q. B. D. 166. (/) Ketsey's Case , supra. See L. & N. W. Bail. Co. v. Mac- Michael (1850), 5 Ex. 114, see at p. 128; Edwards v. Carter, (1893) A. C. 360. (. g ) Molton v. Camroux (1848), 4 Exch. 17; Imperial Loan Co. v. Stone, (1892) 1 Q. B. 599. (h) Act of 1890, ss. 116, 120; act of 1908, s. 1. (0 See Part V., Chap. III., post ; and Re Catherine Salt, (1896) 1 Oh. 117. Leases by lunatics — how far binding. Leases to lunatics. Leases of separate estate. Leases of freehold land not separate estate. 300 BK. I., PT. IV. LEASES. Leases of leasehold land not separate estate. 45 & 46 Viet, c. 75. concurrence, the deed being acknowledged under the Fines and Recoveries Act. However, under the Settled Estates Act, 1877, a husband entitled to an estate in right of his wife may, with the leave of the court, make leases of the land subject to the provisions of that act, and he may without such leave lease it for any term not exceeding twenty-one years, the lease to take effect in possession, and otherwise to conform to the provisions of the act, and in such leases the wife’s concurrence is unnecessary. A lease of the wife’s freehold land which is not separate estate unless made by deed acknowledged or under statutory authority, is good during the coverture; but the wife may avoid it on the husband’s death, or confirm it, either ex- pressly or impliedly (Jc ) . As to leaseholds which are not the wife’s for her separate use, the husband has full power to as- sign or sub-lease them during coverture, and the assignment or sub-demise is good even though the wife survive him. Since the Married Women’s Property Act, 1882, a married woman can take a lease, as if a feme sole. Leases by and to Corporations. Leases by corporations generally. (1) The Crown . (2) Ecclesias- tical corpora- tions. At common law a corporation may grant a lease, provided that the lease be under the seal of the corporation; if, however, though the lease is not under seal, the tenant enters and pays rent, he holds as tenant from year to year on the terms of the instrument, so far as they may be applicable to such tenancy (?) . But numerous restrictions have been imposed on corporations by statute. The Sovereign has been prohibited from granting leases of crown lands for more than thirty-one years or three lives, or some term of years determinable upon one, two, or three lives and upon certain conditions specified (m). Ecclesiastical cor- (. h ) See Goodright v. Straphan (1774), Cowp. 201; Toler v. Slater (1867), L. R. 3 Q. B. 42. (l) See Ecclesiastical Commis- sioners v. Merral (1869), L. R. 4 Ex. 162. (m) See 1 Anne, c. 1, s. 5. By 10 Geo. 4, c. 50 (the Crown Lands Act, 1829), crown lands are placed under the management of the commissioners of woods and forests, who are authorised to grant leases for not exceeding thirty-one years from the mak- ing; see ss. 22 — 33. CAPACITY OF PARTIES. 801 p orations are in some cases disabled from leasing, and in others empowered to do so by a number of statutes known as Enabling and Disabling or Restraining Statutes. On taking a lease from such a corporation these statutes must be consulted. Municipal corporations are prohibited by the Municipal Cor- (3) Municipal porations Act, 1882, from granting leases for terms exceeding thirty-one years, unless they obtain the consent of the Local c. 50. Government Board, or unless the lease is a renewed one. But they may grant building leases for terms not exceeding- seven ty-five years (n ) . A corporation may take a lease, but if it be for a long term, Leases to licence to hold it in mortmain appears to be necessary (o ) . (,01 P° ratl,,us - It has been said that a lease for 100 years, for example, is within the Mortmain Acts (p), but shorter terms have been held not to be (q ) . Leases by Trustees. A trustee of land held in trust to manage it may lease the When land, but the lease must be reasonable and made in fair manage- ma * ment of the estate (r) . Generally, however, a trustee who holds land in trust to sell Trustee for has no power to grant a lease of the land, even though he has [ a ^ e carmot made every effort to sell it without success (s) . But trustees who hold land under one lease in trust to sell and Avho desire to sell the property in lots, may grant to the purchaser of each lot an underlease for the whole term less one day; for this is the expedient ordinarily adopted by conveyancers for avoiding an apportionment of the rent in such cases; it is practically the only method in which the sale can be carried out, and is in substance a sale of the property (t). Trustees who have a power of leasing under the settlement, (n) ss. 108, 109. (o) Mortmain Act, 1888, ss. 1 and 14. ( p ) Roivles v. Mason (1612), Brownlow and G., Part II. 192, per Warburton, J., at p. 197. ( q ) Truro Corporation v. Rowe , (1901) 2 K. B. 870, per Wills, J., at p. 875. (>■) Per Lord Eldon, Attorney- General v. Oiven (1805), 10 Ves. at p. 560. (s) Evans v. Jackson (1836), 8 Sim. 217. (t) Re Judd and Poland and Skelcher's Contract , (1906) 1 Ch. 802 BK. I., PT. IV. LEASES. cannot grant a lease of unopened mines, unless the power is expressly conferred upon them (w.) . Leases by Executors and Administrators. Leases by executors and administra- tors. When property disposed of by will. An executor or administrator may make an underlease of leasehold property if it be the best way of administering the assets of the deceased (x), and since the Land Transfer Act, 1897, he has the same power of granting a lease of real estate. A disposition of personal property by one of several execu- tors is valid, as executors have a joint and several authority; as also have administrators (y ) . But a disposition of real property can only be made by all the proving executors or all the administrators owing to s. 2 of the Land Transfer Act, 1897, but the concurrence of the non-proving executors which was required by that section ( z ) is not now necessary, owing to the provision contained in s. 12 of the Conveyancing Act, 1911. A lease may be taken from an executor or administrator even though the property is specifically devised or bequeathed; but anyone taking a lease under such circumstances should ascer- tain that the executor or administrator has not already assented to the devise or bequest, for if he has done so he has no power to grant the lease ( a ) . Leases under Powers. Leases under It may happen that the lessor derives his right to grant a lease from some power contained in a settlement. In accepting a lease from such a person it should be seen that the terms of 648, overruling Re Walker and Oakshott's Contract, (1901) 2 Ch. 383. (u) Re Baskerville, (1910) 2 Ch. 329; and see Re Daniels, (1912) 2 Ch. 90. (x) Oceanic Steam Navigation Company v. Sutherland (1880), 16 Ch. D. 236. ( y ) See Doe v. Sturges (1816), 7 Taunt. 217; Jacomb v. Harwood (1751), 2 Ves. Sen. 265. ( z ) See Re Pawley and The London and Provincial Bank, (1900) 1 Ch. 58. (a) See Solomon v. Atten- borough, W. N. (1912) 269, and for examples of acts amounting to an assent, Fenton v. Clegg (1854), 9 Ex. 680 ; Austin v. Beddoe (1893), 41 W. E. 619. CAPACITY OF PARTIES. 303 the power arc strictly observed. A person acting under a power may do less than the power warrants him in doing (&), but otherwise, unless the lease he in accordance with the terms of the power, it will be void as against a remainderman or rever- sioner, though it may take effect by estoppel as between the lessee and the lessor (c). But even where there has been a Statutory defective execution there is a remedy provided by statute; for by the Leases Act, 1849, s. 7, a lease made in intended exercise Vict - c - 26 - of a power, but invalid by reason of some deviation from the terms of the power, if made bond fide and the lessee has entered thereunder, is to be considered in equity as a contract for a valid lease under the power; and by the Leases Act, 1850, 13 & 14 Viet, where upon or before the acceptance of any rent under an in- c ' tm valid lease any receipt, memorandum, or note in writing con- firming the lease, is signed by the person accepting the rent, the acceptance will be deemed to be a confirmation of the lease. Leases by Limited Owners. A lease of settled land may be made under a power conferred Leases by ^ toiidnts ioi* by the settlement, or under the provisions of the Settled Estates life and Act, 1877, or under the provisions of the Settled Land Acts, otliers ‘ 1882—1890. The provisions of the Settled Land Acts on the subject are set out on a later page (d ) ; they practically render obsolete, though they do not repeal, the less extensive provisions of the Settled Estates Act, 1877. By the latter statute tenants for 40 & 41 Viet, life and other limited owners (including dowresses who are not c - 18# within the Settled Land Acts) are empowered to make leases for not exceeding twenty-one years at the best rent, and sub- ject to certain conditions, provided the settlement was made after 1st November, 1856, and contains no contrary provisions, and subject to the latter proviso, whatever the date of the settle- ment, the court is empowered by the act to order leases of settled estates for not exceeding in the case of an agricultural (5) See Isherwood v. Oldknow (1855), 11 Exch. 274. (1815), 3 M. & S. 382. (d) Post , Part V., pp. 418 et (c) See Yellowly v. Gower seq. 304 Leases by reversionei's. Leases by copy- holders — how far good. Leases by tenants for years and others. BK. I., PT. IV. LEASES. or occupation lease twenty-one years, a mining lease forty years, a repairing lease sixty years, and a building lease ninety- nine years. Leases by Reversioners. If a remainderman or reversioner grants a lease during the continuance of the particular estate which precedes his re- mainder or reversion, the lease will take effect in possession as soon as the particular estate determines. Leases by Copyholders. A copyholder cannot, except by a special custom of the manor, make a lease for more than one year without incurring a forfeiture of his estate (e) . If a copyholder does make a lease for a longer term, it is good against all persons except the lord of the manor, who may avoid or confirm it at his option (/) . But the lord of the manor, even though only tenant for life (g), may empower his tenant to grant leases for more than a year by licence; this, however, is entirely in his discretion (h ) . Leases by Tenants for Years. A tenant for years, unless restrained by express agreement, may make an underlease of his lands, and a tenant from year to year may make a lease for a term of years which will last until his own term expires; or he may underlet from year to year (i ) . And, in both cases, he will have a sufficient rever- sion in him to enable him to distrain for rent (1c ) . If' a tenant at will makes a lease it operates to determine his own estate at will, although the lease is good as against himself by estoppel. The same rule applies to a tenant at sufferance. (e) The Lady Montague's Case (1613), Cro. Jac. 301; Melwich v. Luter (1588), 4 Rep. 26a. (/) Doe v. Bousfield (1844), 14 L. J. Q. B. 42. ( g ) See Settled Land Act, 1882, s. 14, post, Part V. (70 JR. v. Hale (1838), 9 A. & E. 339. (0 See Pike v. Eyre (1829), 9 B. & C. 909. ( k ) Curtis v. Wheeler (1830),, Moo. & M. 493; Oxley v. James. (1844), 13 M. & W. 209. LEASE AND INVESTIGATION OF LESSOR’S TITLE. III. CONTRACT FOR LEASE AND INVESTIGATION OF LESSOR’S TITLE. A contract for a lease must be evidenced by a memorandum or note in writing under s. 4 of the Statute of Frauds (Z), however short the term may be ; but although damages cannot, be recovered for breach of a verbal agreement to grant a lease, specific performance may be obtained if there has been a sufficient part performance of the agreement by the plain- tiff (m). When the statute is complied with, either damages or specific performance can be obtained if the contract is broken. But the statute is not complied with if the memorandum of the con- tract omits to specify the time from which the term is to com- mence^); though the day on which a lease is to commence may be collected from the agreement as a whole (o). Probably the court will not decree specific performance of an agreement for a lease which, if granted, might immediately be determined under a proviso for re-entry (p). Similarly specific perform- ance will be refused when the term contracted to be granted has expired, or will expire before the judgment in the action can be obtained (q). But there is no rule that the court will refuse specific performance of an agreement for a lease from year to year or even a shorter term (r) . In the absence of a contract to the contrary, if the intending lessor is a freeholder, the lessee cannot require him to prove his title, but must assume that it is such as to enable him to make Contract for lea*e must be in writing. 29 Car. 2, c. 3, 8. 4. Remedy for breach of contract for a lease. Investigation of lessor’s title. (?) See ante , p. 33. (m) See ante, p. 38. ( n ) Marshall v. Berridge (1881), 19 Ch. D. 233. (o) Re Lander and Bagley's Contract, (1892) 3 Ch. 41. ( p ) See Jones v. Jones (1806), 12 Ves. 186, at p. 188; Gourlay v. Duke of Somerset (1812), 1 V. & B. 68, at p. 72; Lillie v. Legh (1858), 3 De GL & J. 204. ( q ) Nesbitt v. Mayer (1818), 1 Swanst. 223. (r) Lever v. Koffler, (1901) 1 Ch. 543. G. — C. X, 306 BK. I., PT. IV. ■ — LEASES. Practice note. 37 & 38 Viet, c. 78, s. 9, applies to dispute between lessor and lessee. the lease proposed. If the intending lessor is not the freeholder, but a leaseholder, that is to say, if the lease proposed to be granted is a sub-lease or derivative term, the lessee will be able to call upon the intending lessor to produce the lease or sub-lease out of which the proposed lease is to be carved, and the mesne assignments of it for the forty years preceding the contract (s) ; he cannot, however, call for the reversionary title, which, in the case of an intending sub-lease, will be a freehold reversion, and in the case of a sub-sub-lease, a leasehold rever- sion as well. This is the conjoint effect of s. 2 of the Vendor and Purchaser Act, 1874, and s. 13 of the Conveyancing Act, 1881 (s). It follows that if there is any doubt, a contract to be allowed to inspect the title should, in the interests of the lessee, be insisted upon, more particularly where some consideration passes on the granting of the lease. It has been held that if an intending lessor stipulates with the intending lessee to deliver to him an abstract of title, not only must the deeds be produced to the latter to enable him to verify it in the usual way, but they must also be produced at any time during the continuance of the lease in support of the lessee's title (t). Any dispute arising between an intending lessor and lessee not being a question affecting the existence or validity of the contract for the lease can be settled without action by means of a summons in chambers under s. 9 of the Vendor and Pur- chaser Act, 1874 (w). Once the lease has been granted, it cannot be cancelled on the ground that its execution was brought about by innocent misrepresentation, but only on the ground of fraud (a:). (s) See ante , p. 50; Frend v. Buckley (1870), L. B. 5 Q. B. 213; Williams v. Spargo (1893), W. N. 100; Gosling v. Woolf, (1893) 1 Q. B. 39. (£) Re Fur sell and Leakin' s Contract (1893), W. N. 152. ( u ) Re Stephenson and Cox's Contract (1892), 36 Sol. Jour. 287 ; Re Lander and Bagley's Contract, (1892) 3 Ch. 41. (x) Angel v. Jay, (1911) 1 K. B. 666. THE FORM AND CONTENTS OF A LEASE. -‘307 IV. — THE FORM AND CONTENTS OF A LEASE. By s. 1 of the Statute of Frauds all leases .... not put in writing and signed by the parties so making or creating the same or their agents thereunto lawfully authorized by writing shall have the force and effect of leases or estates at will only ; except, by s. 2, leases not exceeding the term of three years from the making thereof, whereupon the rent reserved .... shall amount unto two third parts at least of the full improved value of the thing demised. And by s. 3 of the Beal Property Act, 1845, a lease required by law to be in writing .... shall be void at law unless made by deed . But the courts have permitted themselves a considerable latitude of interpretation in applying these enactments, espe- cially in the case of the latter. For, hrst of all, it was held in the cases of Doe d. Rigge v. Bell (y ), and Clayton v. Blakey (z), that where the lessee had entered into possession under a lease void under the statutes, and had paid rent, he became a tenant from year to year upon the terms of the void lease so far as they were not inconsistent with such a tenancy . And, secondly, where there was a demise in writing, which not being under seal was therefore void as a lease, it was held by courts of equity that the demise would he good as an agreement for a lease, and specific performance of such an agreement would be granted ( a ). Thirdly, in Walsh v. Lonsdale (5), it was held that by the effect of the Judicature Act, the tenant who is in possession under an agreement for a lease is to be treated in every court as holding upon the terms upon which he would have held had he received a valid lease in pursuance of the agreement; so that a distress for the non-payment of an in- stalment. of rent Avhich would have been payable in advance if the lease had been granted, was allowed in that case. As a ( y ) (1793), 5 T. R. 471; Smith, L. C., 11th ed. vol. ii. 119. (z) (1798), 8 T. R. 3; Smith, L. C., 11th ed. vol. ii. 127. (a) Parker v. Taswell (1858), 2 Be G. & J. 559; Zimbler v. Abra- hams, (1903) 1 K. B. 577. (6) (1882), 21 Ch. B. 9; fol- lowed in Crump v. Temple (1890), 7 Times L. R. 120. Compare Foster v. Reeves, (1892) 2 Q. B. 255. When a deed is necessary. 29 Car. 2, c. 3. 8 & 9 Viet, c. 106. Construction of the statutes. Comparison between leases and agreements for leases. BK. I.. PT. IV. LEASES. 808 BK. I.. PT. IV. LEASES. / By whom the lease is prepared. consequence, an agreement for a lease which sets forth the terms agreed upon is as good as a lease; and by s. 5 of the Conveyancing Act, 1892, a tenant holding under an agreement for a lease, “ if he has become entitled to have his lease granted,” can obtain relief against forfeiture for breach of covenant under s. 14 of the Conveyancing Act, 1881, just as if a lease had been actually granted to him; and in one respect, indeed, an agreement for a lease is preferable to a lease; for although the stamp duty on agreements for leases, when the term does not exceed thirty-five years, is the same as that payable on a lease by deed for a similar term, yet where the term exceeds that period, the duty on an agreement for a lease is but sixpence; whereas on an actual lease the duty varies with the rent, and would be much more. A lease is usually prepared by the solicitor of the lessor at the expense of the lessee ( c ), the expenses of the counterpart, however, falling on the lessor (■ d ) . If the lessee refuses to pay the costs, the remedy of the solicitor is against his client the lessor, who in his turn can sue the lessee for reimbursement. Practice note. The lessee’s solicitor should, if possible, arrange that the costs Date and parties. be divided between lessor and lessee, and in provincial practioe this is often done. Contents of the Lease: Date, Parties and Recitals. Turning now to the contents of the lease and taking each clause in the order in which it appears, it need only be stated with regard to the date and parties that the remarks made in the case of purchase deeds (e) are equally applicable here. Recitals. Recitals are seldom inserted in a lease, but they may some- times be useful; for instance, when an underlease is being' granted by a lessee who is prohibited from granting one with- out the licence of the lessor, it is useful to recite the fact that such licence has been obtained. (c) Smith v. Clegg (1858), 27 Ch. 688. L. J. Ex. 300 ; compare Re ( d ) Re Negus, (1895) 1 Ch. 73. Fletcher and Dyson, (1903) 2 (e) Ante, p. 127. THE FORM AND CONTENTS OF A LEASE. 309 Testatum. The consideration is generally stated to consist of the rent reserved, and the covenants and conditions to be observed and performed by the lessee. It is not necessary to use any special or formal operative words, for any words are sufficient which explain the intent that the one party shall divest himself of the possession, and the other take it for a determinate time, but in practice the word “demise” is invariably used by lawyers. And as to the parcels it does not seem necessary to add any- thing to what has been already said on the subject in connection with purchase deeds. Habendum. The office of the habendum is to specify the quantity and quality of the lessee’s estate. In it the commencement of the term and its duration must be clearly shown. The term may commence at a past, a present, or a future date. If it is to commence “from the date of the lease, the day mentioned will be deemed included or excluded according to the intention of the parties as appearing from the instrument (/). If the date inserted in the lease is erroneous or the lease has no date, or an impossible one, as the 30th of February, the term will commence from the delivery of the deed (g). If the lease is not by deed, and no date is specified, apparently the term com- mences upon the entry of the lessee (h ) . When the date men- tioned in the habendum from which the term is to commence is a past day, the term will run from >the date mentioned in the habendum (i ) ; but in such a case the tenant is not liable for breach of covenants committed bef ore the date of the lease (1c). When the day for the commencement of the term is one which (/) Pugh v. Duke of Leeds (1777), Cowp. 714. ( g ) Clayton’s Case (1585), 5 Coke, 1 a; Steele v. Mart (1825), 4 B. & C. 272; Styles v. Wardle (1825), 4 B. & C. 908. ( h ) Kemp v. Derrett (1814), 3 Camp. 510. (i) Bird v. Baker (1858), 1 El. & El. 12. ( k ) Shaw v. Kay (1847), 1 Ex. 412. Considera tion Operative words. Parcels. Habendum — when the term may commence ; 310 BK. I., PT. IV. LEASES. inter esse termini. The duration of term must be fixed. Option to determine term. Partnership tenancy. has not jet arrived, until that day iarrives the grantee is said to have merely an interesse termini in the land, a right which may be assigned or devised by him, but which, till he has entered into possession, gives him no estate in the land; so that, for instance, he cannot before entry maintain an action for trespass. The duration of the term, or, in other words, the time for its expiration, must be fixed; so that if a lease is made to A. for as many years as B. shall live, this will not create a term of years, for it is uncertain how long B. will live. But a lease may validly be granted for a term of 999 years if A. shall so long live; for here an ascertained period is stated upon which the term must come to an end. A lease “for years, ” without specifying the number of years, is a lease for two years; and a lease “for two years certain and thereafter from year to year,” is a lease for three years at least (7). When an option is given to determine the lease before the term expires of itself, and it is not stated who is to have that option, it is the lessee alone who can exercise it; for when the words of a grant are doubtful, they must be construed most strongly in favour of the grantee (m) . On the other hand, where a lease was for twenty-one years, determinable, never- theless, in seven or fourteen years, “ if the parties shall so think fit,” it was held that both parties must concur in exer- cising the option (ft). A notice to determine the lease can only be given by the legal owner, and not by the equitable owner, of the term (o) . It may be mentioned here that where a lease of the busi- ness premises of a partnership has been acquired by one of the partners before the commencement of the partnership, and the firm pays the rent, the inference is, in the absence of any provision in the articles, that the tenancy exists during the (I) Re Searle, Brooke v. Searle, (1912) 1 Oil. 610. And see Doe v. Green (1839), 9 A. & E. 658; Ccuinon Brewery v. Nash (1898), 77 L. T. 648. ( m ) Doe v. Dixon (1807), 9 East, 15. ( n ) Foiuell v. Tranter (1864), 3 Id. & C. 458. (o) Stait v. Fenner (1912), 107 L. T. 120. THE FORM AND CONTENTS OF A LEASE. 311 continuance of the partnership only, and is not a tenancj from year to year(p). Reddendum. The reddendum specifies the amount of the rent reserved Reddendum and the times at which it is to he payable. Rent need notneces- ^rent!^ sarily consist of money; it may be of labour, provisions, ser- vices, and the like, yet it must not consist of part of the thing itself which is demised, as the herbage or vesture, i.e., it must not be something excepted from, but something newly created or reserved out of the premises (g). Further, it must be re- served out of something upon which a distress can be made in case it is not paid; so that, as a rule, rent cannot be reserved out of an incorporeal hereditament; and it must be reserved to the lessor, and not to a stranger (r) . The safest way, how- ever, of reserving the rent is to make no mention at all of the person to whom it is reserved, for it will always be inci- dent to the reversion and payable to the holder thereof from time to time without express mention (s) . Lastly, the rent must be certain in amount; but to the expression “ certain the maxim 'Id cert am est quod cerium reddi potest ap- plies, so that the actual amount need not be set down in so many words if some clue is afforded by which the exact amount may be ascertained. Obligations of the Parties in the absence of Express Covenants. Before proceeding to discuss the express covenants in a lease, Covenants, it may be well to consider the obligations to which the parties to a lease are subject in the absence of express covenants. It is settled that the use of the word “ demise ” in a lease imports into it a covenant by the lessor for quiet enjoyment (f) ; (p) Pocock v. Carter, (1912) 1 Ch. 663. ( q ) See Doe v. Lock (1835), 2 A. & E. 705, at pp. 743, 744. (r) See Oates v. Frith (1615), Hob. 130. (s) See Whitlock's Case (1609), 8 Rep. 69 b. (t) Baynes v. Lloyd, (1895) 2 Q. B. 510. 312 Implied covenant for quiet enjoy- ment. What obliga- tious are implied on part of lessee — (a) to pay rent ; (b) to pay taxes ; 5 & 6 Viet, c. 35. 54 Viet. c. 8. BK. I., PT. IV. LEASES. whether the lease he by deed or by writing’ without seal (u ) . Whether in the absence of the word “demise” and merely by virtue of the relation of landlord and tenant, the law implies an undertaking by the lessor that the lessee shall have the right to enjoy the premises free from interruption, must be regarded as still unsettled (x ) . However this may be, it is clear that the covenant, whether implied by the word “ demise ” or by the relation of landlord and tenant, if it be so, is limited to the acts of the lessor and those claiming under him, and gives no right of action to the tenant if he is ejected by some one claiming by title paramount. All the cases are in accord as to this. It is also settled that the words “yielding and paying” in the reddendum imply a covenant on the lessee’s part to pay the rent (y ) . But even in their absence upon every lease at a fixed rent the law imposes an obligation on the lessee to pay the rent (z ) . Besides this, a lessee is under an obligation to pay the rates and taxes (except landlord’s rates and taxes), to keep the premises in repair, and in certain cases to permit the lessor to enter and view the state of repair of the pre- mises. With regard to rates and taxes, the property tax is payable by the landlord under the Income Tax Act, 1842, and he cannot, even b j express contract, throw the burden of it on the tenant; for if the tenant pays it he may deduct it from his next rent, and the lessor is bound under a penalty to allow the deduction, and any agreement to pay the rent in full without allowing such deduction is void (A). And by the Tithe Act, 1891, s. 1 (1), the tithe rent-charge must be paid by the “owner ” (b), and any contract by the “ occupier ” to pay it is void, and this would include a contract to pay the landlord ( u ) Bundy v. Cartwright (1853), 8 Ex. 913. ( x ) Budd-Scott v. Daniel, (1902) 2 K. B. 351; Jones v. Lavington, (1903) 1 K. B. 253; Markham v. Paget, (1908) 1 Ch. 697. {y) Hellier v. Casbard (1666), 1 Sid. 266. ( z ) Doe v. Kneller (1829), 4 C. & P. 3. (a) Income Tax Act, 1842, ss. 60, 73, 103; see post, p. 325. (5) As defined by the statute this expression includes certain lessees. THE FORM AND CONTENTS OF A LEASE. n 3 »> by wa j o£ further rent what the latter has had to pay for tithe rent-charge (c) ; but where the occupier is liable under a contract made before the passing of the act (26th March, 1891) to pay the tithe rent-charge he is liable to repay to the owner what the owner is called upon to pay for tithe rent- charge (d). Similarly, by the Extraordinary Tithe Redemp- tion Act, 1886, s. 7 (3), extraordinary tithe rent-charge is payable by the landlord, any agreement to the contrary not- withstanding. There will also, in the absence of agreement, fall on the landlord the land tax (g), sewers rate (/), and where the premises are let for a term not exceeding three months the poor rate (g ) . The tenant must pay all other rates and taxes, and if a “ net ” rent or a rent “ free from all deductions ” is reserved, the tenant is liable to pay all rates and taxes except property tax and tithe rent-charge (Ji ) . The obligation to keep in repair is a corollary to the rule that a tenant for years must not commit waste. A tenant from year to year is liable for that kind of waste known as voluntary waste, i.e ., waste of a distinctive kind; but he is only liable to a limited extent for permissive waste, since he is not bound to keep the premises in repair any further than to keep them “wind and water tight'’ (£), e.g ., if a window is broken to put in fresh glass or in some other way prevent the rain from coming in, and he would not be bound to repair the premises if they were burned down(/c). The liability of tenants for fixed terms of years to repair, in the absence of any stipulation, has seldom been raised in the courts; for leases for terms of years nearly always contain an express covenant on the subject. At one time it was questioned if they were liable at all for mere permissive waste (?); but later cases show 49 & 50 Viet, c. 54. 38 Geo. 3, c. 5. 32 & 33 Viet, c. 41. (c) to keep in repair. (c) Tuff v. Drapers' Co. (1912), W. N. 249. (d) Tithe Act, 1891, s. 1 (2). (e) Land Tax Act, 1797, ss. 17, 18. (/) Palmer v. Earith (1845), 14 M. & W. 428. ( g ) Poor Rate Assessment and Collection Act, 1869, s. 1. ( [h ) Bennett v. Womack (1828), 7 B. & C. 627; Parish v. Sleeman (1860), 1 De Gr. F. & J. 326. (i) Auworth v. Johnson (1832), 5 C. & P. 239; Leach v. Thomas (1835), 7 C. & P. 327. ( k ) Horsefall v. Mather (1815), Holt, N. P. 7. ( l ) See Ilerne v. Bembow (1813), 4 Taunt. 764. 314 BK. I., PT. IV. LEASES. 14 Geo. 3, c. 78. No implied obligation on lessor to repair. that as a consequence of the statutes 52 Hen. 3, c. 23, known as the Statute of Marlbridge, or Marlborough, and 6 Ed. 1, c. 5, known as the Statute of Gloucester, they are liable for such waste. That is to say, at the end of the term they will be held responsible for dilapidations arising from neglect to do proper and timely repairs (m). Tenants for years, how- ever, would probably not be liable to repair the premises if they were destroyed by storm or other act of God; and by s. 86 of the Fires Prevention (Metropolis) Act, 1774, if the premises are destroyed by accidental lire ( n ), the tenant seems not to be liable; but he can make himself liable by contract, as agreements between landlord and tenant are excepted. The lessor is under no implied obligation to repair (o), or to rebuild if the premises are destroyed by fire, even though he has covenanted for quiet enjoyment (p). Nor is there any implied covenant on his part that the premises are habit- able (q), so that he is not liable for any injury caused to the lessee or the lessee’s servants, guests, or customers, or to an}' other persons on the premises by their not being habitable, though he may be liable as for a nuisance to parties off the premises (r ) ; nor is there any implied covenant on his part that the premises are fit for the purposes for which they are required (s). To this, however, there are three exceptions, namely, (1) where the subject of the lease is a furnished house, when there is an implied condition that, at the commencement (m) See Harnett v. Maitland (1847), 16 M. & W. 257; Yellowly v. Gower (1855), 11 Excli. 274; Davies v. Davies (1888), 38 Ch. D. 499. (n) The statute does not apply to a fire caused by negligence: Filliter v. Phippard (1847), 17 L. J. Q. B. 89; on the question whether the act is limited in its operation to the metropolis, sec ante, p. 86. (o) Gott v. Gandy (1853), 2 El. & Bl. 845. (p) Brown v. Quitter (1764), Amb. 619. ( q ) Hart v. Windsor (1843), 12 M. & W. 68. (r) Lane v. Cox, (1897) 1 Q. B. 415; Cavalier v. Pope, (1906) A. C. 428; Todd v. Flight (1860), 9 C. B. NT. S. 377; and see Sand- ford v. Clarke (1888), 21 Q. B. D. 398; Miller v. Hancock, (1893) 2 Q. B. 177; Bowen v. Anderson, (1894) 1 Q. B. 164. (s) Manchester Bonded Ware- house Co. v. Carr (1880), 5 0. P. D. 507. THE FORM AND CONTENTS OF A LEASE. 315 of the tenancy, the house is fit for habitation (t ) ; (2) under s. 75 of the Housing of the Working Classes Act, 1890, where a house or part of a house is let for habitation by persons of the working classes at a rent not exceeding- in the metro- polis, 20/., in Liverpool, 13 /., in Manchester or Birmingham, 10/., aud elsewhere 81., there is an implied condition that the house is at the commencement of the tenancy in all respects reasonably fit for human habitation; and this condition cannot be excluded by agreement (u ) ; and (3) under the Housing, Town Planning, &c. Act, 1909, ss. 14, 15, there is a similar condition, where any house or part of a house is let at a rent not exceeding in the County of London 40/., or, in a borough or urban district with a population of 50,000 or more, 26/., or elsewhere, 16/.; and there is also an implied undertaking by the landlord to keep the house fit for human habitation during the holding; but this provision does not apply where the house is let for three years or more on the terms that it be put by the lessee into a condition reasonably fit for occupation. Apart from statute, the obligation to permit the landlord to enter and view the state of repair only exists when the land- lord has covenanted to do repairs (x ) . It arises then, because otherwise the landlord would have no right to go on the pre- mises to make repairs. The landlord has, however, under the Agricultural Holdings Act, 1908, s. 24, a right to enter and view the state of an agricultural holding at all reasonable times, and a similar right in respect of houses to which s. 15 of the Housing, Town Planning, &c. Act, 1909, applies. Covenants which are implied by the law, run with the land; but they only bind the covenantor so long as he retains pos- session of the estate; if he parts with it, he is not liable for subsequent breaches (y ) . It is for this reason, among others, that the implied covenants are seldom relied on in practice. 53 & 54 Viet, c. 70. 9 Edw. 7, c. 44. Implied right for lessor to enter and view repairs. Implied cove- nants run with the land. (£) Smith v. Marrahle (1843), 11 M. & W. 5; Wilson v. Finch- Eatton (1877), 2 Ex. D. 336; Bird v. Greville (1884), 1 Cab. & Ell. 317 ; Sarson v. Roberts , (1895) 2 Q. B. 395. (u) Housing of the Working Classes Act, 1903, s. 12. (x) Saner v. Bilton (1878), 7 Ch. D. 815. (y) See Harley v. King (1835), 5 Tyrwli. 692; Taylor v. Shum (1797), 1 B. & P. 21. 316 BK. I., PT. IV. — LEASES. As to cove- nants running with the land and reversion. Covenants running * with the reversion — (a) at common law ; (b) under 32 Hen. 8, c. 34 ; (c) under 44 & 45 Viet, c. 41, and 1 & 2 Geo. 5, c. 37. How far Covenants run with the Land or the Reversion. It is desirable to consider how far express covenants in a lease are affected by an assignment of the lease, or of the re- version before considering their terms. A covenant is said to run with the land when it is enforce- able by or against the person for the time being in possession of the land by virtue of his possession; it is said to run with the reversion when it is enforceable by or against the person for the time being entitled to the reversion. At common law covenants in a lease run with the land provided that they 1 'touch and concern’’ the land demised, but do not run with the reversion, so that on an assignment of the reversion the assignee was not able to take advantage of the covenants which the lessee had entered into with the lessor. But by the statute 32 Hen. 8, c. 34, the assignee of the reversion was enabled to sue on the covenants of the lease as fully as the original lessor, and the lessee was given the like right against the assignee of the reversion. But the statute is only applicable if the lease is under seal (z ) . This statute has, however, been rendered practically obsolete by the Conveyancing Act, 1881 , s. 10, as extended by the Conveyancing Act, 1911 , s. 2, which pro- vides that; the rent reserved by the lease, if made after 1881 , and the benefit of every covenant and provision therein, having reference to the subject-matter of the lease to be observed and performed by the lessee, and every condition of re-entry and other condition therein, is to be annexed to and incident to the reversion, so that it can be enforced and taken advantage of by the person from time to time entitled, subject to the term, to the income of the whole or any part of' the land leased, and this although that person became so entitled after the con- dition had become enforceable, provided he became so entitled after 31st December, 1911 . Conversely, it is provided by s. 11 , that in leases made after 1881 the obligation of a cove- nant entered into by the lessor, and having reference to the subject-matter of the lease, shall, as far as he has power to bind the reversionary estate immediately expectant on the term, (z) Smith v. Eggington (1874), L. R. 9 C. P. 145. THE FORM AND CONTENTS OF A LEASE. 317 be incident to that reversionary estate: and each section con- tains a provision that the assignee of the reversion in the one case shall have the right to enforce and take the benefit of the lessee’s covenants and conditions, and that the lessee in the other shall have the right to enforce and take the benefit of the lessor’s covenants against the assignee of the reversion, not- withstanding that the reversionary estate is severed. It has been held that, if the lessor, after granting the lease, grants another lease for a longer term to commence at once, the grantee of the second lease is an assignee of the reversion, and can sue the first lessee for rent accruing after the grant of the second lease without any attornment by the first lessee (a). However, neither the 32 Hen. 8, c. 34, nor the Conveyanc- What cove - mg Act applies unless the covenant touches and concerns w ith the land the land demised. A covenant which does not touch and concern the land demised is merely collateral or personal to the covenantor (b). It is not easy to say generally what cove- nants “ touch and concern ” the land so as to run with the land. Such covenants as covenants by the lessor for quiet enjoyment, for renewal, to repair and to observe a building-line with regard to adjoining land (c), not only run with the reversion and bind the assignee of the lessor, but also run with the land, and can be taken advantage of not only by the lessee, but by any assignee of the lease. In the same way, the lessee’s cove- nants to pay rent, to repair, to cultivate the land in a particular way, to reside on the land, to insure, and other covenants of a similar nature, not only bind the lessee, but also bind any assignee of the lease; and so apparently does a covenant not to assign or underlet (d ) . Again, though the covenant is one (a) Horn v. Beard, (1912) 3 K. B. 181. (b) Williams v. Earle (1868), L. R. 3 Q. B. 739; Dewar v. Goodman, (1909) A. C. 72. (c) Ricketts v. Enfield Church- wardens, (1909) 1 Ch. 544. (d) Williams v. Earle (1868), L. R. 3 Q. B. 39. In this case the covenant was for the lessee “ and his assigns,” and possibly if the assigns had not been men- tioned they would not have been held bound : see West v. Dobh (1869), L. R. 4 Q. B. at p. 637. But the better opinion seems to be that the mention of the word “ assigns ” is immaterial : see EK. I., PT. IV. LEASES. -318 How far restrictive covenants of lessor bind lessee. And assigns of reversion. which does not run with the land, yet the assign may in some cases be bound by being expressly named; but this is only the case with covenants to do something new upon the land demised , as, for instance, a covenant to build a wall or a house on it; in these cases the assignee of the lease will be bound by such covenants only if the lessee covenanted for himself and his assigns. Lastly, there are some covenants which will not bind assigns, even when they are expressly mentioned. Such are covenants which relate to something wholly collateral to the land demised, as a covenant by a lessee to build on some other land of the lessor’s not comprised in the demise (e). It must also be remembered that the lessee himself may in some cases be bound by covenants made by his lessor, although the covenants do not run with the land at common law, and that an assignee from him may be similarly bound; for a restrictive as distinguished from an affirmative covenant, entered into by the lessor with ref erence to the land, which does not run with the land at common law will nevertheless be binding on the lessee or his assignee if they have notice of it (/) . And as a lessee is deemed in all cases to have constructive notice of the lessor’s title, he will be bound by any restrictive covenants which the latter has entered into with owners of ad- joining property so far as they bear on the enjoyment of the property demised, whether he actually knows of them or not (g ) . In like manner a restrictive covenant entered into by the lessee will bind his assignees (h) or underlessees (i) if they have notice of it. Conversely, assignees of a lessor are bound by a restrictive Woodfall, Landlord and Tenant, 19th ed. 193; Foa, Landlord and Tenant, 4th ed. 420. (e) Spencer's Case (1583), Smith, L. C., 11th ed. vol. i. 55. (/) Tulk v. Moxhay (1848), 2 Ph. 774 ; Patman v. Harland (1881), 17 Oh. D. 353; Hall v. Ewin (1887), 37 Ch. D. 74; Hollo- way Bros., Ltd. v. Hill , (1902) 2 Ch. 612. (g) Wilson v. Hart (1866), L. E. 1 Ch. App. 463; Patman v. Harland, supra. ( h ) Luker v. Dennis (1887), 7 Ch. D. 227 ; see also Clegg v. Hands (1890), 44 Ch. D. 503. (i) Hall v. Ewin (1887), 37 Ch. D. 74. THE FORM AND CONTENTS OF A LEASE. 319 •covenant entered into by him if they have notice of it (k), and are entitled to enforce restrictive covenants binding on the lessee (7). Usual Covenants. Where a lease is preceded by an agreement it is always desirable that the covenants to be inserted in the lease should be set forth in the agreement by means of a schedule or other- wise. and not merely to provide that the lease should contain “the usual covenants and conditions,” since this is almost certain to lead to disputes when the lease is being prepared. When an agreement does provide that a lease shall contain all usual and proper covenants and provisoes it becomes neces- sary for the practitioner in drafting the lease to consider what are “usual covenants” within the meaning of the agreement. According to the practice of conveyancers, some covenants are “usual” beyond question, while others may be “usual” by the custom of the locality in which the premises are situate, or by the usage of trade for the purpose of which they are let, or by other circumstances. Whether there are any of the latter seems to be a question of fact for the jury(m). The following covenants and conditions are clearly usual: — Covenants by the lessee — (1) To pay the rent; (2) To pay tenant’s taxes; (3) To keep and deliver up the premises in repair; and (4) To permit the lessor to enter and view the state of repair, and a condition of re-entry for non-pay- ment of rent, and Covenant by the lessor in the usual qualified form for quiet enjoyment (n). But the following are not “ usual ” covenants or provisoes: — A clause for forfeiture or re-entry on the bankruptcy of the (k) Holloivay Bros., Ltd. v. Hill, (1902) 2 Ch. 612. (l) Clegg v. Hands (1890), 44 Ch. D. 503. (m) See Doe v. Sandham (1787), 1 T. R. 705; Bennett v. Womack (1828), 7 B. & C. 627 ; Brookes v. Drysdale (1877), 3 C. P. D. 52. (■ n ) Hampshire v. Wickens (1878), 7 Ch. D. 555. Agreements to grant and take lease with “ usual covenants.” What are usual cove- nants in this case. What are not usual. 320 BK. I., FT. IV. — LEASES. lessee (o), or on the breach of any of the covenants (p); a covenant restricting the carrying on of particular trades (g); a covenant not to assign without licence (r) ; a covenant not to assign without the lessor’s consent, such consent not to be “ unreasonably withheld ’ ’ (s') ; a covenant to leave assign- ments and under-leases with the lessor's solicitor for registra- tion (t); a covenant in the lease of a public-house by the tenant to reside upon the premises, and personally to conduct the business (u ) . And where the lessee agreed that the lease should contain a covenant on his part to keep the premises in good repair, it was held that he was not entitled to have the general covenant qualified by the words “ damage by fire or tempest only excepted” (%). Under an It seems that under an open contract to grant a lease the open contract p ar ties are in the same position in respect to the covenants and only usual 1 ^ 1 covenants can provisoes to be inserted as under a contract to grant a lease be insisted on. ^ contain the usual covenants and provisoes (?y). Express Covenants. Turning now to the express covenants, those of the lessee are generally placed first in the lease. The more important of them are: — The Covenant to Pay Rent. When rent Kent becomes due on the first moment of the day appointed is due; for payment, and if it is not paid by midnight of the same (o) Hyde v. Warden (1877), 3 Ex. D. 72. (p) Ilodgkinson v. Crowe (1875), L. R. 10 Oh. App. 622; Re Anderton and Milner's Con- tract (1890), 45 Ch. D. 476. (g) Propert v. Parker (1832), 3 My. & K. 280. (r) Henderson v. Hay (1792), 3 Bro. C. C. 632; Church v. Brown (1808), 15 Ves. 258; Hampshire v. Wickens (1878), 7 Ch. D. 555; Re Lander and Bagley's Contract, (1892) 3 Cli. 41. ( s ) Bishop v. Taylor & Co. (1891), 60 L. J. Q. B. 556. (£) Brookes v. Drysdale (1877), 3 C. P. D. 52. (u) Re Lander and Bagley's Contract, (1892) 3 Ch. 41. (cc) Sharp v. Milligan (1857), 23 Beav. 419. (y) Propert v. Parker (1832), 3 My. & Iv. 280; Re Lander and Bagley's Contract , (1892) 3 Ch.. 41. THE FORM AND CONTENTS OF A LEASE. 321 day it becomes in arrear (z ) . The payment should be made in cash, unless any other mode of payment, e.g. by cheque, is authorized by custom, or by the previous course of dealing between the parties. If a bill of exchange, promissory note, or a bond is given in payment, the debt arising out of the liability to pay the rent is not thereby necessarily extinguished or merged, so as to supersede the lessor’s right to distrain; but the taking* of such a bill by the landlord is some evidence of an agreement by him to suspend his right of distress until the bill matures ( a ) . The proper place to make the payment is upon the land or premises demised; but if there is an express covenant to pay the rent, it is the duty of the tenant to seek the landlord out, wherever he may be, and to make the payment to him (b). The payment should be made to the lessor in person, or to his authorized agent, or at least to a person to whom the tenant has previously paid it, with the approval, tacit or express, of the lessor. Even though the lessor mortgage the premises after the demise, the lessee can nevertheless go on paying the rent to the lessor until he receives notice from the mortgagee re- quiring the payment to be made to him ( c ) . As already mentioned, under the Income Tax Act, 1842, the tenant may deduct any property tax, which he has paid, from his next rent, notwithstanding any agreement to the con- trary (d) ; and so also if called upon to pay any tax or rate which, though leviable in the first instance on the occupier of the premises, is ultimately payable by the landlord, he may deduct these, in the absence of agreement to the contrary; but in all cases the deduction should be made from the instalment of rent paid next after the payment of such taxes oir rates, since it seems that they cannot as a rule be afterwards de- ducted or even recovered from the landlord by action (e). Even how it should he paid ; where it should be paid : to whom it should be paid. As to deduct- ing- rates and taxes. 5 & 6 Viet, c. 35. ( 2 ) Dibble v. Bowater (1853), 2 E. & B. 564. (а) Palmer v. Bramley , (1895) 2 Q. B. 405. (б) Haldane v. Johnson (1853), 8 Ex. 689. (c) Trent v. Hunt (1853), 9 Ex. 14, see at p. 23. ( d ) Income Tax Act, 1842, ss. 73, 103. (A Cummin g v. Bedborougk (1846), 15 M. & W. 438. But see Be Sturm, ey Motors, Ltd., (1912) W. N. 250. G. Y 1 322 Practice note. Landlord’s remedies for rent. (i) Action. 3 & 4 Will. 4, c. 27. 3 & 4 Will. 4, c. 42. 37 & 38 Viet, c. 57. (ii) Distress. RK. I., PT. IV. LEASES. where the premises are destroyed by fire the tenant, in the absence of stipulation, must pay the rent in full(/); and for this reason, an express provision exempting the lessee from this liability should be inserted when a lease is being settled on his behalf. The rent will, however, be entirely suspended if the tenant is evicted by the landlord until such time as he is reinstated in possession. The lessor can enforce the covenant for payment of rent by action or by distress; but he cannot exercise both these rights concurrently. If he has distrained he cannot sue on the cove- nant until he has realized the distress, even though it is insuffi- cient to satisfy the rent (g ) . But if after the completion of the distress it be found insufficient, he may then sue on the covenant for the balance (/&). In an action for the recovery of rent, six years’ arrears of rent may be recovered under the Beal Property Limitation Act, 1833, or if there is a cove- nant to pay it twenty years’ arrears may be recovered under the Civil Procedure Act, 1833 (i). An action for rent may be brought at any time during the tenancy; for as long as the relationship of landlord and tenant exists the twelve years within which an action to recover rent must be brought under the Beal Property Limitation Act, 1874, do not run (k). The last quarter’s rent is sometimes made payable in ad- vance in order to facilitate its collection by means of a distress. For a detailed statement of the remedy by distress, reference must be made to books on the law of Landlord and Tenant (Z). (/) Beljour v. Weston (1786), 1 T. R. 310; Pindar v. Ainsley (1767), cited ibid. 312. ( g ) Lehain v. Philpott (1875), L. R. 10 Ex. 242. ( h ) Lear v. Edmonds (1817), 1 B. & A. 157. O Paget v. Foley (1836), 2 Bing. N. C. 679; see also Hunter v. Nockolds (1850), 19 L. J. Ch. 177; Darley v. Tennant (1885), 53 L. T. 257. (k) Grant v. Ellis (1841), 9 M. & W. 113; Lewis v. Graham (1885), 80 L. T. Jour. 66. ( l ) See Woodfall, Landlord and Tenant ; Eoa, Landlord and Tenant; Redman & Lyon, Land- lord and Tenant; and Student’s Statute Law, under title “ Land- lord and Tenant.” THE FORM AND CONTENTS OF A LEASE. 323 The Covenant to Pay Taxes, &c. The form of the covenant to pay taxes and rates varies very much, and the obligations it imposes vary accordingly. A covenant to pay “all taxes” will generally extend only to parliamentary taxes (m), which include land tax, hut not tithe rent-charge, since the Tithe Act, 1891, nor parochial or sewers rates (zz), or others of like nature; nor is a sewers rate within a covenant to pay all taxes parochial and parliamen- tary^). The word “taxes” is applicable to parliamentary and “rates” to parochial assessments (o). A covenant to pay “all rates and taxes” chargeable in respect of the demised premises may cover a water rate (p). But a covenant to pay “ all rates, taxes and impositions whatsoever, whether parlia- mentary, parochial, or imposed bv the corporation of the City of London or otherwise,” which might be rated, charged, or assessed on the demised premises or on the landlord or tenant in respect of them, has been held not to apply to a water rate levied by a water company, because that cannot properly be said to be “imposed” on the person supplied (q). Whether the tenant is bound to pay charges not of a recur- ring nature assessed in respect of improvements to the pro- perty, such as charges for paving, sewering, or draining under the Public Health, Metropolis Management and similar acts, or to paj r the cost of improvements required to be made by the local authorities under such statutes as the Factory Acts, depends on the terms in which the covenant is expressed. There is a perfect maze of decisions on the subject which it is impossible to reconcile, and the older authorities cannot be relied on. It appears clear that when the covenant includes words of wide import like “duties,” “ outgoings,” “ imposi- (m) Arran v. Crisp (1691), 12 Mod. 55. ( n ) Palmer v. Earith (1845), 14 M. & W. 428. (o) See Chatfield v. Ruston (1825), 3 B. & C. 863. (p) Spanish Telegraph Co. v. Shepherd (1884), 13 Q. B. D. 202; Bourne v. Salmon & Gluckstein, Ltd., (1907) 1 Ch. 616. ( q ) Badcock v. Hunt (1888), 22 Q. B. D. 145; and see Driesel- man v. Winstanley (1909), 53 Sol. Jo. 631. What taxes included in usual covenant. Meaning of “ rates.” Charges for permanent improve- ments ; 324 BIC. I., PT. IV. LEASES. “ assess- ments” ; C i duties 9 1 . “ out- goings” ; “ imposi- tions ” ; tions,” or “ charges/' the tenant will have to pay such charges,, for each of these expressions implies a covenant to indemnify the lessor against such expenses, but in their absence such charges must be borne by the lessor. A covenant to pay all ‘‘assessments” will not throw on the tenant the cost of abating a nuisance (r) or of paving under s. 150 of the Public Health Act, 1875 ( s ). On the other hand, a covenant to “pay .... all duties imposed in respect of the demised premises ” renders the tenant liable to pay the cost of complying with a notice to abate a nuisance served on the landlord under the Public Health (London) Act, 1891 (t), and apparently also the cost of paving a new street or of drainage works under the Metropolis Management Act, 1855 (u). The word “ outgoings ” is at least as strong as “duties” (x), and the tendency of the courts is to put a broad construction upon the expression, and it has been held that a covenant to pay all “ outgoings ” throws on the tenant tjhe cost of drainage works, paving a new street and similar charges (t /) . The word “impositions” appears to have the same effect as the words “ duties ” and “ outgoings,” and to be equivalent to a covenant to indemnify the landlord. It has been held sufficient (r) Lyon v. Greenhoiv (1892), 8 Times L. E. 457. (s) Baylis v. Jig gens, (1898) 2 Q. B. 315; Lumby v. Faupel (1903), 88 L. T. 562. ( t ) Brett v. Rogers, (1897) 1 Q. B. 525. (w) Thompson v. Lapworth (1868), L. E. 3 C. P. 149; Wix v. Rutson, (1899) 1 Q. B. 474; Farloiv v. Stevenson, (1900) 1 Ch. 128. (as) Per Grove, J., in Aldridge v. Feme (1886), 17 Q. B. D. at p. 214. {y) Crosse v. Raw (1874), L. E. 9 Ex. 209; Aldridge v. Feme (1886), 17 Q. B. D. 212 (doubt- ing Hill v. Edward (1885), 1 Times L. E. 253); Batchelor v. Bigger (1889), 60 L. T. 416; Antil v. Godwin (1889), 15 Times L. E. 462; Stockdale v. Ascher- berg, (1904) 1 K. B. 447; Greaves v. Whitmarsh, (1906) 2 K. B. 340. Compare the special cases of Vestry of Mile End Old Town v. Whitby (1898), 78 L. T. 80 (new rate falls on landlord); and Arding v. Economic Printing and Publishing Co. (1899), 79 L. T. 622 (covenant to pay “ fair share and proportion ” of expenses under Eactory Act) ; Harris v. Hickman, (1904) 1 K. B. 13 (yearly tenant not liable). THE FORM AND CONTENTS OF A LEASE. •325 to throw on the tenant the cost of repairing a drain or abating a nuisance at the requisition of the sanitary authority under the Public Health (London) Act, 1891 (z). Apparently, the Avord “charges’ 1 also is as wide as the fore- going, though there is no recent decision directly in point; if the tenant covenants to pay “charges imposed'’ he clearly makes himself liable (a) . In the older oases in which the tenant Avas held liable the decision seems to have been based on the presence in the cove- nant of Avords throwing on him the obligation to pay charges imposed “on the lessor in respect of the demised premises” as well as those charged on the premises; and in the absence of such words the tenant escaped. But the phrase iioav appeal’s to he immaterial if Avords of indemnity appear in the cove- nant (b). If a landlord Avho has covenanted to pay a tax does not do so, and the tenant has to pay it, the latter may either deduct it from his next rent, or sue to recover the money paid (. 334. ( y ) Fox v. Swan (1655), Sty. 483. ( 2 ) Doe v. Bevan (1815), 3 M. & S. 353; Re Riggs, (1901) 2 K. B. 16. (a) Doe v. Carter (1799), 8 T. R. 300. (5) Baily v. De Crespigny (1869), L. R. 4 Q. B. 180. (c) Doe v. Ilogg (1824), 4 D. & Ry. 226. (d) Gentle v. Faulkner, (1900) 2 Q. B. 267. THE FORM AND CONTENTS OF A LEASE. 333 to assign” is not broken by granting an underlease (e), but Covenant a covenant “not to assign, or otherwise part with the premises byunder- for the whole or any part of the term ” is (/). Where partners letting ; were assignees of a lease which contained a covenant not to (h) assign- . . i i > ... ment on assign without the lessor s consent m writing, and upon the dissolution of dissolution of the partnership one of the partners assigned all partnership. his interest to the other without such consent, this was held to be a breach (g). But the withdrawal of one of two joint lessees who were partners, so as to leave the other in sole possession of the premises, is not a breach of a covenant not to part with possession of them (ft). A covenant not to “underlet” will apparently prevent an Covenant not assignment oi the term — an assignment being practically an broken by underlease for the whole term— but this does not seem assignment, settled (i). To let lodgings is probably a breach of a covenant not to underlet (1c ) . Sometimes the covenant is qualified by the provision that the Effect of consent of the lessor shall not be “arbitrarily withheld” or ie^^ >nthat “unreasonably withheld.” These words mean that the consent c £ n ^ ent tb shall not be unfairly withheld; and if the lessor ref uses “upon unreasonably advice,” though he does not specify the grounds of his refusal, wlthheld - he cannot be said to withhold his consent arbitrarily. Nor is he bound to specify any reason for his refusal (l). Further, even though the consent is arbitrarily or unreasonably withheld, the lessee can neither recover damages (m), nor get an injunc- tion or specific performance, there being no contract on the (e) Crusoe v. Bugby (1771), 3 Wils. 234. (/) Doe v. Worsley (1807), 1 Camp. 20. ( g ) Varley v. Coppard (1872), L. R. 7 C. P. 505; Langton v. Henson (1905), 92 L. T. 805. (. h ) Corporation of Bristol v. Westcott (1879), 12 Ch. D. 461. (i) Compare Greenaway v. Adams (1806), 12 Yes. 395; and Re Doyle and O'Hara's Contract , (1899) 1 Ir. R. 113. (ft) Greenslade v. Tapscott (1834), 1 C. M. & R. 55; ques- tioning Doe v. Laming (1814), 4 Camp. 73, contra. ( l ) Young v. Ashley Gardens Properties , Ltd., (1903) 2 Ch. 112 . (m) Treloar v. Bigge (1874), L. R. 9 Ex. 151. 334 LEASES. BK. I., PT. IV. Action for declaration that lessee entitled to assign. Covenant by- lessor not to withhold consent. lessor’s part (w); in such a case his only remedy is to assign without consent (w); and the same applies where it is provided that consent is not to be withheld in the case of a respectable and responsible person (o). This right to assign without licence is generally of very little value to the lessee, because the person to whom it is desired to assign the premises will probably decline to take the assignment when the consent is refused, and the court will hesitate to grant specific perform- ance against him if it is not plain that the lessor’s refusal to consent was unreasonable. This is illustrated by Re Marshall and Salt's Contract (p), where it was provided that the consent was not to be “ unreasonably withheld in the case of a respect- able and responsible tenant,” and the lessor, on being applied to for his consent to an assignment of the house (which was a public-house) to a brewery company, refused, stating that his chief reason was that he desired to keep the house as a “free house.” It was held that in the circumstances the title ought not to be forced on the purchaser, and specific perform- ance was refused. If, however, the lessor, when asked for his consent, attaches a condition to it which is unreasonable, the lessee is entitled to bring an action against him for a declaration under Ord. XXV. r. 5, of the Rules of the Supreme Court, that the lessor is not entitled to impose such condition, and that the lessee is entitled to assign without any f urther consent (g); and in a proper case the lessee will be allowed the costs of the application (r ) . If, instead of a proviso qualifying the covenant, there were added a covenant by the lessor framed as follows: “and the ( n ) Sear v. The House Pro- perty, &c. Society (1880), 16 Ch. D. 387. (o) Hyde v. Warden (1877), 3 Ex. D. 72. Compare Barrow v. Isaacs, (1891) 1 Q. B. 417 ; Eastern Telegraph Co. v. Dent, (1899) 1 Q. B. 835. See also Wilmott v. London Road Car Co., (1910) 2 Ch. 525, where it was held that a “ limited com- pany ” may be a “ respectable or responsible person ” within the meaning of the covenant. (p) (1900) 2 Ch. 202. (q) Young v. Ashley Gardens Properties, Ltd., (1903) 2 Ch. 112 . (r) West v. Gwynne, (1911) 2 Ch. 1. THE FORM AND CONTENTS OF A LEASE. 336 lessor hereby covenants not to withhold such consent in the case of a respectable and responsible tenant,” the lessee would apparently he entitled to bring an action for damages in the event of the consent being withheld; but probably the lessor’s advisers will refuse to permit the insertion of the covenant in this form. In any event the covenant will be broken unless the lessor’s consent is applied for (s); and no relief can be obtained against a forfeiture incurred by the breach of a covenant of this kind, since it is expressly excepted from the operation of s. 14 of the Conveyancing Act, 1881 ( t ). Restrictive Covenants. In order to protect himself, or to prevent the property from being depreciated in value, the lessor often requires the lessee to enter into covenants which restrict his right to use the property in any manner he thinks fit. Thus, the lessee some- times covenants that he will not carry on any trade or business upon the demised premises. There is a difference between a “trade” and a “business,” the latter term being the more extensive of the two. To keep a school or a private lunatic asylum, or a “home” for working girls, though not established for profit, is a “business,” but not a “trade” (u). The following is a summary of some of the decisions on the construction of covenants of this nature: — To carry on the trade of a coachmaker is not a breach of a covenant not to carry on an “offensive trade” (x); nor is such a covenant broken by using the premises to store lucifer (s) Barrow v. Isaacs, (1891) 1 Q. B. 417; Eastern Telegraph Co. v. Dent , (1899) 1 Q. B. 835; questioning Hyde v. Warden (1877), 3 Ex. D. 72 (see at p. 81). (£) Barrow v. Isaacs , supra; Eastern Telegraph Co. v. Dent, supra . (w) Doe v. Keeling (1813), 1 M. & S. 95 (school); Kemp v. Sober (1851), 1 Sim. N. S. 517 (school); Doe v. Bird (1834), 2 A. & E. 161 (lunatic asylum); Bramwell v. Lucy (1879), 10 Ch. D. 691 (hospital); Rolls v. Miller (1884), 27 Ch. D. 71 (home for working girls). ( x ) Bonnett v. Sadler (1808), 14 Yes. 526. Practice point. No relief for breach of covenant. The object of restrictive covenants. Distinction between ‘ ‘ trade ’ ’ and “ business.” Summary of cases on restrictive covenants. 336 BK. I., PT. IV. LEASES. matches, though this might be a breach of a covenant not to carry on a dangerous trade (y) . A covenant not to use the premises as a coffee-house was held to be broken by selling light refreshments (tea, coffee, buns, &c.) to customers (2). The establishing of a national school is not a breach of a covenant “not to do anything which might be a nuisance” (a); and a brew-house is not necessarily a “nuisance” ( b ); but to carry on a boys’ school is a breach of covenant “not to carry on any trade, business, or occupation whereby any injurious, offensive, or disagreeable noise or nuisance” shall be caused (c). A cove- nant not to use the premises for the sale of wines, malt or spirituous liquors was held not to be broken where the lessees were a club, and such liquors were supplied to the members at fixed prices (d); buf such a covenant is broken by a grocer selling wines and spirits in bottle (e). Technical meanings have been attached to the terms “beer-house” and “beer- shop”; so that a sale of beer to be drunk off the premises is not a breach of a covenant not to use the premises as a “ beer- house”^); but a covenant not to use the premises as a “beer-shop” is broken if beer is sold for consumption off the premises (gf) . A covenant not to use a house “for any trade or manufacture or for any other purpose than a private resi- dence” is broken by using it as a boarding-house for scholars attending a school kept by the owner of the house (h ) ; and a covenant to use the premises as a private dwelling-house only is broken by using them as an office to receive orders for ( y ) Hickman v. Isaacs (1861), 4 L. T. 285. (z) Fitz v. lies, (1893) 1 Oh. 77. (a) Harrison v. Good (1871), L. R. 11 Eq. 388. Compare, however, Todheatly v. Benham (1888), 40 Ch. D. 80. (5) Gorton v. Smart (1822), 1 Sim. & S. 66. (c) Wanton v. Coppard, (1899) 1 Oh. 92. (d) Banken v. Hunt (1894), 10 R. 249. (e) Fielden v. Slater (1869), L. R. 7 Eq. 523. (/) L. & N. W. Bail. Co. v. Garnett (1869), L. R. 9 Eq. 26. ( g ) Bishop of St. Albans v. Battersby (1878), 3 Q. B. D. 359; London, &c. Co. v. Field (1881), 16 Ch. D. 645. (h) Hobson v. Tulloch, (1898) 1 Ch. 424; and see Milch v. Coburn (1911), 27 T. L. R. 372. THE FORM AND CONTENTS OF A LEASE. coal (i), or as a school for girls (7c), or as a charitable institu- tion for the board and education of children (/i). A covenant not to carry on a specified business is broken hy transacting the forbidden business merely as ancillary to another busi- ness (m) . A covenant that the lessor, or some particular brewer, shall have the exclusive right to supply the premises with beer, is a valid covenant (w); but the condition that the beer supplied shall be good is implied (o). A covenant by a lessee not to erect or build on the demised premises any other building what- soever other than a stable or coach-house has been held to be broken by the erection of a substantial trellis-work screen in- tended to be permanent (p) . The lessor may lose his right to enforce restrictive covenants by waiver. He will lose it, for example, if he lies by, while a breach is being committed, in such circumstances as to raise a presumption that he has waived the breach, as, for example, by the acceptance of rent after he lias become aware of the breach (g), especially if he has knowledge of the breach for a long time, and has made no objection (r) ; but mere acquies- cence in a trilling breach will not prevent him from exercising his right to restrain more extensive ones (s) . Occasionally the lessor enters into restrictive covenants: for example, he sometimes covenants that the adjoining premises shall not be used for the purpose of some trade which the lessee intends to carry on upon the demised premises; and where he has done this he or any assign or lessee of his with (i) Wilkinson v. Rogers (1863), 12 W. R. 119. (7c) Wickenden v. Webster (1856), 6 E. & B. 387. (7) German v. Chapman (1877), 7 Ch. D. 271. (m) Buckle v. Fredericks (1890), 44 Ch. D. 244; and see Errington v. Birt (1911), 105 L. T. 373. ( n ) Catt v. Tourle (1889), L. R. 4 Ch. App. 654. (o) Luker v. Dennis (1877), 7 Ch. D. 227; and see remarks of Fry, J., in Edwick v. Hawkes (1881), 18 Ch. D. at p. 207. (p) Wood v. Cooper , (1894) 3 Ch. 671. (g) Doe v. Allen (1810), 3 Taunt. 78. (r) Gibson v. Doeg (1857), 2 H. & N. 615. ( 5 ) Richards v. Revitt (1877), 7 Ch. D. 224. 337 How the right to enforce restrictive covenants may be lost. Restrictive covenants by lessor. G. — C. Z BIv. I., PT. IV. LEASES. wss notice will be restrained from breaking the covenant (t). But such a covenant may be a merely personal covenant, so that an assignee of the covenantor may not be bound by it (m) . Conditions for Ee-entry and Forfeiture. Form of condition of re-entry. The lessor generally ensures the observance by the lessee of his covenants by the insertion in the lease of a condition for re-entry or forfeiture on breach of any of the lessee’s covenants. The condition of re-entry is usually in the form of a proviso that if the rent shall at any time be in arrear for twenty-one days (x), whether the same shall have been lawfully demanded or not, or if the lessee shall make default in the performance or observance of any of the covenants and conditions on his part to be performed and observed, it shall be lawful for the lessor at any time thereafter into and upon the demised pre- mises or any part thereof in the name of the whole to re-enter, and the same to have again, re-possess and enjoy as in his former estate. Strictly construed. A proviso for re-entry will be strictly construed, and it was therefore formerly thought that negative covenants could not he ‘‘performed,” so that a proviso for re-entry on failure by the lessee to “perform” any of the covenants would not autho- rize a re-entry for breach of such covenants (?/), though the addition of the word “observe” to the word “perform” would extend the right of re-entry to breach of a negative cove- nant ( z ). But the Court of Appeal has held that this is erro- (t) Holloway Bros., Ltd. v. Hill , (1902) 2 Ch. 612. (u) Kemp y. Bird (1877), 5 Ch. D. 549, 974; Powell v. Hems- ley, (1909) 1 Ch. 680, affirmed by C. A., (1909) 2 Ch. 252. ( x ) Sometimes the words “ and no sufficient distress can be had for the same ” are added, in which case it is desirable to frame the proviso “ if and whenever the rent,” . . . &c. See Shepherd v. Berger, (1891) 1 Q. B. 597. {y) Hyde v. Warden (1877), 3 Ex. D. at p. 82; Harman v. Ainslie, (1903) 2 K. B. 241 ; compare Barrow v. Isaacs, (1891) 1 Q. B. at pp. 418, 424. (z) Croft v. Lumley (1858), 6 H. L. C. 672; Evans v. Davis (1878), 10 Ch. D. 747; Barrow v. Isaacs, supra. THE FORM AND CONTENTS OF A LEASE. *39 neous, and that the word “perform” is sufficient to include negative covenants {a) . Subject to the Conveyancing Acts, 1881 and 1892, the lessor when may take advantage of the proviso for re-entry immediately it P revl0 ^ s . arises without any preceding formalities; hut, in the case of required forfeiture for the breach of the covenant to pay rent, unless adyantage U of the lease otherwise 'provides, he must make a previous demand proviso, of the precise amount of rent due on the precise day on which it is payable, at a convenient time before sunset, upon the land, at the most notorious place of it, or at the place, if any, appointed for payment (5). To avoid these troublesome for- malities, the proviso in a lease generally stipulates that the lessor may re-enter “ although no legal demand shall have been made for the payment of the rent.” By the Common Law' 15 & i6Vict. Procedure Act, 1852, s. 210, the landlord may re-enter when 7(, ‘ he has reserved the right to re-enter for non-payment of rent, even though these words do not appear in the proviso, and even though he makes no formal demand, but only in the event of the rent being in arrear for half a year, and there being no sufficient distress on the premises. Even though there is a right of re-entry on breach of a Operation of covenant, a breach of the covenant does not of itself determine re-entry 01 the lease; but it becomes voidable at the option of the lessor (c). Further, the lessor must do some act clearly showing his intention of avoiding the lease, e.g ., by commencing pro- ceedings in ejectment (d) ; and when he has once elected to avoid the lease no subsequent receipt of rent can operate as a waiver of the forfeiture, nor is the lessee liable to pay any subsequent rent ( d ). Subject to the provisions of the Convey- ancing Acts stated below, when the lessor enters for forfeiture, the rights of an underlessee in the land are gone(e). (a) Harman v. Ainslie, (1904) 1 K. B. 698. ( b ) Huppa v. Mayo (1670), 1 Wms. Saund. 287. (c) But not at the option of the lessee, even though the proviso says the lease shall be “ void,” since a person is never allowed to take advantage of his own wrong: Rede v. Farr (1817), 6 M. & S. 121 . (d) Jones v. Carter (1846), 15 M. & W. 718. (e) G. W. Rail. Co. v. Smith (1876), 2 Ch. D. 235. z 2 340 BK. I., PT. IV. LEASES. Provisions of the Convey- ancing- Act as to right of re-entry. Lessee’s rig-lit of applying to the court for relief against forfeiture. Before taking advantage of a proviso for re-entry or forfei- ture, the lessor must now comply with the provisions of s. 14 of the Conveyancing Act, 1881, which (except as mentioned below) enacts that the right of re-entry or forfeiture shall not be enforceable by action or otherwise (/), unless and until the lessor serves on the lessee a notice specifying the particular breach complained of, and, if the breach is capable of remedy, requiring the lessee to remedy it, and in any case requiring the lessee to make compensation in money for the breach, and the lessee fails within a reasonable time thereafter to remedy the breach if it is capable of remedy, and to make reasonable compensation in money to the satisfaction of the lessor for the breach. A notice served under this section is not insuffi- cient because no compensation is demanded (g). Not only does the act prevent a landlord from making a harsh use of his right to re-enter or to take advantage of a forfeiture, but when the lessor has, by complying with the pre- vious provisions of the act, entitled himself to enforce these rights, and is proceeding by action or otherwise so to do, the lessee may apply to the court for relief, and the court may grant or refuse relief , as it thinks fit; and in case of relief may grant it on such terms as it thinks fit(^). The court’s dis- cretion is very wide, and the House of Lords has refused to lay down any rigid rules to fetter it (i ) . The application for relief should be made in the action (whether in the High Court or County Court) brought to enforce the forfeiture, but if no such action is pending the lessee must apply by writ (not by originating summons) to the High Court (fc); he cannot in such a case seek relief in the County Court. The applica- tion for relief must be made before the lessor has actually (/) See Re Riggs, Ex parte Lovell, (1901) 2 IT B. 16. (g) Lock v. Pearce, (1893) 2 Oh. 271. Upon the form of the notice reference may be made to Cove v. Smith (1886), 2 Times L. R. 778; Fletcher v. Nolces, (1897) 1 Ch. 271; Renton v. Barnett, (1898) 1 Q. B. 276; Re Serle, Gregory v. Serle, (1898) 1 Ch. 652; and see post, p. 344, as to forfeiture for non-payment of rent. ( h ) Conveyancing Act, 1881, s. 14 (2). O Hyman v. Rose (1912), 28 T. L. R. 432. (fc) Lock v. Pearce, (1893) 2 Ch. 271. THE FORM AND CONTENTS OF A LEASE. 341 entered; after lie has done so it is generally too late (7). For the purposes of the section a lease includes ( inter alia ) an under- lease; lessee includes underlessee, and a lessee’s heirs, execu- tors, administrators, or assigns (m). Where relief is granted the effect is to restore the lease as if it had never been for- feited, so that an underlessee cannot refuse to pay rent for the period elapsing between the forfeiture and the granting of relief (w). It was decided in Burt v. Gray (o) that an underlessee, as Rio-ht of distinguished from the assignee of a lessee, was not entitled to ^^ 1 ® f ssee the benefit of the act as against the superior landlord; but this is now altered by s. 4 of the Conveyancing Act, 1892, by 55 & 56 Viet, which the court may, on application by any person claiming as e ‘ 13 ’ s * underlessee any estate or interest in the property comprised in the lease or any part thereof, either in the lessor's action, if any, or in any action brought by such person for that purpose, make an order vesting' for the whole term of the lease, or any less term, the property comprised in the lease or any part thereof in any person entitled as underlessee on such conditions as the court thinks fit, but in no case is the underlessee entitled to require a lease to be granted to him for any longer term than he had under his original sub-lease (p) . This enactment enables an underlessee to obtain relief even Its extent, though the original lessee himself could not have done so, e.g ., if there is a breach of a covenant not to assign or underlet (q) . ( l ) Rogers v. Rice, (1892) 2 Ch. 170; see, however, Jacques v. Harrison (1884), 12 Q. B. D. 165, where the court appears to have allowed an application for relief to be made after the lessor had obtained possession. ( m ) Conveyancing Act, 1881, s. 14 (3); see Matthews v. Usher, (1900) 2 Q. B. 535. ( n ) Bendy v. Evans , (1909) 2 K. B. 894. (o) (1891) 2 Q. B. 98. (p) In Cliolmeley School v. Sewell, (1894) 2 Q. B. 906, relief was granted on condition that the underlessee paid all rent due, and executed a deed containing the same covenants as the lessee had entered into with the lessor. See also Ewart v. Fryer, (1901) 1 Ch. 499 (affirmed by H. L. sub nom. Fryer v. Ewart, (1902) A. C. 187), where the court directed an inquiry as to the rent to be paid by the underlessee. ( q ) Imray v. Oakshette , (1897) 2 Q. B. 218; Gray v. Bonsall, (1904) 1 K. B. 601. BK. I., PT. IV. LEASES. 342 Agreement for a lease within the act. 55 & 56 Viet, c. 13, s. 5. Effect of statute on lessor’s right. As to costs of preparing notice. 55 & 56 Viet, o. 13, s. 2. Further, under the act of 1881, if a tenant under an agree- ment for a lease broke the terms of the agreement, he could not obtain relief from the forfeiture consequent thereon, unless the agreement were such as the court would specifically enforce (r); but this also is now altered by s. 5 of the act of 1892, under which relief can be afforded to a tenant holding under an agreement for a lease or for an underlease, where he “has become entitled to have his lease [or underlease] granted.” What this exactly means is not quite clear, but perhaps its effect is to enable all tenants under agreements for leases to get relief from forfeiture, provided there is no condition to the granting of the lease still unfulfilled. The better opinion seems to be that the preliminaries required by s. 14 are a condition precedent, and that a lessor cannot bring any action of ejectment or otherwise enforce a forfeiture until he has served notice on the lessee (s). Non-compliance with the statute, however, does not take away the landlord’s right of re-entry, but merely postpones it till he has taken the steps the statute requires (if). It was decided that the lessor could not recover from the lessee the costs of preparing the notice required by the sec- tion (w).and to meet this it is provided by s. 2 of the Convey- ancing Act, 1892, that the lessor shall be entitled to recover all reasonable costs and expenses properly incurred by him in the employment of a solicitor and surveyor or valuer or other- wise in reference to any breach giving rise to a right of re-entry or forfeiture, which, at the request of the lessee, is waived by the lessor by writing under his hand, or from which the lessee is relieved. If, however, an underlessee obtains relief in respect of a forfeiture incurred by the original lessee, the costs incurred in connection with the notice cannot be recovered under this section from the underlessee though they would have (r) Swain v. Ayres and Luck (1888), 21 Q. B. D. 289; Strong v. Stringer (1889), 61 L. T. 470. (s) See per Davey, L. J., in Nind v. Nineteenth Century Building Society , (1894) 2 Q. B. 226, at p. 233. ( t ) See Coats worth v. Johnson (1886), 55 L. J. Q.B. 220; Cres- well v. Davidson (1887), 56 L. T. 811. (w) Skinners' Co. v. Knight , (1891) 2 Q. B. 542. THE FORM AND CONTENTS OF A LEASE. 843 been payable by the lessee himself if he had sought relief; and apparently these costs cannot be recovered even from the lessee if he has complied with the notice (x ) . Sect. 14 of the Conveyancing Act, 1881, does not enable the Cases to court to grant relief in the case of all covenants; it does not extend to a covenant against assigning, underletting, parting apply, with possession, or disposing of the land leased (?/); or to a condition for forfeiture on the bankruptcy of the tenant, or on the taking in execution of the lessee’s interest (z); but this is now subject to s. 2 of the Conveyancing Act, 1892, which 55 & 56 Viet, runs thus: — “Sub-s. 6 of s. 14 of the Conveyancing Act, c - lo > s - 2 * 1881, is to apply to a condition for forfeiture on bankruptcy of the lessee, or the taking in execution of the lessee’s interest only after the expiration of one year from the date of the bankruptcy, or taking in execution, and provided the lessee’s interest be not sold within such one year, but in case the lessee’s interest be sold within such one year sub-s. 6 shall cease to be applicable thereto”; the section of the 1892 act, however, does not apply to leases of — (1) Agricultural or pastoral land; or (2) Mines or minerals; or (3) A house used or intended to be used as a public-house or beershop ; or (4) A house let as a dwelling-house with the use of any furniture, books, works of art, or other chattels not being in the nature of fixtures; or (5) Any property with respect to which the personal qualifi- cations of the tenant are of importance for the pre- servation of the nature or character of the property, (x) Nind v. Nineteenth Century Building Society , (1894) 2 Q. B. 226. ( y ) Consequently no relief can be given in respect of a breach of such a covenant, even though it be committed by mistake: Barrow v. Isaacs, (1891) 1 Q. B. 417; Eastern Telegraph Co. v. Dent, (1899) 1 Q. B. 835. (z) Bankruptcy includes liqui- dation where the lessee is a com- pany. See Conveyancing Act, 1881, s. 2 (xv) ; Horsey Estate, Ltd. v. Steiger, (1899) 2 Q. B. 79; Fryer v. Ewart, (1902) A. C. 187. 344 BK. I., FT. IV. LEASES. or on the ground of neighbourhood to the lessor or to any persons holding under him. Mining leases. Sect. 14 also does not extend in the case of a mining lease to a covenant or condition for allowing the lessor to have access to or inspect books, accounts, records, weighing machines or other things, or to enter or inspect the mine or the workings thereof . As to for- feiture for non-payment of rent. 15 & 16 Viet, c. 76. 23 & 24 Viet, c. 126. Sub-s. 8 of s. 14 also expressly enacts that the section is not to affect the law relating to re-entry or forfeiture or relief in case of non-payment of rent. But equity would always relieve against the forfeiture for non-payment of the rent, provided that the lessee showed equitable grounds, applied before the landlord re-let the premises, and paid what was due, with costs (a) ; and this right to relief was made a statutory right by the Common Law Procedure Act, 1852 (ss. 210 — 212), and the Common Law Procedure Act, 1860 (s. 1). In the case of a breach of the covenant for payment of rent, therefore, the forfeiture accrues at once, and no notice to the lessee under the Conveyancing Act is required; but the lessee will, in a proper case, obtain relief on paying the rent and costs within the time limited by s. 210 of the Common Law Procedure Act, 1852, that is, within six months of ejectment. It has been held that relief may be granted even though there has been a peaceable resumption of the premises without any such process of law as is impliedly referred to in the statute (5). If an underlessee who has lost the benefit of his underlease, by reason of the underlessor not paying his rent, applies for relief, that is, to have the original and forfeited lease restored to the original lessee, he must make the original lessee a party to the action, unless there is a sufficient reason for not doing so (c). Right to relief The right of a lessee to relief against forfeiture is a chose in (a) A mortgagee of the lease is entitled to relief unless a right in some third party has accrued be- tween the date of the judgment in ejectment and the application for relief: Newboult v. Bingham (1895), 72 L. T. 852. (5) Howard v. Fanshawe, (1895) 2 Cli. 581. (c) Hare v. Elms, (1893) 1 Q. B. G04; Humphreys v. Morten, (1905) 1 Oh. 739. THE FORM AND CONTENTS OF A LEASE. ►345 action and assignable either by law ( e.g ., in bankruptcy), or by act of the party (d). A t common law a grantee of part of the reversion expectant on a lease could not take advantage of any condition in the lease; for it was a doctrine of the law that a condition was not divisible or apportionable (e). By s. 3 of the Law of Property Amendment Act, 1859, it was provided that, where the rever- sion was severed and the rent legally apportioned, the assignee of each part of the reversion should have the benefit of all conditions or powers of re-entry for non-payment of rent just as if those conditions had been specially reserved to him to secure the payment of the portion of the rent to which he became entitled after the assignment. This provision, which it will be seen only applied to conditions of re-entry on non- payment of rent and only when the rent had been legally ap- portioned, is extended by the latter part of sub-s. 1 of s. 10, and of sub-s. 1 of s. 12 of the Conveyancing Act, 1881, as read with s. 2 of the Conveyancing Act, 1911, to all con- ditions, and it applies even when the rent has not been legally apportioned, that is to say, even though the tenant has not consented to the apportionment. Sect. 12 enacts that notwith- standing the severance of the reversion the conditions of re-entry, &c. contained in the lease shall be apportioned, and shall remain annexed to the several parts of the reversion as if the land comprised in each severed part had alone originally been comprised in the lease. The Conveyancing Act, however, only applies to leases made after the commencement of the act. It was also established in Dumpor s case (/) that every condi- tion being one and indivisible, if a condition of re-entry was once waived it was gone for ever. This, however, only extended to express waivers; for a waiver implied from the receipt of rent, after and with knowledge of a breach, did not operate to debar the lessor from taking advantage of the condition on a breach occurring after waiver. The rule was the same with regard to licences granted by the lessor to commit a breach of a ( d ) Howard v. Fanshawe, Smith, L. C., 11th ed. vol. i. 32. supra. (/) (1603), Smith, L. C., 11th (e) Dumpor's case (1603), ed. vol. i. 32. a chose in action. Effect of severance of reversion on conditions of re-entry. Dumpor' s case. 22 & 23 Viet, c. 35. 44 & 45 Viet, c. 41. Effect of waiver of condition of re-entry. Dumpor' & case. 646 22 & 23 Viet, c. 3-5. 23 & 24 Viet, c. 38. Acts which constitute waiver. Does not destroy action . BIv. I., PT. IV. — LEASES. covenant secured by a right of re-entry or a clause of for- feiture. But by the Law of Property Amendment Act, 1859, s. 1, it is provided that in such cases the licence granted shall extend to the permission actually given, or to the specific breach of covenant authorized to be committed, and not operate to prevent proceedings for a subsequent unlicensed breach; and that where a licence is given to one of several lessees to commit a breach of such a covenant, or to one lessee in respect to part only of the property, the licence is not to operate to destroy the right of re-entry in case of a breach by the co-lessees, or by the lessees of the rest of the property. And by the Law of Pro- perty Amendment Act, 1860, s. 6, it is enacted that where an actual waiver of the benefit of any covenant or condition has been made by the lessor, it is not to extend to any instance other than that to which it specially relates, or to be deemed a general waiver of the henefit of such covenant or condition, unless an intention to that effect appears. A right of re-entry is impliedly waived if the lessor, having knowledge of it, does any act from which it may be presumed that he recognises the tenancy as still subsisting, e.g., by ac- cepting rent due after the forfeiture was incurred ( g ) ; or by distraining for rent due either before or after forfeiture in- curred ( h ). Sometimes acceptance of rent will amount not only to a waiver of a past breach, but also to a licence to continue the breach in future. Thus, if a covenant not to underlet is broken, and the landlord, with knowledge of the breach, goes on receiving rent, he waives the right to re-enter for the whole time during which the sub-interest lasts (i). While a waiver may destroy a right of re-entry for breach of covenant, it does not release a right of action for such breach. (g) Marsh v. Curteys (1595), Cro. Eliz. 528; Price v. Wor- wood (1859), 4 H. & N. 512. (h) Cotesivorth v. Spokes (1861), 10 C. B.N. S. 103; Doe v. Peck (1830), 1 B. & A. 428; Kirkland v. Briancourt (1890), 6 Times L. B. 441; but compare Thomas v. Lulham, (1895) 2 Q. B. 400. ( i ) Walrond v. Hawkins (1875), L. B. 10 C. P. 342; see also Griffin v. Tomkins (1880), 42 L. T. 359. THE FORM AND CONTENTS OF A LEASE. 34 Covenant by the Lessor for Quiet Enjoyment. The usual form of a covenant for quiet enjoyment is to the effect that the lessee performing and observing all the cove- nants on his part to be performed and observed shall quietly hold and enjoy the demised premises without any interruption by the lessor or any person rightfully claiming from or under him. The covenant does not in any way enlarge the rights of the lessee, but confers on him an additional remedy in case those rights are invaded. In determining what amounts to a breach of this covenant, the wording of it must in all cases he taken into considera- tion; for the liability of the lessor depends on the extent to which he has bound himself. So that, if he covenants as against the acts of himself, and of “all persons claiming by, through or under him,” the covenant does not extend to an eviction by a person claiming by a title paramount; nor does it cover disturbance by a person who claims against him, as in the case where a distress is made on the premises at the instance of a person claiming land-tax due from him before the demise (7c). Nor does it apply even to the acts of a person claiming under him, if such acts are done without his authority, express or implied (7). So an underlessee who is disturbed by the original lessor has no remedy against his underlessor for breach of any covenant, since the original lessor does not claim by, through or under the underlessor (m) ; but a person who claims under a settlement made by the lessor himself is a person “ claiming under” him (?z). The covenant is not broken by a trespass by a stranger; for it does not extend to the acts of wrong- doers, but only to persons claiming by a legal title (o). Nor is damage caused by the bursting of a water-pipe, reasonably placed on the premises by the lessor before the date of the lease Form of covenant for quiet enjoyment. What will amount to a breach of covenant. ( k ) Stanley v. Hayes (1842), 3 Q. B. 105. ( l ) Williams v. Gabriel, (1906) 1 K. B. 155. (m) Kelly v. Rogers, (1892) 1 Q. B. 910. Compare Cohen v. Tannar, (1900) 2 Q. B. 609. ( n ) See Carpenter v. Parker (1857), 3 C. B. N. S. 206. (o) Dudley v. Folliott (1790), 3 T. R. 584. 34 8 BK. I., PT. IV. LEASES. and properly maintained, a breach of it, for the covenant only refers to acts done after the lease has been granted (p) . Any proceeding in a court of law which has the effect of interfering with the title and possession of the land is a breach of covenant; but not a proceeding interfering merely with a particular mode of enjoyment of the land, so that where the land was subject to a condition binding on the lessor against the carrying on of certain trades, and an injunction was obtained restraining the lessee from carrying on one of the prohibited trades, it was held that the injunction did not amount to a breach of the lessor’s covenant for quiet enjoyment; for the covenant is meant to secure to the tenant the title and quiet possession of the land, but not to warrant that he may use the property for any purpose not specially provided against by restrictive covenants (g). Again, the covenant is broken if the lessor does anything in the assertion of a right hostile to the full enjoy- ment of the land by the covenantee. So that if' the lease be of a watercourse, and the lessor afterwards stop the watercourse up (r) : or of a house, and the lessor or those claiming under him work mines so as to cause a subsidence of the house (s) ; or of a seam of coal, and the lessor afterwards so work the strata above as to cause the roof of the mine to fall in(£');i the lessee will in each case have action for breach of the cove- nant. But to build on adjoining premises so as to cause the chimneys of the lessee’s house to smoke is probably not a breach of the covenant (m), and generally to constitute a breach of the covenant there must be some physical interference with the enjoyment of the demised premises, and a mere inter- ference with the comfort of persons using those premises by the creation of a personal annoyance such as might arise from (p) Anderson v. Oppenheimer (1880), 5 Q. B. D. 602. ( q ) Dennett v. Atherton (1872), L. It. 7 Q. B. 316. (r) See Pom fret v. Piero ft (1668), 1 Wins. Saund. 321. (s) Markham v. Paget , (1908) 1 Ch. 697. (t) Shaw y. Stenton (1858), 2 H. & N. 858. ( u ) Davis v. Totun Properties Investment Corporation, Ltd., (1903) 1 Ch. 797, per Komer and Cozens-Hardy, L. JJ., doubting Tehb v. Cave, (1900) 1 Ch. 642. THE FORM AND CONTENTS OF A LEASE. 341 noise, invasion of privacy, or the like, is not enough (x ) . Lastly, the covenant is broken if the lessor gives notice to a sub-lessee to pay the rent to him instead of to the sub-lessor (the original lessee), and this though the latter had broken his covenants, and the covenant for quiet enjoyment was made dependent on the lessee paying his rent and performing his covenants. But in such a case there is no breach unless the sub- lessee acts upon the notice (?/). The breach of this covenant gives the tenant a right of action for damages against the lessor, but does not discharge him from any liability under the lease except the liability to pay rent (z) . Even though the lessor cannot be made liable for disturbance of the lessee under the covenant for quiet enjoyment owing to its limited character, he may still be liable; for he must not derogate from his own grant, and therefore must not use his adjoining property or permit it to be used for a purpose which constitutes a nuisance to his tenant; and if he does the tenant can recover damages, and if he apply in time can obtain an injunction (a). The right of action on the cove- nant or otherwise is subject to the well established qualifica- tion in favour of the exercise of statutory poAvers, so that no action will lie against a railway company for the breach of the covenant if the breaches are committed in the exercise of their statutory powers; the tenant’s only remedy being under the compensation clauses of the Railways Clauses Act, 1845, and the Lands Clauses Act, 1845 (b). The following is a form of occupation lease of a dwelling- house: — This Indenture made the day of Between A. of &e. (who with his heirs and assigns is hereinafter referred to ( x ) Browne v. Fowler, (1911) 1 Ch. 219. ( y ) Edge v. Boileau (1885), 16 Q. B. D. 117. (z) Morrison v. Chadwick, 7 0. B. 266. (a) Grosvenor Hotel Co. v. Hamilton, (1894) 2 Q. B. 836; see also Aldin v. Latimer Clark, Muirhead & Co., (1894) 2 Ch. 457; and Browne v. Fowler, (1911) 1 Ch. 219. ( b ) M. S. & L. Rail. Co. v. Anderson, (1898) 2 Ch. 394. Rights of tenant on breach . Lessor must not derogate from his grant. Exercise of statutory powers. BK. I., PT. IV. LEASES. as “the Lessor”) of the one part and B. of &e. (who with his executors, administrators and assigns is hereinafter referred to as “ the Lessee ”) of the other part. Witnesseth that in consideration of the rent hereinafter re- served, and of the Lessee’s covenants hereinafter contained, the Lessor hereby demises unto the Lessee, All that messuage or dwelling house, &c. (parcels), To hold unto the Lessee, for the term of twenty-one years from the day of determin- able nevertheless as hereinafter mentioned, the Lessee Yielding and Paying during the said term the yearly rent of £ by four equal quarterly payments, on the 25th day of March, the 24th day of June, the 29th day of September, and the 25th day of December, in every year, the first payment to be made on the day of next. And the Lessee hereby covenants with the Lessor To pay the rent hereby reserved at the times and in manner aforesaid. To pay and discharge all rates, taxes, assessments, duties, im- positions and outgoings whatsoever, whether parliamentary, paro- chial, or of any other description, which now are or during the said term shall be imposed or charged on the premises or the owner or occupier in respect thereof (except the land tax, tithe rent charge and landlord’s property tax). To keep the said premises (including all fixtures and additions thereto) in good and substantial repair and condition, and so to deliver up to the Lessor at the expiration or sooner determination of the said term. To paint with two coats at least of good oil colour and in a proper and workmanlike manner all the wood, iron and other work in and about the said premises previously or usually painted, as to outside work in every third year of the term hereby granted, and as to inside work in every seventh year of the said term: and at the same time with every outside painting to restore and make good the stucco work wherever necessary, and at the same time with every inside painting to whitewash and colour such parts of the inside of the said premises as are usually whitewashed and coloured, and paper with paper of suitable quality such parts thereof as are usually papered. To permit the Lessor, or his agent, with or without workmen, and others, twice in every year during the said term, at convenient hours in the daytime to enter into and upon the said premises, and examine the state and condition thereof, and to repair and make good all defects and wants of reparation, of whic h notice in writing shall be given to him by the Lessor, within three calendar months after the giving of such notice. To insure and keep insured the said premises from loss or damage by lire, in the joint names of the Lessor and Lessee, in the Insurance Office, or in some other -well -established office to be approved of by the Lessor, in the sum of £ at least, and to pay all premiums necessary for that purpose within THE FORM AND CONTENTS OE A LEASE. 351 seven days after the same shall become due, and to produce to the Lessor whenever required the policy of such insurance, and the receipt for every such payment, and to cause all moneys received by virtue of any such insurance to be forthwith laid out in rebuilding- and reinstating the said premises, and if the moneys so received shall be insufficient for the purpose, to pay the defi- ciency out of his own moneys. Not to carry on or permit to be carried on at any time during the said term any trade or business upon the said premises, nor permit the same to be occupied or used in any other manner than as a private dwelling house. Not to assign or underlet or part with possession of the said demised premises, or any part thereof, without the consent in writing of the Lessor first had and obtained, which consent how- ever shall not be unreasonably withheld. Provided always, that if the said yearly rent of £ or any part thereof, shall be in arrear for the space of twenty-one days next after any of the days whereon the same ought to be paid as aforesaid, whether the same shall or shall not have been legally demanded, or if there shall be any breach or non-observance of any of the Lessee’s covenants hereinbefore contained, then and in any of the said cases it shall be lawful for the Lessor, at any time thereafter, into and upon the said demised premises, or any part thereof, in the name of the whole to re-enter and the same to have again, repossess and enjoy in his former estate. And the Lessor hereby covenants with the Lessee, that the Lessee paying the rent hereby reserved, and observing and per- forming the covenants and conditions herein contained, and on his part to be observed and performed, shall and may peaceably and quietly possess and enjoy the said premises hereby demised during the said term without any lawful interruption from or by the Lessor or any person rightfully claiming from or under him. Provided also, that if the Lessee shall be desirous of deter- mining this lease at the end of the first seven or fourteen years of the said term, and of such desire shall give to the Lessor, or his agents, or leave at his usual or last known place of abode in England or Wales, six calendar months’ previous notice in writing, then and in such case at the end of such seven or fourteen years, as the case may be, the term hereby granted shall cease, but sub- ject to the rights and remedies of the Lessor for or in respect of any rent in arrear, or any breach of any of the Lessee’s covenants. In Witness, &c. V. — STATUTORY PROVISIONS AFFECTING AGRICULTURAL LEASES. In the case of leases of 1 agricultural holdings and market The Agri- CJ O c" 1 gardens, the ordinary law is modified by the Agricultural ip^-^s Holdings Act, 1908, which consolidates a number of previous Acts. 352 BK. I., PT. IV. LEASES enactments, and makes important provisions with reference to compensation for improvements made by, and for unreason- able disturbance of, the tenant of such holdings, the right of the tenant to remove fixtures and notice to quit. Compensation for Improvements and Disturbance. Right of teijant to compensation for improve- ments. As to com- pensation for improve- ments. The act provides that where a tenant of a holding has made thereon any improvement comprised in the first schedule to the act, he shall, subject as in the act mentioned, be entitled at the determination of a tenancy on quitting his holding to obtain from the landlord as compensation for the improve- ment such sum as fairly represents the value of the improve- ment to an incoming tenant. In the ascertainment of the amount of the compensation payable there must be taken into account (a) any benefit (c) which the landlord has given or allowed to the tenant in consideration of the tenant executing the improvement; and (b) as respects manuring as defined by the act, the value of the manure required by the contract of tenancy or by custom to be returned to the holding in respect of any crops sold off or removed from the holding within tho last two years of the tenancy or other less time for which the tenancy has endured, not exceeding the value of the manure which would have been produced by the consumption on the holding of the crops so sold off or removed. The enactment does not prejudice the right of a tenant to claim any com- pensation to which he may be entitled under custom, agree- ment, or otherwise in lieu of the compensation provided by it (d). The improvements for which a tenant is entitled to com- pensation under the act are of three kinds: — Class I. is set out in Part I. of the first schedule to the act, and consists of improvements of a permanent nature, such as the erection, alteration, or enlargement of buildings and the (c) See M'Quater v. Fergus- the Agricultural Holdings Act, son, (1911) S. C. 640. 1900, and s. 1 (1) of the Agri- ( d ) s. 1. This enactment is cultural Holdings Act, 1906. based on the provisions of s. 1 of AGRICULTURAL LEASES. 353 laying down of permanent pasture; for these the tenant only obtains compensation if they are executed with the landlord s written consent (e). Class II. is dealt with by Part II. of the first schedule, and consists of drainage: for this compensation is only allowed provided that not more than three nor less than two months before beginning to execute the improvement the tenant has given to the landlord notice in writing of his intention, and the landlord fails to execute the improvement within a reason- able time. If the landlord chooses to execute the improvement himself, he may recover from the tenant interest on the outlay to the extent specified in the act (/) . Class III. consists of improvements of a less important character, such as the chalking of land, clay burning, consump- tion in the holding by cattle of cake, repairs to buildings neces- sary for the proper cultivation or working of the holding other than repairs which the tenant is himself under an obligation to execute. For these improvements, unless fair and reasonable compensation is substituted by an agreement in writing (g), the tenant is entitled to compensation, although effected without any notification to or consent of the landlord (h ) . Except as provided by the act, any contract (whether under Avoidance of seal or not) made by a tenant of a holding by virtue of which ? ontra ?t ' . . . ° J inconsistent he is deprived of his right to claim compensation under the with act. act in respect of any improvement comprised in the first schedule, is void so far as it deprives him of that right («*). (e) s. 2. Part I. of the first schedule is subject as to market gardens to the provisions of the third schedule. See s. 42, post, p. 358. (/) s. 3. “ Drainage ” is not defined by the act, and it is not clear whether it is confined to the drainage of the land or whether it extends also to the drainage of buildings. See Johnston, Agri- cultural Holdings Act, 27. ( 9 ) See Brown v. Mitchell, (1910) S. 0. 369. W ss. 1 and 4. But before beginning to execute repairs to buildings the tenant must give the landlord notice in writing of his intention, together with particu- lars of such repairs, and must not execute the repairs unless the landlord fails to execute them within a reasonable time after receiving such notice. See Part III. of first schedule. (i) s. 5. See hereon, Cathcart v. Chalmers, (1911) A. C. 246. A A 354 Supple- mentary provisions. Compensation for damage by game. Compensation /or un- reasonable disturbance. BK. I., PT. IV. LEASES. The act contains elaborate supplementary provisions for the determination of claims to compensation by arbitration (k), safeguarding the rights of an incoming tenant who has with the consent in writing of his landlord paid compensation to an outgoing tenant, and of a tenant who has remained on his holding during two or more tenancies, and limiting the right to compensation in respect of improvements made by a tenant about to quit (7). The act also provides that where a tenant of a holding has sustained damage to his crops from game, the right to kill and take which is vested neither in him nor in anyone claiming under him, other than the landlord, and which the tenant has not permission in writing to kill, he shall, subject as in the act mentioned, be entitled to compensation from his landlord for such damage if it exceeds in amount the sum of one shilling per acre of the area over which the damage extends, and any agreement to the contrary or in limitation of such compensation is void. But the right to compensation is subject to various conditions specified (m). A still more important provision is that where (a) the land- lord of a holding without good and sufficient cause and for reasons inconsistent with good estate management terminate® the tenancy by notice to quit, or having been requested in writing at least one year before the expiration of a tenancy to grant a renewal thereof , refuses to do so; or (b) it has been proved that an increase of rent is demanded from the tenant of a holding, and that such increase was demanded by reason of an increase in the value of the holding due to improvements which have been executed by or at the cost of the tenant and for which he has not either directly or indirectly received an equivalent from the landlord, and such demand results in the tenant quitting the holding — the tenant upon quitting shall, in addition to the compensation (if any) to which he may be entitled in respect of improvements, and notwithstanding any ( k ) See Stewart v. William- ( m ) s. 10. Por the purposes of son , (1910) A. C. 455. the section “game” means deer, (l) ss. 6, 7, 8, 9, 13 and 14. pheasants, partridges, grouse and black game. AGRICULTURAL LEASES. 355 agreement to the contrary, be entitled to compensation for the loss or expense directly attributable to bis quitting the bolding which the tenant may unavoidably incur upon or in connec- tion with the sale or removal of bis household goods or bis implements of husbandry, produce or farm stock, on or used in connection with the holding; the right being again subject to various qualifications specified (n ) . The right to com- pensation has been extended to the case of tenancies deter- mined by a council for the purpose of providing small holdings under the Small Holdings and Allotments Act, 1908 (o). In order to ensure that the tenant’s claim for compensation Compensation shall not be defeated by the fact that the landlord has mort- ^^mort- gaged his property, the act provides that where a person gagee takes occupies land under a contract of tenancy with a mortgagor, P° Sbe8sl0n - which is not binding on the mortgagee, then — (1) The occupier shall, as against the mortgagee who takes possession, be entitled to any compensation which is, or would, but for the mortgagee taking possession, be due to the occu- pier from the mortgagor as respects crops, improvements, tillages, or other matters connected with the land, whether under the act or custom, or an agreement authorized by the act. (2) If the contract of tenancy is for a tenancy from year to year, or for a term of years not exceeding twenty-one, at a rack rent, the mortgagee shall, before he deprives the occupier of possession otherwise than in accordance with the contract of tenancy, give to the occupier six months’ notice in writing of his intention so to do, and if he so deprives him, compensa- tion shall be due to the occupier for his crops, and for any expenditure upon the land which he has made in the expecta- tion of remaining in the holding for the full term of his contract of tenancy, in so far as any improvement resulting therefrom is not exhausted at the time of his being so deprived.. (3) Any sum ascertained to be due to the occupier for com- pensation, or for any costs connected therewith may be set off against any rent or other sum due from him in respect r>f the ( n ) s. 11. (o) Small Holdings and Allotment Act, 1910. A A 2 356 Power for landlord on paying- com- pensation to obtain charge. Capital money applicable for compensation . Tenant’s property in fixtures and buildings. BK. I., PT. IV. LEASES. holding*, but unless so set off shall, as against the mortgagee, be charged and recovered in accordance with the provisions of the act relating ,to the recovery of compensation due from 3 , landlord who is a trustee (p) . A landlord, on paying to the tenant the amount due to him under the act or under custom or agreement or otherwise in respect of compensation for an improvement or certain other expenditure under the act, is entitled to obtain from the Board of Agriculture and Fisheries an order charging the holding or any part thereof with repayment of the amount expended and interest (q). Such a charge is within the provisions of the Land Charges Registration and Searches Act, 1888, and must be registered at the Land Registry, otherwise it will be void as against a purchaser for value of the land charged (r). Capital money arising under the Settled Land Acts may be applied in payment of compensation or in discharge of any charge as if it were an incumbrance authorized by those acts to be discharged out of capital money (s) . Fixtures and Buildings. Any engine, machinery, fencing, or other fixture affixed to a holding by a tenant, and any building erected by him thereon for which he is not under the act or otherwise entitled to com- pensation, and which is not affixed or erected in pursuance of some obligation or instead of some fixture or building belong- ing to the landlord, is the property of and is removable by the tenant before or within a reasonable time after the determina- tion of the tenancy. Provided that (i) before the removal the tenant must pay all rent owing and perform or satisfy all his other obligations to the landlord; (ii) in the removal the tenant ( p ) s. 12. This section replaces s. 2 of the Tenants Compensation Act, 1890, which, however, still re- mains in force so far as it relates to compensation under the Allot- ments and Cottage Gardens (Com- pensation for Crops) Act, 1887. As to recovery of compensation from a trustee, see s. 35. (q) s. 15. See also ss. 16, 17 and 18. (r) s. 19. (s) s. 20. The provisions of the Settled Land Acts with reference to capital moneys are set out below, p. 426. AGRICULTURAL LEASES. 357 must not do any avoidable damage; (iii) immediately after the removal the tenant must make good all damage; (iv) the tenant must give one month’s previous notice in writing to the landlord of his intention to remove it; and (v) at any time before the expiration of the notice the landlord by notice in writing may elect to purchase any fixture or building, which will then become the property of the landlord, who must pay to the tenant the fair value thereof' to an incoming tenant; any difference being settled by arbitration (t) . Notice to Quit and Other Matters. Generally a tenancy from year to year can be determined by A year’s half a year’s notice, but the act provides that where a half-year’s necessary? Ult notice expiring with a year of tenancy is by law necessary and sufficient for the determination of a tenancy of a holding from year to year, a year’s notice so expiring is by virtue of the act necessary and sufficient, unless the landlord and tenant agree in writing that this enactment shall not apply, in which case a half-year’s notice is sufficient; but the enactment does not extend to a case where a receiving order in bankruptcy is made against a tenant (u ) . On the other hand, in certain cases and for certain purposes the act authorizes a notice to quit being given in respect of part only of a holding, but the tenant may at any time within twenty-eight days after service of' the notice serve a counter notice in writing to the effect that he accepts it as a notice to cjuit the entire holding, to take effect at the expiration of the then current year of’ tenancy (x ) . As has been seen, a lessor has generally no right of entry Power of on the premises leased by him during the term, but the act J’^dlord provides that the landlord of a holding or any person autho- rized by him may at all reasonable times enter on the holding for the purpose of viewing' the state of the holding (y ) . There are also provisions restricting the landlord’s right to Limitations recover penal rents, giving the tenant full right to practise ®? ot 1 ^ dlord ’ s (i t) s. 21. See Hears v. Callen- Agricultural Holdings Act, 1883. der, (1901) 2 Ch. 388. . g< ^ (w) s. 22, re-enacting with some variation of language s. 33 of the (y) s * 24. .358 Special pro- visions as to market gardens. BK. I., FT. IV. LEASES. any system of cropping arable land and limiting the right of distress to one year’s arrears, and in other respects, for the details of which reference must he made to the act itself (z) . Market Gardens. In the case of a holding in respect of which it is agreed by an agreement in writing made on or after the 1st of January, 1896, that the holding shall be let or treated as a market garden (a), the tenant gets an additional right to compensation for improvements, for in this case the act is to apply as if the improvements contained in the third schedule were com- prised in Part III. of the first schedule. These improve- ments are — (1) planting of standard or other fruit trees per- manently set out; (2) planting of fruit bushes permanently set out; (3) planting of strawberry plants; (4) planting of asparagus, rhubarb, and other vegetable crops which continue productive for two or more years; and (5) erection or enlarge- ment of buildings for the purpose of the trade or business of a market gardener. Further, the provisions of the act relating to tenants’ property in fixtures and buildings extend to every fixture or building affixed or erected by the tenant to or upon the holding or acquired by him since the 31st of December, 1900, for the purposes of his trade or business as a market gardener. And the tenant may remove all fruit trees and fruit bushes planted by him on the holding and not permanently set out; but if the tenant does not remove them before the determination of the tenancy they remain the property of the landlord, and the tenant is not entitled to any compensation in respect of them. These provisions are also made applicable, subject to certain qualifications, to a contract of tenancy current on the 1st of January, 1896, where the holding was at that date in use or cultivation as a market garden with the knowledge of the landlord (b). (z) ss. 25, 26, 27, 28, 29, 30 and (a) See In re Kedwell and 31. Flint, (1911) 1 K. B. 797. (6) s. 42. AGRICULTURAL LEASES. 359 Further, by the Allotments and Cottage Gardens Compen- sation for Crops Act, 1887, the holder of an allotment, i.e., any parcel of land of not more than two acres in extent held by a tenant under a landlord, and cultivated as a garden or as a farm, or partly as a garden and partly as a farm (*Z), is entitled to compensation for certain improvements on the determination of his tenancy, notwithstanding any agree- ment to the contrary. Finally, it should be noticed that the word “ holding’’ in the act means any parcel of land held by a tenant which is either wholly agricultural or wholly pastoral, or in part agricultural and as to the residue pastoral, or in whole or in part cultivated as a market garden, and which is not let to the tenant during his continuance in any office, appointment, or employment held under the landlord; and “market garden’ means a holding cultivated wholly or mainly for the purpose of the trade or business of market gardening (c). So that it is only to hold- ings of this character that the act applies. Emblements. When the term is liable to come to a sudden determination, and one which cannot be foreseen by the tenant, as where he is a lessee at will, or his tenancy is otherwise liable to be brought to a sudden end by the landlord, the tenant has a right to emblements. But, except by local custom, the tenant has not this right if the term be put an end to by his or her own act ; thus a widow holding during widowhood who sows the land and marries before harvest is not entitled to the crops. Emblements consist of all crops produced annually by the labour of the cultivator, as distinguished from such crops as are produced spontaneously, or which require more than a year to arrive at maturity. 'Thus corn, turnips, carrots, potatoes, and the like, are emblements; and so are hops, though they spring (c) s. 48. apply to a holding used by the ( d ) See Cooper v. Pearse , tenant for the purposes of his (1896) 1 Q. B. 562, in which it business as a seedsman. was held that the act does not Cottage Gardens Compensation Act, 1887. 50 & 51 Viet, c. 26. To what holdings the act of 1908 applies. When the right to emblements arises. What are emblements. 360 Statutory- provisions. 14 & 15 Viet, c. 25. 43 & 44 Yict. c. 47, and 6 Edw. 7, c. 21. BK. I., PT. IV. LEASES. from old roots, for they are annually manured. But clover is apparently not an emblement, for it takes more than a year to reach maturity. The tenant’s right is when his term has come to an end while these crops are planted, and before they haw yet come to maturity, to enter on the land, in spite of the determination of the tenancy, and to reap and carry away the harvest of what he has sown. By the Landlord and Tenant Act, 1851, s. 1, it is enacted, with regard to under-tenancies, determinable with death of lessor or other uncertain event, if they are held at a rack-rent, that the under-tenant, on his landlord’s interest in the property suddenly determining, instead of his claim to emblements, shall continue to hold on till the expiration of the then current year of his tenancy, and shall then quit on the terms of his lease, in the same manner as if it were then determined by effluxion of time or other lawf ul means during the continuance of the land- lord’s estate; and the succeeding landlord or owner may recover a fair proportion of rent for the period which may have elapsed from the death or cesser of the estate of the preceding lessor to the time the tenant so quits; and the tenant and the succeeding landlord, as between themselves, and as against each other, shall have all the benefits and be subject to all the terms and condi- tions to which the preceding landlord and tenant respectively would have been so entitled or subject in case the lease had determined in such manner; and no notice to quit will be necessary or required to determine the tenancy. Right to Kill Ground Game. In connection with leases of land, as distinguished from leases of house property, the lessee’s rights have also been en- larged by the Ground Game Acts, 1880 and 1906. The former act provides that the occujner of land shall have as incident to and inseparable from his occupation, the right to kill and take ground game ( e ) thereon, concurrently with any other person (e) I.e., hares and rabbits: see s. 8. AGRICULTURAL LEASES. 361 who may be entitled to kill and take such game. But the right is subject to the following limitations: — (1) The occupier shall kill and take ground game only by himself or by persons duly authorized by him in writing; and he and one other person, authorized in writing by him, shall be the only persons entitled to kill ground game with firearms; and no person shall be authorized by him except members of his household resident on the land, persons in his or- dinary service on such land, and any one other person bond fide employed by him for reward in the taking and destruction of ground game; and every person so authorized, on demand by any person having a con- current right to kill the ground game, or any person authorized by him in writing to make such demand, shall produce to the person so demanding the docu- ment by which he is authorized, and in default he shall not be deemed to be an authorized person. (2) A person shall not be deemed to be an occupier of land by reason of his having a right of common over such lands; or by reason of an occupation for the purpose of grazing or pasturage of sheep, cattle, or horses, for not more than nine months. (3) In the case of moorlands and uninclosed lands (not being arable lands), the occupier and the persons authorized by him shall exercise the rights conferred only from the eleventh day of December in one year until the thirty-first day of March in the next year, both inclu- sive; but this provision shall not apply to detached portions of moorlands or uninclosed lands adjoining arable lands, where such detached portions of moor- lands or uninclosed lands are less than twenty-five acres in extent (/). (/) s. 1. But notwithstanding elusive, to kill and take ground sub-s. (3) the occupier is entitled, game otherwise than by the use between the 1st of September and of firearms: Ground Game Act, the 10th of December, both in- 1906, s. 2. 362 BK. I., PT. IV. LEASES. Agreements in contraven- tion of the right of occupier to destroy ground game void. Express surrender, when a deed is necessary. 29 Car. 2, c. 3, s. 3. Every agreement, condition, or arrangement which purports to divest or alienate the right of the occupier as declared given and reserved to him by the act or which gives him any advan- tage in consideration of his forbearing to exercise such right or imposes upon him any disadvantage in consequence of his exer- cising such right is void (g). This act does not apply to cases in which, at the time of its passing , the right to kill and take ground game is for valuable consideration vested in some person other than the occupier (h ) . Thus, it does not apply to a lease which takes effect after, but which is made in pursuance of, an agreement made before the act came into operation (i). When the act does apply, the right given by it is inseparable from occupation, and may be exercised by the occupier even though he happen to be also the owner of the land (1c). No person having a right of killing ground game under the act or otherwise (l) may use any fire- arms for the purpose of killing ground game between the ex- piration of the first hour after sunset and the commencement of the last hour before sunrise; nor may he employ spring traps, except in rabbit holes, nor employ poison. VI. — MISCELLANEOUS MATTERS. The Surrender of Leases. A lease may be determined by surrender, which may he (1) express, or (2) by operation of law. By s. 3 of the Statute of Frauds, no lease .... shall (g) s. 3. See Sherrard v. Gas- coigne (1900), 69 L. J. Q. B. 720. (. h ) s. 5. ( i ) Allhusen v. Brooking (1880), 26 Ch. D. 559. (. k ) Anderson v. Vicary, (1899) 2 Q. B. 437. (Z) s. 6. But the section does not apply to the owner of the land who is himself in occupation : be ... . surrendered unless Smith v. Hunt (1886), 54 L. T. 422. Nor does it apply to a per- son who by virtue of a grant from the owner exercises sporting rights over, but does not occupy, the land: May v. Waters , (1910) 1 If. B. 431; and see Saunders v. Pitfield (1888), 58 L. T. 108, and Waters v. Phillips , (1910) 2 If. B. 465. MISCELLANEOUS MATTERS. 363 it be by deed or note in writing signed by the party sur- rendering the same, or their agents thereunto lawfully au- thorized by writing, or by act and operation of law (m) ; and by s. 3 of the Real Property Act, 1845, a surrender in writing of an interest not being a copyhold interest, and not being an interest which might by law have been created without writing, is void at law unless made by deed. Consequently a surrender of a lease for not more than three years from the making at two-thirds of a rack-rent, although it must be in writing, need not be by deed. A surrender by operation of law arises when one party does, and the other assents to, an act inconsistent with the con- tinuance of the lease. Consequently, if the lessor, with the assent of the lessee, during the continuance of the term, grants a new lease either to the lessee himself, or to him jointly with a third person, or to a third person alone, and the neces- sary change of possession follows, the result is that the old lease is deemed to he surrendered ( n ) ; even if the old lease was by deed and the new one is by parol only (o). The reason is that the parties are estopped by their conduct from setting up the old lease as still in existence. But the giving up of a small portion of the premises, in consideration of a propor- tionate reduction of the rent, does not of itself amount to a surrender by operation of law (p ) . Anything which amounts to abandonment of possession by the tenant, if there is evidence to show that the landlord assented thereto, constitutes a surrender by operation of law. So where the tenant left the premises and wrote to the land- lord that he trusted that he might be able to let them to some other person, and the landlord immediately did so, it was held 8 & 9 Viet, c. 106, s. 3. Surrender by implication of law. Acts which amount to surrender by operation of law. (m) Mere cancellation of the lease is not a “ deed or note in writing”: Roe v. Archbishop of York (1805), 6 East, 86. (n) Lyon v. Reed (1844), 13 M. & W. 285; Hammerton v. Stead (1824), 3 B. & C. 478; Davison v. Gent (1857), 1 H. & N. 744; Wallis v. Hands, (1893) 2 Ch. 75; and Knight v. Williams, (1901) 1 Oh. 256. (o) Per Tindal, C. J., Dodd v. Acklom (1843), 6 M. & Grr. at p. 679. (p) Holme v. Brunskill (1878), 3 Q. B. D. 495. 364 BK. I., PT. IV. LEASES. Effect of surrender. Right to retain lease. When land is in mortgage. that there was a surrender bv operation of law (q). Again, delivery and acceptance of the key of the premises, either pur- suant to an agreement that the tenancy shall cease, or under circumstances from which the intention of the lessor to resume possession can be inferred, will have a similar effect (r). But in all cases there must be something to show the assent of the landlord to the quitting of possession. If the key be merely left with the landlord, he is not bound to return it, and it will not be presumed simply because he has not done so that he has assented to the quitting of possession (s) . Nor will a mere attempt by the landlord to re-let the premises estop him from alleging that the tenancy is still subsisting, and when there is a re-letting the surrender only takes effect as from the date thereof (i t). A surrender will not be allowed to act prejudicially on the rights of third parties, so that it will not avoid or prejudice an underlease (u). When a lease is surrendered and a longer term granted to the same lessee he is entitled to retain the original lease (x ) . The special law contained in the Conveyancing Act, 1911, relating to the surrender of leases made by mortgagors and mortgagees under s. 18 of the Conveyancing Act, 1881, has already been considered (//) . Notices to Quit. Length of notice to quit. Yearly, quarterly, monthly, and weekly tenancies are deter- minable by notice to quit without any special stipulation to that effect. The parties may contract for any length of notice, or that the tenant may quit without notice, or that the notice ( q ) Nichells v. Atherstone (1847), 10 Q. B. 944. See also Walls v. Atcheson (1826), 3 Bing. 462. (r) Dodd v. Achlom (1843), 6 M. & Gr. 672. See also Moss v. James (1877), 47 L. J. Q. B. 160. (s) Cannan v. Hartley (1850), 9 C. B. 634; and see Bessell v. Landsberg (1845), 7 Q. B. 638. O Oastler v. Henderson (1877), 2 Q. B. D. 575. (u) See G. W. Rail. Co. v. Smith (1876), 2 Ch. D. 235; and see 8 & 9 Viet. c. 106, s. 9. ( x ) Knight v. Williams, (1901) 1 Ch. 256. (; y ) See ante, p. 237. MISCELLANEOUS MATTERS. 365 may expire at any period of the year, and generally may vary the requisites of the notice as required by law, but subject to the terms of any such contract, in the case of a yearly tenancy the notice, which may be verbal or in writing, must be given half -a-y ear at least before the expiration of some year of the tenancy. If the tenancy commenced on one of the usual quarter days, the notice must bo given on or before the last quarter day but one before the quarter day on which the current year of the tenancy expires. A notice so given is sufficient, though the period be less than 182 days (z). The notice must expire at that period of the year when the tenancy commenced (a) . If the tenant enters in the middle of a quarter and pays rent for the half quarter, and then goes on paying rent from quarter to quarter, or if he gets the half- quarter rent-free, the tenancy will, for the purpose of giving notice to quit, be deemed to have commenced 011 the quarter day next after he entered (b). The notice must be given to quit the whole of the promises the subject of the tenancy; a notice to quit part is void except so far as it is given by virtue of the Agricultural Holdings Act (c ) . If the day on which it is intended that the tenant should quit is specifically stated, the notice is bad unless it be the right day (d ) . But a notice to quit on the anniversary of the day the tenant entered, that is, the day after the end of the current year of the tenancy, is good (e). And where there is a doubt when the tenancy commenced, a notice for two alterna- tive days is good if either of them be the right on e(/). At the When the notice must expire. Notice to quit part is, as a rule, bad. Form of notice. ( z ) See per Tindal, C. J., Roe v. Doe (1830), 6 Bing. 574. (a) Simmons v. Underwood (1897), 76 L. T. 777. If there is any doubt when the tenancy com- menced, the question appears to be one of fact. See Doe v. Howard (1809), 11 East, 498. (&) Doe v. Johnson (1806), 6 Esp. 10; Doe v. Stapleton (1828), 3 C. & P. 275; Simmons v. Under- wood , supra. (c) See above, p. 357. (d) Doe v. Lea (1800), 11 East, 312. (e) Sidehotham v. Holland, (1895) 1 Q. B. 378; and see Wride v. Dyer , (1900) 1 Q. B. 23; and Herron v. Martin (1911), 27 T. L. R. 431. (/) Doe v. Wrightman (1801), 4 Esp. 5. 366 BK. I., PT. IV. LEASES. How and to whom notice must be given. Notice may be withdrawn. same time the notice must be clear and unambiguous; a notice of intention to surrender premises “on or before” a specified date is equivocal and bad (g ) . The best form of notice is one which does not specify the day by date, but gives notice to quit “at the expiration of the current year of the tenancy which shall expire next after the end of one half-year from the date hereof .” The notice must be imperative, and no con- ditions must be imported into it; but it has been held that a notice which ran, “ I desire you to quit or I shall insist upon double rent,” was good, as it did not offer an alternative; for unless the tenant quits on such a notice, the law imposes an obligation on him to pay the double rent (h). Again, a notice given to the landlord by the tenant that if he cannot see his way to reduce the rent, the tenant will be obliged to give up possession, is a good notice (i) . Notice should be given to the lessor or his agent for receiving rent and letting the property. It may be given through the post; and in one case where this was done, and the letter reached the place of business of the landlord’s agent during business hours on the last day for giving notice, it was held to be in time although the agent had left the place and did not actually receive it till next day (it) . The parties may waive the right to enforce the determina- tion of the tenancy pursuant to the notice, expressly or im- pliedly, as by the landlord distraining for rent or receiving rent accruing due after the expiration of the notice (l). But a mere demand pf the subsequent rent is not necessarily a waiver, if it is not in fact received (m ) . And a mere indulgence to the tenant, as allowing him, for convenience, to remain on the premises after the expiration of the tenancy, will not amount to a waiver (w). (r/) Gardner v. Ingrain (1890), 61 L. T. 729; compare General Assurance Co. v. Worsley (1895), 64 L. J. Q. B. 253. ( h ) Doe v. Jackson (1779), 1 Doug. 175. ( i ) Bury v. Thompson, (1895) 1 Q. B. 696. (k) Pappillon v. Brunton (1860), 5 H. & N. 518. (Z) Keith, Browse & Co. v. National Telephone Co., (1894) 2 Oh. 147. (m) Blxyth v. Dennett (1853), 13 C. B. 178. (w) Whiteacre v. Symonds (1808), 10 East, 13. MISCELLANEOUS MATTERS. 367 In the case of a quarterly tenancy a quarter’s notice is neces- sary ( o ) ; in the case of a monthly or of a weekly tenancy a month’s and a week’s notice respectively are certainly sufficient, and, perhaps, necessary (p), though possibly a reasonable notice will do (g). Stamps. Under the Stamp Act, 1891, and the Finance (1909-10) Act, 1910, s. 75, which doubled the duties payable under the former act, the stamp duty on leases, whatever their length, and on agreements for leases, when the term does not exceed thirty- five years, depends on the rent. Agreements for leases for over thirty-five years require a sixpenny agreement stamp only. Where an agreement for a lease is duly stamped as a lease, the lease subsequently executed requires a sixpenny stamp only. The rates of duty are as follow: — LEASE OR TACK— £ s. d. (1.) For any definite time not exceeding a year: Of any dwelling-house or part of a dwelling- house at a rent not exceeding the rate of £10 per annum 0 0 1 (2.) For any definite term less than a year: (a) Of any furnished dwelling-house or apart- ments where the rent for such term exceeds £25 0 5 0 (b) Of any lands, tenements, or heritable subjects except or otherwise than afore- - said | The same duty as a lease for a year at the rent re- served for the definite term. (3.) For any other definite term or for any indefi- nite term: Of any lands, tenements, or heritable subjects — Where the consideration, or any part of the consideration, moving either to the lessor or to any other person, consists of any money, stock, or security: I The same duty as faleTor y the P same consideration. (o) Per Coltman, J., Towne v. Campbell (1847), 3 C. B. 921. (p) Bowen v. Anderson, (1894) 1 Q. B. 164. (q) See Huff ell v. Armitstead (1835), 7 C. & P. 56 ; Jones v. Mills (1861), 10 C. B. N. S. 788. Notice re- quired for quarterly, monthly, and weekly tenancies. Pates of stamp duty. 368 BK. I., PT. IV. LEASES. Where the consideration or any part of the consideration is any rent: In respect of such consideration : If the rent, whether reserved as a yearly rent or otherwise, is at a rate or average rate: If the term does not exceed 35 years, or is indefinite. If the term exceeds 35 years, but does not exceed 100 years. If the term exceeds 100 years. £ S. d. £ 8. d. £ s. d. Not exceeding £5 per annum 0 1 0 0 6 0 0 12 0 Exceeding — £5 and not exceeding £10 0 2 0 0 12 0 1 4 0 10 15 0 3 0 0 18 0 1 16 0 1 5 , , , , 20 0 4 0 1 4 0 2 8 0 20 * jV/ > > 5 1 25 0 5 0 1 10 0 3 0 0 -5 j , , , 50 0 10 0 3 0 0 6 0 0 50 75 0 15 0 4 10 0 9 0 0 1 5 , , , , 100 1 0 o 6 0 0 12 0 0 100 For every full sum of £50, and also for any fractional part of £50 thereof • 0 10 0 o o 0 0 6 0 0 (4.) Of any other kind whatsoever not hereinbefore described 1 0 0 And see sects. 75, 76, 77, and 78. iSTo extra stamp duty is payable because the lease contains an option for the lessee to buy the freehold (r) ; nor is any extra duty necessary by reason of there being a covenant by a surety to pay the rent, or by reason of a covenant by the lessee to expend money in building (s) . But a lease containing a con- tract for the sale of fixtures is liable, in addition to the lease stamp, to a sixpenny agreement stamp, if not under seal, and a ten shilling stamp if by deed (t). Where in one lease several parcels are let to the same person, the stamp duty is on the aggregate amount of the rents (u ) ; (r) Worthington v. Warrington ( t ) Corder v. Drakeford (1811), (1848), 5 C. B. 635. 3 Taunt, 382. (s) Stamp Act, 1891, s. 77 (2). ( u ) Boase v. Jackson (1822), 3 B. & B. 185; 6 Moore, 480. MISCELLANEOUS MATTERS. 369 but if a lease of several parcels is made to different persons, the lease is liable to an ad valorem duty on the separate rents (x ) . The stamp on a lease must be impressed, with the exceptions of a lease of (a) any dwelling-house or paid thereof for a defi- nite term not exceeding a year, at a rent not exceeding the rate of 10?. per annum; or (b) any furnished dwelling-house or apartments for any definite term less than a year. In these two cases an adhesive stamp may be used (y). Where leases are executed in duplicate the counterpart must be stamped with a five shilling stamp, unless the lease itself is subject to a smaller duty than five shillings, when it must be stamped with the same duty as the lease. Legal Charges. As already stated (z), in the absence of agreement, the lessee is liable to pay all or most of the legal charges and expenses connected with the lease. These charges are now (unless other- wise agreed) regulated by Schedule I., Part 2, of the Solicitors’ Remuneration Order, 1881, and vary with the amount of the rent reserved. The scale will be found set out below in Part VIII. The schedule applies to “ leases or agreements for leases at a rack rent (other than a mining lease or a lease for building purposes or agreement for the same).” It was the subject of judicial construction in the case of Re Negus (a), where it was held to apply to a tenancy agreement whereby the lessor agreed to let, and the tenant agreed to take, a flat for a term of three years at a rack rent. The case also decided that, although the lessee is bound to pay the costs of preparing the lease, he is not bound to pay for the counterpart, and that therefore, in esti- mating the costs properly payable by the lessee to the lessor's solicitor, the cost of the counterpart lease or duplicate agree- ment must be deducted from the scale fee. The decision in Re Negus, however, has not met with the approval of the pro- (%) Doe v. Day (1811), 13 East, (z) See above, p. 308. 241. (a) (1895) 1 Ch. 73. ( y ) Stamp Act, 1891, s. 78. G. — C. Lessee must pay costs of lease. Scale fee applicable. B B 370 BK. I., PT. IV. LEASES. fcssion; and the general opinion seems to be that an agreement for a tenancy for three years, under hand only, should be charged for under the old system, as altered by Schedule II. of the Order, and that in the case of' such an agreement there is no custom binding the tenant to pay the landlord’s costs at all; and lastly, that in the case of a lease or agreement for a lease within Schedule I., Part 2, a lessee is liable to pay for both lease and counterpart. Nevertheless on this last point Re Negus has been followed in Re Gray (b). It has also been decided that the scale fee includes all “ busi- ness connected with” the preparation of a lease, so that where there is an agreement for a lease, followed by a lease, the soli- citors engaged cannot add any charge to the scale fee for the preparation of the preliminary agreement (e ) . Increment Value and Reversion Duties. Increment value duty. Reversion duty. What has been said concerning the payment of increment value duty in connection with sales applies equally to the payment of such duty on the grant of' a lease for a term of years exceeding fourteen years (d ) . The duty has to be paid by the lessor, and any contract by the lessee to pay it or any expenses incurred in connection with its payment or assess- ment, or for the re-payment or re-imbursement to the lessor of any payments made by him in respect of the duty or ex- penses is void(e). The lessee must, however, see that the lease is duly stamped with one of the stamps mentioned in s. 4(3) of the Finance (1909-10) Act, 1910 (/). Reversion duty, like increment value duty, was imposed by the Finance (1909-10) Act, 1910. It is payable on the deter- mination of a lease granted for more than twenty-one years, and is levied on the value of the benefit accruing to the lessor by reason of such determination, and is at the rate of 1/. for every complete 10 1. of that value. The value of the benefit (6) (1901) 1 Ch. 239. (c) Be Emanuel and Simmonds (1886), 33 Ch. D. 40. ( d ) Finance (1909-10) Act, 1910, s. 1. See ante, p. 74. (e) Revenue Act, 1911, s. 1. (/) Ante, p. 75. MISCELLANEOUS MATTERS. 371 is to be deemed the amount (if any) by which the total value of the land, as defined by s. 25 (3) of' the act, at the determina- tion of the lease, after allowing for works executed or capital expenditure incurred by the lessor during the term and for com- pensation payable by the lessor, exceeds the total value of the land when the lease was granted, to be ascertained on the basis of the rent reserved and payments made in consideration of the lease (g). There are several exemptions from the duty. No duty is payable on agricultural land, or by a lessor whose interest is only a lease for not exceeding twenty-one years, or on a reversion purchased before the 30th April, 1009, if the lease determines otherwise than by agreement within forty years of the purchase (h), or where a lease is determined in pursuance of an agreement by the lessee for the acquisition of the lessor’s interest, provided the lease has still fifty years to run, and the total value of the land does not exceed 500/. ( i ). Further, where the lease determines through the interests of the lessee and lessor vesting in the same person before the ex- piration of the term, as on a surrender, the duty payable is not the full duty (k ) . The duty is recoverable from the lessor as a Crown debt, but is not to have priority over other debts, nor is it charged on the land(Z). The lessor must deliver an account to the Inland Revenue Commissioners within three months after the determination of the lease; heavy penalties are imposed for failure to do so(m). By “lessor” is meant the person in whom the lessor’s interest was vested immediately before the expiration of the term for which the lease was granted, or, if the lease has determined before that time, immediately before the transaction or event in consequence of which the lease has determined ( n ) . (, unless that would lead to some absurdity or some repugnance or inconsistency icith the rest of the instrument, in which case the sense may he modified so as to avoid that absurdity or inconsistency, hut no further (n). This is the golden rule, and it is in this sense, and only in this sense, that it is true to say that the intention of the testator is to he the guide. “ The use of this expression, unaccompanied by the explanation that it is to be sought in the words and a rigorous attention to them, is apt to lead the mind insensibly to speculate upon what the testator may be supposed to have in- tended to do instead of strictly attending to the true question, which is what that which he has written means. The will must be in writing, and the only question is what is the meaning of the words used in that writing ” (o). Intention must not be (m) See per Lord Halsbury in Scale v. Rawlins, (1892) A. C. at p. 343; per Romer, L. J., in Re Gorringe, (1906) 2 Ch. at p. 347; approved by the II. L., Gorringe v. Mahlstedt, (1907) A. C. 225. ( n ) Per Lord Wensleydale in Grey V. Pearson (1857), 6 H. L. C. at p. 106 ; approved by Lord Chelmsford in Abbott v. Middle- ton (1858), 7 H. L. C. at p. 82; repeated by Lord Wensleydale in Thellusson v. Rendlesham (1858), 7 H. L. C. at p. 519; approved by Lord Blackburn in Caledonian Rail. Co. v. North British Rail. Co. (1881), 6 App. Cas. at p. 131. (o) See per Lord Wensleydale in Abbott v. Middleton, supra, at p. 114. THE CONSTRUCTION OF A WILL. 481 imputed by mere uncertain conjecture, contrary to the express words (p ) . Secondly, except as stated below, extrinsic evidence is not admissible to shorn what the testator meant (g). Thus, suppose there is a reference in a codicil to a revoked will, but nothing on the face of the codicil to show an intention to revive the will: extrinsic evidence will not be allowed to show that the reference to the will was meant by the testator to amount to a revival of it(r). Nor, if a devise or bequest is inadvertently omitted, can parol evidence be given to supply it, or show that it was intended (s). Nor is it admissible to substitute one word for another, to enlarge the extent of terms, or to affect the construction of words, unless the context renders it impos- sible to accept the words in their ordinary sense {t). Nor to show that an illegitimate rather than a legitimate jjerson was intended ( u ). Again, where a legatee is once correctly named and described in one part of the will, and the same name occurs again in another part as a legatee without any description, evi- dence will not be admitted to show that a different person was intended (x ) . But extrinsic evidence is admissible of the facts respecting the persons and property to which the will relates in order to ascertain all the facts which were known to the testator at the time he made his will (y) ; and to explain a latent ambiguity, i.e ., one which only becomes apparent when it is attempted to give effect to the will (0) . Extrinsic evidence will also be ad- mitted to rebut presumptions of law, such as the presump - (p) See per Lord Truro in Egerton v. Earl Brownloiv (1853), 4 H. L. C. at p. 181. ( q ) See Charter v. Charter (1874), L. R. 7 If. L. 364. (r) In the goods of Steele (1868), L. R. 1 P. & D. 575. (s) See per Sir C. Cresswell in Mitchell v. Gard (1862), 3 Swab. & Trist. at p. 80. ( t ) Doe d. Hiscochs v. Hiscochs (1839), 5 M. & W. 339; Tudor, G. — C. L. C. Conv. 4th ed. 489. {u) Ingham, v. Bayner , (1894) 2 Oh. 83. (x) Webber v. Corbett (1873), L. R. 16 Eq. 515. (y) Doe d. Hiscochs v. Hiscochs (1839), 5 M. & W. 339; Tudor, L. 0. Conv. 4th ed. 489; Bernas- coni v. Athinson (1853), 10 Hare, 345; Re Ofner, (1909) 1 Ch. 60. ( z ) In the estate of Dianah Hubbuch, (1905) P. 129. I I Extrinsic evidence not admissible, except — (i) to explain a latent ambiguity ; 482 BK. I., PT. VI. WILLS. (ii) to retmt presumptions of law. The whole will must be taken into consideration. Words may be rejected, added or changed in cases of mistake. Of two inconsistent clauses the last prevails. tions in favour of resulting trusts (a), of satisfaction and of ademption of legacies by portions (b), to explain the meaning of signs or symbols, or nicknames used by the testator ( c ), or to show that the will was executed on another date than that appearing on the face of it. Thirdly, in order to determine the intention of the testator , the ivhole wilt must be looked at , and not merely particular expressions or detached passages ( d ) . The ' strict or literal meaning of the terms used by the testator will be departed from if upon a consideration of the whole will he appears to have had a different intention (e). Fourthly, words will be rejected, supplied, or changed, when this is absolutely necessary to give effect to the general inten- tion as collected from the whole will, or when it is obvious on the face of the will that a mistake has been made. For in- stance, words omitted by oversight will be supplied (/) . And in a case in which the name of one of two daughters of the testator was inserted in the will twice, being inserted in the second place by mistake of the draftsman for that of the other daughter, probate was granted with the name omitted in the second place in which it occurred, leaving it for the Chancery Division upon an application for the construction of the will to fill in the name of the intended beneficiary (g) . Mistakes, however, will never be presumed if the will is capable of a reasonable construction as it stands. Fifthly, if two parts of a will are totally inconsistent and irreconcilable, the latter will prevail. This is based on the theory that the testator may have changed his mind; but where a benefit is conferred in one part of the will in clear terms, ( а ) Gladding v. Yapp (1820), 5 Madd. 56. (б) In re Tussaud's Estate (1878), 9 Ch. D. 363. (c) Doe d. Hiscocks v. Hiscocks , supra. {d) See per Lord Eldon, Wool- lam v. Kenworthy (1803), 9 Ves. at p. 142; per Lord Truro, Eger- ton v. Earl Brownlow (1853), 4 H. L. C. at p. 181. (e) See Abbott v. Middleton (1858), 7 H. L. 0. 68. (/) Davies v. Hetherington (1890), 62 L. T. 753. ( g ) In the goods of Boehm, (1891) P. 247; see also In the goods of Walkley (1893), 69 L. T. 419. THE CONSTRUCTION OF A WILL. 483 which admit of no doubt, such benefit cannot afterwards be taken away, except by words which are just as clear and free from doubt. Thus where there was a gift to the children of a specified person “except Thomas, the eldest son,” and the eldest son’s name was not Thomas, the exception was held void (Ji). Sixthly, where it is impossible to discover from the words of a will what was meant to be given, or who ivas the person to be benefited, the gift is void for uncertainty. Thus, if there is a gift by name, and a particular description superadded, and there is someone who answers to the name, and someone else who answers to the description, no evidence of the testator’s intention being* admissible, the gift is void for uncertainty (i). So it will be if the name in the will may be intended for that of either one of two persons, and there is nothing to point to one being intended rather than the other (1c). But the mere fact that the legatee’s Christian name is left blank will not avoid the legacy if there is no doubt to whom the surname applies (Z). Date of Operation of Will. Sect. 24 of the Wills Act provides that “ every will shall be construed with reference to the real estate and personal estate comprised in it, to speak and take effect as if it had been executed immediately before the death of the testator, unless a contrary intention shall appear by the will.” The section only applies in the absence of a contrary inten- tion; but the contrary intention must clearly appear by the will. Consequently if there is a gift of specific leaseholds, and the testator afterwards acquires the freehold reversion, the fee simple will pass to the legatee, unless it can be gathered from the will that the testator only intended to deal with leasie- (Ji) Hodgson v. Clarke (1860), 1 De Gf. F. & J. 394. ( i ) Hoe d. Hiscocks v. Hiscocks (1839), 5 M. & W. 339; Tudor, L. C. Conv. 4th ed. 489. I I ( k ) Drake v. Drake (1860), 8 H. L. C. 172. ( l ) Price v. Page (1799), 4 Yes. 680; In the goods of Boehm, supra (extrinsic evidence was re- ceived in these cases). 9 When inten- tion cannot be discovered, will is void. A will speaks from the death of the testator. 1 Viet. c. 26, s. 24. What is a contrary intention. 484 BK. I., PT. VI. WILLS. holds (m). The use of the word “now*” will not alone be deemed to refer to the date of the will. So that where a testator devised all the property “ I now possess,” it was never- theless held that property acquired subsequently to the date of the will would pass(w). On the other hand, where A. be- queathed a leasehold house, “ where he then resided,” called the Anchor Inn, to B., and had, previously to the making of the will, altered the house, turning part of it into a shop, and had sub-leased the shop after the date of the will, the court held that the shop passed with the inn toB . , on the ground that the circumstances existing at the date of the will, not those at the time of the testator’s decease, were to be considered, and at the former period the testator was the only person occupying- the premises (o). But where a testator devised lands to B., and subsequently to the date of his will sold them, and took a mortgage of the lands to secure a part of the purchase-money, and died without having altered his will, it was held that B. was not entitled to the mortgage money (p). So also, in Re Slater (q), where a testator bequeathed “ the interest arising from money invested in, inter alia, the Lambeth Waterworks Company” to a legatee, and between the dates of his will and death the Lambeth Waterworks Company was acquired by the Metropolitan Water Board, and a sum of Metropolitan Water Board stock was issued to the testator in respect of the stock held by him in the company, the Court of Appeal held that s. 24 of the Wills Act applied, there being no sufficient con- trary intention to exclude the operation of that section, and that the claim of the specific legatee failed. (m) Saxton v. Saxton (1879), 13 Oh. D. 359. (n) W ag staff v. Wagstajf (1869), L. E. 8 Eq. 229; Castle v. Fox (1871), L. E. 11 Eq. 542; Re Portal and Lamb (1885), 30 Ch. D. 50; Re Willis, Spencer v. Willis, (1911) 2 Ch. 563; In re Ashburnham, (1912) W. N. 234. (o) Rowland v. Edwards (1890), 63 L. T. 481; Re Evans, Powell v. Evans, (1909) 1 Ch. 784, is similar; sec also Williams on Exe- cutors, 9th ed. 175, n. (p) Re Clowes, (1893) 1 Ch. 214. (q) (1907) 1 Ch. 665. See also Re Cliford, (1912) 1 Ch. 29. THE CONSTRUCTION OF A WILL. 485 Lapsed Devise. By s. 25 of the Wills Act, “ unless a contrary intention shall appear by the will, such real estate or interest therein as shall be comprised or intended to be comprised in any devise in such will contained which shall fail or be void by reason of the death of the devisee in the lifetime of the testator or by reason of such devise being contrary to law or otherwise incapable of taking effect shall be included in the residuary devise (if any) con- tained in such will.” This section, however, probably does not apply to the case where the testator exercises a general power of appointment by will and the appointee dies before him; in such a case the claim of the persons entitled in default of appointment will probably prevail over that of the residuary devisee, unless the testator has shown an intention to exercise the power for all purposes so as to make the property his own (r) . Effect of a General Devise or Bequest. By s. 26 of the Wills Act a general devise of land is to be construed to include the customary copyhold and leasehold estates of the testator as well as freehold estates, unless a con- trary intention appear. As a consequence of this section it has been held that where there is a gift of all the testator’s personalty to A. and all his land to B., his leaseholds, though strictly speaking personalty, will pass to B. (s). Again, by s. 27 of the Wills Act, a general devise of the real estate, or a general bequest of the personal estate, is to be con- strued to include real estate or personal estate which the testator has a power to appoint in whatever manner he may think proper, and operates as an execution of the power, unless a contrary intention appear by the will. (r) See Coxen v. Roivland, Re Marten, (1902) 1 Oh. 314. (1894) 1 Ch. 406; Thomas v. (s) Wilson v. Eden (1850), 5 McKechnie (1893), 68 L. T. 618; Ex. 752. Lapsed devise falls into residue. 1 Viet. c. 26, s. 25. Probably not applicable to appointment under a power. General devise includes freeholds, leaseholds, and copy- holds. I Viet. c. 26, s. 26. Comprises property appointable under general power. 1 Viet. c. 26, s. 27. 48 (> BK. I., PT. VI. WILLS. Construction of act. Does not apply to appointment under special power. To show a contrary intention there must be something in the will inconsistent with the view that the general devise or bequest was meant as an execution of the power (£). It has been held that where a general power to appoint property is given, and the instrument giving the power requires the instru- ment executing it to refer to the instrument creating the power, the property will not be deemed to be appointed by general devise or bequest (w) . A will speaks from the death of the testator, as we have seen, so that no contrary intention can be deduced from the fact that the will was executed before the testator received the general power to appoint (x ) . But other circumstances will be taken into consideration. 'Thus, where the testator subsequently to his will made a settlement by which he gave to himself a power to appoint certain property, it was held that a residuary bequest in his will did not operate to execute that power, a contrary intention being deduced from the fact of his reserving the power to appoint subsequently to the execution of his will (y ) . The section does not apply to special powers, and a general devise will not operate as an exercise of a special power unless there is an indication in the will of an intention that it shall (z ) ; where, however, there is any indication in the will that the gift is made in pursuance of a power, and the gift is in favour of the objects of the power, the gift may operate as an appointment under the power (a) . But evidence of the state of the testator’s property at the date of the will is not admissible to show an intention to execute a special power by a general gift (&). (£) Scriven v. Sandon (1862), 2 J. & H. 743. ( u ) Phillips v. Cayley (1889), 43 Ch. D. 222. (cc) Stillman v. Weedon (1848), 16 Sim. 26; Boyes v. Cook (1880), 14 Ch. D. 53. (jj) Thomas v. McKechnie (1893), 68 L. T. 816. (z) See Re Mills (1886), 34 Ch. D. 186; Foulkes v. Williams (1889), 42 Ch. D. 93; and see Re Hayes, Turnbull v. Hayes, (1900) 2 Ch. 332. (a) Pidgely v. Pidgely (1844), 1 Coll. 255; Re Milnes, (1899) W. N. 27. (5) See Innes v. Sayer (1831), 3 Mac. & Gr. 606; Re Huddle- stone, Bruno v. Eyston, (1894) 3 Ch. 595. THE CONSTRUCTION OF A WILL. 487 The Effect of a Devise without Words of Limitation. By s. 28 of the Wills Act, where real estate is devised with- out any words of limitation the words of devise are to be con- strued to pass the fee simple, or other the whole estate or interest which the testator has power to dispose of by will in such real estate, unless a contrary intention appear by the will. A devise of rents and profits will, under this section, pass the fee simple in the land out of which they arise (c). But the section does not apply to estates created by the will itself; so that if a testator creates an annuity by his will and bequeaths it to A., A. will only get an annuity for his life (77) . The Meaning of the Words “Die without Issue.’ By s. 29 of the Wills Act, in any devise or bequest the words “die without issue,” or “ die without leaving issue,” or “have no issue,” or any other words which may import either a want or failure of issue of any person in his lifetime or at his death, or an indefinite failure of his issue (e), shall be construed to mean want or failure of issue in the lifetime or at the death of such person, and not an indefinite failure of his issue unless a contrary intention appear by the will, by reason of such person having a prior estate tail, or of a preceding gift being (without any implication arising from such words) a limitation of an estate tail to such person or issue or otherwise. But the section is not to extend to cases where such words import that if no issue described in a preceding gift shall be born, or if there shall be no issue who shall live to attain the age or otherwise answ r er the description required for obtaining a vested estate by a preceding gift to such issue. Before the act a gift of realty to A., and if he should die without issue to B. in fee, would give to A. an estate in tail in the real estate, for the words “die without issue” were con- (c) Mannox v. Greener (1872), L. R. 14 Eq. 456. ( d ) Nichols v. Hawkes (1853), 10 Hare, 342. (e) This includes the expression “ die without leaving any male issue”: Re Edwards, (1894) 3 Ch. 644. A devise without words of limitation passes fee simple. 1 Viet. c. 26. s. 28. ‘ ‘ Die without issue.” 1 Viet. c. 26, a. 29. Former meaning’ of the words. 488 BK. I., PT. VI. WILLS. 45 & 46 Vicf . c. 39, s. 10. Cases of contrary intention strued to mean an indefinite failure of issue, and this was the only method of giving effect to such a construction; and since A. could at once bar the estate tail and acquire the fee simple, B. ran the risk of being totally defeated, even though A. were to have no issue. A gift of personalty to A., and if he should die without issue to B., gave A. an absolute interest, and B. got nothing. By virtue of the above section, A. will now take a fee simple in the real, and an absolute interest in the per- sonal, estate; but this estate and interest will be liable to be defeated by his dying without leaving issue living at his death, and, if this occurs, B. will become entitled as executory devisee and legatee, A. having no power to defeat the gift to him. The provision in the Wills Act must now, however, as to land bo read subject to s. 10 of the Conveyancing Act, 1882, under which the gift to B. becomes void directly any of A.’s issue attains twenty-one (/). The section in the Wills Act has been held not to apply to a case where property was devised to A., with a limitation over “ if he should die without issue or under twenty-one.” Here “or” was read “ and,” and A. obtained the fee upon his attaining twenty-one (g). Again, a gift to A. and the heirs of his body, and if he should die without issue to B., has been held to confer on A. an estate tail, which he may bar, and thus defeat B. (h ). Construction of Devise to Trustees. U nlimited devise to trustee passes the fee simple. 1 Viet. c. 26, ss. 30 and 31 . Sect. 30 of the Wills Act provides that devises to trustees or executors, other than presentations to a church, shall pass the testator’s whole estate, unless a definite term of years, or an estate of freehold, be expressly or impliedly given. And by s. 31 under an unlimited devise when the trust may endure beyond the life of a person beneficially entitled for life, the trustees are to take the fee simple, and not an estate deter - (/) The section applies to an executory limitation in defeasance of an equitable fee simple : Re Shrubb, (1910) W. N. 143. ( g ) Morris v. Morris (1853), 17 Beav. 198. ( [h ) Green v. Green (1849), 3 De G. & Sm. 480 ; Dawson v. Small (1874), L. B. 9 Ch. App. 651. THE CONSTRUCTION OF A WILL. 489 minable when the purposes of the trust are satisfied. It has been suggested that these two sections were intended to be alternative, and their effect, as read together, is not altogether free from doubt. The better opinion is that the trustees will only take an estate pur autre vie if that is sufficient to enable them to perform their duties, otherwise they take the fee simple. No Lapse of Gift in Certain Cases. When a gift is made by will, and the object of that gift dies in the lifetime of the testator, the gift lapses and the property falls into the residue; or if the gift is of the residue itself, the lapsed property goes to the heir if realty and the next of kin if personalty. By ss. 32 and 33 of the Wills Act, two exceptions are created to this rule. First, by s. 32, where any person to whom real estate is devised for an estate tail or in quasi-entail dies in the lifetime of the testator leaving issue, who would be inheritable under such entail, and any such issue be living at the death of the testator, the devise will not lapse but will take effect as if the death of such person had happened immediately after the death of the testator, unless a contrary intention appears by the will. Secondly, by s. 33, where any person being a child or other issue of the testator to whom real or personal estate is devised or bequeathed for any estate or interest not determinable at or before the death of such person, dies in the lifetime of the testator leaving issue, and any issue of such person be living at the death of the testator, such devise or bequest will not lapse but will take effect as if the death of such person had happened immediately after the death of the testator, unless a contrary intention appear by the will(i). This section has sometimes caused curious results, as the following cases show. In Eager v. Furnivall (Ar), property was devised by A. to his daughter B. B. died in A.’s lifetime, leaving issue living at A.’s death; and it was held, that as under the section it must be presumed that B. had died immediately after A., she was Exceptions to law of lapse created by 1 Viet. c. 26, s. 32. s. 33, gifts to issue. Illustrations. (i) See Johnson v. Johnson (1860), 1 Swab. & Trist. 523. (1843), 3 ITare, 157; Re Parker (k) (1881), 17 Ch. D. 115. 490 Gifts to children as a class. Gifts under powers. BK. I., PT. VI. WILLS. sufficiently seised of the lands to give her husband the right to an estate by the curtesy in them. In Re Hensler, Jones v. Hensler (l), A. devised a freehold house to his son B., and left the residue of his realty to C. and D. B. made his will, giving all his property to his fatheir. B. died in A.’s lifetime, leaving issue who survived A. And it was held, that as under the section it had to be presumed that A.’s death occurred before B.’s, the house passed to B. under A.’s will, but B.’s gift to A. lapsed, and that therefore E. . the heir-at-law of B., was entitled to the property. In Re John Scott (m), X. devised real estate to his son A., who predeceased X., leaving a daughter who was living at X.’s death. A. devised his residuary estate to trustees. It was held that, as under the section A. must be deemed to have died after X., on the death of the latter estate duty on the real estate devised to A. was payable twice, viz., once on the death of X., and once on the death of A. In Re Griffiths ( n ), it was held that a child of a testator’s son en ventre sa mere and born after his father’s and the testator’s death, is “living” at the time of the testator’s death so as to make s. 33 apply to a gift to the testator’s deceased son. The section does not apply to gifts to a class, so that if there is a bequest to children of the testator living at his decease, and one of those children predeceases the testator, although the deceased child may have left issue, the other children will alone be entitled (o); and this is so even though there be but one child ( p ). Nor does the section apply to cases where the testator is exercising a special power of appointment, for the words used are “ devised or bequeathed,” not “ appointed.” So that if A., having a power to appoint a sum of money to each of his children, exercises the power in favour of a child who dies in (Z) (1881), 19 Cli. D. 612. 16 Beav. 565; Olney v. Bates (m) (1901) 1 K. B. 228. (1855), 3 Drew. 319. (w) (1911) 1 Ck. 246. (p) Harvey v. Gillow, (1893) 1 (o) Fullford v . Fullford (1853), Ch. 567. THE CONSTRUCTION OF A WILL. 491 A.’s lifetime, although he leave issue, the appointed gift will lapse (q). But the section does apply when a general power of appointment is exercised in favour of a child referred to by name (r). The Rule in Wild s Case. Where there is a devise to a person and his “ children,’ or “issue,” and he has no issue at the date of the will, prima facie the words “children” or “issue” are words of limita- tion, and such person will take an estate tail; if he has issue at that time, he and they take joint estates (s). This rule, however, only applies in the absence of a contrary intention appearing by the will(£). The better opinion appears to be that the rule does not apply to a gift of personalty, and that a gift of' personalty to a person and his children or issue, whether he has any at the date of the will or not, confers joint estates, the words “children” or “issue” being here words of purchase, and not of limita- tion (u). Several Legacies to the same Person. When a testator by the same instrument gives two legacies to the same person of equal amount there is a presumption that the second legacy is merely a repetition, unless there is an apparent intention to give both. Parol evidence is admis- sible to show such intention, or it may be deduced from the wording of the will itself, as where there was a gift to trustees on trust to pay a legacy of 1,000£. to A., and upon “further ” trust to pay A. 1,000L But if the legacies are not equal, the legatee is entitled to both. If the legacies are given by different instruments, e.g 1 ., one by a will, and the other by a codicil, to the same person, he will take both, whether the (g) Ilolyland v. Lewin (1883), 26 Ch. D. 266. (r) Eccles v. Cheyne (1856), 2 K. & J. 676. (s) Wild's Case (1599), 6 Co. 16 b; Tudor, L. C. Conv. 4th ed. 361. ( t ) Grieve v. Grieve (1867), L. R. 4 Eq. 180. ( u ) See notes to Wild's Case, supra. Statement of rule. Does not apply to personalty. Two legacies by same instrument to same person prima facie substitu- tional. If by different instruments prima facie cumulative. 492 BK. I., FT. VI. WILLS. amounts of the legacies are equal or not, unless it appear that the gift by the latter instrument is meant to be substitu- tional (x). But even though they be by different instruments, if they are of the same amount, and are expressed to be given from the same motive, or for the same purpose, they are sub- stitutional, not cumulative (y ) . Legacy to Creditor of Testator. Satisfaction of debt by legacy. Not favoured by the court. Where a testator gives to his creditor a legacy of a sum of money equal to or larger than the amount of his debt and in every respect as beneficial as the debt, the legacy is presumed to be given in satisfaction of the debt unless a contrary intention appears (2) . But the leaning of the courts is strongly against the appli- cation of the rule, and it does not apply where the debt was contracted subsequently to the date when the will was made (a), or where the testator in the will directs his debts and legacies to be paid (h), or directs his debts to be paid(c). Nor does it apply where the legacy is a share of residue, for this ,is uncertain in amount (d), or where the legacy is not payable at as early a date as the debt(e). In these cases, the legacy, though greater in amount, may not be in every respect as bene- ficial to the creditor as the debt. No satisfac- tion of debt by devise. Nor is a debt satisfied where the gift by will is of something essentially different in character to the debt, consequently a gift of an estate in land will not satisfy a debt. (x) Hooley v. Hatton (1772), 1 Bro. 0. C. 390, n.; Wh. & Tud. L. C. Eq. 8th ed. vol. i. 910. (y) Benyon v. Benyon (1810), 17 Ves. 34. ( 2 ) Talbot v. Shrewsbury (1714), Pr. Oh. 394; Wh. & Tudor, L. C. Eq. 8th ed. vol. ii. 378. (a) Crammer's Case (1698), 2 Salk. 508. (5) Chancey's Case (1717), 1 P. W. 408; Wh. & Tudor, L. C. Eq. 8th ed. vol. ii. 379. (c) Bradshaw v. Huish (1889), 43 Oh. D. 260. ( d ) Crichton v. Crichton, (1895) 2 Ch. 853. (e) Re Horlock, (1895) 1 Ch. 516. But the case of Re Ratten - berry, (1906) 1 Ch. 667, appears to be in direct conflict with this. THE CONSTRUCTION OF A WILL. 493 Rules for ascertaining* Class. In the case of a gif t to a class of persons such as the children Rules f . 01 l of a named person, the persons entitled to share in the gift are, w hen classic* in the absence of any indication of a contrary intention, deter- be ascertained, mined by the following rules (/): — 1. When an immediate gift is made to the children of any person, the class of children to take will be those living at the testator’s death, if any, including a child en ventre sa mere ; if there are no children then existing, those coming into exist- ence subsequently will take. 2 . If the gift is not to take effect till after it has been enjoyed by a tenant for life, the class will include both children born in the lifetime of the testator, and those who come into esse before the tenant for life dies; if no children are born before the death of the tenant for life, after-born children will be admitted, unless the testator has indicated an intention that the distribution is to be made once for all when the fund falls into possession. 3 . If the gift is of a reversionary interest the class will be ascertained when the interest falls into possession. 4 . If the gift is to children to be paid at twenty-one, or to such children as attain twenty-one, the class of children will be fixed at the testator’s death, if any child has attained twenty- one in the testator’s lifetime; if none has, then all born at the testator’s death and coming into existence before the eldest attains twenty -one will take (g ) . 5 . If the gift is to children who attain twenty-one after a prior life interest, only those will take who are in esse at the death of the tenant for life, or when the eldest attains twenty - one, whichever happens last. (/) See Vine r v. Francis (1789), 2 Cox, 190; Tudor, L. C. Conv. 4th ed. 417, and the notes. As to what is meant by a gift to a class, see judgment of Lord Selborne in Pearks v. Moseley (1880), 5 App. Cas. at p. 723. (g) A trust for accumulation of income may indicate an intention that this rule is not to be applied : Re Stephens, Kilby v. Betti (1903), 73 L. J. Ch. 3. 494 BK. I., PT. VI. WILLS. When Gift by Will Vested and when Contingent. Buies as to limitation of contingent gifts : (i) Devise of land when vested ; A gift by will which is made to take effect on the happening of some future event may be either vested or contingent. Where there is no express direction as to the period of vesting, regard must be had to the following rules in order to determine whether the gift is vested or contingent. A devise to a person and his heirs , “ if ” or “ when ” he attains or “ on his attaining ” a specified age is contingent, and he takes no interest till he attains that age, unless a con- trary intention appears in the will(h). But there are ex- ceptions to this rule. First, a devise is vested when an estate prior to the devisee’s is given to some third person either for the benefit of the devisee or for that of some other person, to endure during the minority of the devisee. Accordingly, where A. devised lands to X. till testator’s son B. should attain twenty -one, and when B. attained twenty-one, then to B. and his heirs, it was held that the devise vested in B. upon A.’s death (i) . This is on the ground that the estate given to B . is in fact only a remainder taking effect in its natural order on the determination of the preceding estates (1c) . Secondly, a devise to A. for life, and from and after his decease to B., if or so soon as he shall have attained the age of twenty-one, gives B. ,a vested interest (Z); but a devise of real property to those members of a class who attain twenty-one, the given age being p part of the description of the devisee, is contin- gent, even though preceded by a life estate; so that if none of the class attain twenty-one, the devise over, if any, will take effect (m). Thirdly, if there is a devise with a gift over on (h) Grant's Case (1587), 10 Bep. 50 a; Phipps v. Ackers (1842), 9 01. & E. 583; Andrew v. Andrew (1875), 1 Ch. D. 410; Love v. Love (1881), 7 L. R. Ir. 306; Be Francis , (1905) 2 Ch. 295. (i) Boraston's Case (1587), Tudor, L. C. Conv. 4th ed. 427; Manfield v. Dugard, 1 Eq. Ca. Abr. 194, pi. 4. ( k ) Per Tindal, C. J., in Phipps v. Ackers (1842), 9 Cl. & E. at p. 591; per Lord Brougham, ibid. at p. 596. ( l ) Andrew v. Andrew (1875), 1 Ch. D. 410. (m) Bull v. Pritchard (1846), 5 Hare, 567; Re Jobson, Jobson v. Richardson (1889), 44 Ch. D. 154. THE CONSTRUCTION OF A WILL. 49 5 death of the devisee under twenty-one, the devise is vested, on the ground that the testator’s intention appears from the form of the devise that the first devisee should take whatever interest the party claiming under the devise over is not entitled to, which of course gives him the immediate interest subject only to the chance of its being divested if he dies under a ge(n). In the absence of any indication of a contrary intention , if a legacy not charged on land be given to a person to be paid or payable at a given age, or at any determinate f uture time, the legacy is vested, the payment only being postponed. But a legacy to a legatee “ if" or “when” he attains a specified age, or “on his attaining ” that age, is contingent (o) . But each part of this rule yields to indications of a contrary in- tention on the part of the testator. Thus, if a legacy is given to A. when he attains a specified age, and there is at the same time a gift of the interest to A. in the meantime, or a direction to apply such interest or any part thereof for his maintenance, or if the legacy is directed to be immediately separated from the rest of the estate, the legacy will vest at once (p). Where a legacy of money charged on land is given to the legatee payable at a specified age or other event personal to the legatee the legacy is not raisable if the legatee dies before attaining the given age, or before the event happens (q). This is in consequence of the favour which the law shows to the owner of the inheritance, which caused the courts to refuse to apply the rule applicable to legacies not charged on land laid down by the ecclesiastical courts when they had jurisdiction over the administration of personal estate (r) . ( n ) Phipps v. Ackers (1842), 9 €1. & F. 583. ( o ) Stapleton v. Cheales (1711), Pr. Ch. 317; Tudor, L. C. Conv. 4th ed. 438; Hanson v. Graham (1801), 6 Ves. 239; Tudor, L. C. 440. (p) Hanson v. Graham, supra; Be Gossling, (1903) 1 Ch. 448. (g) Pawlett v. Pawlett (1685), 1 Vern. 321; Tudor, L. C. Conv. 4th ed. 434, and notes, especially at p. 468. (r) Ibid. (ii) Gift of pure per- sonalty when vested ; (iii) Legacy charged on land when vested. 496 BK. I., PT. VI. WILLS. When con- dition prece- dent, court favours donee When subse- quent, court construes it strictly. Conditions commonly imposed in wills. Summary of law as to conditions in restraint of marriage. Gifts upon Condition. Where a gift by will is conditional, if the condition is pre- cedent, i.e ., is a condition which is to exist or be performed before the property given is to vest, the court will favour the donee, and will hold the gift vested upon a substantial com- pliance therewith; but if it is a condition subsequent, i.e., one upon which the estate or interest given is to divest, the court will construe it strictly, because it tends to defeat a previous gift. The conditions which testators most commonly impose are:- — conditions in restraint of marriage; conditions restraining alienation, or restricting the full enjoyment of the property given; and conditions involving forfeiture of a gift by a legatee if he shall dispute the will. The leading case upon conditions in restraint of marriage is Scott v. Tyler , decided by Lord Tliurlow in 1788 (s). The following is a summary of the rules to be deduced from it and o J subsequent decisions : — (A) Where the Property given is Land or a Charge on Land. (a) A condition, whether precedent or subsequent, in general restraint of marriage, is bad, as opposed to public policy, unless annexed to a gift to a widow or widower (£). (b) A limitation till marriage and then over, whether bv way of conditional limitation or condition subsequent, is good if the object be not to restrain marriage but to make a pro- vision for the donee while unmarried (w) . (c) Where land is given subject to a condition precedent of marriage with the consent of some third person, the consent must be procured before the gift can vest, whether there is a gift over on marriage without such consent or not. But if the con- (s) (1788), 2 Bro. Ch. 431; (t) See Allen v. Jackson (1875 . Wh. & Tudor, L. C. Eq. 8th ed. 1 Ch. D. 399. vol. i. 560. ( u ) Jones v. Jones (1876), 1 Q. B. D. 279. THE CONSTRUCTION OF A WILL. 497 sent is arbitrarily withheld by the third person, the gift will vest on marriage without his consent. (d) If a gift is subject to be divested by a condition subse- quent on marriage without consent, a breach of the condition will divest the estate, unless the condition becomes impossible to be performed. (B) Where the Property given is Personalty . The above rules (a) and (b) as to real property apply also to personal property (x). (c) A condition precedent, requiring consent to a marriage under twenty -one, is apparently valid (y), and such a condi- tion attached to marriage at any age is apparently good if there is a gift over (z ) . (d) A condition subsequent directed against marriage with- out consent is valid if there is a gift over ( a ), but otherwise is in terror em, and the donee will retain the gift though he marries without consent. (C) As to both Realty and Personalty . A condition imposing a partial restraint on marriage only is Condition good; e.g., a gift to A. on condition that he does not marry restraint of B., or does not marry before a reasonable age (&), or a native marriage, of any particular country (c), or a domestic servant (<$), or a person of a particular religion, as a Papist (e), or a Chris- tian (/), or a person beneath him in life, that is, in social posi- tion (g). But a condition which, though nominally in partial, will probably result in total restraint of marriage will be void ; (x) Morley v. Rennoldson (1843), 2 Hare, 570. ( y ) Scott v. Tyler, supra. (z) See Re Ingall, (1904) 1 Ch. 120 . (a) Re Whiting's Settlement, (1905) 1 Ch. 96. (5) Stachpole v. Beaumont (1796), 3 Yes. 89. (c) Perrin v. Lyon (1807), 9 East, 170. (d) Jenner v. Turner (1880), 16 Ch. D. 188. (e) Duggan v. Kelley (1847), 10 Ir. Eq. R. 295. (/) Hodgson v. Halford (1879), 11 Ch. D. 959. ( g ) Greene v. Kirkwood (1895), 1 Ir. R. 130. G. — C. K K 498 BK. I., PT. VI. WILLS. Conditions in restraint of alienation. Of life interests. as where the condition is that the legatee shall not marry a person who has not freehold property of the annual value of’ 500/. (A). A condition attached to a gift of land in fee simple or fee tail, or to a gift of the absolute interest in personalty, that the donee shall not alien, is void as being inconsistent with the gift (i ) . On the other hand, a limited condition in restraint of alienation, e.g., a condition not to sell except to a particular class of persons, is good (Jc) . But a condition not to sell ex- cept to one person is bad(Z); and so is a condition by which the devisee in fee is compelled, before selling or leasing the property, to offer it to some person or persons named at a given sum or at a stated rent (m). A restriction against the aliena- tion of property is none the less bad because it is imposed only for a limited time (m). But a provision by way of conditional limitation or condition subsequent for cesser of a life interest upon the donee attempt- ing to alienate it, is valid, and the interest will cease even though there be no gift over(^). Thus, a life interest may be given until alienation or bankruptcy, or an interest may be limited to the donee for life, but conditioned to deter- mine on his attempting to alien it(o), or on his bankruptcy, or on the income becoming payable to someone else, e.g ., his trustee in bankruptcy (p). However, even a life interest given to a man cannot be made subject to a restraint against antici- ( h ) Keiley v. Monck (1795), 3 Ridge. P. C. 205. (i) Bradley v. Peixoto (1797), 3 Ves. 324; Tudor, L. C. Conv. 4th ed. 514; Re Dixon, Dixon v. Charlesworth, (1903) 2 Ch. 351. It is not quite clear whether a limitation to a person in fee until he alienates or becomes bankrupt, and then over — sometimes called a conditional limitation — is valid or not. The point was discussed, but not decided, by Chitty, J., in Re Machu (1882), 21 Ch. D. 838. ( k ) Re Macleay (1875), L. R. 20 Eq. 186. ( l ) Attwater v. Attwater (1853), 18 Beav. 330. (m) Re Rosher, Rosher v. Rosher (1884), 26 Ch. D. 801. (w) Dommett \ . Bedford (1796), 3 Ves. 149; Rochford v. Hackman (1852), 9 Hare, 475 ; In re Perkins's Settlement Trusts , (1912) W. N. 99. (o) Re Crawshay, (1891) 3 Ch. 176; Re Porter , (1892) 3 Ch. 481. (p) Sartoris v. Sartoris, (1892) 1 Ch. 11 ; Re Loftus- Otway , (1895) 2 Ch. 235 ; Blackman v. Fysh (1891), 60 L. J. Ch. 666. THE CONSTRUCTION OF A WILL. 499 pation(g). A testator often wishes that the interest given to a donee may on his becoming bankrupt be applied for the benefit of the donee or his family; but even in the case of a gift of a life interest the strongest expression by a testator of his wish that the donee shall have the personal and exclu- sive enjoyment of the property will not prevent it devolving on his trustee in bankruptcy (g). 'The only mode in which the testator’s intention can be effected is to give the property to trustees with a discretionary power either to give or with- hold it as they think proper. But more than this, the dis- cretion given must be unfettered, so* that it need not be exer- cised in favour of the donee himself; for when a life interest is given over on bankruptcy for the maintenance of the bank- rupt and his family, the trustee in bankruptcy will be entitled to a proportion of the income (r) ; and if the trustees have a discretion to appoint what amount shall be applied to the maintenance of the bankrupt and his family, an inquiry will bo directed as to how much ought to be applied for each, and what would lxave been taken by the bankrupt will pass to his trustee (s). In connection with this kind of restrictions it should be noted that when property is given over on alienation by the donee, as a rule only voluntary alienation is meant, not hostile bank- ruptcy (£); but if the words of the will are wide enough jt will include even bankruptcy ( u ) . And when property is given over on bankruptcy, this will include a bankruptcy taking place after the date of the will and subsisting at the testator’s death, and even one the proceedings in which commenced before the date of the will if it is subsisting at the testator’s ( q ) Brandon v. Robinson (1811), 18 Ves. 429. (r) Rippon v. Norton (1839), 2 Beav. 63. ( s ) Kearsley v. Woodcock (1843), 3 Hare, 195. ( t ) Lear v. Leggett (1830), 1 Russ. & M. 690; Graham v. Lee (1857), 23 Beav. 388. ( u ) Cooper v. Wyatt (1821), 5 Madd. 482; see also Re Loftus- Otivay, Otway v. Otway, (1895) 2 Ch. 235, where a life interest was given over on the owner “ being deprived or being liable to be deprived.” K K 2 Mode to prevent life interest passing to trustee on bankruptcy. Alienation may mean hostile bank- ruptcy as well as voluntary alienation. 500 Of annuities. Conditions not to dispute will. BK. I., PT. VI. WILLS. death (sc)- But if the bankruptcy is annulled before the period of vesting, the forfeiture does not take place (y ) . Conditions in restraint of alienation are frequently made use of where annuities are given by will. For although the gift of an annuity with a direction to set apart a fund to secure it will not entitle the annuitant to have it valued and the value paid him (z), yet when a specific sum of money is directed to be laid out in an annuity the capital necessary to produce it vests in the annuitant, and he has the right to call for it, and a mere statement that he is not to do so is of no effect ( a ). Again, if there is a direction to purchase a government annuity of a given amount, the annuitant is entitled to the purchase- money though he die before the time when the annuity was to be purchased ( b ). Nor will a restraint on anticipation deprive the annuitant of the right to the purchase-money, except in the case of a married woman (c) . The only way to exclude the annuitant from any claim to the price of the annuity in lieu of the annuity itself is to limit it with a gift over upon alienation. A condition not to dispute a will is valid, and will be effectual to divest the property from the donee if he does dispute it ( d ) ; but in the case of personalty it must be accom- panied by a gift over on non-compliance with the condition. But a condition not to institute legal proceedings as to the estate and effects devised is too general, and is bad (e). ( x ) Metcalfe v. Metcalfe, (1891) 3 Ch. 1. (y) Trappes v. Meredith (1869), L. E. 9 Eq. 229 ; Samuel v. Samuel (1879), 12 Ch. D. 152. (z) Wright v. Callender (1852), 2 D. M. & GL 652. (a) Stokes v. Cheek (1860), 28 Beav. 620. (5) Dawson v. Hearn (1830), 1 Euss. & M. 606 ; Re Robbins,. (1906) 2 Ch. 648; (1907) 2 Ch. 8. (c) Woodmeston v. Walker (1831), 2 Euss. & M. 197. (cZ) Stevenson v. Abington (1863), 11 W. E. 935. (e) Rhodes v. Muswell Hill Land Co. (1861), 29 Beav. 560. THE CONSTRUCTION OF A WILL. 501 Meaning of Words and Phrases. The following is the meaning which the courts have put upon some of the words, expressions, or phrases most com- monly used in a will. ‘‘Wife’’ — “ Husband. — A gift to the wife of A. means the wife whom A. has at the date of the will, and no other, if A. has a wife living at the date of the will (/). A gift to “ any husband with whom my daughter may intermarry” will in- clude a husband who obtains a divorce from such daughter (g) . And a gift to “my wife A.” takes effect although the wife after the date of the will obtains a decree of nullity (Jh) . Where a gift is made to a person as filling a certain character, such as wife or husband, the fact that she or he does not fill that character does not avoid the legacy, unless the character was fraudulently assumed in order to deceive the testator (i ) . “ Child ” prima facie means a “legitimate child,” and, in a gift to children generally, evidence will not be admitted to show that the testator may or must have meant illegitimate children (7c). But illegitimate children may take if they have acquired the reputation of being the children of the person named in the gift; if, for instance, the bequest is to “ the children of A., now living,” and A. has no legitimate children, or if A. is dead and has only had illegitimate children (i). Nevertheless, in a gift to children of a living person, illegiti- mate children will not generally be included, even though such person has only illegitimate children at the date of the will, and at the testator’s death there is no possibility of others (m); unless the testator shows plainly that he intends illegitimate (/) Re Burrow's Trusts (1864), 10 L. T. 184. ( g ) Bullmore v. Wynter (1883), 22 Ch. D. 619. ( h ) Boddington v. Clairat (1883), 22 Ch. D. 597. (?) Wilkinson v. Joughin (1872), 41 L. J. Ch. 234; Ander- son v. Berkley, (1902) 1 Ch. 936. ( k ) Durrant v. Friend (1851), 5 De Gk & S. 343; see also Hill v. Crook (1873), L. R. 6 H. L. 265. (?) Dover v. Alexander (1843), 2 Hare, 275. ( m ) Dorin v. Dorin (1875), L. R. 7 H. L. 568; Penrose v. Manning (1890), 63 L. T. 159. Grift to wife or husband. Grift8 to children. When illegiti- mate children can take. 502 BK. I., PT. VI. WILLS. Legitimacy determined by lex domicilii. Gifts to children as a class. children to take (ri ) . Thus, if they are specially mentioned by name, or if to a, gift to children generally there is added a mention of the illegitimate children by name, they will take. And where a testator described his illegitimate child as “his daughter,” and placed her on a level with his legitimate daughter, providing for every member of his family then living, it was held that the illegitimate child took equally with the legitimate (o) . Again, if property is given “to my daughter A., the wife jof B., and then for the children of my said daughter,” and A. and B. are so related that they cannot by any possibility have legitimate children, the property will go to their illegitimate children, if any (p) . A gift to future illegitimate children is void if made to the illegitimate children of another to be begotten after the testator’s death; but a gift to the future illegitimate children of the testator himself is good (q). In determining whether children are legitimate or illegiti- mate, so that they may take or be excluded from a gift in favour of children by will, the law of the country where the children are domiciled is looked to, even though the gift is of real estate (r) . Under a gift to children the children of a former marriage will take unless there is apparent an intention to exclude them (s) ; so, also, will children by a subsequent marriage in the absence of such intention. The words “child or children” primarily mean issue in the first generation only, so that grand- children will not take under that description; unless the con- text or the circumstances show that they were intended, as in ( n ) Eagleton v. Horner (1887), 57 L. J. Ch. 211; Danily v. Platt (1892), 61 L. J. Ch. 415; see as to the last case, Re Frogley, (1905) P. 137 ; see also Re Loveland, (1906) 1 Ch. 542. (o) Walsh v. Browne (1890), 62 L. T. 899. (p) Hill v. Crook (1873), L. R. 6 H. L. 265; and see Re Ayles ’ Trusts (1875), 1 Ch. D. 282. ( q ) Re Hustle's Trusts (1887), 35 Ch. D. 728; Occleston v. Fulla- love (1873), L. R. 9 Ch. App. 147; Re Harrison, Harrison v. Hi g son, (1894) 1 Ch. 561; Re Loveland, (1906) 1 Ch. 542. (r) Grey v. Stamford, (1892) 3 Ch. 88. (,s) Love joy v. C rafter (1865), 35 Beav. 149. THE CONSTRUCTION OF A WILL. 503 the case of a gift to the children of a deceased person who has only grandchildren living at the time of the gift(£). A gift among children for their lives and upon the death of any such child before or after the testator to the children of such child does not include a child of a child dead at the date of the will(w); but a gift to children “surviving me” may include those born after the testator’s decease (a;). A gift to children may, in the light of attendant circum- stances, mean step-children (y) . If there is a gift to A. and B. as tenants in common for their lives, and at their deaths to their children and grand- children, the families will take per stirpes; i.e ., each family will divide between them the share of their parent; but the members of each family will divide that share per capita inter se (z). If the gift to the children is not till after the decease of the survivor of the tenants for life, they will take per capita ( a ) . The leaning of the courts is towards holding persons taking under a will to be tenants in common, and not joint tenants; but for the court to bo able to give effect to this leaning there must be words used implying an intention to sever (5); so that where property was given to “ all and every ” the children of X., it was held that the children took jointly, and not in common, as the words could not be taken as implying any intention to sever (c) . A “nephew'' or “niece' means prima facie the child of a brother or sister. But if at the date of the testator’s will and at his death lie has no nephew of his own, and there are (£) Berry v. Berry (1861), 3 Giff. 134. {u) Re Wood, Tullett v. Col- ville, (1894) 3 Ch. 381. (ic) Re Clark (1864), 3 De G. J. & S. 111. (y) Re Heseldine (1886), 31 Ch. D. 511; Re Deakin, (1894) 3 Ch. 565; Re Jeans (1895), 72 L. T. 835. (z) Barnaby v. Tassel (1870), L. R. 11 Eq. 363. (a) Malcolm v. Martin (1789), 3 Bro. C. C. 50; and see Re Stone, Baker v. Stone, (1895) 2 Ch. 196. (5) Morley v. Bird (1798), 3 Ves. 629; Tudor, L. C. Conv. 4th ed. 876. (c) Morgan v. Britten (1871), L. R. 13 Eq. 28; Binning v. Bin- ning (1895), 13 R. 654. Step-children. Gifts to children of tenants in common. Tenancy in common favoured. Gifts to nephews and nieces. 504 BK. I., PT. VI. — WILLS. Gifts to cousins. Gifts to grand- children. Gifts to issue. Gifts to relations. nephews and nieces of his wife, they will take under this desig- nation, and evidence that they were not intended will not be admitted (d ) . Great-nephews and nieces are not included unless the intention to include them is evident (e) ; but nephews of the half-blood are included (/) ; and in Ingham v. Ttayner (d), under a gift to “my niece E. W.,” the testator’s wife’s legitimate great-niece, to the exclusion of her illegiti- mate great-niece, was held entitled. The word “ cousins means “first cousins,” in the absence of evidence of a different intention (g). A first cousin is the child of an uncle or aunt, while a second cousin is one descended from the same great-grandfather or great-grandmother. The children of first cousins stand to each other in the relationship of second cousins; but the children of a testator’s first cousin stand to him in the relationship of first cousins once removed. As a rule, under a gift to a testator’s first and second cousins, first cousins twice removed will not be entitled (h). The word “ grandchild ” will not, in the absence of intention to the contrary, include a great-grandchild (i ) . The word “ issue is a vague term. Its popular meaning is children; its legal meaning is descendants. In its popular sense it is a designation of persons; in its legal sense it is generally a word of limitation; and in devises of real estate is generally equivalent to “ heirs of the body ” ; in bequests of per- sonalty it is generally a word of purchase. When used as a word of purchase it primarily includes all descendants; but in every case its meaning is determined by the context (1c ) . The word “ relations,” too, is a term of very indefinite meaning. In the absence of anything to extend its meaning, it (d) Wells v. Wells (1862), 2 Swab. & Trist. 607; see also Smith v. One (1892), 61 L. J. Ch. 510; Ingham v. Rayner, (1894) 2 Ch. 83. (e) Re Blower's Trusts (1871), L. B. 6 Ch. App. 351. (/) Grieves v. Rawley (1852), 10 Hare, 63; Kitchin v. Myers (1886), W. N. 64. ( g ) Stoddart v. Nelson (1856), 25 L. J. Ch. 116; Stevenson v. Abingdon (1862), 31 Beav. 305. ( [h ) Wilks v. Bannister (1885), 30 Ch. D. 512. ( i ) Stroud, Judicial Dictionary, s. v. ( k ) Ibid. THE CONSTRUCTION OF A WILL. 505 means next of kin under the Statute of Distributions, and they will take per capita; and the word "relatives’ has a similar meaning (/). Further, the term does not include relations by affinity, or illegitimate relations, unless on the construction of the whole will it is evident that the testator intended to include illegitimate relations (m) . The word " family ” generally means children (wi), but is Gifts to a readily controlled by the context, and may mean " heirs” or famll D "next of kin,” where there are no children (o), and may in- clude a wife (p). A gift of personalty to the testator’s " heir,” or the "heir” Gifts to heirs, of some other person, will vest the gift in such heir, as having been specially named, or as a persona designata. But the use of the word "heir” will not necessarily confer any interest on such heir; for if the testator’s meaning appears from the will to have been to give a beneficiary an absolute interest, the mention of the word "heir” in the gift will not deprive him of such interest. For example, if there is a gift of chattels to A. for life, and then "to his ‘heirs,’ as he shall give it by will, or if he dies without a will to his ‘right heirs,’ A. will take the absolute interest (q). Similarly a gift of chattels to A. for life, and then to his "heirs,” or after his death to his " heirs,” will not prevent the chattels from passing to his next of kin according' to the Statute of Distributions (r). In the case of a devise the word " heirs ” is primarily a word Shelley's Case. of limitation; so that, under the rule in Shelley's Case (s), a devise to A. for life and after his death to his heirs merely defines the estate of A. and gives his heirs nothing. (Z) Cruywys v. Colman (1804), 9 Ves. 319; Tiffin v. Longman (1852), 15 Beav. 275; Eagles v. Le Breton (1873), L. R. 15 Eq. 148. (m) Seale-Hayne v. Jodrell, (1891) A. C. 304. ( n ) Pigg v. Clarke (1876), 3 Ch. D. 672. (o) Williams v. Williams (1851), 20 L. J. Ch. 280. (p) Blackwell v. Bull (1836), 5 L. J. Cli. 251. ( q ) Powell v. Boggis (1866), 35 Beav. 535. (r) Gitting s v. McDermott (1833), 2 M. & Iv. 69. (s) (1581), Tudor, L. C. Conv. 4tli ed. 332; see also Van Grutten v. Foxwell,fim) A. C. 658. See more fully in Stroud, Judicial Dictionary, s. v. 506 BK. I., PT. VI. WILLS. Gifts to next of kin. Gifts to legal representa- tives. Gifts to executors. The words “ next of kin ” do not mean persons who would, in case of intestacy, be entitled under the Statute of Distri- butions, but those who, whether of the whole or the half-blood, are nearest in degree of personal propinquity, so that it excludes the children of a deceased brother or sister, if there be a brother or sister living (t). A gift to the next of kin according to the Statute of Distributions will exclude either a husband or wife, and a gift to persons entitled as next of kin, or otherwise under the statute, will not include the husbands of such persons, as a husband “ claims by right paramount,” independently of any statute (u). Where the ultimate trusts of a testator’s real and personal estate are in favour of the right heirs, or the next of kin of the testator, the class to take must be ascertained at the testator’s death (x), and not at the time fixed by the will for distribution (y). The phrase “representatives,” or “legal representatives,” generally means the executors or administrators, and not the next of kin ( z ). But the testator’s intention, as derived from the whole will, will here again control the meaning; and gifts to them, or even to executors and administrators, have been held to mean the next of kin under the Statute of Distribu- tions as being the persons who “represent” the testator in a popular sense (.a) ; and this is especially the case where the words “share and share alike,” or other like phrases, are used (5). A gift to “ executors ” is prima facie a gift to them in that character, and they are not entitled to the legacy if they decline to act or are incapable of acting (c) . But the mere taking out ( t ) Tor authorities, see Stroud, Judicial Dictionary, s. v. ( u ) Milne v. Gilbert (1854), 23 L. J. Oh. 828. (x) Bulloch v. Downes (1860), 9 H. L. C. 1. ( y ) Re Ford , Patten v. Sparks (1895), 72 L. T. 5; and see Re Nash, Ball v. Bevan (1894), 71 L. T. 5. ( z ) Cumberlege v. Cumberlege- Ware (1890), 45 Ch. D. 269. (а) Bridge v. Abbott (1791), 3 Bro. C. C. 224; Palin v. Hills (1833), 1 M. & K. 470; Eagleton v. Horner (1887), 57 L. J. Ch. 211 . (б) Kina v. Cleaveland (1859), 4 De G. & J. 477. (c) Slaney v. Watney (1866), L. B. 2 Eq. 418; Re Appleton (1885), 29 Ch. D. 893. THE CONSTRUCTION OF A WILL. 507 probate will entitle the executor to the gift, unless he acts fraudulently (d ) . And the presumption is rebutted if a motive is expressed, as if the gift is to “ my friend and executor ” (0), or if the gift consists of a residue (/) . Executors may or may not take a gift to them beneficially. If the gift is made to When they them by name, or subject to certain payments, they will take fioially. beneficially, even where prior legacies have been given to them. But if there is a direction that they are to retain their costs, or to distribute the property as may appear just to them, the inference will be that they are not intended to take beneficially, but as trustees for the next of kin (//). Where a legacy is given to A., and if he dies in the testator’s lifetime to his executors or administrators, and A. does so die, his executors will take the legacy as executors for the benefit of A.’s resi- duary legatees, and not as trustees for A.’s next of kin (h). The word “ estate ” used alone will be sufficient to carry both Usual real and personal estate, but the context may control its ot ' meaning’. Thus, if used in conjunction with the word “effects,” or if the gift of the estate is to trustees on trusts exclusively applicable to personal property, real property will generally not pass. In Stokes v. Solomons (£), however, where the testator devised and bequeathed his estate and effects to A. to be “paid and transferred” to him on attaining twenty- one, though the words “paid and transferred” would seem to apply only to personal estate, it was held, mainly on account of the employment of the word “ devise,” that copyholds also passed. But a different decision was given in Coord v. Holder-mss (k), where the word “devise” was not used. In any case the context may enlarge as well as restrain the effect of the words used. Thus, the expression “personal estates” has been held, in the light of the context, to include realty (/), ( d ) Harford v. Browning (1787), 1 Cox, 302. (e) Bubb v. Yelverton (1871), 13 Eq. 131. (/) Christian v. Devereux (1841), 12 Sim. 264. ( g ) For authorities, see Theo- bald, Wills, 7th ed. 347. (h) Clay v. Clay (1885), 54 L. J. Ch. 648, overruling Palin v. Hills, supra. (i) (1851), 9 Hare, 75. (k) (1855), 20 Beav. 147. ( l ) Doe v. Topfield (1809), 11 East, 246. 508 Effects ; Money ; Ready money ; Securities for money ; Income of a fund ; BK. I., PT. VI. WILLS. and ‘‘real estates” in Middlesex to include leaseholds there (m) . The word ‘‘effects” in its natural signification means personal effects and will carry the personalty only, unless the testator shows that he has used it in an inaccurate sense and intended to pass realty as well (w). The word “money” in its natural meaning includes cash in the house or at a bank or any other sum due and payable (o). But not choses in action generally, such as government secu- rities, promissory notes not payable to bearer, or stock in the funds, unless its meaning is enlarged by the context, or the testator has, at the date of his will and of his death, no “ money ” properly so called (p). But in every case the mean- ing of the word depends upon the context if there is any which can explain it, and “ money ” has often been construed to mean the residuary personal estate. For instance, when a gift of a legacy or legacies is followed by a gift of the rest of the tes- tator’s money, the whole of his personal estate passes (g). “Ready money” includes not only cash in the house, but money in a bank payable on demand; but not notes of hand, promissory notes, or debts due to the testator (r). “Securities for money” will not pass an account current at a bank, or on deposit there, shares, bank stock, or mere debts, but it passes a lien for unpaid purchase-money or money lent on mortgage and promissory notes (s) . A gift of the “income” of a fund may carry the corpus as well as the income ( t ); hut the bequest of a certain specified (m) Greenwell v. Davidson (1888), 58 L. T. 304. ( n ) See Camfield v. Gilbert (1803), 3 East, at p. 521; Phillips v. Beal (1858), 25 Beav. 25. (o) See Byrom v. Brandreth (1873), L. R. 16 Eq. 475; In re Derbyshire , (1906) 1 Ch. 135. (p) Chapman v. Reynolds (1860), 28 Beav. 221; Collins v. Collins (1871), L. R. 12 Eq. 455. (q) Re Cadogan (1883), 25 Ch. D. 154; In the goods of Bramley, (1902) P. 106. (r) Re Powell (1858), Johns. 49. And see Re Rodwell, 134 L. T. Newspaper, 386. (s) See Ogle v. Knipe (1869), L. R. 8 Eq. 434; Callow v. Callow (1889), 42 Ch. D. 559; and other cases cited, Theobald, Wills, 7th ed. 202. (£) Humphrey v. Humphrey (1851), 1 Sim. N. S. 536. THE CONSTRUCTION OF A WILL. rm sum due upon a particular security will not pass any part of the interest which may be owing at the testator’s death, or at the date of the will. Yet a bequest of a bond, or money owing on a bond, or of a mortgage, will carry arrears of interest due at the testator’s death. A devise of the rents or income of pro- perty may pass the fee simple in land ( u ). The word “furniture’ - primd facie means only furniture Furniture; reserved for domestic or personal use ( x ). It will include plate, linen and pictures, but not wines or books, nor goods in a house of business which belong merely to the business. The expression “household goods’ comprehends all per- Household sonal chattels that may contribute to the use or convenience goods, of the householder or the ornament of the house, not books or consumable stores, unless a contrary intention appears (y/) . The term “household effects’ is of a wider significance, Household ^ Greets * and used in conjunction with household furniture will include such things as books and consumable stores such as wines ( 0 ), and even motor cars (a). Curiously enough, a telescope has been held to pass as household furniture; and under a bequest of pictures and books in or about the testator’s house, pictures at a dealer’s to be cleaned, and books sent to be rebound, though not in the house at the testator’s death, have been held to pass. But a gift of household furniture and effects has been held not to include jewellery (6). The term “ goods, chattels, or effects, -- used alone, will Goods, carry all the personal estate, unless their meaning is limited, as or effects ; by describing them in a particular locality or at a particular place, or by prefixing or affixing to them other words. If they follow words of a narrower import, they will be confined to mean property ejusdem generis with the property previously described, unless the bequest is a residuary one. In this last case, i.e., where there is a gift of “residuary estate” or “personal ( u ) Mannox v. Greener (1872), L. R. 14 Eq. 456. ( x ) Le Farrant v. Spencer (1748), 1 Ves. sen. 97. ( y ) Eor authorities, see Stroud, Judicial Dictionary, s. v. ( z ) Bourne v. Brandreth (1888), 58 L. T. 537. (а) Re Howe , (1908) W. N. 223. (б) Northey v. Paxton (1889), 60 L. T. 30; see also Re Miller , Daniel v. Daniel (1889), 61 L. T. 365. 510 BK. I., PT. VI. WILLS. Residue ; Survivor or survivors ; estate,” followed by an enumeration of certain specific articles, the specific description will not lessen the effect of the gift as a gift of residue, but will be considered as a defective enumeration of the articles of which the testator thought such residue was comprised (c ) . Where A. “devised and bequeathed” to B. all his goods, chattels and effects, and directed that after his death the furniture, moneys, and “property” to which B. became entitled under his will should be divided among B.’s children, it was held that the will passed A.’s real estate on account of the use of the words “devise” and “property” (d). Railway stock will pass under a gift of railway shares (e), but deben- tures will not include debenture stock (/). A gift of “residue” will pass everything not disposed of, whether the testator has attempted to dispose of it or not; and even where it is of a residue “ not otherwise disposed of ” it will mean “not otherwise effectually disposed of ” (g)- It will include lapsed legacies, unless a contrary intention is indicated. Thus, if the residue given is the residue remaining after the payment of certain legacies, and that is the only residue given, it will not include the legacies if they lapse (h). A gift to the “survivor or survivors” of several persons may give rise to difficulty, as may be illustrated by the following example: — Suppose property is given equally among A., B. and C., with a gift over of the shares of any of them dying under twenty-one to the survivor or survivors. A. attains twenty-one and dies. Then B. dies under twenty-one. If the word “survivor” is to be construed literally, B.’s share will go wholly to C., to the exclusion of the representatives of A. But it may be construed “ other or others,” when it is necessary to give it that construction to effect the intention (i). There (c) See Dean v. Godson (1867), L. R. 3 Eq. 713. (d) Hall v. Hall, (1892) 1 Ch. 361. (e) Morrice v. Aylmer (1875), E. R. 7 H. L. 717. (/) Attree v. Hawe (1878), 9 Ch. D. 337; Bodman v. Bodman , (1891) 3 Ch. 135; contra, Re Her- ring, (1908) 2 Ch. 493. ( g ) Green v. Dunn (1855), 20 Beav. 6. (h) Easum v. Appleford (1840), 5 M. & C. 61. ( i ) See Wake v. Varah (1876), 2 Ch. D. 348. THE CONSTRUCTION OF A WILL. 511 appears, however, to be no general rule as to the construction of the words (fc). The class of survivors among whom property is to be divided is to be ascertained at the time designated for the distribution of the property in the absence of any indication of a contrary intention (l). Thus, if property is given to A., B. and G. or tho survivors, those will take who survive the testator. If it is given to A. for life, and after the death of A. to B., C. and D. or the survivors, those will take who survive A., unless A. dio before the testator, when those who survive the testator will take (m). Tho expression ‘‘die unmarried,'’ and kindred expressions, Die un- ordinarily mean, when used in wills, “death without ever ln:imed having* been married,” but may also bear the interpretation “not being actually married at any particular time.” The circumstances of each case will determine the meaning which the expression used is to bear. Thus, where property was given to A. and B., and, in tho event of the decease of either of them unmarried, and without leaving lawful issue, to the survivor, it was held that “unmarried” meant “not under coverture at the time of death,” and not “ never having been married ” (ri). If there is a gift to A. at twenty-one or on marriage, and a gift over on death unmarried and without issue, this will mean without ever having been married, and the gift over will be defeated if he has married, but has no wife at the testator’s de- cease. But if A. were already married at the date of the testa- tor’s will, the expression could not bear this construction, and the gift over would take effect should he not happen to have a wife at the testator’s death, unless circumstances showed that the testator could be presumed to have intended to refer to the legatee’s making a second marriage (o). But in a gift to A. for life, remainder to his children, and if lie dio unmarried and ( k ) Inderwick v. Tatchell, (1901) 2 Ch. 738. (l) Cripps v. Wolcott (1819), 4 Madd. 11; Stevenson v. Gullan (1854), 18 Beav. 590; Neathway v. Reed (1853), 3 De G. M. & G. 18 ; conf. Daniell v. Daniell (1801), 6 Ves. 297. (m) Spurrellv. Spurrell (1853), 11 Hare, 54. ( n ) Salisbury v. Ridley (1890), 62 L. T. 789. (o) See Crosthwaite v. Dean (1868), L. R. 5 Eq. 245. 512 BK. I.j PT. VI. WILLS. without issue, to B., here B. will take if A. has no wife living* and no children at his (A.’s) death, and not merely in the case of A.’s not marrying at all (p). “ and ” and “ And ” has sometimes been construed to mean “ or ” in gifts “ or ” . • over. Thus, in the case of a gift to A., and if he died un,- married and without children, to B., “and” has been read “or,” so that if he does marry but leaves no issue the gift over will take effect (g); but the word will not be so construed if the word “unmarried” has been used by the testator in the sense of “without leaving a widow” (r). Conversely, under the rule known as the rule in Fairfield v. Morgan (s), “or” may be read “ and.” Thus, if property (whether real or per- sonal (£)) is given to A. in fee or absolutely, if he dies leaving lawful issue, but, if he dies under age or without leaving issue, over, “ or ” will be construed “ and.” ( p ) See Re Bander's Trusts (1866), L. E. 1 Eq. 675. (q) Maberley v. Strode (1797), 3 Ves. 450; Bell v. Phyn (1802), 7 Ves. 459. (r) Re Sander's Trusts, supra. (s) (1805), 2 B. & P. N. E. 38. (t) Wright v. Marsom, (1896) W. N. 148; and see In re Crutch- ley, (1912) 2 Ch. 335. • 51:5 Pt. yii— miscellaneous transactions. I. — DEEDS OF DISCLAIMER. No one to whom a gift of property is made is bound to accept it. The law allows him the option of taking it or declining it. It is not likely that anybody will want to decline a gift of property which is of value; but it may happen that there are onerous conditions attached to the gift, and in such case the donee has the right of refusing it if he likes. But he may only exercise his right of disclaimer before he has accepted the gift. Having once accepted it, he is no longer at liberty to renounce it. The only course which is then open to him is to get fid of it by some legally recognized form of convey- ance fa). No deed is necessary for the validity of a disclaimer (except, perhaps, in the ease of a married woman disclaiming freeholds not settled to her separate use (see ante, p. 14)), which may be by parol or even by conduct (6), but it is advis- able to disclaim by deed. If two distinct legacies are bequeathed, and one is onerous, the legatee may disclaim it and take the other, but he cannot do so if both the onerous and beneficial properties are included in one gift (c). The disclaimer which is most often met with in practice is a disclaimer by a trustee. The disclaimer must be made before the trustee has entered on the duties of his office, he cannot (а) Hurst v. Hurst (1882), 21 Ch. D. 278. (б) See Stacey v. Elph (1833), 1 My. & K. 195. (c) Guthrie v. Walrond (1883), 22 Ch. D. 573; Frewen v. Law Life Assurance Society , (1896) 2 Ch. 511. Disclaimer must be before acceptance. Disclaimer of legacies. Disclaimers by trustees. G. — C. L L 514 BK. I., PT. VII. — MISCELLANEOUS TRANSACTIONS. Disclaimer of power. Effect of disclaimer by trustee. Form of disclaimer of a trust. disclaim after lie lias once done any act indicating an intention to accept the trusteeship (d ) ; and for this reason there should he nothing in the deed of disclaimer in any way resembling a conveyance or release of the trust property, for that would of itself amount to an act of ownership from which an intention to accept the office might be deduced (e). Formerly, the ac- ceptance of an executorship would not of itself prevent the executor from disclaiming real estate which had been devised to him upon trust (/), though by proving the will an executor accepts the trusts of personal property bequeathed to him as trustee; in the case of persons dying since 1897 probably this is the rule with regard to freehold real estate also, as a conse- quence of Part I. of the Land Transfer Act. The Conveyancing Act, 1882, s. 6, provides that a person to whom a power, whether coupled with an interest or not, is given may by deed disclaim the power, and that after such disclaimer the power may be exercised by the other person or persons in whom the power was vested. The effect of a disclaimer by one of several trustees is that the trust property vests in the other trustees just as if the disclaiming party had never been appointed (g ) . Should the disclaimer not be executed until after the death of the survivor of the trustees who do accept, the legal estate will vest in the heir of the survivor, or, if he died after 1881 and the property is freehold land, in his personal representatives (h ) . If all the trustees, or a sole trustee, disclaim, the property will revest in the person who created the trust or his representative as trustee (?) . The deed of disclaimer generally recites the instrument creating the trust, and that the disclaiming party has never accepted or acted in the trusts, and then states that he thereby (d) See the somewhat special case of Jago v. Jago (1893), 68 L. T. 654. (e) Crewe v. Dicken (1798), 4 Ves. 97. (/) Wellesley v. Withers (1855), 4 E. & B. 750. ( g ) Adams v. Taunton (1820), 5 Madd. 435. ( h ) Conveyancing Act, 1881, s. 30. And see Conveyancing Act, 1911, s. 8. ( i ) Mallot v. Wilson, (1903) 2 Ch. 494. DEEDS OF RELEASE. 01 disclaims and renounces the office of trustee, and all interest in and power over the trust property. The disclaimer must he of the whole of the trusts, since Disclaimer it has been held that a disclaimer of part of the trusts, w hole trust, although distinct and separate from the other trusts accepted, is ineffectual (1c). A disclaimer does not require any stamp duty unless made Stamp duty, by deed, when a 10s. stamp must be impressed. II. — DEEDS OF RELEASE. A solicitor is often called upon to draw a release by cestuis que trustent of their trustees, or by a residuary legatee of the executors. It seems settled that an executor, when all the testator’s affairs have been wound up, is entitled to a release from the residuary legatee on handing over the residue to him; but it is not so clear that a trustee, when the trusts incumbent on him have all been carried out, is entitled to be released by the cestuis que trustent. A trustee, on handing over the trust estate to a cestui que trust, is doing so in accordance with the letter of his trust, and that being so, there is no reason why he should have a claim to a release (l). But where trust moneys have been re-settled, the trustees of the original settlement have been held to be entitled to a release under seal from their cestuis que trustent, though not from the trustees of the new settle- ment; from them they must be content with a mere re- ceipt (m). The cestuis que trustent, however, are often willing to give their trustees a release, although the latter are not en- titled to demand it. It is not advisable for a solicitor to act for both the parties to a release; for as a rule dealings between trustee and cestui que Trustees not entitled to a release under seal : secus as to executors ; when it may be set aside. (k) Re Lord and Fullerton's -Contract, (1896) 1 Ch. 228. (Z) See King v. Mullins (1852), 1 Drew. 308. (m) Re Cater's Trusts (1858), 25 Beav. 361. L' L 2 516 Stamp duty. When a disentailing deed is used. 3 & 4 Will. 4 c. 74. BK. I., PT. VII. MISCELLANEOUS TRANSACTIONS. trust should be at arm’s length (n). And if a release be obtained without a full disclosure of all the circumstances, it may be set aside (o), though until set aside it operates as a bar to all claims (p) . Accordingly, full recitals should be inserted in the deed of release, setting out all the circumstances attend- ing the administration of the trust. But the recitals must be carefully framed, because they may control the generality of the operative words, and the release will only take effect as to the matters set forth in the recitals (q). If any part of the trust funds is to be retained by the trustees as not being yet payable, there should be a proviso that the release shall not extend to the funds so retained, and if anything remains to be done by the trustees, a proviso should be added deferring the operation of the release till it is done. The stamp duty on a release of this description is 10s. III. — DISENTAILING ASSURANCES. A disentailing assurance is most often required when the eldest son of a landed proprietor upon whom the property has been settled by a strict settlement, being a tenant in tail of the property subject to the life estate of his father, is about to be married, and wishes, with the approbation of his father, to re-settle the land in strict settlement for the benefit of his future wife and children. Before he can do this it will be necessary to execute a disentailing deed barring his estate tail in the land and converting it into an estate in fee simple, in accordance with the provisions of the Fines and Recoveries Act r 1833. (w) Rhodes v. Bate (1866), L. R. 1 Oh. App. 252; Turner v. Collings (1871), L. R. 7 Ch. App. 329; Kempson v. Ashbee (1874), L. R. 10 Ch. App. 15. ( o ) Ramsden v. Hylton (1751), 2 Ves. sen. 305. (p) SkillbecJc v. Hilton (1866), L. R. 2 Eq. 587. (q) See Payler v. Homersham (1815), 4 M. & S. 423. DISENTAILING ASSURANCES. 517 It will be found on reference to s. 18 of that act that tenants in tail restrained by 34 & 35 Hen. 8, c. 20, or by any other act of parliament, from barring their estates, and tenants in tail after possibility of issue extinct, are specially precluded from exercising the powers conferred by the act. Subject to these exceptions, every tenant in tail can bar his estate tail, but the manner in which he can do so depends on whether his estate is in possession or remainder. Where the estate of the tenant in tail is in possession, he may without the concurrence of any other person bar the entail, so as to defeat the rights not only of his own issue, but also of all persons whose estates were to take effect after the determination of his estate tail (r) . But in the case of an estate tail in remainder, unless the protector of the settlement concurs in the disentailing deed, all the tenant in tail can do is to defeat the rights of his own issue, but not those of persons claiming estates by way of remainder or other- wise. In other words, he acquires an estate of inheritance for so long only as he or any of his issue who would have inherited the estate tail, had it not been barred, remain alive. This estate, which is called a base fee, may, however, be afterwards enlarged into an estate in fee simple (1) by the remainder in fee becoming vested in the owner of the base fee (s) ; or (2) by the tenant in base fee subsequently obtaining the protector’s consent and executing another deed(£); or (3) by executing another deed on the protector’s death (w); or (4) after the expiration of twelve years from the time when the tenant in base fee would have become entitled in possession; for after this lapse of time the rights of the remaindermen and reversioners are barred by the Beal Property Limitation Act, 1874, s. 6. The provisions relating to the office of protector and the manner in which his consent is to be given, are contained in ss. 22 to 37 of the Pines and Becoveries Act. As a rule, the (r) See Millbank v. Vane, (1893) 3 Cli. 79. (s) Tines and Recoveries Act, 1833, s. 39. (£) Ibid. ss. 19 and 35. (■ u ) Pines and Recoveries Act, 1833, ss. 19 and 35. A woman married since 1882 can do this without the necessity of acknow- ledging the deed or of her hus- band’s concurrence. lie Drum- mond and Davie, (1891) 1 Ch. 524. Tenants in tail who cannot disentail. 37 & 38 Viet, c. 57. First tenant for life is the natural protector ; 518 BK. I., PT. VII. MISCELLANEOUS TRANSACTIONS. protector is the owner of the first life estate prior to the estate tail, and subsisting under the same settlement, whether such prior estate be encumbered or disposed of or not. This means the beneficial owner, and not a mere owner in trust for others (x ) , nor a tenant in dower, nor a bare trustee (y). If the prior estate is owned under the same settlement by two or more persons, each will be sole protector as to his share ( z ) ; and where a married woman, if single, would be protector, she and her husband are together the protector, unless the estate is settled an the woman for her separate use , when she alone is the protector (a). Having regard to the words italicised, it was considered doubtful whether the husband’s concurrence could be dispensed with in case of property belonging to a married woman for her separate use under the Married Women’s Property Act, 1882, but it is now provided by s. 3 of the Married Women’s Property Act, 1907, that where a married woman would, if single, be the protector of a settle- ment which is by virtue of the Married Women’s Property Act, 1882, made her separate property, then she alone shall in respect of that estate be the protector of the settlement. The protector is not necessarily the owner of the first preceding life estate; but settlor for by s. 32 the settlor may, by the settlement creating the noYmo^than entail, appoint any number of persons, not exceeding three, to three persons. p e protector, and, by means of a power to be inserted in the settlement, perpetuate the protectorship in any number of per- sons in esse whom the donee of the power shall by deed appoint protector in the place of any person dying or by deed relin- quishing his office. But the number of the persons to compose the protector must never exceed three. In these cases the office will pass to the survivors (6); and if all the protectors die, and the settlement contains no power to perpetuate the pro- tectorship, or, there being such a power, it is not exercised, the tenant for life will thereupon become the protector (c) . If ( x ) Re Dudson (1878), 8 Ch. D. 628. ( y ) Fines and Recoveries Act, 1833, s. 27. ( z ) Ibid. s. 23. (a) Ibid. s. 24. (6) Bell v. Holtby (1873), L. R. 15 Eq. 178; Re Bayley Worthing- ton, (1908) A. C. 97. (c) Clarke v. Chamberlain (1880), 16 Ch. D. 176. DISENTAILING ASSURANCES. 519 the protector be lunatic, the judges in lunacy, or if the protector be an infant having no prior estate, the Chancery Division, will discharge the office; and if the settlor in the settlement declares that the owner of the prior estate shall not he the protector, and does not appoint a protector in his stead, the Chancery Divi- sion will -be protector during the continuance of such prior estate; and generally the court will be the protector when there is a prior estate but no protector (d). As we have said, the consent of the protector is necessary to The protec- enable the tenant in tail to create a larger estate than a base fee, and also for the enlargement of a base fee. The protector is subject to no control in the exercise of his power of consent- ing*, and his agreement to withhold his consent is void(e). When, however, a married woman is protector, and her husband’s concurrence is required in giving consent, a judge of the King’s Bench Division (/) can, under s. 91 of the act, dispense with his concurrence in a proper case, e.g., while he is abroad or living in separation from his wife. Sects. 42 — 46 regulate the way in which his consent is to be given. It may be given by the disentailing deed (g) or by a separate deed to be executed at the same time as or previously to the disentail- ing deed. If it be by a separate deed, such deed must be enrolled at the same time as, or before, the disentailing deed. The consent, when once given, is irrevocable. Disen tailment cannot be effected by will or contract. It must Disentail- in every case be by deed. Since the Married Women’s Pro- ^effected ^ perty Act, 1882, a married woman can bar the entail without by deed; her husband’s consent, and without a deed acknowledged, if her marriage took place on or after 1st January, 1883, or even though it took place before that date, provided the estate tail was acquired by her after that date. A restraint on anticipa- tion does not prevent her from barring the entail (gg ) . The (d) Pines and Recoveries Act, 1833, s. 33. (e) Ibid . . s. 36. (/) Re Ellen Giles (1894), 70 B. T. 757 ; and Rules of the Supreme Court, 1883, Order LIV. r. 12 (b). ( g ) The consent is effectually given notwithstanding the pre- vious execution of the assurance by and the death of the tenant in tail: Whitmore Searle v. Whit- more Searle, (1907) 2 Ch. 332. (gg) Cooper v. Macdonald (1877), 7 Ch. D. 288. 520 BK. I., PT. VII. — MISCELLANEOUS TRANSACTIONS. which must be enrolled. As to disentailing- copyholds. Money to be invested in entailed estates treated as such. Lords Justices of the Court of Appeal have power, under their lunacy jurisdiction, to bar the estate tail of a lunatic so as to give a good title to a purchaser, but not so as to affect the in- terests of persons entitled under the limitations of the settlement to the proceeds of the sale (h ) . The tenant in tail is the proper party to execute a disentailing assurance, even though he has been convicted of felony (i ) . The disentailing deed is not re- quired by the act to be in any particular form; but, in what- ever form it may be couched, it must be enrolled in the Central Office of the High Court within six months of execution. The act contains special provisions as to the disentailing of estates tail in copyholds. The general provisions of the act are to apply, except that a legal estate tail is to be barred by sur- render , and an equitable estate tail may be barred either by surrender or deed (1c ) . If the protector’s consent is given by deed, it must be executed at the same time as, or before, the surrender, and produced to the steward, who must indorse such production on the deed, and enter the deed with the indorsement on the court rolls (l). If the consent is not given by deed, it must be given to the person taking the surrender and men- tioned in the memorandum of surrender (m) . Not only must every surrender barring an estate tail be enrolled on the court rolls, but also every deed by which an equitable estate tail is barred must be so entered, and, if the protector consents by a separate deed, it must be executed at the same time as, or before, the disentailing deed, and entered on. the rolls, and be indorsed with a memorandum of such entry (w). The entry on the court rolls must in all cases be made within six months, but disentailing deeds of copyholds require no other enrol- ment (i o ■). By the 71st section, lands to be sold, where the purchase- money is subject to be invested in the purchase of lands to be entailed, and money subject to be invested in a similar pur- chase, are to be treated as the lands to be purchased. Any (h) Re Pares , (1901) 1 Ch. 708. (0 Re Gaskell and Walter's Contract, (1906) 2 Ch. 1. ( k ) Pines and Recoveries Act, 1833, s. 50. (Z) Ibid. s. 51. (m) Ibid. s. 52. ( n ) Ibid. s. 53. (o) Ibid. s. 54. DISENTAILING ASSURANCES. 521 assurance under this section of leaseholds, or money so cir- cumstanced, must he by assignment by deed enrolled in the Central Office within six months after execution. It has been held that money representing entailed land will not be paid out of court to a tenant in tail capable of disentailing it with- out the execution of a disentailing deed (p 1 ). A disentailment is generally carried out by a deed made between the tenant in tail and a grantee to uses, the protector joining (when the estate is not in possession) to give his con- sent, unless it has been given by a separate deed. The tenant in tail conveys the premises to the grantee, to hold them to the grantee and his heirs freed and discharged from the estates tail of the tenant in tail, and all estates, &c. to take effect after or in defeasance of the same, to such uses as the protector and tenant in tail may appoint or to the use of the tenant in tail in fee simple, and if there are prior estates subject to the same. The deed requires a ten shilling stamp only if it does not limit any new estate other than an estate in fee simple in the person disentailing the property; in other cases it must be stamped ad valorem as a conveyance (pip) . As we have said, a disentailment is generally effected prior to a re-settlement of the estate on the marriage of the eldest son of the tenant for life. The estate having been disentailed, the father usually charges his life estate with the payment of an annuity to the son during their joint lives, and a jointure for the son’s intended wife should the son predecease him, and the son cuts down his interest in tail to a life estate with a remainder, subject to a jointure for his wife and portions for his younger children, to his children successively in tail, with remainders to his brothers and their children in tail, with an ultimate remainder in fee to the son. The re-settlement will also contain the usual powers and clauses contained in settle- ments as to the management of 1 the estate, trustees, &c., and will be made subject to the charges for pin-money, jointure, and portions created by the former settlement. (p) Re Reynolds (1876), 3 Ch. (pp) Finance (1909-10) Act, D. 61. 1910, s. 74. How dis- entailraent usually carried out. Stamp duty. Disentail- ment gene- rally required for purposes of re-settlement. 522 BK. I., PT. VII. — MISCELLANEOUS TRANSACTIONS. IV. — ENFRANCHISEMENT OF COPYHOLDS. Enfranchise- ment of copyholds ; (a) voluntary: (1) at common law ; (2) under Copyhold Act, 1894. 57 & 58 Viet, c. 46 ; Enfranchisement of copyhold land may be effected indepen- dently of any statutory authority, if the lord of the manor and the copyholder mutually agree to make it. But, except as stated below, and as authorized by the Settled Land Acts, 1882 to 1890, the lord can only make a voluntary enfranchisement when he has the whole fee simple of the land in himself, and is under no disability; and, again, the enfranchisement must be made to the tenant, though it is not necessary in his case that he should have the whole fee; for if he has only a limited interest, and the lord conveys to him the whole fee in the land, the land will become enfranchised, but the tenant will hold the estate for the benefit of persons interested after him. A voluntary enfranchisement is carried out by deed, whereby the lord conveys the land to the copyholder in fee freed from all the incidents of copyhold tenure, and also grants to the tenant the commonable rights appurtenant to the land. The Copy- hold Act, 1894, however, enables the lord, whether he has the whole fee simple of the land or not, with the consent of the Board of Agriculture (Land Commissioners Department), to enfranchise any land, and enables any tenant to accept the enfranchisement, both giving certain notices to persons inte- rested when they have not the absolute interest in the land (q ) . The consideration for the enfranchisement may be charged on the land as a rent-charge, or it may consist of the convey- ance of land, or of a right to mines or minerals subject to the same uses as the lands enfranchised (r) . The enfranchisement is carried out by deed, which does not seem to need entry on the court rolls (s). Where the lord of the manor is a limited owner the consideration money is paid into court or to trus- tees (t), and the Board of Agriculture may direct how the ex- penses of the enfranchisement are to be borne (u ) . If either party is under disability, his guardians, trustees, committee, or (g) Copyliold Act, 1894, s. 14. ( r ) Ibid. s. 15. (s) Ibid. s. 16. (£) Ibid. s. 26. ( u ) Ibid. s. 34. ENFRANCHISEMENT OF COPYHOLDS. 523 some person named by the Board of Agriculture, as the case may be, may be substituted for him (x ) . Provisions are made for voluntary enfranchisement of land (3) under the the subject of a settlement by the Settled Land Act, 1882, s. 3 Lan(i of which enables a person who is a tenant for life under the act 45 & 46 Viet. x ^ gg to sell the seigniory of any manor, or the freehold of any copy- hold or customary land, with or without any mines, &c., so as to effect an enfranchisement. The tenant for life must observe the same conditions on enfranchising copyholds as he must observe on selling land under the powers conferred by the act. Compulsory enfranchisement was formerly provided for by (b) compul- the Copyhold Acts, 1852, 1858, and 1887, but these are now sor repealed and superseded by the Copyhold Act, 1894, under 57 & 58 Viet, which either the admitted tenant or the lord may insist on c ’ 46 ’ enfranchisement by giving the notice thereby prescribed (y), but the tenant cannot require enfranchisement unless he has paid all fines, &c. payable (z). The consideration is to be fixed by valuers appointed under the act, or the question may be referred to the Board of Agriculture, or the parties may agree in writing as to the amount, or may appoint a valuer or valuers to determine it (A). If the lord compels enfranchisement, it is, unless the parties otherwise agree, to be an annual rent- charge (5), redeemable, however, by the tenant at twenty-five years’ purchase (c) . If the tenant enforces the enfranchise- ment, the compensation is to be a gross sum, except when the contrary is agreed, or the land is capable of sufficient identifica- tion, and the compensation amounts to more than one year’s improved annual value of the land (d). A compulsory enfran- chisement is carried out by an award of the Board of Agricul- ture duly confirmed (e). The effect of an enfranchisement under the act is to make the land freehold, but to leave it subject to ( inter alia ) existing leases, commonable rights, settlements, and incumbrances of the land, and to the lord’s rights to mines, and his reversion by way of escheat (/) . The expenses of a (x) Ibid. s. 45. (y) Ibid. s. 1. (z) Ibid. s. 3. (а) Ibid. s. 5. (б) Ibid. s. 8 (1). (c) Ibid. s. 30. ( d ) Ibid. s. 8. (e) Ibid. s. 10. (/) Ibid. ss. 21 to 23. 524 Registration. Conversion of long terms of years — 44 & 45 Viet, c. 41, s. 65. BK. I., PT. VII. — MISCELLANEOUS TRANSACTIONS. 9 compulsory enfranchisement will have to be borne by the party requiring enfranchisement ( g ) . Death of either of the parties will not cause the proceedings to abate (h). For the purpose of encouraging the enfranchisement of copyhold land the act provides that, on the admittance of any copyhold tenant, the steward must give him notice informing him of his right to have enfranchisement compulsorily effected by him ( i ) . The Board of Agriculture are to frame a scale of compensation moneys applicable to various cases, but this is only for guid- ance of the parties, and neither is bound to accept it (7c) . Special provisions are made for turning the whole of the copy- holds in a manor into freeholds, where the fines of the manor are certain, and there is a practice for the copyholders in fee to grant derivative interests to persons who are admitted tenants of the manor. Such wholesale enfranchisements are only to be effected where the lord of the manor or one-fourth of the copy- holders request it, and not less than two-thirds of the tenants are in favour of it (7). A deed of enfranchisement of lands in Middlesex or York- shire requires registration (m). V. — ENLARGEMENT OF LEASEHOLDS INTO FREEHOLDS. Sect. 65 of the Conveyancing Act, 1881, makes provision for the conversion into freehold of leasehold land in certain cases, namely, when the term as originally created was for not less than 300 years, and there is a residue unexpired of not less than 200 years, without any trust or right of redemption affecting the term in favour of the freeholder or other person entitled in reversion expectant on the term, and without any rent or with merelj' a peppercorn or other rent having no money value, or ( 4^ s< 52. not, is given, may by deed release or contract not to exercise the power. This section did not, however, apply to the disclaimer of powers, and this omission was supplied by the Conveyancing 45 & 46 Viet. Act, 1882, s. 6, which provides that a person to whom any c ' 39, 8 ' 6 ‘ power, whether coupled with an interest or not, is given, may by deed disclaim the power, and after disclaimer shall not be capable of exercising or joining in the exercise of the power; but it may be exercised by the others or other, or the survivor of the other persons to whom the power was given, unless the contrary be expressed in the instrument creating the power. It has been held that a power which is coupled with a trust or duty may not be released under s. 52 of the act of 1881, but can only be extinguished by the trustee making a proper and irrevocable appointment ( 5 ). The stamp duty on appointments under powers (when not Stamp duty, exercised by will) is ten shillings (c). (a) See West v. Burney (1819), (c) See, however, s. 62 of the 1 Russ. & M. 434. Stamp Act, 1891, and s. 74 of the (b) Eyre v. Eyre (1883), 49 Finance (1909-10) Act, 1910. L. T. 259. 536 Part VIII. CONVEYANCING COSTS. The old system of solicitors’ remuneration for con- veyancing. Complete statutory remedy. 44 & 45 Viet, c. 44. Before the year 1883 solicitors were paid for conveyancing business in this country according to the length of the document drawn, and without regard to the importance of the transaction to which it related or the skill, labour or responsibility involved in its preparation. It is not surprising that the result of this system of remuneration was that legal documents became dis- tinguished for a prolixity and redundancy that smothered the sense under the multitude of words. That such a system — by which a skilled professional man was paid for his intellec- tual labour, like a mere copyist, at the rate of so much for every seventy-two words of a document he prepared — should have been allowed to continue until so late a date as 1883, is remark- able; the more so, having regard to the great reforms which had taken place in preceding years (a ) . Now one of the main objects of the Conveyancing Act, 1881, was to shorten and simplify the documents used in conveyancing; but the pro- moters of that important statute were wise enough to foresee that there was little probability of its attaining this object, unless provision were made, by which solicitors who adopted the statute, and prepared concise and intelligible deeds in re- liance on its provisions, would get paid as highly as solicitors who continued to use the ancient and prolix forms. Accord- ingly, by the Solicitors’ Remuneration Act, 1881, provision was made for the drawing up by a committee, consisting of the Lord Chancellor, the Lord Chief Justice, the Master of the (a) See on this subject Christian, Short History of Solicitors, 194 et seq. SOLICITORS 5 REMUNERATION. 537 Rolls, the President for the time being of the Law Society, and the President of one of the provincial Law Societies, to be selected by the Lord Chancellor, or any three of them, of a scale or scales to regulate the remuneration of solicitors in conveyancing business. The statute gave wide powers to the persons appointed to draw up the order as to mode and amount of remuneration to be fixed by the scale or scales to be drawn up. The order was issued in 1882, and was under the hands of the Lord Chancellor, the Lord Chief Justice of England, the Master of the Polls, and the President of the Liverpool Law Society (it is noticeable that the President of the Law Society did not append his signature to the order), and consists of twelve clauses, followed by two schedules. The First Schedule is divided into two parts: Part I. con- tains a scale of charges to be allowed to a solicitor on sales, purchases and mortgages of freehold, copyhold and leasehold property, .according to whether lie is acting for vendor, purchaser, mortgagor or mortgagee. The scale here is based on the amount of the purchase or mortgage money. The scale is followed by twelve rules made to meet special circumstances: Part II. contains two scales of charges, one for leases or agree- ments for leases at rack rent (except mining leases and building leases), and the other for building leases and leases not at rack rent (except mining leases), and for conveyances for a freehold estate subject to a rent. The remuneration here is based on the amount of the rent. This part of the schedule is followed by six rules intended to meet special cases. The Second Schedule regulates the remuneration for pre- paring, &c. wills, settlements, mining' leases and other docu- ments, not coming within the first schedule, or with regard to which, although within the first schedule, the solicitor has, as he is empowered to do by the order, elected, before undertaking the business, to be paid by the scale given in this second' schedule. The remuneration allowed by this second schedule is based on the old system of charging, namely, the length of the document, the sheets of abstract, the number of the attend- ances, &c. The schedule, however, in certain cases recognizes The remune- ration order. The First Schedule. The Second Schedule. 538 BK. I.j PT. VIII. CONVEYANCING COSTS. Costs are now based on importance of business. 44 & 45 Viet, c. 44, s. 8. a more liberal scale than that formerly allowed. The second schedule also regulates the remuneration for all business to which Schedule I. relates if the matter falls through and is not completed. The order came into operation on the 1st January, 1883, and, as will be gathered from the above brief statement, solicitors are now, for most conveyancing business, paid for their services on a sensible principle, namely, according to the importance of the transaction and the consequent degree of responsibility it involves . It is provided by s. 8 of the Remuneration Act, 1881, that a solicitor may, either before, after, or in the course of the transaction of any business, enter into a written agreement with his client (signed by the party to be bound thereby), whereby he may be remunerated by a gross sum, commission or percentage, or a salary or otherwise, and the effect of this agreement will be to prevent the remuneration allowed by the order being applicable; but in other cases the order applies and regulates the remuneration for all kinds of conveyancing business. The order is as follows : — General Order made in pursuance of the Solicitors ’ Remu- neration Act, 1881 (44 & 45 Viet. c. 44). We, The Right Honourable Roundell Baron Selborne, Lord High Chancellor of Great Britain, The Right Honourable J ohn Duke Lord Coleridge, Lord Chief Justice of England, The Right Honourable Sir George Jessel, Master of the Rolls, and Enoch Harvey, Esquire, President of the Incorporated Law Society of Liverpool (being four of the persons in that behalf authorized by the Statute 44th and 45th Victoria, chapter 44), do hereby, in pursuance and execution of the powers given to us by the said statute, and of all other powers and authorities! enabling us in that behalf, order and direct in manner following: — 1. This order is to take effect from and after the 31st day of December, 1882, except that schedule I. hereto shall not solicitors’ remuneration. apply to transactions respecting real property, the title to which has been registered under the acts of 25 & 26 Viet. o. 53; 25 & 26 Viet. c. 67; and 38 & 39 Viet, c. 87. 2. Subject to the exception aforesaid, the remuneration of a solicitor in respect of business connected with sales, purchases, leases, mortgages, settlements, and other matters of conveyanc- ing, and in respect of other business, not being business in any action, or transacted in any court, or in the chambers of any judge or master, is to be regulated as follows, namely: (a) In respect of leases, and agreements for leases, the remuneration of the solicitor having the conduct of the business, whether for the vendor, purchaser, mortgagor, or mortgagee, is to be that prescribed in Part I. of schedule I. to this order, and to be subject to the regulations therein contained. (b) In respect of leases, and agreements for leases, of the kinds mentioned in Part II. of schedule I. to this order, or conveyances reserving rent, or agreements for the same, when the transactions shall have been completed, the remuneration of the solicitor having the conduct of the business is to be that prescribed in Part II. of such schedule I. (c) In respect of business not hereinbefore provided for con- nected with any transaction the remuneration for which, if completed, is hereinbefore, or in schedule I. hereto, prescribed, but which is not, in fact, com- pleted, and in respect of settlements, mining leases or licences, or agreements therefor, re-conveyances, transfers of mortgage, or further charges, not pro- vided for hereinbefore or in schedule I. hereto, as- signments of leases not by way of purchase or mortgage, and in respect of all other deeds or docu- ments, and of all other business the remuneration for which is not hereinbefore, or in schedule I. hereto, prescribed, the remuneration is to be regulated ac- 540 BK. I.j PT. VIII. — CONVEYANCING COSTS. cording to the present system as altered by schedule II. hereto. 3. Drafts and copies made in the course of business the remuneration for which is provided for by this order are to be the property of the client. 4. The remuneration prescribed by schedule I. to this order is not to include stamps, counsel’s fees, auctioneer’s or valuer’s charges, travelling or hotel expenses, fees paid on searches to public officers, on registrations, or to stewards of manors, cost of extracts from any register, record, or roll, or other disbursement reasonably and properly paid, nor any extra work occasioned by changes occurring in the course of any business, such as the death or insolvency of a party to the transaction, nor is it to include any business of a contentious character, nor any proceedings in any court, but it shall include law stationer’s charges (5), and allowances for time of the solicitor and his clerks, and for copying and parchment, and all other similar disbursements. 5. In respect of any business which is required to be, and is, b} r special exertion, carried through in an exceptionally short space of time, a solicitor may be allowed a proper additional remuneration for the special exertion, according to the circum- stances . 6. In all cases to which the scales prescribed in schedule I. hereto shall apply, a solicitor may, before undertaking any business (c), by writing under his hand, communicated to the client, elect that his remuneration shall be according to the present system as altered by schedule II. hereto; but if no such election shall be made, his remuneration shall be according to the scale prescribed by this order ( d ) . (6) See Re Read, (1894) 3 Cli. 238. (c) See Re Allen (1887), 34 Ch. D. 433 ; Hester v. Hester , ibid. 607; Re Metcalfe (1887), 57 L. J. Ch. 82; Re Stewart (1889), 41 Ch. D. 494. (' d ) A local authority or persons in a fiduciary position may assent to such election : In re Evans, (1905) 1 Ch. 290. solicitors’ remuneration. 7. A solicitor may accept from his client, and a client may give to his solicitor, security for the amount to become due to the solicitor for business to be transacted by him, and for in- terest on such amount, but so that interest is not to commence till the amount due is ascertained, either by agreement or tax- ation. A solicitor may charge interest at four per cent, per annum on his disbursements and costs, whether by scale or otherwise, from the expiration of one month from demand from the client. And in cases where the same are payable by an infant, or out of a fund not presently available, such demand may be made on the parent or guardian, or the trustee or other person liable. 8. In this order, and the schedules hereto, the following- words and expressions shall have the meaning ascribed to them in the 3rd sub-section of s. 1 of the Solicitors' Remuneration Act, 1881, viz.: — “Solicitor,” “Client,” “Person.” [Schedule I., Part I. 542 BK. I., PT. VIII. CONVEYANCING COSTS. SCHEDULE I., Part I. Scale of Charges on Sales, Purchases and Mortgages, and Rules applicable thereto. 1. Eor the 1st 1,000?. 2. For the 2nd and 3rd 1,000?. 3. For the 4th and each sub- sequent 1,000?. up to 10,000?. 4. For each sub- sequent 1,000?. up to 100,000?.* Vendor’s solicitor for negotiating a sale of Per 100?. Per 100?. Per 100?. Per 100?. property by private contract (e) Vendor’s solicitor for conducting a sale of property by public auction (/), including the conditions of sale — 20s. 20s. 10s. 5s. When the property is sold When the property is not sold, then on 20s. 10s. 5s. 2s. 6d. the reserved price [N.B. — A minimum charge of 51. to be made, whether a sale is effected or not.] Vendor’s solicitor for deducing title (y) to freehold, copyhold or leasehold property (A), and perusing and completing conveyance (including preparation of contract or condi- 10s. 5s. 2s. 6^. Is. 3d. tions of sale, if any) Purchaser’s solicitor for negotiating a purchase 30s. 20s. 10s. 5s. of property by private contract Purchaser’s solicitor for investigating title to freehold, copyhold or leasehold property, and preparing and completing conveyance (including perusal and completion of con- 20s. 20 s. 10s. 5s. tract, if any) (i) Mortgagor’s solicitor for deducing title to freehold, copyhold or leasehold property, 30s. 20s. 10s. os. perusing mortgage and completing- 30s. 20s. 10s. 5s. Mortgagee’s solicitor for negotiating loan (k). Mortgagee’s solicitor for investigating title to freehold, copyhold or leasehold property, 20s. 20s. 5s. 2s. 6d. and preparing and completing mortgage . . Vendor’s or mortgagor’s solicitor for procuring execution and acknowledgment of deed by a married woman 30s. 2/. 10s 20s. extra. 10s. * Every transaction exceeding 100,000?. to be charged for as if it were for 100,000?. (e) See Be MacGoivan, (1891) 1 Ch. 105; Be Withall, (1891) 3 Ch. 8; Be Bomain, (1903) 1 Ch. 702. (/) See Be Beck (1883), 24 Ch. D. 608; Be Wilson (1885), 29 Ch. D. 790; Drielsma v. Mani- fold, (1894) 3 Ch. 100; Cholditch v. Jones, (1896) 1 Ch. 42. (g) The delivery of an abstract of one document only is not a de- duction of title within the mean- ing of this schedule so as to entitle the solicitor delivering it to the scale fee. Be Webster and Jones' Contract, (1902) 2 Ch. 551. (Ji) See Be Earnshaw Wall, (1894) 3 Ch. 156. (i) See Ex parte Mayor of London (1887), 34 Ch. D. 452; Be Bomain, supra. (k) Be Weddall (1884), 29 Sol. Jour. 85; Be Eley (1887), 37 Ch. D. 40; Be Norris, (1902) 1 Ch. 741. 543 SCALE OF CHARGES FOR SALES, PURCHASES, ETC. RULES. 1. The commission for deducing title and perusing and com- pleting conveyance on a sale by auction is to be chargeable on each lot of property, except that where a property held under the same title is divided into lots for convenience of sale, and the same pur- chaser buys several such lots and takes one conveyance, and only one abstract is delivered, the commission is to be chargeable upon the aggregate prices of the lots. 2. The commission on an attempted sale by auction in lots is to be chargeable ion the aggregate of the reserved prices. When pro- perty offered for sale by auction is bought in and terms of sale are afterwards negotiated and arranged by the solicitor, he is to be entitled to charge commission according to the above scales on the reserved price where the property is not sold, and also one-half of tire commission for negotiating the sale . When property is bought in and afterwards offered by auction by the same solicitor, he is only to be entitled to the scale for the first attempted sale, and for each subsequent sale ineffectually attempted; he is to charge accord- ing to the present system as altered by Schedule II. hereto. In case of a subsequent effectual sale by auction, the full commission for an effectual sale is to be chargeable in addition, less one -half of the commission previously allowed on the first attempted sale. The provisions of this rule as to commission on sales or attempted sales by auction are subject to the provisions of the Order (?). 3. Where a solicitor is concerned for both mortgagor and mort- gagee, he is to be entitled to charge the mortgagee’s solicitor’s charges, and one -half of those which would be allowed to the mort- gagor’s solicitor up to 5,000?. and on any excess above 5,000?., one -fourth thereof. 4. If a solicitor peruses a draft on behalf of several parties having distinct interests proper to be separately represented, he is to be entitled to charge 21. additional for each such party after the first. MU 5. Where a party other than the vendor or mortgagor joins in a conveyance or mortgage, and is represented by a separate solicitor, the charges of such separate solicitor are to be dealt with under the old system as altered by Schedule II. hereto. 6. Where a conveyance and mortgage of the same property are completed at the same time, and are prepared by the same solicitor, he is to be entitled to charge only half the above fees for investi- gating title, and preparing the mortgage deed, up to 5,000?., and, on any excess above 5,000?., one-fourth thereof, in addition to his full charges upon the purchase -money and his commission for negotiating (if any). 7. Fractions of 100?., under 50?., are to be reckoned as 50?. Fractions of 100?., above 50?., are to be reckoned as 100?. (?) See Re Beck (1883), 24 Pinsent & Co. (1890), 44 Oh. D. Ch. D. 608 ; Ward v. Holmes 303. (1886), 32 Ch. D. 209; Re Smith, Sales in separate lots. Attempted sales — Sale after previous abortive auctions. Solicitor acting for both mort- gagor and mortgagee. Perusal of drafts for several persons. Solicitor acting for person joining in convey- ance, «fec. Conveyance and mortgage prepared by same solicitor. How fractions of 100?. to be charged. 544 Remunera- tion iu small cases. Sale subject to incum- brances. Transfers of mortgages — F urther charges. Commission for conduct- ing sales, &c Charges allowed where no commission charged for negotiating- sales, &c. BK. I., PT. VIII. — CONVEYANCING COSTS. 8. Where the prescribed remuneration would, but for this pro- vision, amount to less than 51. the prescribed remuneration shall be 51., except on transactions under 100/., in which cases the remu- neration of the solicitor for the vendor, purchaser, mortgagor, or mortgagee, is to be 3/. (m). 9. Where a property is sold subject to incumbrances, the amount of the incumbrances is to be deemed a part of the purchase-money, except where the mortgagee purchases, in which case the charge of his solicitor shall be calculated upon the price of the equity of redemption. 10. The above scale as to mortgages is to apply to transfers of mortgages where the title is investigated, but not to transfers where the title was investigated by the same solicitor on the original mortgage or on any previous transfer; and it is not to apply to further charges where the title has been so previously investigated. As to such transfers and further charges the re- muneration is to be regulated according to the old system as altered by Schedule II. hereto. But the scale for negotiating the loan shall be chargeable on such transfers and further charges where it is applicable. 1 1 . The scale for conducting a sale by auction shall apply only in cases where no commission is paid by the client to an auctioneer. The scale for negotiating shall apply to cases where the solicitor of a vendor or purchaser arranges the sale or purchase and the price, and the terms and conditions thereof, and no commission is paid by the client to an auctioneer, or estate or other agent. As to a mort- gagee’s solicitor, it shall only apply to cases where he arranges and obtains the loan from a person for whom he acts. In case of sales under the Lands Clauses Consolidation Act, or any other private or public act under which the vendor’s charges are paid by the pur- chaser, the scale shall not apply (n). 12. In cases where, under the previous portion of this schedule, a solicitor would be entitled to charge a commission for negotiating a sale or mortgage, or for conducting a sale by auction, and he shall not charge such commission, then he shall be entitled to charge the rates allowed by the first column on all transactions up to 2,000/., and to charge in addition those allowed by the second column on all amounts above 2,000/. and not exceeding 5,000/., and further to charge those allowed by the third column on all amounts above 5,000/. and not exceeding 50,000/., instead of the rates allowed up to the amounts mentioned in those columns respectively. (m) See Re Thomas, Evans v. Griffiths, (1900) 1 Ch. 454. (n) See Re Beck (1883), 24 Ch. D. 608; Re Wilson (1885), 29 Ch. T). 790; Re Merchant Taylors' Co. (1885), 30 Ch. D. 28; Burd v. Burd (1889), 40 Ch. D. 608; Re MacGowan, (1891) 1 Ch. 105; Re Withall, (1891) 3 Ch. 8 ; Drielsma v. Manifold, (1894) 3 Ch. 100; Re Bur dekin, (1895) 2 Ch. 136 ; Cholditch v. Jones, (1896) 1 Ch. 42. 545 SCALE OF CHARGES FOR LEASES, ETC. SCHEDULE I., Part II. Scale of Charges as to leases, or agreements for leases (o') at rack rent (other than a mining lease or a lease for building purposes, or agreement for the same). Lessor’s solicitor for preparing-, settling, and completing lease and counterpart: — Where the rent does not exceed 100? Where the rent exceeds 100?. and does not ex- ceed 500? Where the rent exceeds 500? Lessee’s solicitor for perus- ing draft and completing . \ 71. 10s. per cent, on the rental, but \ not less in any case than 5?. ( 71. 10s. in respect of the first 100?. < of rent, and 21. 10s. in respect of I each subsequent 100?. of rent. , 71. 10s. in respect of the first 100?. V of rent, 21. 10s. in respect of each 100?. of rent up to 500?., and 1?. I in respect of every subsequent { 1001. One -half of the amount payable to the lessor’s solicitor. Scale of Charges as to conveyances in fee or for any other freehold estate , reserving rent, or building leases, reserving rent, or other long leases not at rack rent (except mining leases), and agreements for the same respectively : — Vendor’s or lessor’s solicitor for preparing, settling, and complet- ing conveyance and duplicate or lease and counterpart: — Amount of Annual Rent. Amount of Remuneration. Where it does not exceed. . hi. Where it exceeds hi. and ) dues not exceed ) Where it exceeds 51 1. but I , does not exceed ) 0 Where it exceeds 150/. hi. ( The same payment as on a rent of hi., and \ also 20 per cent, on the excess beyond hi. I The same payment as on a rent of -50/., and i 10 per cent, on the excess beyond 50/. ( The same payment as on a rent of 150/., and \ 5 per cent, on the excess beyond 150/. Where a varying rent is payable, the amount of annual rent is to mean the largest amount of annual rent. Purchaser’s or lessee’s soli- citor for perusing draft and completing ( One-half of the amount payable to l the vendor’s or lessor’s solicitor. (o) See Re Emanuel and Sim- McGarel, (1897) 1 Ch. 400; Re monds (1886), 33 Ch. D. 40; Re Gray, (1901) 1 Ch. 239. Negus, (1895) 1 Ch. 73 ; Re G. — C. N N 546 BK. I., PT. VIII. CONVEYANCING COSTS. Charges for abstract of title. Solicitor engaged for both parties. Mortgagor or mortgagee joining in con- veyance. &c. A third person joining in con- veyance, &c. Consideration consisting partly of rent and partly of payment down. Fractions of 51 . RULES APPLICABLE TO PART II. OF SCHEDULE I. As to all Leases or Conveyances at a Rent or Agreements for the same, other than Mining Leases and Agreements therefor. 1. Where the vendor or lessor furnishes an abstract of title, it is to be charged for according to the old system as altered by Schedule II. 2. Where a solicitor is concerned for both vendor and purchaser, or lessor and lessee, he is to charge the vendor’s or lessor’s soli- citor’s charges, and one-half of that of the purchaser’s or lessee’s solicitor. 3. Where a mortgagee or mortgagor joins in a conveyance or lease, the vendor’s or lessor’s solicitor is to charge 11. 1$. extra. 4. Where a party other than a vendor or lessor joins in a con- veyance or lease, and is represented by a separate solicitor, the charges of such separate solicitor are to be dealt with under the old system as altered by Schedule II. 5. Where a conveyance or lease is partly in consideration of a money payment or premium, and partly of a rent, then, in addition to the remuneration hereby prescribed in respect of the rent, there shall be paid a further sum equal to the remuneration on a pur- chase at a price equal to such money payment or premium (p). 6. Fractions of 51. are to be reckoned as 51. SCHEDULE II. Instructions for and Drawing and Perusing Deeds, Wills, AND OTHER DOCUMENTS. Such fees for instructions as, having regard to the care and labour required, the number and lengths of the papers to be perused, and the other circumstances of the case, may be fair and reasonable. In ordinary cases, as to drawing, &c., the allowance shall be: — For drawing 2s. per folio. For engrossing 8 d. ,, ,, For fair copying 4 d. ,, ,, For perusing Is. ,, ,, Attendances. s. d. In ordinary cases 10 0 In extraordinary cases the taxing master may increase or diminish the above charge if for any special reasons he shall think fit ( pp. 630, 631. WHO MAY APPLY FOR REGISTRATION OF FREEHOLDS. 565 (5.) Any two or more persons entitled for their own benefit concurrently or successively, or partly in one mode and partly in another (Z); and (6.) A “ tenant for life’ under the Settled Land Acts has the option either to have the settled land registered in his own name, or, where there are trustees with powers of sale, in the names of those trustees, or, where there is ,an (Overriding power of appointment of the fee simple, in the names of the persons in whom that power is vested. The beneficiaries must be protected by the registration of “restrictions” regulating dealings with the land and the disposal of the pur- chase-moneys on any sale. If the trustees of the settlement do not do this, the registrar must (m ) . In any of these cases the applicant may apply to be himself registered, or to have registered in his stead any nominee or nominees as proprietor or proprietors of such freehold land (n). How to apply for Registration of Freeholds. A person who has bought a piece of land in fee simple and desires to have his title registered may be registered with either an absolute or possessory title; but if the vendor has not yet executed the conveyance his consent to the registration must be obtained (o). (a) With Absolute Title. A person desiring to. register his land with an absolute title must proceed as follows: — He must deliver at the registry either: — (i) a written application to the effect of Form 1, or, (ii) if the registrar thinks fit, the draft entries for the register, approved by the applicant or his solicitor (p ) . (l) Ibid. s. 69 ; Act of 1897, (n) Act of 1875, s. 5, as s. 14, and rule 77. amended by act of 1897, s. 14. (m) Act of 1897, s. 6, and rules (o) Act of 1875, s. 5. 78 to 82. (p) Rule 18 of 1908. Joint owners. Tenants for life. Nominees. Method of application for registra- tion. Procedure on application for registra- tion with absolute title. 566 BK. II. REGISTRATION OF TITLE. The form is as follows: — Land Registry. Land Transfer Acts, 1875 and 1897. I, A. B., of &c., hereby apply for registration as proprietor, with absolute (or possessory) title, of the freehold property in the parish of in the county of described in the accompanying conveyance (or other instrument , as the ease may be) dated the of , made between C. D. of the one part and myself (or E. F. of, &c.) of the other part (or shown and edged with red on the accompanying plan, or other particulars sufficient to enable the property to be fully identified on the ordnance map or land registry general map), and I declare as follows: — 1. (Where the applicant is a purchaser on sale.) I purchased the property from the said C. D. on the of , and paid the whole of the purchase money of £ to him (or otherwise as the case may be), G. H., of , solicitor, acting as my solicitor in the matter. or ( when the applicant is not a purchaser on sale) I have been in possession (or receipt of the rents and profits) of the property for upwards of years. 2. I am entitled for my own benefit to the fee simple in the property (or otherwise as the case may be) and am not aware of any contract or agreement for sale, or of any mortgage, charge, lien, lease, agreement for lease, restrictive covenant, or other in- cumbrance (if so, except as stated in the said conveyance or in the schedule hereto) affecting the property or any part thereof. 3. I am not aware of any question or doubt affecting the title to the property or any part thereof, or of any matter or thing whereby the title is or may be impeached, affected, or called in question in any manner whatsoever. 4. The deeds and documents mentioned in the accompanying list signed by me and dated, &c., are all the deeds and documents relating to the title which I have in my possession or under my control, including opinions of counsel, abstracts, contracts, and conditions of sale, requisitions, replies, and other like documents in regard to the title. Note. — The application may be signed by the applicant or (except where a nominee is to be registered) by his solicitor. The declaration may be signed by the applicant or his solicitor, or in part by the applicant, and in part by his solicitor, the necessary alterations in either case being made in the form. The Schedule, if necessary , (to contain short particulars of the contracts, incumbrances, leases , do., if any, referred to in the declaration.) HOW TO APPLY FOR REGISTRATION OF FREEHOLDS. 567 Tlio application must (unless the registrar otherwise directs) be accompanied by — (i) all such original deeds and documents relating to the title as the applicant has in his possession or under his control, including opinions of counsel, abstracts of title, contracts for or conditions of sale, requisi- tions, replies and other like documents, in regard to the title, and (ii) a copy or sufficient abstract of the latest document of title, not being a document of record, and (iii) sufficient particulars, by plan or otherwise, to enable the land to be fully identified on the ordnance map or land registry general map, and a list in duplicate of all documents delivered at the registry must be left with them (q ) . If the applicant for registration desires to annex conditions to the land under the provisions of s. 84 of the act of 1875, as amended by the act of 1897, such conditions must be stated in or delivered with the application (r) . When the application is for registration in the name of a nominee, or is made by a purchaser, the consent in writing of the nominee, or of the vendor or his solicitor, must be delivered with the applica- tion (s). Where any land comprised in an application for registration is below high-water mark at ordinary spring tides, the fact must be stated in the application, and such notices (if any) as may be required by s. 66 of the act of 1875 must be served through the registry ( t ). The registry fees, according to the ad valorem scale, pre- scribed by the Fee Order dated the 9th November, 1908 (it), must be j:>aid in land registry fee stamps at the time of making the application, or such deposit on account made as the registrar may require. Applications delivered at the registry are entered in a book in the order in which they are delivered, and numbered accord- ingly O). (q) Rule 19 of 1908. (^) Tlie fee order is given be- (r) Rule 20 of 1908. low, p. 659. (s) Rule 21 of 1908. (cc) Rule 23 of 1908. (0 Rule 22 of 1908. Title deeds and abstract to be deli- vered. Additional requirements in special cases. Registry fees. Entry of application. 568 BK. II. REGISTRATION OF TITLE. Examination of title. Where exami- nation of title dispensed with. Advei’tise- ment of application. Tho title shown by the documents accompanying the appli- cation will then be examined by or under the superintendence of the registrar in accordance with the usual conveyancing practice, and he may make such searches and further inquiries and give such notices to tenants and occupiers and other persons as he may deem expedient (?/). The whole or any portion of the examination of the title may be referred by the registrar, if he thinks fit, for the opinion of one of the examiners of title mentioned in rule 313, and the registrar may act on such opinion (z ) . All searches and inquiries which the registrar may consider necessary in the examination of, or in relation to, the title will be made by such person and in such manner as the registrar directs (a). The registrar has power to order produc- tion of deeds not in the applicant’s possession (6); and doubtful questions arising in the course of the examination of the title may be referred to the court (c). Where either (1) the land has been sold or purchased under an order of the court, or (2) has been registered with possessory or qualified title for six years, the first proprietor having been a purchaser on sale, or (3) it appears to the registrar that the title has been sufficiently investigated on a transaction for value, the examination of the title may be modified in such manner as the registrar may think fit (d ) . Generally, before any registration is completed with abso- lute title, an advertisement must be inserted in the London Gazette and in such local or other newspaper or newspapers and in such manner as may be fixed by the registrar in each case(e). The advertisement must give the name and address of the person to be registered, the short description of the land, and the situation thereof, and require objections (if any) to be made before the expiration of a stated period not less than one month from the appearance of the advertisement in the London Gazette (/) . If, hoAvever, the land be situate in a district in which registration of title is compulsory on sale, and the appli- (?/) Rule 24 of 1908. (» Rule 25 of 1908. (a) Rule 26 of 1908. (5) See act of 1875, ss. 71 and 109, infra, p. 632. (c) See act of 1875, ss. 74 to 77, infra, p. 633; and see rule 337. (d) Rule 27 of 1908. (e) Rule 28 of 1908. if) Rule 29 of 1908. HOW TO APPLY FOR REGISTRATION OF FREEHOLDS. 569 cant is a purchaser on a sale completed within the year pre- ceding the application, an advertisement need not, unless the registrar thinks it necessary or advisable, be issued: — (a) where the land is subject to the jurisdiction of the Middlesex or Yorkshire Registries of deeds, and the title does not depend on proof of pedigree. (b) where, within two years before the date of the appli- cation, the land has been offered for sale by public auction and has been sold at or after such auction. (c) where the value of the land does not exceed 500 1. (d) where the land is identical with or included in the land described in and conveyed by a title deed dated more tjian twelve years before the application, and dealt with by the subsequent documents of title (if any), and the registrar is satisfied that possession, or re- ceipt of the rents and profits, has been continuously enjoyed in accordance with the title from the date of such title deed, and the subsequent title does not depend on proof of pedigree (g ) . Any person may, by notice in writing, signed by himself Right of any or his solicitor and delivered at the registry before the com- object to pletion of the registration, object to the registration. The registration, notice must state concisely the grounds of the objection and give an address in England or Wales of the person objecting, to which all notices and other communications for him may be sent through the post (4). The registrar must thereupon give notice to the applicant of the objection, and the title must not be registered until the objection has been withdrawn or otherwise disposed of. The applicant may obtain an ap- pointment before the registrar for the hearing of any objec- tion, and the objector must have at least seven clear days’ notice of such appointment ( i ) . The registrar hears and de- termines the objection, subject to appeal to the court. If the objector does not appear at the time appointed, his objection ( g ) Rule 30 of 1908, par. (d), is applicable on the registration of only applicable to freehold land; leaseholds in par (e). there is an equivalent provision ( h ) Rule 31 of 1908. (i) Rule 32 of 1908. 570 BK. II. REGISTRATION OF TITLE. Completion of the registra- tion. must be treated as withdrawn unless the registrar allows another appointment to be made. At the hearing of the objec- tion any party may be heard in person or by his counsel or solicitor (Jc ) . Where any person objecting to registration de- sires to have any entry for his protection made in the register, he must proceed in the same manner as is directed with respect to applications made under rule 215, unless the applicant for registration consents to the entry being made (Z). No registration with absolute title can be made until and unless the registrar approves of the title (m ) ; and in all cases the entries for the register and the plan must be drawn or settled by the registrar, and, unless he thinks it unnecessary, approved by the applicant or his solicitor (n). Further, where the estate of the first registered proprietor is or may be subject to a restraint on alienation, the registrar must enter a restric- tion protecting any such restraint in such manner and form as he thinks fit (o) . If the registrar is of opinion that an absolute title may be registered at the expiration of a certain period or on the occurrence of a particular event, he may (un- less the applicant upon notice objects) enter a note of the fact, and, on the expiration of that period, or on proof to his satis- faction of the occurrence of the event, he may, if he think fit, register the title as absolute accordingly. In the meantime the title must be registered in the then proper manner (p) . Incumbrances, conditions, and other burdens (including fee farm grants, or other grants reserving rents or services) to which the land may be subject, must be entered in the register in accordance with the title produced; and may be entered either directly, or by reference to the instruments by which they are created, or by setting out extracts therefrom (q). When all objections (if any) have been disposed of, and the time fixed by the advertisements, and notices (if any), has (k) Buie 33 of 1908. (Z) Rule 34 of 1908. (m) Rule 35 of 1908. (n) Rule 40 of 1908. (o) Rule 41 of 1908. (p) Rule 42 of 1908. ( q ) Rule 43 of 1908. The regis- trar may require a statutory de- claration that all instruments and facts affecting the title have been disclosed. See s. 70 of the act of 1875 and rule 44 of 1908. There is no stamp duty on this statutory declaration. See rule 327. HOW TO APPLY FOR REGISTRATION OF FREEHOLDS. 571 expired, and it has been determined with what title the regis- tration is to be made, and the requirements of ss. 70 and 72 of the act of 1875 have been complied with, the registration will be completed as of the day on which and of the priority in which the application was delivered, and the documents of title, other than such as have under the rules to be retained in the registry, will be delivered to the applicant. The land certificate will thereupon be prepared, and will either be de- livered to the proprietor, or be deposited in the registry, as the proprietor may prefer (r) . Where the land included in any application for registration is subject to the jurisdiction of the Middlesex or Yorkshire registries of deeds, the registration is deemed, for the pur- pose of removing the land from that jurisdiction, to have taken place at the beginning of the day on which the application is delivered at the land registry, and prior to any registration on that day of a memorial in the local deed registry (s) . The first registration of any person as proprietor of freehold land with an absolute title will vest in the person so registered an estate in fee simple in such land, together with all rights, privileges, and appurtenances belonging or appurtenant thereto, subject as follows: — (1.) to the incumbrances, if any, entered on the register; and (2.) unless the contrary is expressed on the register, to such liabilities, rights, and interests, if any, as are by the acts declared not to be incumbrances (£); and (3.) where such first proprietor is not entitled for his own benefit to the land registered as between himself and any persons claiming under him, to any unregistered estates, rights, interests, or equities to which such persons may be entitled, but free from all other estates and interests whatsoever, including estates of the crown (u ) . ( r ) Rule 47 of 1908. (t) See as to these s. 18 of the (s) Rule 48 of 1908. act of 1875. (u) s. 7 of the act of 1875. Registration of land in Middlesex or Yorkshire. Effect of registration with absolute title. 572 BK. II. REGISTRATION OF TITLE. Procedure on application for registra- tion with pos- sessory title. Power of registrar to offer absolute title in lieu of possessory. Eifect of registration with posses- sory title. (b) With Possessory Title. A person requiring to be registered with possessory title must proceed in exactly the same way as if he were applying to be registered with absolute title (a?). Having left the documents specified above at the registry, where the documents afford primd facie evidence of the applicant’s right to apply for regis- tration as first proprietor, the registration must be completed with possessory title accordingly (y) . Where the applicant has no documents of title in his possession or under his control a statutory declaration by the applicant in Form 4 in the first schedule to the rules may, if the registrar be satisfied on inquiry or otherwise that the applicant is in possession or receipt of the rents and profits of the land, be taken as primd facie evi- dence of his right to apply for registration as first proprietor ( 2 ) . It will be observed that no examination of the title is necessary before registration Avith possessory title; if, however, on an application for registration with a possessory title, the registrar observes that the documents produced are sufficient to enable registration to be made with absolute title, he may, after com- pleting the registration with possessory title, inform the appli- cant that he proposes (subject to such conditions, if any, as may be required) to convert the title into an absolute title, and may, if the applicant does not object , convert the title into absolute accordingly (a). If the applicant objects, of course nothing further is done, but if he does not make any objection the matter proceeds in manner described above as if this appli- cation had been for registration with absolute title (5). The registration of any person as first registered proprietor of freehold land with a possessory title only does not affect or prejudice the enforcement of any estate, right, or interest (a?) See rules 18 to 23 of 1908 inclusive, ante, p. 565. (y) Eule 37 of 1908. ( 2 ) Eule 38 of 1908. Generally he must also produce the title deeds to be marked so as to give notice to a purchaser or other person dealing with the land of the fact of the registration. See s. 72 of the act of 1875 as amended by schedule I. of the act of 1897, and see rules 45 and 46 of 1908. (a) Eule 39 of 1908. (5) See rules 24 to 35 and 40 to 47, ante, pp. 568 et seq. HOW TO APPLY FOR REGISTRATION OF FREEHOLDS. 573 adverse to or in derogation of the title of such first registered proprietor, and subsisting or capable of arising at the time of registration of such proprietor; but, save as aforesaid, has the same effect as registration of a person with an absolute title (c) . (c) Qualified Title. It may happen that upon the examination of the title it appears to the registrar that the title can be established only for a limited period, or subject to certain reservations; in this event the registrar may, on the application of the party applying to be registered, by an entry made in the register, except from the effect of registration any estate, right, or interest arising before a specified date, or arising under a specified instrument or otherwise particularly described in the register, and a title registered subject to such excepted estate, right, or interest is called a qualified title. The registration of a person as first registered proprietor of land with a qualified title has the same effect as the registration of such person with an absolute title, save that registration with a qualified title will not affect or prejudice the enforcement of any estate, right, or interest appearing by the register to be excepted (d ) . If it appears to the registrar upon the examination of the title that a qualified title only ought to be entered on the register, and the applicant on being informed thereof requests in writing that such qualified title be entered, the registrar will frame the proper entries for the register, and will obtain the applicant’s approval of them, and register the qualified title accordingly, whether the application was for registration with absolute or with possessory title (e). Evidence of Registration of Freeholds. On the entry of the name of the first registered proprietor of freehold land on the register, the registrar must, if required, (c) s. 8 of the act of 1875. (d) s. 9 of the act of 1875. (e) Rule 36 of 1908. Cases in which applicant can he registered with qualified title. Completion of registration with qualified title. Land certifi- cates. 574 BK. II. REGISTRATION OF TITLE. Kinds of leases capable of registra- tion. Lease subject to prohibition against alienation. Sub-lease, &c. deliver to him a certificate, called a land certificate, which must state whether the title of the proprietor therein mentioned is absolute, qualified, or possessory (/) . This is a very im- portant document, and must be produced to the registrar on every entry in the register of a disposition by the registered proprietor of the land to which it relates (g). What Leaseholds may be Registered. A separate register is kept for the registration of leaseholds, and the only kind of leasehold land which can be placed on the register is that held under (1) A lease for life or lives, or determinable on a life or lives; or (2) A lease for a term of years, of which more than twenty - one are unexpired, whether subject or not to encumbrances (h ). Leasehold land held under a lease containing an absolute prohibition against alienation cannot be registered; and lease- hold land held under a lease containing a prohibition against alienation, without the licence of some other person, cannot be registered until and unless provision is made in the prescribed manner for preventing alienation without such licence by entry on the register of a restriction to that effect or otherwise (7). A sub-lease is, and a term created for mortgage purposes is not, to be deemed a lease within the meaning of this sec- tion (1c ) . A lease and a reversionary lease thereon belonging to the same person are deemed to create one continuous term for the purpose of this section (?) . (/) s. 10 of the act of 1875; and see rule 47 of 1908; and infra , pp. 634 et seq. (g) s. 8 (1) of the act of 1897. (h) s. 11 of the act of 1875. (i) Ibid.; see also rule 62, infra, p. 578. (k) Schedule I. of the act of 1897. {1) Rule 66. HOW TO APPLY FOR REGISTRATION OF A LEASE. 575 Who may apply for Registration of Leaseholds. Any of the following persons; that is to say: — Beneficial (1) any person who has contracted to buy for his own benefit leasehold land held under a lease of the kind above mentioned; and (2) any person entitled for his own benefit, at law or in equity, to leasehold land held under any such lease; and (3) any person capable of disposing for his own benefit by way of sale of leasehold land held under any such lease; may apply to the registrar to be registered, or to have regis- tered in his stead any nominee or nominees as proprietor or proprietors of such leasehold land. Provided that in the case of land contracted to be bought, the vendor consents to the application (m). How to apply for Registration of a Lease. An application for registration of leasehold land is made Procedure, in the same manner as has been described above in the case of freehold land(w). The lease itself, if in the possession or under the control of the applicant, and in all other cases a copy or extract, or other sufficient evidence of its contents, must be delivered with the application (o). Application may be made for the registration of leasehold land with absolute title, with good leasehold title, or with possessory title (p). (a) With Absolute Title. No person can be registered as proprietor of leasehold land Evidence of with absolute title until and unless the title both to the lease- t ^ ree " hold and to the freehold , and to any intermediate leasehold that required, may exist, is approved by the registrar (g). (m) s. 11 of the act of 1875. As to application for registration by trustees and others having a power of sale, joint owners, and persons interested in settled land. see ante, p. 564, and infra, pp. 630, 631. {n) See rules 18 to 48 of 1908. (o) Rule 51. (p) Rule 52. (q) Rule 53 of 1908. 576 BK. II. — REGISTRATION OF TITLE. Effect of The registration of any person as first registered proprietor of leasehold °f leasehold land with an absolute title is deemed to vest in such title absolute person the possession of the land comprised in the registered lease relating to such land for all the leasehold estate therein described, with all implied or express rights, privileges, and appurtenances attached to such estate, but subject as follows: — (1) to all implied and express covenants, obligations, and liabilities incident to such leasehold estate; (2) to the incumbrances (if any) entered on the register; (3) unless the contrary is expressed on the register, to such liabilities, rights, and interests as affect the leasehold estate and are by the act declared not to be incum- brances in the case of registered freehold land (r) ; and (4) where such first proprietor is not entitled for his own benefit to the land registered as between himself and any persons claiming under him, to any unregistered estates, rights, interests, or equities to which such persons may be entitled, but free from all other estates and interests whatsoever, in- cluding estates of the crown (s) . When good leasehold title regis- tered. (b) With Good Leasehold Title. It is practically impossible in most cases for the ordinary occupation lessee to show the title to the freehold owing to the provisions of s. 2 of the Vendor and Purchaser Act, 1874, and this has led to the introduction of a new species of title to leasehold property — a good leasehold title — which is inter- mediate between an absolute and a possessory title. No per- son can be registered as proprietor of leasehold land with good leasehold title until and unless the title to the leasehold in- terest is approved by the registrar ( t ) . The procedure on applications for absolute title apply with the necessary modi- fications to applications for good leasehold title also (u). (/•) See s. 18 of the act of 1875, modified by rule 55. infra , pp. 579, 580. ( t ) Rule 53 of 1908. (s) s. 13 of the act of 1875, as ( u ) Rule 54. HOW TO APPLY FOR REGISTRATION OF A LEASE. 577 Where the original lessee is registered as first proprietor, the title may be entered as a good leasehold title on his satisfying the registrar that he has not encumbered or dealt with the land in any way except as disclosed, and no advertisement is necessary (x). The registration of a person as first proprietor of leasehold land with a good leasehold title will not affect or prejudice the enforcement of any estate, right or interest affecting or in derogation of the title of the lessor to grant the lease, but save as aforesaid has the same effect as registration with an absolute title (x). (c) With Possessory Title. The registration of a person as first proprietor of leasehold land with a possessory title will not affect or prejudice the enforcement of any estate, right, or interest (whether in respect of the lessor’s title or otherwise) adverse to or in derogation of the title of such first registered proprietor, and subsisting or capable of arising at the time of the registration of such pro- prietor; but, save as aforesaid, has the same effect as registra- tion with an absolute title (ij ) . (d) Qualified Title. Where on examination it appears to the registrar that the title, either of the lessor to the reversion, or of the lessee to the lease, can be established only for a limited period, or subject to certain reservations, the registrar may, upon the request in writing of the person applying to be registered, by an entry made in the register, except from the effect of registration any estate, right, or interest arising before a specified date, or arising under a specified instrument, or otherwise particularly described in the register, and a title registered subject to any such exception is called a qualified title (z). The registration of a person as first proprietor of leasehold land with a qualified title will not affect or prejudice the en- forcement of any estate, right, or interest appearing by the ( x ) Rule 56. G. — C. (z) Rule 58 of 1908. Effect of registration with good leasehold title. Effect of registration of leasehold with posses- sory title. When quali- fied title registered. Effect of registration with qualified title. ( y ) Rule 57. P P 578 BK. II. REGISTRATION OF TITLE. register to be excepted, but saving this has the same effect as registration with an absolute title (a). (e) Generally. Sub-leases. Several leases. Lease held subject to covenant against assignment. Notice to be given to freeholder. Lease already subsisting. Where any intermediate leasehold estate exists between the freehold reversion and the leasehold estate which is the subject of registration, the words “lessor” and “lease” must be read as including, and also applying to, a sub-lessor and a sub- lease (5). Where several leases are vested in the same proprietor, they may, on his application in writing, and with the approval of the registrar, be registered under one number, or may be grouped under various numbers as may be considered most convenient for the purpose of saving expense and facilitating future trans- actions (c). On the registration of any leasehold land held under a lease containing a prohibition against alienation without licence, all estates, rights, interests, powers, and remedies under such lease, arising upon, or by reason of, any alienation without licence must be expressly excepted from the effect of registration (d) . Where a lease affecting land already registered is registered, notice of the registration must be given to the registered pro- prietor of the freehold land or of the superior lease out of which the lease is granted, as the case may be; and if no valid objection be made within fourteen days after servioe of the notice, or if the registered proprietor of the freehold or of the superior lease consents in writing (by himself or his solicitor) to the application, the lease will be noted against the title to the freehold or to the superior lease in the same manner as notices of leases have to be entered under ss. 50 and 51 of the act of 1875, and the rules (e). Where, on the registration of freehold or leasehold land, it appears that there is a lease or sub-lease, as the case may be, already registered affecting the same land, a reference to such (а) Rule 59. (б) Rule 60. (c) Rule 61. (d) Rule 62. (e) Rule 63. EVIDENCE OF REGISTRATION OF A LEASE. 579 lease or sub-lease must, if the registrar so direct, be entered in the charges register (/) . Provision is made by the rules for closing the leasehold title on determination of the lease (g). Evidence of Registration of a Lease. On the entry of the name of the first registered proprietor of leasehold land on the register, the registrar must deliver to him a land certificate in the prescribed form; which must state whether the title of the proprietor is absolute, good leasehold, qualified, or possessory (h). The same remarks apply to this as in the case of freeholds (■ i ) . Provisions relating to both Freehold and Leasehold Land. If in the course of the examination of a title objection is made to the registration, the registrar has jurisdiction to hear and determine any such objection (fc), subject to an appeal to the court in the manner and on the conditions prescribed by the rules (l). If the registrar, upon the examination of any title, is of opinion that the title is open to objection, but is nevertheless a title the holding under which will not be dis- turbed, he may approve of such title, or may require the appli- cant to apply to the court, upon a statement signed by the registrar, for its sanction to the registration; and the regis- trar may accept as evidence recitals, statements, and descrip- tions of facts, matters, and parties in deeds, instruments, or statutory declarations not less than twenty years old (m). Liability of Registered Land to Easements, &c. It is provided by s. 18 of the act of 1875 as amended by schedule I. of the act of 1897 that all registered land is. unless (/) Rule 64. (g) See rules 218, 220, 221 and 222 . ( (h ) See s. 10 of the act of 1875, s. 8 of the act of 1897, and rule 65. P (i) See as to land certificates generally, infra, pp. 634 et seq. ( h ) See also rule 337. ( l ) See rules 296 to 312, inclu- sive. (m) s. 17 of the act of 1875. Closing lease hold title. Land certifi cates. Power of registrar to determine disputed questions arising on registration of title. Liabilities, rights, and interests not 580 BK. II. REGISTRATION OF TITLE. to be deemed incumbrances on registered land. the contrary is expressed on the register, to be deemed to be subject to such of the following liabilities, rights, and interests as may be for the time being subsisting in reference thereto, and such liabilities, rights, and interests are not to be deemed incumbrances within the meaning of the act; (that is to say), (1.) liability to repair highways by reason of tenure, quit- rents, crown rents, heriots, and other rents and charges having their origin in tenure; and (2.) succession duty, land tax, tithe rent-charge, and pay- ments in lieu of tithes, or of tithe rent-charge; and (3.) rights of common, rights of sheep walk, rights of way, watercourses, and rights of water, and other ease- ments ; (4.) rights to mines and minerals created previously to the registration of the land or before 1st January, 1898; (5.) rights of entry, search, and user, and other rights and reservations incidental to or required for the purpose of giving full effect to the enjoyment of rights to mines and minerals, or of property in mines or minerals created previously to the registration of the land or before 1st January, 1898; (6.) rights of fishing and sporting, seignorial and manorial rights of all descriptions, and franchises; (7.) leases or agreements for leases and other tenancies for any term not exceeding twenty-one years, or for any less estate, in cases where there is an occupation under such tenancies ; and (8.) estate duty, liability to repair the chancel of any church, liability in respect of embankments, sea and river walls, and drainage rights, customary rights, public rights, and profits a prendre, and, subject to the provisions of s. 12 of the act of 1897, rights acquired or in course of being acquired under the Limitation Acts . Provided as follows: — (a) Where it is proved to the satisfaction of the registrar that the land is exempt from land tax or tithe rent-charge, or from payments in lieu of tithes, or of tithe rent-charge, the registrar may notify the LIABILITY OF REGISTERED LAND TO EASEMENTS, ETC. 581 fact on the register in the prescribed manner upon application being made in manner provided by rule 212; and (b) The Commissioners of Inland Revenue must, upon the application of the proprietor of the land upon such declaration being made, or such other evidence being produced as the commissioners require, and upon payment of the prescribed fee, grant a cer- tificate that at the date of the grant thereof no succession duty is owing in respect of the land, and the registrar must in the prescribed manner notify such fact on the register, and such notifica- tion will be conclusive evidence of the fact so noti- fied in respect of succession duty (n ) ; and (c) where it is proved to the satisfaction of the registrar that the right to any mines or minerals is vested in the proprietor of land registered or about to be registered, the registrar may register such proprie- tor in the manner prescribed by rule 213 as pro- prietor of such mines and minerals as well as of the land; and (d) where it is proved to the satisfaction of the registrar that the right to any mines or minerals is severed from any land registered or about to be registered, the registrar may on the application of the person entitled to any such mines and minerals register him as proprietor of such mines and minerals in manner hereafter mentioned, and upon such regis- tration being effected must enter on the register of the land a reference to the registration of such other person as proprietor of such mines and minerals (o). Where the existence of any such liabilities, rights, or interests, as are mentioned in this section, is proved to the satisfaction of the registrar, the registrar may , if he think fit, enter on the register notice of such liabilities, rights, or interests in the prescribed manner, and he must do so in all cases where the When notice to be entered on register. ( n ) See also rules 208 to 211. (o) See also rule 214. 582 BK. II. REGISTRATION OF TITLE. Application for entry on register of notice of in- cumbrances. Succession and estate duties. When a charge on registered land. When pur- chaser of registered land put on inquiry. abstract of title on first registration or on registration as quali- fied or absolute (sic) discloses the existence of any such lia- bilities as are mentioned in sub-ss. (4) and (5). Where an easement is registered as an incumbrance, the dominant and servient tenements must be defined, if practicable and required by the parties. Notice of a power of re-entry and of a right of reverter may be entered on the register under this paragraph . Any person may apply to have notice of any of the above- mentioned incumbrances entered on the register, the applica- tion (except in respect of death duties and mines and minerals) being made in writing and in manner prescribed by rule 215. By the act of 1897, s. 13 (1), on every application to register land with an absolute title , or to register a transmission of land, the registrar must inquire as to succession duty and estate duty. (2.) If, on such application, it appears that there is, or is capable of arising, any such liability to succession duty or estate duty as would affect the purchaser from the person to be regis- tered as proprietor if the land were unregistered, the registrar must enter notice of the liability on the charges register in the prescribed manner. (3.) Succession duty and estate duty will not — (a) unless so noted on the register; or (b) unless in the case of a possessory title the liability to the duty was, at the date of the original registra- tion of the land, subsisting or capable of arising; or (c) unless in the case of a qualified title the liability to the duty was included in the exceptions made on such original registration of the land; affect a bond fide registered purchaser for full consideration in money or money’s worth, although he may have received ex- traneous notice of the liability in respect thereof. As there is no provision for entering up a liability to estate or succession duty on application for registration with a posses- sory title, a purchaser of land so registered will for some years to come have to examine the earlier title in order to ascertain whether any claim to duty has arisen, and if so, whether it has been discharged. He will, however, be safe after the expiration THE EFFECT OF ADVERSE POSSESSION OF REGISTERED LAND. 583 of twelve years from the time when the claim to either duty arose (p) . Provision is made for entering a notification of the discharge Entry of . discharge of any incumbrance, notice of which has been entered on the 0 f incum- register (q) . branoes ' When a lease or agreement for a lease which is noted in the Determina- •, m . « , • tion of leases register as an incumbrance expires by effluxion oi time, or of re gi 8 tered (when the term granted is for, or is determinable on a life or land - lives) by the falling in of the last life, or otherwise comes to an end, any party interested may apply to have its determina- tion noted in the register (r). The Effect of Adverse Possession of Registered Land. A title to registered land adverse to or in derogation of the Adverse title of the registered proprietor cannot be acquired by any registered ° f length of possession, and the registered proprietor may at any lanc ^ entitles . . „ possessor to time make an entry or bring an action to recover possession oi rectification the land accordingly. But where a person would, but for the ° fre o lster - provisions of the acts, have obtained a title by possession to registered land, he may apply for an order for rectification of the register under s. 95 of the act of 1875, and on such applica- tion the court may, subject to any estates or rights acquired by registration for valuable consideration in pursuance of the acts, order the register to be rectified accordingly. This will not prejudice, as against any person registered as first proprietor of land with a possessory title only, any adverse claim in re- spect of length of possession of any other person who was in possession of such land at the time when the registration of such first proprietor took place (s) . ( p ) See s. 12 of the Customs and Inland Revenue Act, 1889, and s. 8 (2) of the Finance Act, 1894, ante, pp. 116, 117. {q) See s. 19 of the act of 1875, schedule I. of the act of 1897, and rules 216 and 217. (r) See rules 219 to 222, inclu- sive. (s) s. 12 of the act of 1897. See as to the construction of this sec- tion, Brickdale and Sheldon, Land Transfer Acts, 2nd ed. 327. 584 BK. II. REGISTRATION OF TITLE. What evidence of vendor’s title purchaser of registered land can require. No advantage if title posses- sory only. Transfers and other Dealings with Registered Land. It has always been claimed that the system of registration of title permits of the conveyance, mortgage, or other dealing with land far more cheaply and expeditiously than the old system of conveyancing, since no investigation of title is neces- sary. This is only true, however, subject to the qualifications stated in s. 16 of the act of 1897, which provides that: — A purchaser of registered land cannot require any evidence of title, except — (i.) the evidence to be obtained from an inspection of the register or of a certified copy of, or extract from, the register ; (ii.) a statutory declaration as to the existence or otherwise of matters which are declared by the acts not to be incumbrances (t); (iii.) if the proprietor of the land is registered with an absolute title , and there are incumbrances entered on the register as subsisting at the first registration of the land, either evidence of the title to those incum- brances, or evidence of their discharge from the register; (iv.) where the proprietor of the land is registered with a qualified title , the same evidence as above provided in the case of absolute title, and such evidence as to any estate, right, or interest excluded from the effect of the registration as a purchaser would be entitled to if the land were unregistered; (v.) if the land is registered with a possessory title , such evidence of the title subsisting or capable of arising at the first registration of the land as the purchaser would be entitled to if the land were unregistered. When sufficient time has elapsed for all titles to become absolute, the claim made in favour of the system may be justified, but the last-mentioned provision practically nullifies for the present the advantage of registration, since a large (t) See ante , pp. 579, 580. TRANSFERS AND OTHER DEALINGS WITH REGISTERED LAND. 58 5 majority of the titles registered are possessory only. For a considerable number of years to come, therefore, the registra- tion of the title to land will only add to the cost of conveyanc- ing. It is the recognition of this fact which has induced the authorities to endeavour to hasten the process of registering absolute titles by making the rules authorizing the registrar to accept six years’ [possessory or qualified title as sufficient evidence for registration of absolute title, and requiring the applicant for registration to produce his title in every case, so that even though he only applies for registration with pos- sessory title, the registrar may convert the title into an absolute title if the applicant does not object (w). Where the vendor of registered land is not himself registered as proprietor of the land or of a charge giving a power of sale over the land, he must, at the request of the purchaser and at his own expense, and notwithstanding any stipulation to the contrary, either procure the registration of himself as proprietor of the land or of the charge, as the case may be, or procure a transfer from the registered proprietor to the purchaser (%). But when leaseholds have been registered under the Land Trans- fer Acts, and a mortgage by sub-demise of the term less one day has been created and not registered, the mortgagee selling under his statutory power of sale is not the vendor of registered land within this sub-section, and the purchaser cannot require him either to be registered as proprietor or procure a transfer from the registered proprietor to the purchaser (y ) . In the absence of special stipulation, a vendor of land registered with an absolute title cannot be required to enter into any covenant for title, and a vendor of land registered with a possessory or qualified title can only be required to covenant against estates and interests excluded from the effect of regis- tration, and the implied covenants under s. 7 of the Con- veyancing and Law of Property Act, 1881, must be construed accordingly ( z ) . (u) See rules 27 and 39 of 1908, ante , pp. 568, 572. (as) s. 16 (2) of the act of 1897. (y) Re Voss and Saunders' Con- tract, (1911) 1 Ch. 42. (z) s. 16 (3) of the act of 1897. Pui’chaser of registered laud can require vendor to register. What covenants for title purchaser of registered land can require. 586 BK. II. REGISTRATION OF TITLE. Form of transfer. How a Transfer of Registered Freeholds is made. When the purchaser of registered land has satisfied himself of the vendor’s title in accordance with the provisions above mentioned, he must prepare a form of transfer. The form, which can be obtained from the registry, will depend on the nature of the transfer (a) ; in the case of an ordinary sale of the whole of the land comprised in a title it will be as follows : - — Form 20. — Instrument of Transfer of Land. ( Rule 126.) Land Registry. Land Transfer Acts, 1875 and 1897. District Parish No. of Title {Date.) In consideration of pounds (£ ) (the receipt, &c.) I, A. B., of, &c., hereby transfer to 0. D., of, &c., the land comprised in the title above referred to. Signed, sealed, and delivered by \ the said A. B., in the presence \ {Signature of A. B.) (Seal.) of E. E., of, &c. ) Note. — Where the transfer is made under section 9, sub-section 6 of the act of 1897, and deals with part only of the land comprised in a title, or is made under rule 96, the number of the title must be left blank, and instead of the words “ the title above referred to ” a refer- ence to the last preceding document of title containing a description of the land must be inserted. When the consideration is advanced by different persons in separate sums, or does not consist, or wholly consist, of money, its nature, or the separate payments made, may be concisely stated. When the transfer is to two or more jointly, no addition need be made to the form. Where it is to two or more as tenants in common, one of the follow- ing forms may be used: “to C. D. and E. E. in equal shares,” “to 0. D. four-fifths, and to E. E. one-fifth of,” and so on. Where the transferor retains a share, add the words “ and I the said A. B. retain share or shares.” The amount of the consideration should be stated in words, and repeated in figures — as, for instance, “ three hundred and seventy pounds (£370).” {a) See rules 126 to 156. HOW A TRANSFER OF REGISTERED FREEHOLDS IS MADE. 587 Different forms are provided for: — (a) Transfer of part of the land comprised in a title (6); (b) Transfers to give effect to a settlement (c); (c) Transfer of land without the mines and minerals, or with certain specified mines and minerals, or excepting only certain specified mines and min- erals (d \) ; (d) Transfer of mines and minerals, or some of them, without the land (e); (e) Transfer in exercise of a power of sale in a regis- tered charge (/) ; (f ) Transfer of land to a company or corporation (g) ; (g) Transfer of land for charitable uses (h ) ; (h) Transfer to ecclesiastical corporation (i ) ; (i) Transf er of land with restrictive conditions (1c ) ; (k) Exchanges (l ) ; and (l) Partitions (m). Special provisions are likewise made for transfers in con- sideration of a rent or subject to an existing rent(w), and under the Lands Clauses Consolidation Act (o). With regard to all these forms, however, a wide discretion is given to the registrar to allow alterations and additions and to allow other forms to be used when they cannot be conveniently adapted (p). For the purpose of introducing the implied covenants under the Conveyancing and Law of Property Act, 1881, a person may, in a registered disposition, be expressed to execute, transfer, or charge as beneficial owner, as settlor, as trustee, as mortgagee, as personal representative of a deceased person, as ( b ) Rule 127, form 21. (c) s. 6 (3) of the act of 1897, rules 128 and 129, forms 22 to 27. (< d ) Rule 134, forms 28, 29 and 30. (e) Rules 135 and 136, forms 31, 32 and 33. (/) Rule 137, form 34. ( g ) Rule 144, form 36. ( h ) Rule 145, form 37. (i) Rules 147 to 149, forms 38, 39 and 40. ( k ) Rule 153, form 41. (Z) Rules 154 and 155, form 42. (m) Rule 156, form 43. (n) Rules 130 to 132. (o) Rule 151. (p) Rules 97 and 98; see also rules 100, 103 and 341. Forms of transfer in special cases. Registrar may allow other forms. How and when implied covenants for title under Conveyancing Act may be introduced. 588 BK. II. REGISTRATION OF TITLE. Transfer to ) e under seal aud attested. 44 & 45 Viet, c. 41, s. 8. Authority to pay purchase- money to vendor’s solicitor. Stamp duties on transfers. Transfer and committee of a lunatic so found by inquisition, or under an order of the court; and an instrument of transfer or charge, and any instrument affecting registered land or a registered charge may be worded accordingly, but no reference to such implied covenants can bo entered in the register (q). But it must be remembered that the vendor of land registered with an absolute title cannot be required to enter into any covenant for title, and a vendor of land registered with a possessory or qualified title can only be required to covenant against estates and interests excluded from the effect of registration, and the implied covenants under the Conveyancing Act must be construed accordingly (r). The transfer must be executed as a deed by the transferor in the presence of a witness, who must attest the execution by signing his name, and adding his address and description (s ) . The provisions of s. 8 of the Conveyancing Act, 1881, apply to transfers of registered land, so that the purchaser can have the execution of the transfer attested by some person appointed by him, who may, if he thinks fit, be his solicitor (t). It seems that the purchaser cannot safely pay the purchase- money to the vendor’s solicitor without a written authority, since s. 56 of the Conveyancing Act does not apply to the case, there being no receipt for the consideration money in the form of transfer; this difficulty, however, can be avoided by inserting the ordinary receipt in the form, and this should always be done in practice. The transfer must be stamped with the proper Inland Revenue stamp in accordance with the Stamp Act, 1891 (u). In case of dispute as to the sufficiency of the stamp, on a written undertaking being given by the applicant or his solici- tor to furnish evidence within a fixed time that it is sufficiently stamped, the instrument can be noted at the land registry so as to preserve its priority while the dispute is being settled (x). When stamped, the transfer must be taken or posted to the ( q ) Rule 99. (r) s. 16 (3) of the act of 1897. (s) Rules 107 to 109. (£) s. 9 of the act of 1897. (u) See s. 83 of the act of 1875. (a?) Rule 124. HOW A TRANSFER OF REGISTERED FREEHOLDS IS MADE. 589 registry with the ad valorem registry fee stamps (y) affixed land certi- . , , . rn ficate to be (or if sent by post with banker s draft, postal or post omce pro duced at order, cheque ( z ) or bank notes therefor), accompanied in either re 8‘ istr 7- case by the vendor’s land certificate ( a ) . No written application for registration need accompany it, but if sent by post it should be enclosed in a letter giving the name and address of the sender, and directions as to the return of the land certifi- cate. Notice of the transfer will then be sent to the person by whom it purports to be executed, and, where the instrument purports to be a conveyance or transfer in exercise of a power of sale contained either in a mortgage jirior to the registration of the land or in a registered charge, notice will also be sent to the proprietor of the land and to the proprietors of all sub- sequent charges. The notice states that the person to whom it is addressed will have three clear days from the posting of the notice within which to lodge objections. In the absence of any objection the registration may be comple ted at the ex- piration of the limited period (5). The transfer will be completed by the registrar entering on Completion the register the transferee as proprietor of the land transferred. of transfer ' Upon completion the registrar must, if required, deliver to the transferee a land certificate; he must also, in cases where part only of the land is transferred, if required, deliver to the trans- feror g land certificate, or return him the old certificate en- dorsed, showing the land retained by him (c). Since the legal estate does not pass to the purchaser until his Payment of transfer is registered, strictly speaking he cannot safely pay his }^^ ase ’ purchase-money to the vendor until this has been done. Prac- tically, in most cases there will no doubt be very little risk in paying it in exchange for the transfer duly executed and the land certificate, but theoretically, at any rate, there is a risk, especially having regard to the three days’ interval between delivering the documents at the registry and the registration of ( y ) See Fee Order, 9th Novem- ber, 1908. ( 2 ) When fees are paid by cheque the registration will not be completed until due time has been allowed for the cheque to be cleared. (Fee rule 3.) (a) Rules 111 to 113 and s. 8 (1) of the act of 1897. (&) Rule 118. (c) s. 29 of the act of 1875. 590 BK. II. — REGISTRATION OF TITLE. Raising of purchase- money by mortgage. Transfer of land subject to rent. Estate of transferee for value when title absolute. the transfer required by rule 118. When part only of the land comprised in a title is transferred, the difficulty is accen- tuated (d). The only way 'to avoid this is either (1) to complete at the registry; (2) to deposit the purchase-money with an independent person, such as a solicitor, or banker, to hold for both parties until completion; or (3) to require the vendor to obtain the registration of the purchaser first and to pay the purchase-money on production of a land certificate issued in the purchaser’s name(e). Under s. 9 (6) of the act of 1897, a person who has bought registered land may transfer or charge the land before being himself registered. So that there is nothing to prevent a pur- chaser of registered land raising the purchase-money by regis- tered charge, as is often done by a mortgage under the present system of conveyancing (/) . Provisions as to transfers of land in consideration of or sub- ject to a rent are made by rules 130 to 132. Effect of Registration of Transfer of Freeholds. (a) Where the transfer is far valuable consideration, and is I of freehold land registered with an absolute title. A transfer for valuable consideration of freehold land re- gistered with an absolute title, when registered, confers on the transferee an estate in fee simple in the land transferred, together with all rights, privileges, and appurtenances belong- ing or appurtenant thereto, subject: (1.) to the incumbrances, if any, entered on the register; and (2.) unless the contrary is expressed on the register, to such liabilities, rights and interests, if any, as are by the acts declared not to be incumbrances (g ) ; ( d ) See rule 157 ; as amended by the rules of 1907 this appears to be intended to make a provision to meet the difficulty. (e) Brickdale & Sheldon, Land Transfer Acts, 2nd ed. 31, 39. (/) See rules 104 and 105. (g) See, as to these, s. 18, ante, pp. 579 et seq. EFFECT OF REGISTRATION OF TRANSFER OF FREEHOLDS. 591 but free from all other estates and interests whatsoever, includ- ing estates and interests of the crown (h). In the absence of anything to the contrary in the register or in the transfer, the word “land” in this and the succeeding sections (30 to 33) includes the mines and minerals if parcel thereof ( i ). (b) Where the transfer is for valuable consideration , and is of freehold land registered with a qualified title. A transfer for valuable consideration of freehold land re- gistered with a qualified title has, when registered, the same effect as a transfer for valuable consideration of the same land registered with an absolute title, save that such transfer does not affect or prejudice the enforcement of any right or interest appearing by the register to be excepted ( tc ). (c) Where the transfer is for valuable consideration, and is of freehold land registered with a possessor ij title. A transfer for valuable consideration of freehold land re- gistered with a possessory title does not affect or prejudice the enforcement of any right or interest adverse to or in derogation of the title of the first registered proprietor, and subsisting or capable of arising at the time of the registration of such pro- prietor; but, save as aforesaid, has when registered the same effect as a transfer for valuable consideration of the same land registered with an absolute title (l). (d) Where the transfer is voluntary and is of freehold land. A transfer of freehold land made without valuable considera- tion is, so far as the transferee is concerned, subject to any unregistered estates, rights, interests, or equities subject to which the transferor held the same, but, save as aforesaid, has, (h) s. 30 of the act of 1875. (£) Schedule I. of the act of Compare the provisions of s. 98, 1897. infra, p. 646. (&) s. 31 of the act of 1875. ( l ) s. 32 of the act of 1875. Meaning 1 of “ laud.” Estate of transferee for value when title qualified. Estate of transferee for value when title possessory. Estate of voluntary transferee 592 BK. II. — REGISTRATION OF TITLE. Procedure. Completion of transfer. when registered, in all respects, and in particular as respects any registered dealings on the part of the transferee, the same effect as a transfer of the same land for valuable considera- tion (m). How the Transfer of Registered Leaseholds is made. The assignment of a registered leasehold is carried out in much the same way as the conveyance of a freehold. A form of transfer must be obtained from the registry, which must be filled up, executed, and attested as above described (ri ) . The form varies slightly according to whether the whole or part of the land comprised in the title is to be assigned. In the former case it is as follows: — Form 35 . — Instrument of Transfer of Leasehold Land. ( Rule 138.) As form 20, adding at the end “ for the residue of the term granted by the registered lease.” Where it is intended to negative the covenants implied by section 39 of the act of 1875, or rule 139, the following words may be added to the form: — “The covenant by the transferor (or transferee, or the covenants by the transferor and transferee) implied by section 39 of the act of 1875 (or rule 139) is (or are) not to be implied.” This, when executed and attested, must be stamped with the Inland Revenue and registry fee stamps, and taken or sent by post to the registry with the land certificate. Notice will be given to the assignor as before, and registration will not be com- pleted till three days from the posting of the notice (o ) . The transfer will then be completed by the registrar entering up the transferee as proprietor of the land transferred, but until the entry is made the transferor is deemed to remain proprietor of the land (p) . and rules 107 to 125, and 138 and 139. (m) s. 33 of the act of 1875. ( n ) See pp. 586 et seq. (o) See s. 8 of the act of 1897 (p) s. 34 of the act of 1875. EFFECT OF REGISTRATION OF TRANSFER OF LEASEHOLDS. 593 Effect of Registration of Transfer of Leaseholds. (a) Where the transfer is for valuable consideration, and is of leasehold land registered with an absolute or qualified title. A transfer for valuable consideration of leasehold land regis- tered with an absolute title or qualified title is, when regis- tered, deemed to vest in the transferee the possession of the land transferred for all the leasehold estate described in the registered lease relating to such land, with all implied or ex- pressed rights, privileges, and appurtenances attached to such estate, but subject: (1.) to all implied and express covenants, obligations, and liabilities incident to such estate; and (2.) to the incumbrances (if any) entered on the register; and (3.) unless the contrary is expressed on the register, to such liabilities, rights, and interests as affect the leasehold estate and are by the acts declared not to be incum- brances in the case of registered freehold land ; but free from all other estates and interests whatsoever, in- cluding estates and interests of the crown. Save that where any estate, right or interest is excepted from the effect of registra- tion, the transfer will not affect or prejudice the enforcement of any estate, right or interest appearing by the register to be so excepted (g) . In the absence of anything to the contrary in the register or the transfer, or in the lease, the word “land’ in this and the three succeeding sections includes the mines and minerals if parcel thereof (r) . (b) Where the transfer is for valuable consideration and is of leasehold land registered with a good leasehold title . A transfer for valuable consideration of leasehold land regis- tered with a good leasehold title has, when registered, the effect ( q ) s. 35 of the act of 1875 as (r) Schedule I. of the act of read with rule 140. 1897. Estate of transferee for value when title absolute or qualified. Meaning of “ land.” Estate of transferee for value when G. — C. Q Q 594 BK. II. REGISTRATION OE TITLE. title good leasehold. Estate of transferee for value when title pos- sessory. Estate of voluntary transferee That rent paid and covenants performed given by s. 35 of the act of 1875 to such a transfer of land registered with a declaration that the lessor had an absolute title to grant the lease under which the land is held, save that it will not affect or prejudice the enforcement of any estate, right or interest affecting or in derogation of the title of the lessors to grant the lease (s) . (c) Where the transfer is for valuable consideration , and is of leasehold land registered with a possessory title. A transfer for valuable consideration of leasehold land regis- tered with a possessory title has, when registered, the same effect as a transfer for valuable consideration of the same land regis- tered with an absolute title, save that the transfer will not affect or prejudice the enforcement of any right or interest (whether in respect of the lessor’s title or otherwise) adverse to or in derogation of the title of the first registered proprie- tor, and subsisting or capable of arising at the time of the registration of such proprietor (t) . (cl) When the transfer is voluntary and is of leasehold land. A transfer of leasehold land made without valuable con- sideration is, so far as the transferee is concerned, subject to any unregistered estates, rights, interests, or equities subject to which the transferor held the same; but, save as aforesaid, has, when registered, in all respects, and in particular as respects any registered dealings on the part of the transferee, the same effect as a transfer of the same land for valuable con- sideration (u ) . Implied Covenants on the Transfer of Registered Leaseholds. On the transfer of leasehold land, unless there be an entry on the register negativing such implication, there is implied: (1.) on the part of the transferor a covenant with the transferee that, notwithstanding anything by such transferor done, omitted, or knowingly suffered, the (s) Rule 141. (0 Rule 142. {u) s. 38 of the act of 1875. HOW A MORTGAGE OF REGISTERED LAND IS MADE. 595 rent, covenants, and conditions reserved and contained by and in the registered lease, and on the part of the lessee to be paid, performed, and observed, have been so paid, performed, and observed up to the date of the transfer; and (2.) on the part of the transferee a covenant with the trans- feror, that he, the transferee, his executors, adminis- trators, or assigns, will pay, perform, and observe the rent, covenants, and conditions by and in the regis- tered lease reserved and contained, and on the part of the lessee to be paid, performed, and observed, and will keep the transferor, his heirs, executors, and ad- ministrators, indemnified against all actions, suits, expenses, and claims on account of the non-payment of the said rent or any part thereof, or the breach of the said covenants or conditions, or any of them (x). All or any of the above covenants may, if it is desired, be negatived by adding suitable words to the instrument of transfer, and in that case an entry negativing the implied covenants must be entered in the register. If it is desired to substitute modified covenants for those implied, the necessary additions may be made to the transfer (y ) . The transferor may, for instance (subject to s. 16 (3) of the act of 1897), be made to transfer as '‘beneficial owner,” and then the covenants implied by the use of these words on the assignment of a lease will be implied (z ) ; in this case the covenant by the trans- feror set out in s. 39 will be unnecessary. How a Mortgage of Registered Land is made. Mortgages of registered land are of three classes: — 1. Mortgages by registration of a charge. 2. Mortgages to building societies; and 3. Equitable mortgages by deposit of the land certificate. These require to be considered separately. (®) s. 39 of the act of 1875. (z) Rule 99. •(y) Rule 138. That trans- feree will indemnify transferor in respect thereof. Variation of implied covenants. Kinds of mortgages. Q Q 0 596 BK. II. REGISTRATION OF TITLE. (1) Mortgages by Registration of a Charge. Registered proprietor may charge land. Procedure to obtain regis- tration of a charge. Every registered proprietor of either freehold or leasehold land may in the manner prescribed by the rules charge such land with the payment at an appointed time of any principal sum of money either with or without interest, and with or without a power of sale to be exercised at or after a time ap- pointed (a). Charges so created are subject to the provisions of the principal act in respect of qualified or possessory titles (b). The appropriate form of charge (of which there are several according as the charge is to be on the whole or part of the land registered or is to secure an annuity or future advances) must be obtained from the registry (c), and prepared, executed, and attested in the same way as a transfer (d) . The ordinary form is as follows: — Form 44 . — Instrument of Charge. ( Rule 158.) (Heading as in Form 20.) {Date.) In consideration of pounds (£ ), I, A. B., of, &c., hereby charge the land comprised in the title above referred to with the payment to 0. D., of, &c., on the of , 19 , of the principal sum of £ , with interest at per cent, per annum, payable [half-yearly, quarterly] on the of , &c. in every year. (To be executed as Form 20.) Note .— Where the charge is made under section 9, sub-section 6 of the act of 1897, and deals with part only of the land comprised in a title, or is made under rule 96, the number of the title must be left blank, and instead of the words “ the title above referred to ” a refer- ence to the last preceding document of title containing a description of the land must be inserted. Where the consideration is advanced by different persons in separate- sums or does not consist, or wholly consist, of money, its nature, or the separate payments made, may be concisely stated. The amount of the consideration should be stated in words, and («) s. 22 of the act of 1875. (5) Schedule I. of the act of 1897. By rules 175 to 181 the provisions of the acts are adapted to incumbrances created prior to registration and to sub-mortgages. (c) Rules 158 to 162. ( d ) See rules 97 to 110, ante, pp. 586 et seq. HOW A MORTGAGE OF REGISTERED LAND IS MADE. 59 repeated in figures — as, for instance, “ three hundred and seventy pounds (£370).” Where the charge is to two or more jointly, no addition need be made to the form. Where the money is to be held in separate shares, the following variation may be used: — After “payment to” insert “ C. D., of, &c., and E. F., of, &c., on the of , 19 , of the respective principal sums of and with interest ” &c., as in the above form. Any of the following special stipulations may also be added at the end of the charge. A. — Stipulations negativing the covenants implied in charges by sections 23 and 24 of the act of 1875 (e). (1.) No covenant is hereby implied to pay the principal or interest secured by the charge. (2.) No covenant is hereby implied as to payment of rent or per- formance or observance of the covenants or conditions of the regis- tered lease, or as to indemnity in respect thereof. B. — Stipulations in charges excluding the provisions of sections 25 to 27 of the act of 1875 (e), and altering the priority of charges under section 28 of the same act. (1.) The creditor shall have no power to enter on the land. (2.) The creditor shall have no power to enforce foreclosure or sale of the land. (3.) The creditor shall have no power of sale. (4.) The creditor may exercise the power of sale without notice. (5.) This charge shall rank pari passu with a charge of even date to of to secure or shall be the [first, second, third, &c., as the case may 6e] in order of priority of three charges of even date, one of which is to of to secure , another is to of to secure , and the other is this charge, or shall have priority to a charge dated, &c., registered, &c., in favour of A. B., of, &c., for {or otherwise as the case may be). C. — Miscellaneous Stipulations . (1.) The interest to be secured by the charge shall be reduced to per cent, in every (half-year, quarter, &c.) in which it is paid within days after it becomes due. (e) The registration of an in- these sections, to be deemed a strument of charge negativing or sufficient negative or contrary modifying the provisions of these entry on the register. (Rule 159.) sections is, for the purposes of 598 BK. II. REGISTRATION OF TITLE. Form of charge may be modified. Covenants for title and con- solidation. Charge of part of land. (2.) None of the principal secured by the charge shall be called in till the of 19 unless the interest shall fail to be paid within days after it becomes due. (3.) None of the principal secured by the charge shall be paid off till the of 19 unless the proprietor of the charge shall be willing to accept it. (4.) If the interest secured by the charge shall be paid within days after it becomes due the principal shall be payable by instalments of each, to be paid on the of and the of in every' year, the first of such instalments to be paid on the of 19 . Provided that on failure of payment of any instalment within days after it becomes due, the whole of the principal remaining owing on the said security shall become payable at once. Provided nevertheless that the whole or any part (not less than at any one time) of the above-mentioned principal may be paid off on giving one calendar month’s notice in writing of the intention to do so, and on paying up all arrears of interest that may be due at the time of such payment of principal. Such alterations or additions may be made as are necessary or desired and the registrar allows, provided that they are not inconsistent with the principles on which the register is to be kept (/) . The mortgagor can be made to give covenants for title by the use of the appropriate words under s. 7 of the Conveyancing Act, 1881 (g). And the right of consolidation may be reserved; but the charge is not on that account to be registered against any other land than that specifically de- scribed in it (Ji ) . Where part only of the land comprised in a title is included in a charge, the part charged must be identified by a plan signed by the person making the charge, and by or on behalf of the person in whose favour the charge is made, or if the part charged is clearly defined on the filed plan, it may be identified by reference to that plan. Where the part dealt with is clearly defined on the general map, the instrument may define it by reference to that map instead of by means of an accompanying plan (i ) . (/) Rules 97 and 100. p. 605. ( g ) Rule 99. (i) Rules 162 and 101 as (A) Rule 169, and see infra, amended by the rules of 1907. 599 EVIDENCE OF REGISTRATION OF A MORTGAGE. Where the money is advanced by two or more persons, but Advance ^ not on joint account, they will be entered either as joint pro- persons not on prietors of the charge as a whole, or as proprietors as tenants i olljt account, in common, according to their intention appearing in the charge or in writing under their hands. If no such intention appears, they will be entered as tenants in common ( k ) . When the charge is properly executed and attested, the proper Completion of Inland Revenue stamp, if any, should be impressed on it, and the land registry stamps affixed (l). The charge, together with the mortgagor s land certificate , if any (m), and a copy of the instrument of charge (n) should then be left at, or sent by post to, the land registry without delay. Notice will then be given to the person by whom the charge purports to be executed, and in the absence of any objection, the registration may be completed at the expiration of three clear days from the posting of the notice (0). 'The charge is completed by the registrar entering on the register the person in whose favour the charge is made as the proprietor of such charge, and the particulars of the charge, and of the power of sale, if any (p). Evidence of Registration of a Mortgage. A certificate of charge must then be prepared and handed to Certificate the mortgagee or, if he prefers, deposited in the registry (q). of char & e - It must be produced to the registrar on every entry in the regis- ter of a disposition by the registered proprietor of the charge to which it relates (r) . Before issuing a certificate of charge the registrar may re- Form of quire to be lodged in the registry a statement signed by the mort- creditor or his solicitor declaring whether the creditor will or g*gee holds will not during the continuance of the charge allow the land cate . certificate to remain in the custody of the registered proprie- ( h ) Rule 163. ( l ) See Fee Order, 9th Novem- ber, 1908. (m) s. 8 (1) of the act of 1897. ( n ) Rule 158. ( 0 ) Rules 111 and 118. fp) s. 22 of the act of 1875. (q) See s. 22 of the act of 1875, s. 8 (4) (i) of the act of 1897, and rule 259, infra, p. 634. See also rule 259a of 1907. (r) s. 8 (1) of the act of 1897. 600 BK. II. REGISTRATION OF TITLE. tor of the land, and unless a statement to the effect that the creditor will allow it to remain in his custody is lodged, the certificate of charge will consist merely of an office copy of the charge endorsed with a certificate of its registration (s). Alteration of Registered Mortgages. Procedure to obtain alteration of charge. The registrar may, on the application or with the consent of the registered proprietor of the land, and of the proprietors of all registered charges (if any) of equal or inferior priority, alter the terms of a charge (t). An application to alter the terms of a registered charge must be in form 47 of the first schedule to the rules, and must be executed by the registered proprietors of the charge, and of the land, and of every charge of equal or inferior priority prejudicially affected by the alteration (u). Implied Covenants by the Registered Mortgagor. Covenant to pay principal and interest. In case of leaseholds, to pay renc and perform covenants. Where a registered charge is created on any land there is implied on the part of the person creating it, unless there be an entry on the register negativing such implication (cc), a cove- nant with the registered proprietor for the time being of the charge to pay the principal sum charged, and interest, if any, thereon, at the appointed time and rate; also a covenant, if the principal sum or any part thereof is unpaid at the appointed time, to pay interest half-yearly at the appointed rate on so much of the principal sum as for the time being remains un- paid (y). Where a registered charge is created on leasehold land there is implied on the part of the person creating it, unless there bo an entry on the register negativing such implication (z), a covenant; with the registered proprietor for the time being of the charge, that the person creating it will pay, perform, and observe the rent, covenants, and conditions by and in the regis- (s) Rule 259 b of 1907. ( t ) s. 9 (5) of the act of 1897. (w) Rule 165. ( x ) The registration of an in- strument of charge negativing or modifying the provisions of these sections is a sufficient entry on the register. (Rule 159.) (y) s. 23 of the act of 1875. (z) See rule 159, supra. RIGHTS OF THE REGISTERED MORTGAGEE. 601 tered lease reserved and contained, and on the part of the lessee to be paid, performed, and observed, and will keep the pro- prietor of the charge, his heirs, executors, and administrators, indemnified against all actions, suits, expenses, and claims, on account of the non-payment of the said rent, or any part thereof, or the breach of the said covenants or conditions, or any of them (a ) . Either of the foregoing covenants can be negatived by in- serting a stipulation to that effect in the form of charge (&), and where the mortgagor is made to convey as beneficial owner, the latter covenant being unnecessary should always be nega- tived. Rights of the Registered Mortgagee. Subject to any entry to the contrary on the register (c), the (fi To take registered proprietor of a registered charge may, for the pur- h osse88 n> pose of obtaining satisfaction of any moneys due to him under the charge, at any time during the continuance of his charge, enter upon the land charged, or any part thereof, or into the receipt of the rents and profits thereof, subject nevertheless to the right of any persons appearing on the register to be prior incumbrancers, and to the liability attached to a mort- gagee in possession (d). Subject to any entry to the contrary on the register (c), the fi 1 ) To fore- registered proprietor of a registered charge may enforce a fore- closure or sale of the land charged, in the same manner and under the same circumstances in and under which he might enforce the same if the land had been transferred to him by way of mortgage, subject to a proviso for redemption on pay- ment of the money named at the appointed time (e). Where he obtains an order for foreclosure absolute, the order or an office copy of it must be delivered to the registrar, who must thereupon enter the proprietor of the charge as proprietor (subject to prior charges) of the land, the equity of redemption in which is foreclosed. The certificate of charge and, if re- fa) s. 24 of the act of 1875. (6) See ante , p. 597. (c) See rule 159, supra. (d) s. 25 of the act of 1875. (e) Ibid. 602 BK. II. REGISTRATION OF TITLE. (iii) To sell. (iv) To insure. (v) To appoint a receiver. (vi) To cut and sell timber. Power to transfer on sale. Power of leasing Power to assign charge. Disadvantage of a regis- tered charge. quired by the registrar, the land certificate, must accompany the application (/). The provisions of ss. 19, 20, 21 (except sub-ss. 1 and 4), 22, 23, and 24 of the Conveyancing Act, 1881, also aj:>ply to registered charges (g ) ; so that the proprietor of a registered charge will also have power (i) to sell, (ii) to insure, (iii) to appoint a receiver, and (iv) while in possession to cut and sell timber upon the terms and subject to the conditions therein mentioned. Subject to any entry to the contrary on the register, ;the registered proprietor of a registered charge with a power of sale may, at any time after the expiration of the appointed time, sell and transfer the land on which he has a registered charge, or any part thereof, in the same manner as if he were the registered proprietor of such land (h ) . The acts contain no provision giving either a mortgagor or mortgagee power to make leases. It seems to be generally assumed that s. 18 of the Conveyancing Act, 1881, applies and enables either mortgagor or mortgagee while in possession to make leases to the extent there specified (i). Nothing contained in any charge can (i) take away from the registered proprietor thereof the power of transferring it by registered disposition or of requiring the cessation thereof to be noted on the register, or (ii) affect any registered dealing with land or a charge in respect of which the charge is not expressly registered or protected (1c ) . It will thus be seen that the position of a mortgagee under a registered charge is very similar to that of a legal mortgagee of unregistered land, but there is one important difference. A mortgagee of unregistered land acquires the legal estate and has all the rights of legal ownership, and if he takes possession he becomes, after twelve years without acknowledgment, full owner in equity as well as at law, all rights and title of the (/) Rule 164. ( g ) s. 9 (2) of the act of 1897. (Ii) s. 27 of the act of 1875; see also s. 8 (4) of the act of 1897. (i) Rule 203, infra , p. 619, seems to confirm this view, at any rate so far as the mortgagor is concerned. It is also suggested that the section applies in Cherry and Marigold, Land Transfer Acts, 17, and in Brickdale and Sheldon, Land Transfer Acts, 2nd ed. 322. (7r) s. 9 (4) of the act of 1897. RIGHTS OF THE REGISTERED MORTGAGEE. 603 mortgagor and all persons claiming under him being completely extinguished. The mortgagee under a registered charge, how- ever, does not obtain the legal estate. This being so, it is not clear that even on taking possession the mortgagee could bring an action of ejectment against a trespasser — a matter which may be of importance if he has to realize his security by taking possession or by foreclosure. Nor is it clear that a registered chargee as such has the extended power of sale given by the Conveyancing Act, 1911. The disadvantage which the non-possession of the legal estate involves may be in part removed by taking a conveyance of it either by inserting such a conveyance in the form of charge, or better by a separate deed of conveyance in the ordinary form of a mortgage deed (7). In practice this is often done and is sufficient to jmss the legal estate (m). But this will not enable the mortgagee to acquire full ownership by any length of pos- session, owing to the provisions of s. 12 of the act of 1897 (n). After he has been in possession twelve years without acknow- ledgment he may apply, under s. 95 of the act of 1875, to the court to rectify the register, but the court has a discretion whether it will make the order or not, and even if it gives him an order, his estate will be subject to any estates or rights acquired by registration for valuable consideration, and in any case he must incur the expense of the application to the court. A mortgage of registered land may also be effected by tbe mortgagee insisting upon being registered as proprietor of the land, and also taking a mortgage off the register in the ordinary form. It seems, however, that in such a case the instrument of transfer will require a separate stamp, though the mortgage deed has already been stamped. (1) See Brickdale and Sheldon, Land Transfer Acts, 157, 2nd ed. 169. It is better to have a separate deed because (1) the mortgagee will keep this; he does not keep the charge; and (2) he clearly be- comes a mortgagee by deed within the meaning of s. 18 of the Con- veyancing Act, 1881, and so en- titled to make leases while in possession. See opinion of Mr. Cherry, Law Notes, vol. xxiii. 177, and Cherry and Marigold, Land Transfer Acts, 17. See also Law Notes, vol. xxiii. 245. (m) Capital and Counties Bank v. Rhodes, (1903) 1 Ch. 631; see also Sol. Jour. vol. xlvii. 335. ( n ) Ante , p. 583. 604 BK. II. REGISTRATION OF TITLE. Priority. Tacking. Procedure on transfer of registered charge. Priorities of Registered Mortgages. Subject to any entry to the contrary on the register, regis- tered charges on the same land rank as between themselves according to the order in which they are entered on the register, and not according to the order in which they are created (o). It seems to follow from this that the doctrine of tacking has no application to mortgages of registered land(p). But the order of priority inter se admits of being varied by an appro- priate entry (g). Transfer of Registered Mortgages. The registered proprietor of any charge may transfer it to another person as proprietor (r). For this purpose a form of “ Instrument of Transfer of Charge must be obtained from the registry (s). The form is as follows: — Form 49. — Instrument of Transfer of Charge. { Rule 168.) (Heading as in Form 20.) {Date.) In consideration of , I, A. B., of, &c., hereby transfer to C. D., of, &c., the charge dated {date), and registered {date), of which I am the registered proprietor. {If 'part only of the money secured is transferred add: as to the sum of pounds £ .) (To be executed as Form 20.) Note. — Where the charge is transferred to two or more as tenants in common, words to that effect should be added stating the sum trans- ferred to each: see note to Form 20. This must be prepared, executed, and attested as described (o) s. 28 of the act of 1875. {p) This view is also expressed in Brickdale and Sheldon, Land Transfer Acts, 2nd ed. 169, but it is there put on the ground (1) that the legal estate remains in the mortgagor (which, however, is not now usually the case); and (2) that the puisne mortgagee could not plead ignorance of a mesne incumbrance entered on the re- gister, and endorsed on the mort- gagor’s land certificate. {q) Further provisions with re- ference to priorities are contained in rules 171 to 173. ( r ) s. 40 of the act of 1875. (s) Rule 168. DISCHARGE OF REGISTERED MORTGAGES. 605 in the case of other forms (t). The transferor may, if re- quired, be expressed to transfer as beneficial owner or other- wise, so as to introduce the covenants implied by s. 7 of the Conveyancing Act, 1881 (u). The proper Inland Revenue stamp (if any) should then be impressed on the form, and land registry fee stamps ( x ) affixed, and the transfer, together with the certificate of charge, if any (?/), should be left at, or sent by post to, the land registry without delay. Notice will be given to the person by whom the transfer purports to be executed (z), and in due course the transfer will be completed by the registrar entering the transferee on the register as proprietor of the charge transferred; the registrar must also, if required, deliver to the transferee a fresh certifi- cate of charge, but the transferor is deemed to remain proprie- tor of the charge until the name of the transferee is entered on the register (a ) . Discharge of Registered Mortgages. The registrar must, on the requisition of the registered pro- prietor of any charge, or on due proof of the satisfaction there- of, notify on the register in the prescribed manner by cancelling the original entry or otherwise the cessation of the charge, and thereupon the charge shall be deemed to have ceased (&). This also applies to part discharges (c) . For this purpose a form of “discharge” should be obtained from the registry and signed by the chargee, and taken or sent to the registry. But the registrar is at liberty to accept and act upon any other proof of satisfaction of a charge which he may deem suffi- cient ( d ). It seems clear that a chargee of registered land cannot take advantage of the doctrine of consolidation without expressly reserving the right, but it appears from rule 169 that the right (t) See ante, pp. 586 et seq. ( u ) Rule 99. (x) See Fee Order, 9th Novem- ber, 1908, infra, p. 659. ( y ) s. 8 (1) of the act of 1897. (z) Rule 118. (a) s. 40 of the act of 1875. (5) s. 28 of the act of 1875. (c) Schedule I. of the act of 1897. (d) Rule 166. Completion. Procedure on payment off of registered charge. Consolidation. 606 BK. II. REGISTRATION OF TITLE. Notice of payment off. may be reserved in the charge; even then, however, the charge must be registered against both or all the lands affected in order to make it effective (e). The acts contain no provision with regard to the length of notice of intention to pay off to be given by the mortgagor to the mortgagee, but, presumably, the ordinary rule that he must give six months’ notice or pay six months’ interest in lieu of notice will apply. Ordinary form of mort gage to be used in case of building society mort- gagee, and in case of friendly and industrial and provident societies ; but must be registered. Mortgage retained by building society. (2) Building Society Mortgages. The above is the usual course of procedure, but the case of mortgages to a building society is the subject of special provi- sions, it being provided by s. 9 (3) of the act of 1897 that — Every registered proprietor of land may charge it, in favour of a building society under the Building Societies Acts, by means of a mortgage made in pursuance of or consistent with the rules of that society, and the mortgage shall be deemed a charge made in the prescribed manner, and shall be registered accordingly . In practice this provision is extended under the general dis- cretion given to the registrar by rule 311 to friendly societies and industrial and provident societies, so that where the mort- gagee is a building society, or friendly, industrial, or provident society, the mortgagor, instead of filling up the forms men- tioned above, will execute a mortgage in the ordinary form, except so far as it may be varied by the rules of the society. This must be taken or sent to the registry accompanied by a copy of the rules of the society certified as correct by the solici- tor or secretary, and must be registered in lieu of the form of charge mentioned above. Upon the registration of a charge in favour of a building society, friendly society (including a branch society), or indus- trial and provident society, the instrument of charge may, if it is so desired, be delivered to them after registration upon their delivering at the registry a copy verified by the signature of the secretary as being a correct copy, which copy will be (A s. 9 (4) of the act of 1897 ,ante, p. 602. EQUITABLE MORTGAGES. 607 admissible for all purposes as sufficient evidence of the contents and execution thereof, without the production of the original charge. The copy need not be stamped, and must be filed in the registry (/) . In this case the instrument of charge must be indorsed with a certificate of registration, and the in- strument so indorsed will be treated for all purposes as the certificate of charge. It must be indorsed with notes of trans- fers, part discharges, and other dealings, and when the charge is wholly discharged must be delivered up, cancelled, and re- tained in the registry (g) . When all moneys intended to be secured by any mortgage or charge to or in favour of any building society, friendly society (including a branch society), or industrial and provident society have been fully paid or satisfied, an instrument of discharge in the form provided by the rules, under the seal of such society if incorporated, or under the hands and seals of the trustees for the time being of or acting in that matter for such building or friendly society, or other the proper officers thereof, if such society is not incorporated, and attested by the secretary, or under the hands and seals of two members of the committee of an industrial and provident society, if unincorporated, and attested by the secretary, will have the same effect and opera- tion in vacating the mortgage, or charge, and in vesting the estate, and otherwise, as a receipt indorsed on such mortgage or charge duly made, signed, and attested in such form and manner, and by such persons as is prescribed by, and other- wise in conformity with the provisions of s. 5 of 6 & 7 Will. 4, c. 32, s. 42 of the Building Societies Act, 1874, s. 43 of the Industrial and Provident Societies Act, 1893, and s. 53 of the Friendly Societies Act, 1896, respectively (Ji). (3) Equitable Mortgages. The methods above set out are the only ways in which a legal mortgage of registered land can be created; but by s. 8 (4) of the act of 1897, “ The registered proprietor of any Discharge of building society mortgage. Deposit of certificate equivalent to deposit of title deeds. (/) Rule 121. ( g ) Rule 122. { [h ) Rule 167. 608 BK. II. REGISTRATION OF TITLE. Notice of deposit of certificate. Notice of intention to deposit certificate. freehold or leasehold land or of a charge may, subject to any registered estates, charges, or rights, create a lien on the land or charge by deposit of the land certificate or office copy of registered lease, or certificate of charge; and such lien shall, subject as aforesaid, be equivalent to a lien created by the deposit of title deeds or of a mortgage deed of unregistered land by an owner entitled in fee simple or for the term or interest created by the lease for his own benefit, or by a mort- gagee beneficially entitled to the mortgage. 7 7 Any person with whom a land certificate or certificate of charge is deposited as security for money may by registered letter, or otherwise in writing, give notice to the registrar of such deposit, and of his name and address; he must describe (by reference to the county and parish or place and number of the title) the land to which the certificate relates, and on receipt of such notice the registrar must enter the same in the Charges Register, and give a written acknowledgment of its receipt. Such notice will operate as a caution under s. 53 of the act of 1875 (t). Further, a person applying for registration as proprietor of land or of a charge may, whether the land or charge is already registered or not, create a lien on the land or charge equivalent to that created by the deposit of a certificate by giving notice in writing, signed by himself, to the registrar, that he intends to deposit the land certificate or certificate of charge when issued with another person as security for money (fc). The notice of such intended deposit must state the name and address of the person with whom the certificate is to be deposited, and must describe the land or charge to which the certificate relates by reference to the county and parish or place and number of the title or (in the case of unregistered land) by reference to the deed or document by which the land was last dealt with, or otherwise to the satisfaction of the registrar. On receipt of such notice the registrar must enter the same in the register and give a written acknowledgment thereof (?) . A notice of intended deposit will operate as a caution under s. 53 of the (i) Rule 243. (k) Rule 244. (?) Rule 245. ANNUITIES AND LAND CHARGES. 609 act of 1875. The certificate must, when issued or re-issued, be delivered by the registrar to the person named in that behalf in the notice (m) . Notice of deposit or intended deposit of a certificate cannot Dealing be entered while another such charge is on the register, nor as dfter llotlC( to part only of the land or charge to which the certificate relates (n). If while a notice of deposit or intended deposit is on the register the certificate is left in the registry for any purpose, it will be dealt with notwithstanding the notice, and will be returned to the person leaving it, or as he may in writing direct (o) ; but so long as a notice of such deposit is on the register, no new certificate can be issued under s. 8, sub-s. 3, of the act of 1897, nor can any new certificate be issued under sub-s. 4 of the same section on a sale under a charge subsequent in priority to the notice of deposit without notice similar to that under a caution (p ) . The notice of deposit, or of intended deposit, may bo with- Discharge, drawn from the register on a written request or consent signed by the person entitled to the lien created by the deposit or notice or his successor in title; accompanied in each case by the land certificate, or certificate of charge (q ) . The lien created by the deposit of a certificate or by notice to the regis- trar under rule 244 will be subject to any unregistered estates, rights, or interests protected by caution or other entry on the register at the time of the creation of the lien, and in the case of good leasehold qualified or possessory title, to estates, rights, and interests excepted from the effect of registration (r) . Annuities and Land Charges. Every registered proprietor of land may charge it in manner Annuities, prescribed by rule 160 with an annuity or other periodical payment, and the provisions of the acts with regard to charges apply to such a charge for an annuity (s) . (m) Rule 246. (n) Rule 247. (o) Rule 248. (p) Rule 249. (q) Rule 250 of 1907. (r) Rule 251. (s) s. 9 (3) of the act of 1897 G. — C. It R 610 BK. II. REGISTRATION OF TITLE. Statutory- land charges. Applicant for registration may transfer or charge before regis- tration. Etfect of such transfer, &c. Must be accompanied by application for registra- tion. Priority notice. Every land charge arising under an act of parliament is deemed to be created by the person registered as proprietor of the land at the date of the charge, and may be registered ac- cordingly; but the covenants by the proprietor of the land under ss. 23 and 24 of the act of 1875 will not be implied, and the proprietor of the charge will not by virtue of such registration be entitled to any rights under ss. 25, 26 or 27 of that act to which he would not otherwise have been en- titled (t). Transfers and Charges before Registration. Where a person having the right to apply for registration as first proprietor of land desires to transfer or charge the land before he is himself registered as proprietor, he may do so in the manner, and subject to the conditions, which would be applicable if he were in fact the registered proprietor. Subject to any prior rights obtained by registration under the acts and rules, a transfer or charge so made, when completed by registration, has the same effect as if the person making it were registered as proprietor. But a charge will not be accepted for registration until an application has been made for the registration of the land to which it relates, and if the application for registration of the land is subsequently refused, or withdrawn, or abandoned, the registration of the charge will be annulled (u ) . Any applicant for registration may also secure priority for an application which he intends to subsequently make. Buie 95 provides that a person entitled to apply for registration as first proprietor of land (whether his application requires the consent of any other person or not) or his solicitor, or with his consent in writing any other person or his solicitor, may lodge at the registry a notice (to be called a priority notice) in form 18 in the first schedule, reserving priority for a specified application intended to be subsequently made, and a written acknowledg- ment of the receipt of the notice shall be given him. If within (t) Rule 170. For definition of (u) Rule 96. See Fee rule 8, “land charge,” see rule 1 (3). infra , p. 665. TRANSMISSION OF LAND AND CHARGES BY OPERATION OF LAW. 611 fourteen days from the lodgment of the notice, or within such further time as the registrar shall think fit, an application is made in accordance with the notice and is accompanied by the acknowledgment, it shall be dealt with in priority to any other application affecting the same land which may have been made in the meantime. On the expiration of the period fixed as aforesaid for the operation of the notice it may be cancelled. Transmission of Land and Charges by operation of Law. (1) On Death. On the death of the sole or sole surviving registered pro- prietor of land or a charge since 1897, his personal repre- sentatives have the option either to be themselves registered as proprietors ;and then afterwards to transfer the land to the beneficiaries (in which case no fee is chargeable unless the trans- fer is for valuable consideration), or without being themselves registered to execute an instrument of assent or transfer under ss. 3 (1) and 9 (6) of the act of 1897; or an instrument of appropriation under s. 4 (1) of the same act, which will enable the person in whose favour it is made (subject to possible prior charges under the will) to be registered as proprietor in place of the testator or intestate (x ) . Assuming that the per- sonal representatives adopt the former alternative, on pro- duction of the probate or letters of administration, the per- sonal representative named in the probate or letters must be registered as proprietor in the place of the deceased proprie- tor, with the addition of the words, “ executor or executrix (or administrator or administratrix) of [name'] deceased,” and if an executrix or administratrix is a married woman, that fact must be stated (y). All that it is necessary to do is to take the probate or letters of administration with a form of application for its registration to the registry, and pay the ad valorem fee (z) in land registry stamps. (x) See ss. 41 and 42 of the act ( y ) Rule 183. of 1875, ss. 1 — 5 of the act of 1897, ( z ) See Fee Order, 9th Novem- and rules 183 to 185. her, 1908, par. c. R R 2 Personal representa- tives may be registered or may transfer, &c. Probate or administra- tion must be produced. 612 BK. II. REGISTRATION OF TITLE. Registration of several executors. Transfer by personal representa- tives. Duty of personal representa' tive when property settled by will of deceased. Procedure where deceased a tenant for life. When, after one executor has been registered as proprietor under the preceding rule, another executor applies to be regis- tered as proprietor jointly with him, the registrar must, after notice to the other executor or executors, make the necessary alteration in the register upon production by the executor ap- plying of the probate obtained by him; or if he has not proved the will, of a statement in writing, signed by him, that he has accepted the executorship and desires to be registered accord- ingly (a). If, on the other hand, the personal representatives adopt the second alternative mentioned above, on the production of — (a) the probate or letters of administration with the will an- nexed and of an instrument of assent or appropriation in either of the forms 51 or 52 in the first schedule to the rules; or (b) a transfer by the personal representative and of the probate or letters of administration, the devisee or legatee named in the assent or appropriation, or the transferee named in the transfer, must be registered as proprietor of the land or charge in place of the deceased pro- prietor (b). Where a settlement is created by the will of, or otherwise arises in consequence of the death of, a sole registered pro- prietor, the personal representative must, at the proper time, with the consent of the tenant for life (if of full age) deliver at the registry, together with the probate or letters of adminis- tration, ;a written application for the registration of a pro- prietor, with the proper restrictions, according to the principles stated in s. 6 of the act of 1897 and rule 80; and thereupon the registration will be made accordingly; and, if the parties desire it, the probate, or settlement, or a copy or abstract thereof, may be deposited in the registry for safe custodj" and future reference (c ) . Where the deceased proprietor was himself a “ tenant for life” within the meaning of the Settled Land Acts, or, it is thought, a person having the powers of a tenant for life, his (а) Rule 184. (б) Rule 185. (c) Rule 186. TRANSMISSION OF LAND AND CHARGES BY OPERATION OF LAW. 613 personal representatives have no duty in regard to the matter. In this case it is the duty of the trustees of the settlement (if any) to apply for the registration of his successor or successors with such restrictions or inhibitions (if any) as may be re- quired (d). When the trustees of a settlement apply, on the death of a Whentrustees tenant for life, for the registration of a successor under the apply ’ settlement, they and their solicitor must make a statutory de- claration to the effect that the deceased proprietor was tenant for life, and that they are the trustees of the settlement, and that the person for whose registration they are applying is the successor under the settlement, and that the restrictions applied for are those proper to be entered, or that no restrictions are required (e). In any case under this rule in which the regis- trar requires that the declaration shall be accompanied by a certificate of counsel to the like effect, such certificate to his satisfaction must be produced (/) . When such declaration (and certificate if required) are produced, the registrar cannot require production of the settlement or any further evidence; but when they are not produced he must inquire into the terms of the settlement and must satisfy himself that the proper entries are made on the register ( g ). On the death of a tenant for life registered as proprietor of When • trustees do land, if the trustees of the settlement neglect to apply for the not apply registration of the new proprietor in his place, or if there are no such trustees, any person interested under the settlement may apply for the registration of a new proprietor. The regis- trar must thereupon inquire into the terms of the settlement, and settle draft entries for the register on the jM’inciples stated in is. 6 of the act of 1897 and rule 80 in regard to settled land, and must give notice thereof to the trustees of the settle- ment (if any) and to the succeeding tenant for life, and to such other persons (if any) as he may think fit, and if no valid objection is made thereto must enter the new proprietor accord- ingly ( h ). (d) s. 6 (4) of the act of 1897. (e) Rule 187. (/) Rule 188. (g) Rule 189. ( h ) Rule 190. 614 BK. II. REGISTRATION OF TITLE. Procedure on death of one of several joint pro- prietors. Procedure on death of trustee in bankruptcy. Trustee in bankruptcy or official receiver entitled to be registered. Procedure on registration of official receiver. Procedure on registration of trustee. If one of several joint proprietors of land or of a charge die, his name will be withdrawn from the register on proof of death, or on production of probate or letters of administration, together with such other evidence (if any) as the registrar may require (i). On the death of a proprietor registered as official receiver or trustee in bankruptcy, his personal representatives will not be registered, but proceedings must be taken in accordance with rule 198 (k). (2) On Bankruptcy. Upon the bankruptcy of a registered proprietor of any land or charge, or on the liquidation of his affairs by arrangement, his trustee is entitled to be registered as proprietor in his place (Z). But not until it is certified in the prescribed manner by the court having jurisdiction in bankruptcy that the land or charge is part of the property of the bankrupt divisible amongst his creditors. The official receiver is entitled to be registered pending the appointment of a trustee (m ) . On production to the registrar of an office copy of an order of a court having jurisdiction in bankruptcy adjudging a pro- prietor bankrupt, or directing the estate of a deceased proprietor to be administered under s. 125 of the Bankruptcy Act, 1883, together with a certificate signed by the official receiver that any registered land or charge is part of the property of the bankrupt, or deceased proprietor, divisible amongst his credi- tors, the official receiver may be registered as proprietor in the place of the bankrupt or deceased proprietor (w). When the official receiver has been registered as proprietor and some other person is subsequently appointed trustee, such person may be registered as proprietor in the place of the official receiver, on production of an office copy of the certificate by the Board of Trade of his appointment as trustee (o). If the official re- ceiver has not been registered as proprietor, the trustee may be (i) Rule 191. (k) Rule 192. See rule 198, p. 615, infra. ( l ) s. 43 of the act of 1875. (m) Schedule I. of the act of 1897. (?i) Rule 193. (o) Rule 194. TRANSMISSION OF LAND AND CHARGES BY OPERATION OF LAW. 615 registered as proprietor on production of office copies of the order adjudging the proprietor bankrupt, and of the certificate of the appointment of the trustee, with a certificate signed by the trustee that the land or charge is part of the property of the bankrupt, divisible amongst his creditors (p) . Where the official receiver or trustee in bankruptcy is registered as pro- prietor, the words “ official receiver,” or “trustee of the pro- perty ( of [name], a bankrupt,” must be added in the register (q). If any registered land or charge is vested in the trustee under the provisions of a scheme of arrangement approved by a court having jurisdiction in bankruptcy, the official receiver or other trustee may be registered as proprietor in like manner as a trustee in bankruptcy, upon production of an office copy of the scheme of arrangement; a certificate signed by the official receiver or such other trustee, that the registered land or charge was part of the property vested in him under the j:>rovisions of the scheme; and, in the case of a trustee, other than the official receiver, an office copy of the certificate by the Board of Trade of his appointment as trustee (r). When a trustee in bankruptcy, or trustee under the provisions of such scheme of arrangement, who has been registered as proprietor, vacates his office as trustee by reason of a receiving- order having been made against him, or by release, resignation, death, removal from office, or any other cause, the official re- ceiver may be registered as proprietor; or if some other person be appointed trustee, such person may be registered as proprie- tor on production of an office copy of the certificate of his appointment as trustee (s). Where the official receiver or a trustee has been registered as proprietor, and, by reason of any act or omission or order, his estate and interest in the property has become divested, he may give notice to the registrar in form 53 in the first schedule to the rules, which notice will be entered on the register, together with a general restriction against dealings until further order. On such entry being made the official receiver or trustee will be exonerated from all such liability (if any) as may affect him in Where registered land included in scheme of arrangement. Official receiver or trustee vacat- ing office. Notice of cesser of interest of official receiver or trustee. ( p ) Rule 195. (g) Rule 196. (r) Rule 19V. (s) Rule 198. BK. II. REGISTRATION OF TITLE. HI 6 respect of the property by reason of his name being entered on the register as proprietor. When such notice has been entered on the register an entry may be made under rule 151 without notice to the registered proprietor, or inquiry as to his execution of a transfer (t). Liquidation I n the liquidation of a company, any resolution or order of a company. . appointing a liquidator may be hied and referred to on the register, and, when so registered, is deemed to be in force until it is cancelled or superseded on the register ( 11 ). Transfer, &c. The official receiver or trustee may transfer or charge land nation re ^ 1S ' or deal with a charge belonging to the bankrupt without being himself registered as proprietor (x). Effect of Registration of Transmissions. Transmission is subject to existing rig-hts. Any person registered in the place of a deceased or bankrupt proprietor holds the land or charge in respect of which he is registered upon the trusts and for the purposes to which the same is applicable by law, and subject to any unregistered estates, rights, interests, or equities subject to which the de- ceased or bankrupt proprietor held it; but, save as stated, he is in all respects, and in particular as respects any registered dealings with the land or charge, in the same position as if he had taken the land or charge under a transfer for a valuable consideration (y). The Method of protecting Unregistered Dealings with Registered Land. Effect of unregistered dispositions. The general principle of the acts is that, with regard to all land brought under their provisions, some person must be regis- tered (as in the case of consols and the like) as absolute owner , either of the freehold or leasehold interest; the person so regis- tered is called in the acts the registered proprietor. The registered proprietor is alone entitled to transfer or charge registered land by a registered disposition; but, subject (cc) s. 9 (6) of the act of 1897, and rules 104 and 105. (y) s. 46 of the act of 1875. (t) Rule 199. ( u ) Rule 200. UNREGISTERED DEALINGS WITH REGISTERED LAND. 617 to the maintenance of his estate and right, any person, whether the registered proprietor or not, having a sufficient estate or interest, may create estates, rights, interests, and equities in the same manner as he might do if the land were not regis- tered (z ) . Similarly the registered proprietor is alone entitled to transfer a registered charge by a registered disjmsition; but, subject to the maintenance of his right, unregistered interests in a registered charge may be created in the same manner and with the same incidents, so far as the difference of the subject- matter admits, in and with which unregistered estates and in- terests may be created in registered land (a). The power con- ferred by this section includes power to sever the mines and minerals from the surface (b). In furtherance of the same principle, s. 83 (1), as amended by schedule I. of the act of 1897, provides that neither the registrar nor any person dealing with registered land or a charge is to be affected by notice of a trust, express or con- structive; and references to trusts are, as far as possible, to be kept off the register. If, therefore, the owner of registered land desires to make it the subject of a settlement, he may do so just as if the land were unregistered (c) ; but the settlement cannot be placed on the register; the estates and interests of the par- ties taking under the settlement must be protected by notices, cautions, inhibitions, or other restrictions as in the act men- tioned (d). Again, any of the parties interested under such a settlement may deal with their interests, but such dealings cannot be entered on the register, they can only be protected as above. As a consequence of this principle the register is not a mirror of the title, and there will, therefore, frequently be subsisting a considerable number of substantial interests in land, either incapable of direct registration or for various reasons purposely left unregistered. Any person entitled to (z) s. 49. The effect of this section is discussed by Cozens- Hardy, L. J., in Capital and Counties Bank v. Rhodes, (1903) 1 Ch. at p. 655 et seq. ( a ) s. 49 of the act of 1875. (5) Schedule I. of the act of 1897. (c) s. 49, above. ( d ) See ss. 53 to 59 of the act of 1875. No notice of a trust to be entered on the register. 618 BK. II. REGISTRATION OF TITLE. Right of lessee to register notice of a lease. When notice of lease ought to he regis- tered. Lessee must obtain order any such, interest may protect it from being impaired by any act of the registered proprietor by — Notices , Cautions , Inhibitions, and Restrictions, as in the acts mentioned (e) . Notice of Leases. The acts give no power to the registered proprietor as such to grant a lease by registered disposition or otherwise. But any lessee or other person entitled to or interested in a lease or agreement for a lease of registered land — where the term granted is for a life or lives, or is determinable on a life or lives, or exceeds twenty-one years, or where the occupation is not in accordance with such lease or agreement, may apply to the registrar to register notice of such lease or agreement, and when so registered every registered proprietor of the land, and every person deriving title through him, excepting proprietors of incumbrances registered prior to the registration of such notice, are to be deemed to be affected with notice of such lease or agreement as being an incumbrance on the land in respect of which the notice is entered (/) . Leases and agreements for terms not exceeding twenty-one years, if the tenant is in occupation thereunder, do not require to be noted as incumbrances against the lessor’s title (<7); but other leases ought to be noted under this provision, since they will otherwise be liable to extinction on a transfer for value of the land, if the proprietor be registered with an absolute title (h). In order to register notice of a lease or agreement for a lease, (e) s. 49 of the act of 1875. (< 7 ) s. 18 (7) of the act of 1875. (/) s. 50 of the act of 1875, and (h) See ss. 30 and 35 of the act schedule I. of the act of 1897. of 1875. UNREGISTERED DEALINGS WITH REGISTERED LAND. 619 if the registered proprietor of the land does not concur in such registry, the applicant must obtain an order of the court authorizing the registration and must deliver the order to the registrar, accompanied with the original lease or agreement or a copy, and thereupon the registrar must make a note in the register identifying the lease or agreement or copy so deposited, and the lease or agreement or copy so deposited will be deemed to be the instrument of which notice is given; but if the regis- tered proprietor concurs in such registry, notice may be entered in such manner as may be agreed upon (i ) . An application to register notice of a lease or agreement for a lease under the provisions above mentioned may be made either by the lessee or by any person entitled to or interested in the lease or agreement or by the registered proprietor of the land against which the notice is to be entered. The application must: be accompanied by the lease or counterpart, or by the agreement or duplicate, as the case may be, also by a copy or full abstract thereof, and a copy or tracing of the plan (if any) thereon. Except where the application is made by the regis- tered proprietor, it must be accompanied also by either the consent of such registered proprietor in writing signed by him- self or his solicitor or by an order of the court authorizing the registration of the notice. Consent to the registration of a notice of a lease or agreement may be given either before or after its execution (1c ) . Where the lease or sub-lease, of which notice is so given, is by way of security for money ad- vanced or to be advanced, the land certificate of the lessor or sub-lessor must be produced and endorsed with a note of the entry (l). Where after the creation of an incumbrance a lease is executed which would, apart from the Land Transfer Acts, 1875 and 1897, be binding on the incumbrancer, and notice of such lease is registered under s. 50 of the act of 1875, the notice will be effectual against the incumbrancer notwithstanding that his incumbrance was registered before the registration of the notice (m). If the lease or agreement comprises only part of the land in the title, and does not contain sufficient particulars of the court unless lessor concurs. Procedure on registration of notice of a lease. (i) s. 51 of the act of 1875. (k) Rule 201. ( l ) Rule 202. (m) Rule 203. 620 BK. II. REGISTRATION OF TITLE. Determina- tion of lease to be noted. (by plan or otherwise) to enable such part to be clearly shown on the filed plan of the land, the applicant (with the concur- rence of all other necessary parties, if any) must furnish the necessary information (n ) . The notice in the register must refer to the filed copy or abstract of the lease or agreement, and give the term, and may include such other short particulars as can be conveniently entered. Where the lease or agreement confers a right of pre-emption this will be noted in the regis- ter. The lease or agreement will be marked with a note of the entry and will be returned to the applicant (o) . If the lease or counterpart or the agreement or duplicate is not pro- duced, a statutory declaration by the applicant or his solicitor, stating the reason of the non-production and verifying the copy or abstract, must be furnished (p). When the determination of a lease registered as a leasehold title is noted on the register and the leasehold title is closed, if such lease has been noted as an incumbrance on the superior title, the note will be cancelled or an entry made that the lease has determined (q ) . On the determination of a lease not regis- tered as a leasehold title but noted in the register as an incum- brance on the superior title, or on the determination of an agreement for a lease so noted, any person interested may apply to have the determination noted in the register. Upon the production of such evidence as satisfies the registrar that the lease or agreement has determined, the note in the register will be cancelled, or an entry made of its determination (r). Where the proprietor of any land comprised in a leasehold title becomes by any means the proprietor of the land com- prised in the title against which the lease is noted as an incum- brance, or where a lease or agreement for a lease, noted as an in- cumbrance only, is vested in such proprietor, the registrar may, unless the contrary appears, treat the lease as merged, in which case the note will be cancelled accordingly (s ) . Where under the above rules an entry is to be made of the determination of a lease or agreement for a lease, or a note is to be cancelled, the ( n ) Rule 204. (o) Rule 205. (p) Rule 206. ( added such further particulars, if any, as the registrar thinks fit, and the Land Registry seal is affixed to it. Notes of subsequent dealings affecting the charge are from time to time entered on the certificate ( d ). A land certificate or certificate of charge is primct facie evidence of the several matters therein contained (e). Where an office copy of an entry in the register or of the filed plan of the land or of any document filed in the registry is annexed to any certificate, for the purposes of this section it is deemed to be contained in the certificate itself (/). On the first registration of freehold or leasehold land, and on the registration of a charge, a land certificate or certificate of charge is prepared and either delivered to the proprietor or deposited in the registry as he may prefer ( g ) . Any one of two or more persons registered as tenants in common of land or of a charge may, at his option, have a separate certificate; but only one certificate will be issued unless there be a request for two or more(^). Whenever a certificate is delivered out of the registry a receipt must be signed by the recipient (i ) . Except in the cases mentioned in s. 8, sub-ss. 3 and 4 of the act of 1897, and in cases falling under rules 152 and 164, no new certificate can be issued unless the existing certificate is delivered up to the registrar to be cancelled (Jc). (c) Rule 258. ( g ) s. 8 (4) (i) of the act of (d) Rule 259. 1897. (e) s. 80 of the act of 1875. (h) Rule 261. (/) Rule 260. (0 Rule 262. (&) Rule 263. Form of certificate of charge. Certificate primd facie evidence. Must be pre- pared on first registration . 636 BK. II. REGISTRATION OF TITLE. Certificate to be produced in all dealings with regis- tered land. Purchaser entitled to certificate on completion. Renewal of certificate. So long as a land certificate or certificate of charge is out- standing, it must be produced to the registrar on every entry in the register of a disposition by the registered proprietor of the land or charge to which it relates, and on every registered transmission or rectification of the register, and a note of ever}' such entry, transmission, or rectification must be officially indorsed on the certificate, and the registrar has the same powers of compelling the production of certificates as arc con- ferred on him by ss. 109 and 110 of the act of 1875 as to the production of maps, surveys, books, and other documents (l ) . But where a certificate cannot be produced at the registry with- out disproportionate trouble, expense, or delay, the registrar may authorize an officer of the registry, or a solicitor, to in- spect it elsewhere, at the expense of the applicant, and to make the proper indorsement (if any) thereon, and to authenticate the same on behalf of the registry (m). Further, on any appli- cation for registration made by or with the consent of the registered proprietor of the land or of a charge or incumbrance, the registrar may require the production of the land certificate or certificate of charge or incumbrance, and, may refuse to pro- ceed with the application until the certificate is produced ( n ). Where a land certificate has been issued, the vendor must deliver it to the purchaser on completion of a purchase, or if only a part of the land comprised in the certificate is sold, he must, at his own expense, produce, or procure the production of, the certificate in accordance with this section for the com- pletion of the purchaser’s registration. Where the certificate has been lost or destroyed, the vendor must pay the costs of the proceedings required to enable the registrar to proceed with- out it (o). The registrar may, upon the delivery up to him of a land certificate or of a certificate of charge, grant a new land certifi- cate or certificate of charge in the place of the one delivered up (p). A new land certificate, or certificate of charge, may also be Loss or (?*) s. 8 (1) of the act of 1897. (m) Rule 264. ( n ) Rule 265. (o) s. 8 (2) of the act of 1897. (p) s. 79 of the act of 1875. LAND CERTIFICATES AND CERTIFICATES OF CHARGE. 637 granted by the registrar in place of a certificate which has been lost or destroyed, but not until the applicant has filed with the registrar a statutory declaration and such other evidence (if any) as the registrar may think necessary, stating the fact and circumstances of the loss or destruction of the former certifi- cate or office copy, nor until at least one advertisement of the application in the London Gazette and three advertisements in a London daily morning newspaper have been published at intervals of not less than seven days, and three advertisements in a local newspaper circulating in the district in which the land is situate, and such indemnity (if any) given as the regis- trar thinks fit (g). Where a transfer of land is made by the registered proprietor of a charge, in exercise of the power of sale conferred by the charge, it may be registered, and a new land certificate may be issued to the purchaser, without production of the former land certificate, but the certificate of charge (if any) must be pro- duced or accounted for in accordance with this section. Sub- ject to any stipulation to the contrary the proprietor of a regis- tered charge is not entitled to have custody of the land certifi- cate, or to require a land certificate to be applied for (r) . It must be remembered, however, that he cannot get his charge registered in the first instance without producing the land cer- tificate. and lie must, therefore, stipulate to have it handed to him by the mortgagor for this purpose. When a certificate is produced on the closing of a title or the discharge of a charge or incumbrance, it will be retained in the registry and cancelled ( s ). The registrar has power to re- tain a certificate produced under s. 8 of the act of 1897 for the purpose of making* an entry thereon. On the registration of any transaction for which the production of a land certificate or certificate of charge is required, the certificate will, before it is re-issued, be made to correspond with the register (t). A certificate may be deposited in the registry with written directions that it is to be held for a specified purpose only. Subject to the last rule a certificate so> deposited will not be ( q ) s. 8 (3) of the act of 1897. (s) Rule 266. (r) s. 8 (4) of the act of 1897. ( t ) Rule 267. destruction of certificate. Land certifi- cate not necessary in case of sale by registered mortgagee. General powers with reference to certificates. 638 BK. II. REGISTRATION OF TITLE. used, or be deemed to be in the registry for any other purpose without the written consent of the person by whom such direc- tions were given, or his successor in title or his solicitor ( u ) . Registration of advowsons, rents, tithes, mines, &c. How applica- tion for registration of manors, &c. made. Manor. Rent and tithe-rent charge. Special Hereditaments. The registrar may register the proprietor of any advowson, rent, tithes impropriate, or other incorporeal hereditament of freehold tenure, and also the proprietor of any mines or minerals where the same have been severed from the land, in the same manner and with the same incidents in and with which he is empowered to register land, or as near thereto as circumstances admit (x). The rules provide that application for registration of manors, advowsons, rents, tithes, or other incorporeal hereditaments, mines and minerals severed from the land, cellars, flats, and other similar hereditaments, and undivided shares in land, must be made according to the rules above prescribed in the case of absolute ;and possessory titles respectively, and must be pro- ceeded with in the same manner, subject only to such modifica- tions as the nature of the case may require and the registrar may (approve (y) . On the registration of a manor the applicant must leave in the registry a plan of the lands (if any) alleged to be the demesne lands of the manor, other than lands held by copy of court roll, unless he leaves a reference to the general map show- ing with sufficient accuracy the land affected by liis application, in which case a plan will not be necessary ( z ). On the registration of a rent or tithes, or rent-charge in lieu of tithe, the applicant must leave in the registry, with the application, a plan of the lands out of which they are issuing, so far as they can be conveniently identified and described, or such pther information as may be necessary for identifjdng such lands, so far as practicable, on the ordnance map or general ( u ) Rule 268. (y) Rule 71. ( x ) s. 82 of tlie act of 1875, and ( z ) Rule 72 as amended by the schedule I. of the act of 1897. rules of 1907. SPECIAL HEREDITAMENTS. 639 map, but a reference to the general map as above renders a plan unnecessary (a ) . On the registration of mines and minerals severed from the Mines, land, a jolan showing as accurately as is practicable the surface under which the mines and minerals lie, or a reference to the general map showing the land affected by the application must be deposited in the registry, together with such other plans, sections, and further descriptions (if any) as the registrar may deem necessary for the purpose of identifying such mines and minerals, and also together with full particulars of any appur- tenant rights of access, or rights incidental to the working of the mines and minerals that may be subsisting and intended to be entered in the register (&). On the registration of a proprietor of a flat or floor, or part F1 ^ts, floors of a flat or floor, of a house, or of a cellar or tunnel or other underground space apart from the surface, a plan must be fur- nished of the surface under or over which the tenement to be registered lies, or a reference to the general map showing the land affected by the application must be left, and such further verbal or other description as the registrar may deem necessary, together with notes of any appurtenant rights of access, in common with others or not, or obligations affecting other tene- ments for the benefit of the tenement the title to which is being registered (c). Before completing any registration under the two last rules Notices with an absolute, qualified, or good leasehold title, notices must reqmred ' be given in the case of mines and minerals to the owners and to the occupiers of the land under which they lie, and in the case of cellars, flats and other similar hereditaments to the owners and to the occupiers of the other tenements immediately above and below and (where in the same building) adjoining laterally to the tenement which is the subject of the applica- tion, and to such other persons (if any) as the registrar may direct (d). (a) Rule 73 as amended by the (c) Rule 75 as amended by the rules of 1907. rules of 1907. ( b ) Rule 74 as amended by the ( d ) Rule 76. rules of 1907. 640 BK. II. REGISTRATION OF TITLE. Joint owners of undivided shares. Fee farm and other rents. Persons dealing with registered land not to be affected by notice of trusts. Several proprietors On the registration of two or more persons as proprietors of undivided shares in land, the registration will be made under one title, unless the registrar otherwise directs, and the share held hy each proprietor will be specified in the proprietorship register. If the shares are registered under separate titles, the share to which each title relates will be stated in the property register (e). The registrar may also in the prescribed manner register any fee farm grant, or other grant, reserving rents or services to which the fee simple estate in any freehold land may be subject, with such particulars of the land or services, and the conditions annexed to the non-payment or non-performance or otherwise of such rent and services as may be prescribed, and any record so made shall be conclusive evidence as to the rents, services, and conditions so recorded, and such fee simple estate as last aforesaiu shall be subject thereto accordingly (/). General Provisions. The object of the system of registration is to enable the person whose name appears on the register to deal freely with the land of which he is registered as proprietor, and to enable any one to deal with him as if he were the beneficial owner. It is therefore provided that neither the registrar nor any person dealing with registered land or a charge is affected with notio? of a trust, express, implied or constructive; and references to trusts must, as far as possible, be excluded from the register (g). Consequently, if a trustee of land becomes registered as pro- prietor, any person can safely take a conveyance or transfer from him, whether he has notice of the trust or not; unless, of course, the cestui que trusts obtain an order inhibiting the transfer, as they will have an opportunity of doing if it is an improper one, and the proper cautions and restrictions have been entered up on their behalf (h ) . Any number of persons may be entered as joint proprietors (c) Rule 77. ( g ) s. 83 (1) of the act of 1875, (/) s. 82 of the act of 1875. and schedule I. of the act of 1897. ( h ) See ante, pp. 621 et seq. GENERAL PROVISIONS. 641 of the same land or as owners of undivided shares in it (i ) ; but in order to further safeguard the interests of cestuis que trusteni — joint proprietors being very commonly trustees — it is provided that “ upon the occasion of ,the registry of two or more persons as proprietors of the same land or of the same charge, an entry may be made on the register to the effect that when the number of such proprietors is reduced below a certain specified number no registered disposition of such land or charge shall be made, except under the order of the court; or of the registrar, after inquiry into title, subject to an appeal to the court. Subject to general rules, wherever registered land or a charge is to be entered in the names of two or more joint proprietors, the registrar shall make such entry under this sub-section as may be prescribed, unless it is shown to his satisfaction that the joint proprietors are entitled for their own benefit ” (1c). The rules provide, however, that an entry under this section need only be made where the deed or instrument, by virtue of which the joint proprietors are registered, shows an intention that the survivor shall not have power to dispose of the land or charge, or where the registrar for any special reason considers that such an entry would be desirable; but such an entry may be made at any time with the consent of the joint proprietors (?). When such an entry is made and the joint proprietors have been reduced to the number specified, the registrar must, before entering on the register any disposi- tion by the registered proprietor, require the production of the equitable title; and may give such notices to the persons, or one or some of them equitably entitled, as he deems ex- pedient (m). Previously to registering any proposed purchaser as first pro- prietor of any land or to registering any disposition of land, it is the duty of the registrar to ascertain that all such stamp duties have been satisfied as would be payable if the land had been conveyed by an unregistered disposition to such pro- ( i ) s. 14 of the act of 1897, and and schedule I. of the act of 1897. rule 77. ( l ) Rule 224. (k) s. 83 (3) of the act of 1875, (m) Rule 225. G. — C. of same land or charge. Registrar to see that all stamp duties paid. T T 642 BK. II. REGISTRATION OF TITLE. Succession duty on devolution of registered charges. Restrictive conditions as to user may be annexed to registered land. Restrictive conditions only cun be registered aya’nst freeholds. Procedure. posed purchaser, or the disposition to be registered had been an unregistered disposition (n ) . The provisions of the act with respect to the liability of regis- tered land to succession duty and to the grant of a certificate by the Commissioners of Inland Revenue in respect of the exemption from succession duty, and to the notification of such exemption on the register, and to the effect of such notification, apply with the necessary variations to a registered charge under the act (o). Restrictive Conditions. There may be registered as annexed to any registered land a condition that the land or any specified portion of it is not to be built on, or is to be or not to be used in a particular manner, or any other condition running with or capable of being legally annexed to land, and the first proprietor and every transferee, and every other person deriving title from him, will be deemed to be affected with notice of such condition; nevertheless, any such condition may be modified or discharged by order of the court, on proof to the satisfaction of the court that such modifi- cation will be beneficial to the persons principally interested in the enforcement of such condition. This applies to any restrictive condition capable of affecting assigns by way of notice (p). Generally speaking, only negative or restrictive conditions can be thus registered in the case of freehold land: conditions involving the expenditure of money or the doing of any work on the land cannot be annexed to the title, but must depend on personal agreements between the parties (q ) . An application to register restrictive conditions, if made at any other time than on first registration or on a transfer, must state the conditions to be registered, and must be signed by the (n) s. 83 (7) of the act of 1875. (o) s. 83 (8) of the act of 1875. (p) s. 84 of the act of 1875, and schedule I. of the act of 1897. The section does not entitle a person to enforce restrictions which he would not have been able to en- force if the land had not been re- gistered: Wille v. St. John, (1910) 1 Ch. 84. ( q ) See ante, pp. 152 et seq. PROVISIONS RELATING TO PERSONS SUBJECT TO DISABILITY. 643 applicant; and if he is not the registered proprietor of the land, by such proprietor also; and the signatures must be attested. The concurrence of the proprietor of a registered incumbrance or charge may be expressed in writing signed by him and attested, and an entry will be made in the register of his con- currence. In the absence of such entry the proprietor of a prior charge or incumbrance will be unaffected by such conditions. A copy of the conditions or of the document containing them must be delivered at the registry (r) . Once a condition is registered there is great difficulty in removing it, and the power must therefore be carefully used. Provisions relating to Persons subject to Disability. Married Women. Where a married woman, entitled for her separate use, and not restrained from anticipation, is desirous of giving any consent, or becoming party to any proceeding under the acts, she is to be deemed an unmarried woman, but when any other married woman is desirous of so doing she must be examined in the manner prescribed by rules 338 to 340, and it must be ascertained that she is acting freely and voluntarily, and the court may, where it sees fit, appoint a person to act as the next friend of a married woman for the purpose ( s ). Infants and Lunatics. Where any person who (if not under disability) might have made any application, given any consent, done any act, or been party to any proceeding in relation to any land or charge under the acts is an infant, idiot, or lunatic, the guardian or com- mittee of the estate respectively of such person may make such applications, give such consents, do such acts, and be party to such proceedings, as such person respectively, if free from dis- ability, might have made, given, done, or been party to, and may otherwise represent such person for the purposes of the acts; where there is no guardian or committee of the estate, or where any person is of unsound mind or incapable of manag- (s) s. 87 of the act of 1875. Difficulty of removing restrictions. Married woman entiiled for separate use free from restraint to have same power as feme sole. Guarlian of iufant or enmmittee or guardian of lunatic to act, (r) Rule 223. T T 2 644 BK. II. REGISTRATION OF TITLE. Incumbent, s subject to restriction. Every person on register to furnish address. Service of notices. Notice to be returned if addressee not found. Purchaser not affected by in g his affairs, but has not been found lunatic under an inqui- sition, the court may appoint a guardian of such person for the purpose (t) . Incumbents of Benefices. Special provisions are made in respect of dealings with regis- tered land held by the incumbent of a benefice and placing restriction on dispositions of such land ( u ) . As to Notices. Every person whose name is entered on the register as pro- prietor of land or of a charge, or as cautioner, or as entitled to receive any notice, or in any other character, must furnish to the registrar a place of address in the United Kingdom ( x ). This will be his address for service. Any person may have two addresses entered in the register, to each of which all notices and other communications to him may be sent (y) . Every notice required to be given to any person must be served personally, or sent through the post in a registered letter marked outside “Office of Land Registry,” and directed to such person at the address furnished to the registrar, and unless returned, and in the absence of evidence of its actual delivery, will be deemed to have been received by the person addressed within seven days, exclusive of the day of posting ( z ) . The postmaster general must give directions for the imme- diate return to the registrar of all letters marked as aforesaid, and addressed to any person who cannot be found; and on the return of any letter containing any notice, the registrar may either require further notice to be given or may authorize sub- stituted service of the notice, or he may proceed without notice if he thinks fit ( a ) . A purchaser for valuable consideration will not be affected by ( t ) s. 88 of the act of 1875. ( u ) See s. 15 of the act of 1897, and rules 237 to 239. ( x ) s. 89 of the act of 1875. ( y ) Rule 326. (z) s. 90 of the act of 1875, and rules 322 to 324. (a) s. 91 of the act of 1875, and rule 325. RECTIFICATION OF THE REGISTER. 645 the omission to send any notice directed to be given by the acts, or by the non-receipt thereof ( b ). Specific Performance. Where a suit is instituted for the specific performance of a contract relating to registered land, or a registered charge, the court having cognizance of the suit may cause all or any parties who have registered estates or rights in the land or charge, or have entered up notices, cautions, or inhibitions, to appear and show cause why the contract should not be specifically per- formed, and the court may direct that any order made by the court in the suit shall be binding on such parties or any of them (c) . All costs incurred by any parties so appearing in a suit to enforce against a vendor specific performance of his contract to sell registered land or a registered charge shall be taxed as between solicitor and client, and, unless the court otherwise orders, be paid by the vendor (eZ) . Rectification of the Register. Subject to any estates or rights acquired by registration in pursuance of the acts, where any court of competent juris- diction has decided that any person is entitled to any estate, right, or interest in or to any registered land or charge, and as a consequence the court is of opinion that a rectification of the register is required, the court may make an order directing the register to be rectified in such manner as it thinks just (e). Subject to any estates or rights acquired by registration in pursuance of the acts, if any person is aggrieved by any entry made or by the omission of any entry from the register, or if default is made, or unnecessary delay takes place in making (6) s. 92 of the act of 1875. (c) s. 93 of the act of 1875. ( d ) s. 94 of the act of 1875. (e) s. 95 of the act of 1875. For form of order in a case where a foreclosure order had foreclosed a mortgage by deed of registered land without foreclosing the contemporaneous instrument of charge, see W ey mouth v. Davis, (1908) 2 Ch. 169. omission to send notice. Power of court in suit for specific performance to order parties to appear. Costs to be paid by vendor. Court may order register to be rectified. Who may apply. 64G BK. II. REGISTRATION OF TITLE. Registrar to obey orders of court. Fraudulent dispositions void. Criminal offences under the acts. any entry in the register, any person aggrieved by such entry, omission, default, or delay may apply to the court for an order that the register may be rectified; and the court may either refuse such application with or without costs, to be paid by the applicant, or it may, if satisfied of the justice of the case, make an order for the rectification of the register (/) . The registrar must obey the order of any competent court in relation to any registered land on being served with the order or an official copy (g ) . Effect of Fraudulent Entries on Register. Any disposition of land or of a charge on land, which if unregistered would be fraudulent and void, will, notwithstand- ing registration, be fraudulent and void in like manner (Ji ) . But this is subject to the provisions of the acts with respect to registered dispositions for valuable consideration (i ) ; the effect of which seems to be, that upon a transfer for value by a person who claims under registered disposition which is fraudulent and void, the transferee gets a good title notwith- standing the defect in the title of the transferor. This, however, is again subject to the provision that where a regis- tered disposition would, if unregistered, be absolutely void, the register is to be rectified, and the person suffering loss by the rectification will be entitled to indemnity (k). Further, it is made a misdemeanour, punishable on indict- ment with two years’ imprisonment with or without hard labour, or a fine not exceeding 500 1., (i.) To suppress or attempt to suppress, or be privy to the suppression of any document or fact with intent to conceal the title or claim of any person, or to sub- stantiate a false claim (Z). (ii.) Fraudulently to procure or attempt to procure, or be privy to the fraudulent procurement, of any entry on the register or of any erasure from or alteration of it: and any entry, erasure, or alteration so made by fraud (/) s. 96 of the act of 1875. ((/') s. 97 of the act of 1875. ( h ) s. 98 of the act of 1875. (i) Ibid. (h) s. 7 (2) of the act of 1897. (Z) s. 99 of the act of 1875. RIGHT TO INDEMNITY FOR ERRORS IN REGISTER. 647 will be void as between all parties or privies there- to (m). (iii.) Wilfully to make a false statement in any affidavit or declaration required or authorized to be made by the acts or rules (w). No proceeding' or conviction for any act declared by the act to be a misdemeanour will affect any remedy which any person aggrieved by such act may be entitled to, either at law or in equity (o). Nothing in the act contained will entitle any person to refuse to make a complete discovery by answer in any legal proceeding, or to answer any question or interrogatory in any civil pro- ceeding, in any court; but no answer to any such question or interrogatory will be admissible in evidence against such person in any criminal proceeding under the acts (p ) . Right to Indemnity for Errors in Register. It is obvious that, notwithstanding the provisions with respect to fraud above stated, mistakes and erroneous entries in the register are certain to occur from time to time, in which case one of two innocent parties must suffer. Provision is made for this by s. 7 of the act of' 1897, which gives the injured party a right of indemnity. The section is as follows: — “ (1.) Where any error or omission is made in the register, or where any entry in the register is made or procured by or in pursuance of fraud or mistake, and the error, omission, or entry is not capable of rectification under the principal act, any person suffering loss thereby shall be entitled to be indemnified in the manner in this act provided. “ (2.) Provided that where a registered disposition would if unregistered be absolutely void, or where the effect of such error, omission, or entry would be to deprive a person of land of which he is in possession, or in receipt of the rents and profits, the register shall be Civil remedies not affected by conviction. Offences not privileged from discovery. Persons suffering loss by errors in or omissions from register to be indem- nified. (m) s. 100 of the act of 1875. (n) s. 101 of the act of 1875. (o) s. 102 of the act of 1875. (p) s. 103 of the act of 1875. 648 BK. II. REGISTRATION OF TITLE. rectified, and tlie person suffering loss by the rectifi- cation shall be entitled to the indemnity. “ (3.) A person shall not be entitled to indemnity for any loss where he has caused or substantially contributed to the loss by his act, neglect, or default, and the omission to register a sufficient caution, notice, in- hibition, or other restriction to protect a mortgage by deposit or other equitable interest, or any estate or interest created under section forty-nine of the principal act, shall be deemed neglect within the meaning of this sub-section. “ (4.) Where the register is rectified under the principal act by reason of fraud or mistake which has occurred in a registered disposition for valuable consideration, and which the grantee was not aware of and could not bv the exercise of reasonable care have discovered, the person suffering loss by the rectification shall likewise be entitled to indemnity under this section. “ (5.) The registrar may, if the applicant desires it, and subject to an appeal to the court, determine whether a right to indemnity has arisen under this section, and, if so, award indemnity. In the event of an appeal to the court, the applicant shall not be required to pay any costs except his own, even if unsuccessful, unless the court shall consider that the aj)peal is un- reasonable . “ (6.) Where indemnity is paid for a loss, the registrar, on behalf of the crown, shall be entitled to recover the amount paid from any person who has caused or sub- stantially contributed to the loss by his act, neglect, or default. “ (7.) A. claim for indemnity under this section shall be deemed a simple contract debt, and for the purposes of the Limitation Act, 1G23, the cause of action shall be deemed to arise at the time when the claimant knows, or but for his own default might know, of the existence of his claim. This section shall apply to the crown in like manner as it applies to a private person.” RIGHT TO INDEMNITY FOR ERRORS IN REGISTER. 649 For the purpose of providing the indemnity ay able under this section, an insurance fund has been established, raised by setting apart at the end of each financial year a portion of the receipts and fees taken in the registry; any deficiency in the fund being temporarily made good out of the consolidated fund from time to time (q). The provision of this insurance fund was held out as one of the advantages of the system of registration established by the acts, but it appears to afford little or no protection to the public. The only reported case in which a claim has been made upon the fund is that of Attorney -General v. Odell (r). In this case Mr. Odell left at the registry what purported to be a transfer of a charge registered in the name of Mrs. Connell and in due course ho was registered accordingly as the proprie- tor of the charge. It subsequently transpired that the transfer had not been executed by Airs. Connell, but was a forgery by her solicitor, who had misappropriated the purchase-money paid by Odell. There was no negligence on Mrs. Conlnell’s part, and Odell acted in perfect good faith, and could not have detected the forgery by the exercise of any reasonable care. On the discovery of the fraud Mrs. Connell obtained an order for the rectification of the register, and Odell applied for indemnity, but the Court of Appeal held that he was not en- titled to it on the ground, first, that he had “caused or con- tributed to ” his loss by bringing to the registry what he im- pliedly warranted was a genuine document, and second, that he had no “transfer” from “the registered proprietor of the charge” within the meaning of s. 40 of the act of 1875, and consequently had not “suffered loss by the rectification.” The result appears to be that there will in practice be very few cases in which a claim to indemnity for rectification of the register can be maintained, and having regard to the oppor- tunities for fraud which the system of the registry affords (s), persons dealing with registered land appear to run greater risk of loss than exists under the common law system of convey- ancing. (q) See s. 21 of the act of 1897. ton, J., in Marshall v. Robertson (r) (1908) 2 Oh. 47. (1905), Sol. Jour. vol. 1. 75. (s) See remarks of Warring- Insurance fund. Difficulty in obtaining indemnity. 650 BK. II. REGISTRATION OF TITLE. Local Registries. Land regis- tered under the Acts exempted from the registry of deeds. Land situate within the jurisdiction of the Middlesex and Yorkshire registries, if registered at the land registry, becomes exempt from the jurisdiction of the county registries as from the date of registration, and no document executed, and no testamentary instrument relating to any registered land coming into operation subsequently to such date is required to be regis- tered in any of the local registries (£). But this does not apply to estates and interests excepted from the effect of regis- tration under a possessory or a qualified title (m), or to an un- registered reversion on a registered leasehold, or to dealings with incumbrances created prior to the registration of the land (jc). Power to Remove Land from the Register. Registered proprietor may remove land from the register. The registered proprietor of land not situated in a district where the registration of title is compulsory may, with the consent of the other persons (if any) for the time being appearing by the register to be interested therein, and on delivering up the land certificate or office copy of the registered lease and certificates of charge (if any), remove the land from the register. After land is removed from the register no further entries are to be made respecting it; but the last registered proprietor of the land or a charge may, for a period of two years from the removal, inspect the register and have office copies of the entries. After that period no inspection can be made or office copy obtained without the order of the registrar. If the land so removed from the register is situate within the jurisdiction of the Middlesex or Yorkshire regis- tries, it will again be subject to such jurisdiction as from the date of the removal («/). (£) s. 127 of the act of 1875. (a?) Schedule I. of the act of ( u ) As to which, see ante , pp. 1897. 572 et seq. ( y ) s. 17 of the act of 1897, and rule 295. 651 INSPECTION, SEARCHES, AND COPIES OF REGISTER. Inspection, Searches, and Copies of Register. The register is strictly private; no search (except of the general index map) can be made without the written authority of the registered proprietor or his solicitor (z). Any entry in the register, and any document in the custody of the registrar and referred to in the register, may be inspected by or under the authority of the registered proprietor of the land or of any charge or incumbrance thereon (a ) . The pro- perty register and the filed plan of any title may be inspected by any person interested in the land or in any adjoining land, or in a charge or incumbrance thereon. Other entries in the register and documents referred to therein and the statutory declaration in support of a caution may be inspected by any person interested, on giving three days’ notice to the registered proprietor or on satisfying the registrar that, by reason of the death of a sole registered proprietor, or for any other sufficient reason, he cannot obtain the requisite authority for or consent to such inspection, and that such inspection is reasonable and proper (5) . The registered proprietor of the land, or of a charge or incumbrance, may by an instrument in form 67 in the first schedule to the rules, or to the like effect, authorize an appli- cation to be made to the registrar for information as to the entries in the register at or prior to the date of such authority. A copy of the authority may be filed in the registry. The registrar must at any time furnish to any person producing the authority such information as to the state of the register at the date mentioned in the authority as may be reasonably re- quired (c). Except as above provided, inspection of books and documents is in the discretion of the registrar (d ) . Every in- spection must be made in the presence of an officer of the regis- try, and every copy or note of, or extract from, any register or document in the custody of the registrar must be made by the person inspecting in pencil only. No ink may be used (e). ( z ) s. 104 of the act of 1875, and s. 22 (7) of the act of 1897. (а) Rule 284. (б) Rule 285. (c) Rule 286. There is a fee of 5s. payable. See Fee Order, 9th November, 1908, par. k. ( d ) Rule 287. (e) Rule 288. Register private. Searches, how and by whom made. 652 BK. II. REGISTRATION OF TITLE. Official searches. By telegraph. Any person authorized to inspect the entries in the register relating to any title, charge, or incumbrance, may apply to the registrar in writing, signed by himself or his solicitor, to make an official search (describing the nature of the search required) against such title, charge, or incumbrance, and to issue a certificate of the result; and the registrar, on receipt of such application, will make the search and issue the certifi- cate accordingly. The certificate of the result of such search will be in form 68 in the first schedule to the rules (/) . The registered proprietor of any land, charge, or incum- brance, may apply to the registrar by telegraph to search whether any caution, restriction, inhibition or notice has been entered against any such land, charge, or incumbrance since a date to be named ; which date must not be earlier than the date of the land certificate or certificate of charge held by the appli- cant, or, where such certificate has been re-issued, the date on which it was last re-issued (g ) . The application must give the number of the title and the parish or place under which it is registered, and in the case of a charge or incumbrance must give a sufficient description thereof, and must be signed by the registered proprietor (or by his solicitor, describing himself as such, and giving the name of the proprietor), and must give the name and address of the person to whom the answer is to be sent. The fee for the search must be sent by the same telegram, and the reply must be prepaid (Ji). Upon the receipt of such an application the search will be made forthwith, and the result, “yes’’ or “no," will be sent by telegram to the person named in that behalf in the application, repeating the number of the title, the parish or place, the date at which the search commences, and, in the case of a charge or incumbrance, the description (i) . When a solicitor or other person obtains an official certificate of the result of a search, he will not be answerable in respect of loss that may arise from any error therein. When the certificate is obtained by a solicitor acting for trustees, executors, or other persons in a fiduciary position, those persons also will not be so answerable (k). (/) Rule 289. For the fees pay- ( h ) Rule 291. able, see Fee Order, 9th Novem- (i) Rule 292. her, 1908, par. k. ( k ) Rule 293. ( g ) Rule 290. COMPULSORY REGISTRATION. 653 An office copy of any entry in the register, or of any docu- Office copies, ment in the registry, must, upon an application in writing by any person who is entitled to inspect such entry or document, be issued to him or his solicitor (l ) . Compulsory Registration. Haying now explained the system of registration of title, we Orders in have to deal with the provisions by which its adoption is made b^made^ compulsory. Sect. 20 of the act of 1897 provides that it may . J- ^ ... registration be declared by order in council that as regards any county or compulsory part of a county, mentioned or defined in the order, registra- on sale ' tion of title to land is to be compulsory on sale. Before any such order is made, a draft is, six months previously, to be submitted to the council of the county which is to be affected. Within three months after receipt of the draft, the county council, at a meeting specially summoned for the purpose, and at which two-thirds of the whole number of the council are present, may by a simple majority resolve that in their opinion compulsory registration of title would not be desirable for the district which they represent. If no such resolution is passed, and the order becomes operative, no other order can under any circumstances be made until the expiration of three years from its date. After the expiration of the three years the compulsory area Extension may be further extended, but only to a county or part of a of^compulsoy, county the council of which, at a special meeting at which two- thirds of the whole number of the council are present, shall request such extension (m) . Pursuant to this provision a draft order Avas made in the Acts applied month of November, 1897, applying the act to the administra- London! 3 ° , tive county of London. This was considered by the London County Council at a meeting held on the 15th February, 1898, and adopted subject to the act not being made to apply to the whole of London at once, but being made to take effect progressively. ( l ) Rule 294. (m) s. 20 (8) of the act of 1897. 654 BK. II. REGISTRATION OF TITLE. Dates of operation of orders in council. Consequent upon this resolution, orders in council dated the 18th July, 1898, 20th October, 1898, 28th November, 1899, 9th March, 1901, 10th December, 1901, and 6th March, 1902, have been made making registration compulsory on sale in the several portions of the county mentioned in the first column, on and after the respective days mentioned in the second column of the following schedule: — The Schedule. Portions of the County. Days on and after which registration of tide to laud is to be compulsory on sale. The parishes of Hampstead, Saint Pancras, Saint Mary It bone, and Saint George’s, Hanover Square. The parishes of Shoreditch, Bethnal Green, Mile End Old Town, Wappiny. Saint George’s in the East, Shadwell, Ratcliff, Limehouse, Bow, Bromley, and Poplar. 1st January, 1899. 1st March, 1899. The remainder of the county (not including the city of London) north of the centre line of the river 1st October, 1899. Thames, except North Woolwich. The parishes of Christ Church, Southwark, Saint George the Martyr, Camberwell, Horselydown, Lambeth, Bermondsey, Newington, Rotherhithe, Saint Olave and Saint Thomas, Southwark, and the detached part of the parish of Streatham situate between the parishes of Lambeth and. Camberwell. 1st January, 1900. The parishes of Battersea, Clapham, Putney, Tooting Graveney, Wandsworth, and the remainder of the parish of Streatham. 1st May, 1900. The remainder of the county except the city of London. 1st November, 1900. The city of London 1st July, 1902. When registration compulsory and penalty for non- registration. In the compulsory area registration of title is compulsory: — (1) On sale of freehold land, otherwise the purchaser will not under any conveyance on sale executed on or after the day specified acquire the legal estate. The expression “ conveyance on sale” means an instrument executed on sale by virtue whereof there is conferred or completed a title under which an application for registration as first proprietor of land may be made under the act of 1875 ( n ); and (n) s. 20 (2) of the act of 1897. COMPULSORY REGISTRATION. 65 (2) On sale of a lease or underlease having at least forty, years to run, or two lives yet to fail in, and a grant of a lease or underlease for a term of forty years or more, or for two or more lives executed after the day specified in the order and capable of registration (o), otherwise the assignment or grant, as the case may be, will operate only as an agreement, and will not pass any legal estate to the assignee or lessee. But in this case, where the assignees or lessees will be trustees of a settlement for the purposes of the Settled Land Acts, 1882 to 1890, this does not prevent the legal estate from passing to the trustees provided the tenant for life or the person having the powers of the tenant for life under the settlement be registered as proprie- tor of the land comprised in the assignment or lease within one calendar month from the date thereof or within such further time as the regis- trar allows (p). The expressions “assignment” and “ grant of a lease or underlease ” apply to any instrument by virtue whereof there is conferred or completed a title under which an application for registration as first proprietor of leasehold land may be made, not being an assignment or surrender to the owner of the immediate reversion executed on or after the 1st of January, 1909, and contain- ing a declaration that the term is to merge in the reversion (g) . The title with which a proprietor of land is registered in Registration pursuance of the compulsory clauses must not be less than a p^essory possessory title; but this does not prevent any person from title, being registered with any other title if the registrar is satisfied with his title (r) . ( q ) Rule 70 as amended by the rules of 1908. (r) s. 20 (3) of the act of 1897. (o) See ante, p. 574. (p) Rules 68 and 69. 656 BK. II. — REGISTRATION OF TITLE. Solicitors’ Remunera- tion Act and Order do not apply. Solicitors’ Remuneration for Work done in the Land Registry. Except as mentioned below, neither the ordinary scales of costs nor the Solicitors’ Remuneration Act and Order apply to transactions in the registry. The remuneration of solicitors is regulated by the rules, the provisions of which are as follows: — All costs incurred in any proceeding in the registry shall be in the discretion of the registrar, having regard to the pro- visions as to costs contained in the acts and these rules; and shall, unless the parties otherwise agree, be taxed as the regis- trar shall direct by the taxing officers of the Supreme Court. Any order made by the registrar as to costs may be enforced in the mode provided by s. 73 of the act of 1875 with respect to costs, charges, and expenses incurred in or about proceed- ings for registration of land (s) . The remuneration of solici- tors in, or incidental to, or consequential on the registration of land and transactions in the registry shall be regulated in the matters hereinafter mentioned as follows (£): — (B.) For conversion (except under rule 37 or rule 42) of a possessory or qualified title into an absolute or good leasehold title, where the solicitor has acted for the applicant on the occasion of a transfer for value, or charge, or transfer for value of a charge; the remuneration shall be (in addition to the remuneration otherwise payable for the transfer, charge, or transfer of charge) that prescribed in the second schedule hereto. (C.) For every completed transfer, charge, exchange, or par- tition of registered land, or of a registered charge: — (i.) Where no title outside the register is investigated, the remuneration shall be that prescribed in Part II. of the second schedule hereto. (ii.) Where title outside the register is investigated, the Remuneration Order, 1882, excepting Part I. of schedule I. to that order, shall regulate the remune- ( t ) Rule 336 as amended by the rules of 1908. (,s) Rule 334. solicitors’ remuneration for work in land registry. 6 ration for the preparation and investigation of the title and for completing the transaction on the register . (D.) In applying the scales in the second schedule to the Land Transfer Rules, 1903, to the case of a transfer of regis- tered freehold land wholly or partly in consideration of a rent, the remuneration shall be calculated upon the value of the rent taken at twenty-five years’ purchase, plus the amount of the money payment or premium, if any. Provided that the re- muneration for registration, where no title is investigated, shall not exceed the charges of the solicitor of the grantee under the Remuneration Order, 1882, for perusal of the draft con- veyance and for completion. (E.) In all cases in which a solicitor would be entitled to charge under Part I. of Schedule I. of the Remuneration Order, 1882, for negotiating a sale, purchase, or loan, or for conduct- ing a sale by auction, he shall be entitled to make the same charges in respect of a similar transaction respecting registered land. (F.) The remuneration hereby authorized shall not include the disbursements, extra work, business, or proceedings which under s. 4 of the Remuneration Order, 1882, are not to be included in the remuneration prescribed by Schedule I. to that Order. (G.) When a solicitor is concerned for the proprietor of land and also for a person taking a charge thereon, he is to be en- titled to receive the charges of the solicitor of the person taking the charge, and one-half of those that would be allowed to the proprietor’s solicitor up to 5,000Z., and on any excess above 5,000L one-fourth thereof. (H.) If the solicitor conducting the business acts on behalf of several parties having distinct interests proper to be sepa- rately represented, he is to be entitled to make for each such party after the first, an additional charge not exceeding 21. 2s. in each case. (I.) In all cases to which the scales fixed herein or in the second schedule hereto apply, a solicitor may, before under- G. — c. u u 658 BK. II. REGISTRATION OF TITLE. taking the business, by writing under his band communicated to the client, elect that bis remuneration shall be according to the Bemuneration Order, 1882, excepting Schedule I. to that Order. (J.) In all transactions the remuneration for which is not hereby provided for, the Bemuneration Order, 1882, excepting Part I. of Schedule I. to that Order, shall regulate the remu- neration of the solicitor. THE SECOND SCHEDULE. Solicitot^s Remuneration . (Rzde 336.) PABT I. O). PABT II. Scale of Charges for Transfers , Charges , Exchanges , and Partitions of Registered Land or a Registered Charge ( x ). Value of Land or Amount of Charge. Scale of Charges. Not exceeding 1,000/ 10s. 6d. for every 100/. or part of 100/. Exceeding 1,000/. and not exceed- ing 20,000/. 5/. os. for the first 1,000/. and 1/. Is. for every subsequent 2,000/. or part of 2,000/. Exceeding 20,000/. and not ex- ceeding 40,000/. 1 51. 15s. for the first 20,000/. and 1/. Is. for every subsequent 4,000/. or part of 4,000/. Exceeding 40,000/. 21/. for the first 40,000/. and 1/. Is. for every subsequent 10,000/. or part of 10,000/. up to a maximum of 26/. os. ( u ) Part I. was annulled by the rules of 1908. ( x ) This heading was amended by the rules of 1908. SECOND SCHEDULE. 659 The Land Transfer Lee Order, dated 9th November, 1908, made IN PURSUANCE OF SECTION 112 OF THE LAND TRANSFER ACT, 1875, and of Section 22 of the Land Transfer Act, 1897. Land Eegistry. Land Transfer Acts, 1875 and 1897. I, The Eight Honourable Eobert Threshie Baron Loreburn, Lord High Chancellor of Great Britain, with the consent of the Treasury and with the advice and assistance of the Honourable Sir Matthew Ingle ■Joyce, Knight, a J udge of the Chancery Division of the High Court of Justice, chosen by the Judges of that Division, Charles Lortescue Brickdale, Esq., Begistrar of the Land Eegistry, Philip Spencer Gregory, Esq., Barrister-at-Law, chosen by the General Council of the Bar, James William Clark, Esq., one of His Majesty’s Counsel, chosen by the Board of Agriculture, and Eichard Pennington, Esq., Solicitor, chosen by the Council of the Law Society, by virtue and in pursuance of the Land Transfer Acts, 1875 and 1897, and of all other powers and authorities enabling in that behalf, do make the following General Eules for the purpose of carrying the said Acts into execution. Dated this 9th day of November, 1908. Loreburn , C. Subject to the Eules hereinafter contained, the following fees shall be charged for the several matters hereunder specified. (A.) Entry of first proprietorship of land (except as in para- graph D) : — Value of Land. Lee. Not exceeding 100/ 12s. Exceeding 100/. but not exceeding 325/. 1/. , , 325/. , , , , 1,000/. Is. 6d. for every 25/., or part of 25/. o o t—H 3,000/. 3/. for the first 1,000/., and Is. for every 25/. or part of 25/. over 1,000/. „ 3,000?. „ 10,000/. 7 /. for the first 3,000/., and Is. for every 50/. or part of 50/. over 3,000/. „ 10,000/ 14/. for the first 10,000/. and Is. for every 100/. or part of 100/. over 10,000/. (B.) (i.) Eegistration of — (a) charges, except charges by way of additional or substituted security where the original security is or was a registered charge, and U TJ O BK. II. REGISTRATION OF TITLE. 660 (b) transfers of land, except as in paragraph (D) and not being by way of partition or exchange, and (c) transfers of charges, made for valuable consideration other than marriage, and (ii.) Entries and corrections in the register under rule 151 of the Land Transfer Rules, 1903, and (iii.) Removal of land from the register. Value of Land or Amount of Charge. Fee. Not exceeding 50,000? Is. 6c?. for every 25?. or part of 25?. Exceeding 50,000/. and not ex- ceeding 100,000?. For the first 50,000?. at the rate afore- said, and 1?. 10s. for every 1,000?. or part of 1,000?. over 50,000?. Exceeding 100,000?. ... As for 100,000/. (C.) (i.) Registration of — (a) Transmissions, and (b) Transfers and charges not falling within paragraphs (B) and (D), and (ii.) Rectification of the register under the 95th section of the act of 1875, and (iii.) Entries and corrections in the register under rules 155 and 156: — Is. per 100?., or part of 100?., of the capital value of the interest dealt with; with a maximum of 21. (D.) (i.) Entry of first proprietorship of leasehold land, where the original lessee or his personal representative is the applicant, and (ii.) Entry of first proprietorship of freehold land on the occasion of a grant wholly or partly in consideration of a rent, and (iii.) Registration of a transfer of freehold land on a like occa- sion: — (1.) (a) In all cases except mining leases and leases at rack rent: — Amount of Annual Rent. Fee. Not exceeding 5? 10s. Exceeding 5?. and not exceeding 50/. ... 10s. for the first 51. and 2s. for every 51. or part of 51. over 51. Exceeding 50?. and not exceeding 150?.... 1 ?. 8s. for the first 50?. and Is. for every 51. or part of 51. over 50?. Exceeding 150? 21. 8s. for the first 150?. and 6d. for every 51. or part of 51. over 150?. SECOND SCHEDULE. (b) Leases at rack rent: — Amount of Annual Rent. Fee. Not exceeding 100/. Exceeding 100/. and not exceeding 500/. Exceeding 500/ 3s. for every 20/. or part of 20/., but not less in any case than 10s. 15s. for the first 100/. and Is. for every 20/. or part of 20/. over 100/. 1/. 15s. for the first 500/. and Is. for every 50/. or part of 50/. over 500/. (c) Where the lease, grant, or transfer is partly in consideration of a money payment or premium, and partly of a rent, then, in addition to the fee in respect of the rent, there shall be paid a further sum equal to the fee which would be payable on the first registration or transfer, as the case may be, if the value of the land were equal to such money payment or premium. (d) Where a varying rent is payable, the amount of annual rent means the largest amount of annual rent payable. (2.) Mining leases: — five pounds. (E.) Entry of a notice, under section 50 of the Land Transfer Act, 1875, of a lease or sub-lease by way of security for money: — (a) Where a charge for the money secured by the lease or sub-lease has already been registered, or is delivered together with the notice: — (i) If the amount secured does not exceed 1,000/., one shilling for every 100/. or part of 100/. of the amount secured. (ii) If the amount secured exceeds 1,000/., ten shillings. (b) In other cases: — The same fee as for the registration of a charge for the amount secured by the lease or sub-lease. (E.) Conversion of a possessory title into a qualified good leasehold or absolute title: or of a qualified title into a good leasehold or absolute title: or of a good leasehold into an absolute title, except in cases com- ing under either rule 39 or rule 42 of the general rules, and in, cases where the application for conversion is made after the payment of the fee prescribed in paragraph B (i) (b) for a transfer for value of land, in which cases no fee shall be charged: — The same fee as prescribed in paragraph A for entry of first proprietorship of land, subject to such abatement (if any) 662 BK. II. REGISTRATION OF TITLE. as the registrar shall deem reasonable, in any case in which the full fee appears to him excessive, having regard to the amount of time and labour involved. In cases coming under the 14th paragraph of the first schedule to the Land Registry (Middlesex Deeds) Act, 1891, the amount of any fee paid on registration with possessory title shall be allowed for. (Gr.) Registration of proprietorship of an incumbrance prior to re- gistration, except where registered on the entry of first proprietorship of land with absolute title, good leasehold title, or qualified title; and of a transfer or transmission of such incumbrance: — The same fee as for registration of a charge, or of a transfer or transmission thereof respectively. (II.) A land certificate or certificate of charge, except on first re- gistration or on any other occasion when required by the acts or rules to be issued free of charge: — Where the value of the land or amount of the charge £ s. d. does not exceed 1,000?. ... ... ... ... 0 10 0 Where it exceeds 1,000?. ... ... ... ... 1 0 0 and in either case such further fee as the registrar shall prescribe for copies of plans — if any. (I.) Altering a land certificate or certificate of charge to correspond with the register, except where such alteration is required by the acts or rules to be made free of charge, or is made at the same time as some entry in the register: — Where the value of the land or amount of the charge does not exceed 1,000?. Where it exceeds 1,000?. altering or preparing copies of plans — if any. (j.) (1.) Registering an inhibition (2.) Alteration or withdrawal of an inhibition (3.) Registering a caution, restriction, or priority notice (4.) Alteration or withdrawal of a caution or re- striction ... (5.) Annexing conditions to land (6.) Discharging or altering conditions (7.) Entering notice of an estate in dower or by the curtesy (8.) Entering a note or notice under the 18th section of the act of 1875 £ s. d. 0 5 0 0 10 0 iribe for £ s. d. 1 0 0 0 10 0 0 10 0 0 5 0 0 5 0 0 5 0 0 5 0 0 5 0 SECOND SCHEDULE. (9.) An entry negativing or altering implied cove- nants, powers, or priorities (10.) Filing a supplementary statement of incum- brances (11.) Entering notice of a lease or sub-lease (not being a lease or sub-lease by way of security for money) (12.) Any entry or cancellation on the register for which the registrar considers a fee should be chargeable and for which no other fee is pre- scribed (13.) Entering an additional address for service (14.) Entering notice of deposit or intended deposit of a certificate ... £ s. d. 0 5 0 0 5 0 0 5 0 0 5 0 0 2 6 0 10 (1.) Preparing or settling a statement for the court.. 0 10 0 (2.) Examination of a married woman by an officer of the registry ... ... ... ... ... 0 10 0 (3.) Comparing abstracts with deeds by officers of the registry — per hour ... ... ... ... 0 10 0 (4.) Perusing draft document submitted to the re- gistrar for approval ... ... ... ... 0 5 0 (5.) Certificate of result of official search: — (a) of the register — per title ... ... ... 0 5 0 (b) of the index of proprietors’ names — per name ... ... ... ... ... 0 5 0 (c) of the index map ... ... ... ... 0 5 0 and if the land in respect / Such further fee, according of which the search ) to the time and labour is made exceeds an ) employed, as the registrar acre ... ... ...\ shall prescribe. (6.) Furnishing information under rule 286 ... 0 5 0 (7.) A summons ... ... ... ... ... 0 5 0 (8.) Inspection of any document not referred to on the register ... ... ... ... ... 0 5 0 (9.) Taking an affidavit or declaration ... ... 0 1 6 (10.) Each exhibit thereto ... ... ... ... 0 1 0 (11.) Office copies 3c?. per folio, with a minimum fee of 0 2 6 (12.) Copies of plans ... ... Such charges, according to time and labour employed, as the registrar shall pre- scribe. BK. II. REGISTRATION OF TITLE. (>t>4 Rules. 1. Where the amount of a fee is immediately ascertainable, it shall be paid on the delivery of the application . 2. Where the amount of a fee is not immediately ascertainable, or where expenses for advertisements or otherwise will be incurred by the registry, such deposit on account shall be made as the registrar shall require. 3. All fees shall be paid in land registry stamps, impressed or adhesive, as laid down in the order in that behalf made under the Public Offices Fees Act, 1879. Land registry stamps shall be purchas- able in the registry, and may be paid for by bankers’ draft or by postal or post office order or by cheque drawn to the order of the land registry or the registrar or assistant registrar, or in Bank of England notes or cash. Provided that when the fees are paid by cheque the registration shall not be completed until due time has been allowed for the cheque to be cleared, and that if the cheque is not honoured, the application for registration shall be cancelled and the document tendered for regis- tration returned to the applicant. Remittances by post not exceeding Is. may be made in postage stamps. 4. The above fees include, in the matters to which they relate, all necessary stationery and mapping done in the registry; the preparation, issue, endorsement, and deposit of certificates, wherever such issue, endorsement, or deposit is obligatory; discharges of incumbrances; the filing of auxiliary documents (if any) ; and all other necessary costs of and incidental to the completion of each registration or transaction. They also include, in districts where registration of title is compul- sory, any surveying that may be necessar}^ to enable the land to be identified on the ordnance map or land registry general map. But where boundaries are to be noted on the register as “ accurately de- fined,” such additional charges may be made to cover the cost of the necessary inquiries, mapping, surveying, and notices as the registrar shall in each case deem reasonable. 5. If in the course of any proceeding the registrar consults counsel, or applies to a solicitor or other person (other than the applicant or his solicitor, agent, or servant) to produce a document, certificate, or plan, or to supply a copy thereof, or to do any act, or to furnish any infor- mation, or if he directs service of a notice, publication of an advertise- ment, or the making of a survey, journey, or inquiry, the costs so incurred shall be defrayed as follows: — (a) In the case of an application for first registration with posses- sory title, they shall be defrayed by the registry; (b) In any other case they may, if the registrar shall think fit, be defrayed by the registry, but otherwise shall be defrayed by SECOND SCHEDULE the applicant: provided that in no case shall an applicant be chargeable with costs incurred without his consent. 6. For the purposes of this order — (a) In the case of the registration of land or of any transfer of land on the occasion of a sale, the value of the land shall be determined by the amount of the purchase money. (b) In the case of the registration of land or of any transfer of land not upon a sale, the value of the land shall be ascer- tained by the registrar at such sum (not exceeding twenty times the annual value of the property, as assessed for the purposes of the enactments relating to income tax) as in his opinion the property would fetch if sold in the open market at the time when the registration is made. In ascertaining such value the registrar may accept as evidence a statement in writing as to the capital or annual value of the property signed by the applicant, or his solicitor, or any other person, who in the registrar’s opinion is competent to make such a statement. 7. Where a first registration takes place on the enfranchisement of a copyhold, or on the purchase of a leasehold by the reversioner, or of a reversion by the leaseholder, or on any other like occasion, the fee may, if the registrar shall think fit, be calculated on the value of the interest last acquired, and not upon the value of the applicants’ combined interests in the land. In such case no entry of value need be made in the register. 8. Where a charge is delivered for registration, together with an application for first registration of land, no fee shall be paid in respect of such charge. 9. The fee for an entry (except the entry of a notice of deposit or intended deposit) in, or withdrawal from, the register affecting several titles shall, where the same person is registered as proprietor of all the titles be the same as for an application respecting one title only. In other cases an extra fee of 2s. 6d. shall be charged for every title affected after the first. 10. The fee for first registration of leasehold land shall include the entry of a notice of the lease against the lessor’s title, if registered. 11. On the first registration of the title to a rent the value shall, in the absence of evidence to the contrary, be taken at twenty times the amount of one year’s rent. On the registration of a transfer of freehold land on the occasion of a grant wholly or partly in consideration of a rent, there shall be paid, in addition to the fee payable under paragraph D in respect of the transfer of the land, such fee as may be payable under paragraph A in respect of the registration of the first proprietorship of the rent. BK. II. REGISTRATION OF TITLE. 666 12. Where a charge by the transferee under a transfer for value is- delivered for registration together with the transfer, the fee for the charge, if payable under paragraph B, shall be reduced to one-half. 13. If it shall appear to the registrar, on an application under rule 151 of the Land Transfer Rules, 1903, that such application Jias not been rendered necessary by the voluntary act of the applicant or of any of his predecessors in title, the registrar may make such abate- ment in the fee as he may think reasonable. 14. No fee shall be payable for any entry of, or in respect of a caution, inhibition, restriction, condition, note, or notice of any kind by the acts or rules made necessary on (a) the first registration of land, or (b) any registration for which an ad valorem fee is payable. 15. Where an instrument or application affecting two or more titles or charges is registered as to some or one only of the titles or charges- affected thereby, the fee payable shall be the same as that which would have been payable if it had been registered as to all the titles or charges affected by it. If the instrument or application is afterwards regis- tered as to any other titles or charges a further fee of 2s. 6d. shall be paid for every title or charge so affected. 16. Where a charge or incumbrance is also secured on unregistered land or other property as well as registered land, the amount of the charge shall for the purpose of this order be reduced to the sum which bears the same proportion to the whole sum secured that the value of the registered land bears to the value of the whole security. 17. The fee on a charge by way of additional or substituted security shall not exceed that upon a charge for a sum equal to the value of the land after deducting the amount secured on it by registered charges at the date of the registration of the additional or substituted charge. 18. The fee for the registration of a charge to secure future advances — that is to say, money to be lent, advanced, or paid, or which may become due upon an account current either with or without money previously due — shall be regulated as follows: — (a) Where the total amount received or to be ultimately recover- able is in any way limited, the fee shall be the same as that for the registration of a charge to secure the amount so limited. (b) Where the total amount is unlimited, the fee shall be the same as that for the registration of a charge to secure the amount which the Inland Revenue ad valorem duty impressed thereon extends to cover; and if further Inland Revenue duty is subsequently impressed, the fee for noting that fact in the register shall be the difference between the fee for a charge to secure the amount covered by the duty previously SECOND SCHEDULE. 667 noted in the register, and the fee for the registration of a charge to secure the total amount covered by the whole duty. 19. Where land subject to a registered charge or incumbrance is transferred discharged from the charge or incumjbrance, and a new charge in favour of the proprietor of the old charge or incumbrance is delivered on the same day as the transfer, the fee payable on the regis- tration of the transfer shall be calculated on the consideration expressed to be paid in the transfer after deducting the amount of the new charge or charges. 20. Where, on the cessation of a charge, a new charge affecting the same land is delivered in favour of the proprietor of the former charge, the fee payable on the new charge, in so far as the amount secured does not exceed the former charge, shall be calculated at the rate stated in paragraph (0). 21. Where two or more rules allowing abatement of fees are applic- able to the same case, their effect shall not be cumulative, but the applicant may elect which one of them shall be applied. 22. In this order the word “land ” includes both freehold and lease- hold land, and every hereditament the title to which may be registered under the Land Transfer Acts. The word “ charge ” includes “ sub-charge.” 23. The Land Transfer Lee Order, 1903, is hereby revoked. 24. This order may be cited as the Land Transfer Lee Order, 1908, and shall come into operation on the first day of January, 1909. We concur in the above order, J. Herbert Lewis, Cecil Norton, Two of the Lords Commissioners of His Majesty’s Treasury. 14th November, 1908. ( 669 ) INDEX. A. Absolute title, 565. See under Regis- tration of Title. Abstract of title, 96. abstract, the, 96. acknowledged deeds, 104. Acts of Parliament, 103. annuities charged on property, 111. attestations, proof of, 101. awards, proof of, 104. bankruptcy, 108. births, proof of, 106. charges, as to, 111. charities, as to, 113. children, birth of, proof of, 106. conveyances, voluntary, 118. copyhold customs, proof of, 107. copyholds, 105. costs of, 546. criminal liability as to, 99. Crown grants, 105. death, proof of, 106. death duties, proof of payment of, 107. deed, enrolled, proof of, 104. deed, lost, proof of, 103. deeds, production of, 100. deeds, proof of, 101. deeds, recitals in, 101. defects, notice of, 120. delivery of, 96. disentailing assurances, 104. disputes between vendor and pur- chaser, 124. documents, proof of, 101. easements, 120. enfranchised copyholds, 105. enrolled deeds, 104. estate duty, 117. estate tail, barring of, evidence of, 108. evidence by which title proved, 101. execution, &c. of abstracted deeds, 101. execution of deed, proof of, 101. matters of fact, 105. proof of proceedings in Courts, 108. Abstract of title — continued. examination of, 100. expense of, 99. expired leases, 98. facts, evidence of, 105. frauds, as to, 99. High Court, proof of proceedings in, 108. identity, 105. imj)ortance of, 96. increment value duty, as to, 118. incumbrances, as to, 120. intestacies, proof of, 107. joint tenants, 113. land tax, proof of redemption of, 107. leases, expired, 98. leases, proof of, 119. leases, surrendered, 119. legacies, 111. lost deeds, 103. lunacy, as to, 109. manner of preparing, 99. marriage, proof of, 106. marriage settlements, 118. mortgages, 98. mortgages, outstanding, 96. non-disclosure in, criminal liability for, 99. notice, as to, 120. outstanding legal estate, 112. parcels, identity of, 105. pedigree, proof of, 106. perfect abstract, purchaser’s right to, 96. powers of attorney, 103. preparation of, 99. private Acts of Parliament, 103. proceedings in Court, proof of, 100. production of deeds, 100. proof of abstracted deeds, 101. proof of title, 96. purchaser, disputes with, 124. purchaser’s duty as to, 100. purchaser’s rights as to, 97, 101. redemption of land tax, proof of, 107. registration, proof of, 102. rent-charges, as to, 111. 670 INDEX. Abstract of title — continued. requisitions, as to, 111. root of title, 98. seisin, proof of, 105. settlements, voluntary, 118. solicitor’s duty on receipt of, 100. stamps, as to, 102. succession duties, 112. surrendered leases, 119. tithes, as to, 107. title, defects in, notice of, 120. title, proof of, 96. title, root of, 98. vendor, disputes with purchaser, 124. vendor, presumptions in favour of, 109. verification of, 101. voluntary settlements, 118. waiver of objections to title, 123. wills, 104. woman past child-bearing 1 , pre- sumption as to, 110. Acknowledged deeds, 12, 14. abstract of, 104. proof of, 104. searches for, 163. Acknowledgments, deeds retained, 170. married women, by, 12, 14. Actions, damages in, 88. landlord, by, 322. specific performance, 80, 89. Acts of Parliament, as conveyances, 103. Actual notice, abstracts of title, in, 121. Administrators, compounding claims by, 393. convicts, of, conveyance by, 17. leases by, 302. sales by, 27. Admittance, copyholds, to, 174. And see under Copyholds. Adverse possession, effect of, of regis- tered land, 583. Advertisements, registration of title, on, 568. Advowsons, sale of, 48, 638. Affidavit on registration, bill of sale, 285. Agents, contract for sale by, 37. leases by, 302. purchase and sales by, 37. Agreement, building 35. lease, for, 305. sale, for, 33. And see under Contracts. Agricultural holdings, 351. Agricultural leases, 351. allotments, 359. buildings, removal of, 356. capital money applicable for, 356. compensation under, 352. cottage gardens, 359. cottage gardeners’ compensation, 359. disturbance, compensation for, 354. emblements, 359. fencing, removal of, 356. fixtures, removal of, 356. fixtures, tenants’, 356. game, damage by, compensation for, 354. game, right to kill, 360. ground game, 360. improvements, compensation for, 352. improvements, compensation for, tenants’ rights to, 352. landlord, entry by, 357. landlord, rights of, 357. market gardens, 358. mortgagee taking possession, 355. notices to quit, 357. tenant, rights of, 352. Aliens, 16, 203. mortgages by, 203. sales by, and to, 16. wills of, 459. All estate clause in deeds, 138. Allotments and cottage gardens com- pensation, 359. Alterations, deeds, in, requisitions on, 101. mortgage registered, 598. Annuitant, joining in conveyance, 111. rights of, 500. Annuities, conditions as to, in wills, 500. gift of, 500. registered land, charge of, 609. INDEX. 67 1 Annuities — continued. registration of, 157, 194. requisitions as to, 111. rights as to, 500. satisfaction of, 111. searches for, 157. will, by, 500. Ante-nuptial settlements, 449. And see under Settlements. Appeals, registration of title, 624, 632. Appointment, executors, 467. guardians, 468. trustees, 395. trustees, settled land, 437. Appointments under powers, 526. application of perpetuity rule, 528, 530. children, for, 530. class, to, 531. conditions of power, compliance with, 531. contingent person, to, 528. daughters, to, 530. defective, 531. definition of, 526. different sorts of, 526. disclaimer of, 535. excessive appointments, 532. exclusive appointments, 532. fraudulent, 533. general powers, 526, 529. illusory, 532. infants, by, 527. lunatic, by, 527. married women, by, 527. perpetuity rule, application of, to, 528, 530. powers, collateral, 527. release of, 535. remoter issue, as to, 529. revocation, power of, 528. sale, powers of, 531. stamp on, 535. who can exercise powers, 527. Arbitration, submission to, by trustees, 393. Arrangement, deeds of, searches for, 158. Assignments, 175. absolute, meaning of, 177. agreement for, 181. assignee, position of, 176. business, 182. choses in action, 177. And see under Choses in Action. Assignments — continued. contents of, 181. copyholds, 174. costs of, 186. covenants in, 176. deed, contents of, 176. distringas as to, 180. formalities of, 175. goodwill, 182. leaseholds, 175. lessee, position of, after, 176. notice of, 177, 179, 181. policy of assurance, 181. stamps on, 183. stop orders as to, 180. title, covenant for, 175. Assurances, disentailing, 163, 195, 516. See under Disentailing Assur- ances. registration of, 555. See under Registration of Title. Attestation, bills of sale, 273, 276. deeds, 165. proof of, 101. wills, 462. Attorney, admittance to copyholds by, 174. power of, deeds executed under, 102. Attornment clause in mortgages, 238. Auctions, bid, vendors right to, 57. biddings at, 56. biddings, retraction of, 57. conditions relating to, 56. deposit, the, 58. Frauds, Statute of, as to, 59. varying conditions of sale at, 80. Awards, proof of, 104. requisitions as to, 104. B. Bankruptcy, bill of sale, effect of, on, 292. disclaimer, notice of, 85. lessee, of, 319, 332. party, registered title, 614. proof of, 108. purchaser, 85. searches for, 160. vendor, 84. 672 INDEX. Bargains and sales, enrolment of, 194. Benefices, provisions as to, 644. Beneficiaries, covenants by, 141. Biddings at auctions, 56. See tinder Auctions. Bills of sale, 263. absolute, 272. address of parties in, 285. affidavit for, 285. after-acquired chattels, 271. apparent possession, 273. assignments for benefit of creditors, not, 267. attestation of, 273, 276. affidavit as to, 285. bankruptcy, effect of, 292. cases on construction of definition of, 265. cases relating to, 278. charge on chattels, agreement for, as, 267. chattels, after-acquired, 271. chattels, debentures are not, 268. chattels, definition of, 269. chattels, personal, 269. chattels, removal of, 292. chattels, schedule of, 275. consideration, the, 277, 283. construction of, 265. contents of, 274. costs of, 296. crops, 271. ! date of, 285. definition of, 264. distress, power of, is, 267. entry of satisfaction, 293. exceptions in 1882 Act, 274. execution, affidavit as to, 285. execution of, 273. explanation of, before execution, 273. fixtures, 270. form of, 295. goods, pledge of, 269. goods, sale of, 291. goods, schedule of, 275. grantor must be owner of goods, 275. grantor, occupation of, 286. grantor, residence of, 285. grantor, rights of, after removal, 292. hiring agreement as, 266. index of, 288. inventory of goods as, 266. licence to distrain is, 266. licences as, 266. Bills of sale — continued. machinery, 270. malicious registration of, 290. meaning of, 263. occupation of grantor, 286. omission to register, 289. payment under, 284. personal chattels, what are, 269- plant, 271. pledge of goods, 269. power of distress is, 267. registration, malicious, 290. registration of, 285. registration, omission of, 289. registration, time for, 288. removal of goods, 292. reputed ownership clause, 292. requirements of 1878 Act, 272. requirements of 1882 Act, 274. re-registration, 289. re-registration, omission as to, 289.. residence of parties to, 285. risks of, 294. sale, restraining, 291. sale under, 291. satisfaction, entry of, 293. schedule of chattels to, 275. searches, 293. seizure under, 291. solicitor, attestation by, 273. special clauses in, cases as to, 280. stamps on, 296. statutory form, bill must be in, 277. statutory form of, 295. successive, as to, 288. table of cases as to, 278. time for registration of, 288. trade machinery, 270. transfer of, 289. transfer of, registration not neces- sary, 289. void, what are, 278. what are, 264. what are not, 267. witnesses to, 273, 276. Birth, proof of, 106. Board of Trade, bankruptcy certificate by, 108. Breach, contract, remedies for, 88. covenants, 144. Building agreements, 35. leases by tenant for life, 422. Building society, mortgages, discharge of, 607. reconveyance of, 258. INDEX. 673 Building 1 society mortgages- -continued. registered title, 606. stamp as to, 262. Business, assignment of, 182. carrying on, by executor, 475. covenant not to carry on, 335. meaning of, 335. sale of, 182. vendor, position of, on sale, 182. C. Capacity of parties, 5. Capital money, 425. application of, for improvements, 431. application of, under sect. 63... 425. liow dealt with, 428. improvements with, 431. investments for, &c., 428. to whom paid, 426. what is, 425. And sec under Settled Land Acts. Certificates, Board of Trade, 108. charge, 599, 635. land registry, 599, 635. redemption of land tax or tithe, 79. result of search, 164, 652. Cestui que trust, sale to trustee, 29. Charge, certificate of, land registry, 599, 635. Charges, what are within covenant to pay rates, 325. Charities, 20. conveyances by, restrictions on, 20. conveyances to, 21. gifts to, 21. registration of conveyances to, 194. sales by, 20. sales to, 21. succession duty payable by, 113. Chattels, removal of, under bill of sale, 292, settlement of, 411. Child, sale to parent by, 30. Child-bearing, woman past, presumption as to, 110. Children, advances for, by will, 472. gifts to, by will, 490, 501. illegitimate, 501. portions for, 406. provisions for, in wills, 501. trust for, in settlements, 382. younger, portions for, 406. Choses in action, 177. assignee, risks of, 179. priority of, 179. assignment of, 177. distringas on, 180, 244. meaning of, 178. mortgage of, 243. notices of assignment of, 179. sale of, 177. stop orders on, 180. Client, notice to solicitor affects, 122. sale by, to solicitor, 31. Common, rights of, 580. Company, conveyances to, 19. liquidation of, registered title, 616 Compensation, copyholds, enfranchisement of, 522 cottage gardens, 359. disturbance, for, 354. drainage, for, 359. fencing, for, 356. game, damage by, 354. land registry, errors in, 624, 629 misdescription, for, 45, 63. Completion of purchase, 165. acknowledgment as to deeds, 170. apportionments at, 168. choses in action, 177. conveyances, special, 173. copyholds, as to, 174. deed, execution of, 165. escrow, deed as, 165. goodwill, assignments of, 182. increment value duty stamp, 167. leaseholds, as to, 175. policies of assurance, as to, 181. purchase-money, payment of, 167. special cases, 173. steps subsequent to, 188. undertaking as to deeds, 169. vendor, trustees, 168. witnesses, 166. Conditions, gifts upon, 496. legacies, upon, 496. registration of title, 642. G.— C. X X 674 INDEX. Conditions of sale, 48. abstract as to, 49. alteration of, at sale, 80. apportionment, rent, 80. assurances by vendors, 72. auctioneer as stakeholder, 58. auctions, sale by, 56. biddings, as to, 56. common form, 56. compensation for errors, 63. completion of the purchase, 69. concurrence of parties, cost of, 73. contract, open, inconveniences of, 56. contract, rescission of, 67. contract, signature of, 59. copyholds, 51. covenant to produce, 54. Crown, grants by, 77. deeds, missing, 79. deeds, executed under powers, 78. deeds, expense of production of, 53. deeds, lost, 49. deeds not in vendor’s possession, 53. deeds, production of, 49. deeds, retention of, by vendor, 55. deeds, unstamped, 65. default by purchaser, 75. default, wilful, meaning of, 70. deposit, as to, 58. devise, 78. documents, production of, 49. documents, unstamped, 65. easements, as to, 62. enfranchised copyholds, 51. errors, 63. estate, outstanding, 78. exchanged lands, 76. expense of production of deeds, 53. general, 56. identity, as to, 61. inclosed lands, 76. increment value duty, 73. incumbrances, as to, 79. interest on purchase-money, 70. land tax, 79. Land Transfer Acts, 76. lands exchanged, 76. lands inclosed, 76. lease, as to, 50, 51. leaseholds, 77. legal estate outstanding, 78. lost certificates of land tax, &c., 79. lost deeds, 49. misdescription, as to, 63. misdescription, compensation for, 63. objects of, 48. outstanding legal estate, 78. parties concurring, expenses of, 73. Conditions of sale — continued. position of parties after, 82. possession, as to, 72. power of attorney, deed executed under, 78. prior title, inquiry into, 52. production of deeds, 49. production of deeds, expense of, 53. purchase, completion of, 69. purchase-money, interest on, 69. purchase-money, pajnnent of, 69. purchaser, default by, 75. receipt on deed not indorsed, 78. recitals 20 years old, 51. registered titles, 76. relating to property sold, and iden- tity, 61. rent, apportionment of, 80. requisitions, 65. rescission of contract, 67. re-sell, right to, 75. retraction of biddings, 57. root of title, a will, 78. sale, variation of, 80. settlements, as to, 60. special, 76. stakeholder, the, 58. stamps, as to, 65. sub -leases, 51. tenancies, as to, 62. tithe certificate, lost, 79. title, as to, 60. title, commencement of, 60. title deeds, production of, 49. title, defects in, 60. title, length of, 48. title, registered, 76. underleases, as to, 50. unstamped documents, 65. variation of, at sale, 80. vendor, assurances by, 72. vendor, right to bid, 57. vendor, right to re-sell, 75. verbal variation of, 80. voluntary settlements, 60. wilful default, meaning of, 70. will, as to, 60. Consent, parties joined to give, 129. Consideration, bill of sale, 277, 283. deeds, in, 132. leases, 309. money, receipt for, condition as to, 78. Consolidation, mortgage, 219, 249. Constructive notice, abstract of title, 121 . INDEX. 675 Contracts, breach of, remedies for, 88. boarding- houses, as to, 34. building, 35. furnished lodgings, as to, 34. lease, for, 36, 305. open, 48. private, 82. rescission of, 67. stamps on, 94. Contracts for sale, 33. agents, by, 37. bankruptcy of party, 84. breach of, remedies for, 88. chattels, 35. clover, 34. contents of, 35. crops, 33. death of either party, 85. debentures, 34. disclaimer of, in bankruptcy, 85. easements, as to, 34. effect of, on parties, 82. fires, as to, 83. fixtures, 34. Frauds, Statute of, as to, 35, 38. furnished lodgings, as to, 34. goods, 35. growing crops, 33. hops, 34. infants’, 7. land, 33. land, what is an interest in, 33. lease, specific performance of, 90. letters as, 37. lien, parties’, 92. lien, purchaser’s, 92. lien, vendor’s, 92. married women’s, 13, 16. open, inconvenience of, 56. part performance of, 38. particulars for, 35. parties, position of, after, 82. parties to, 35. parties to, description of, 35. position of parties after, 82. preparation of, 82. private, 82. purchaser, death of, 88. remedies for breach of, 88. requisites of, 35. rescission of, 67. rescission of, condition as to, 67. signing of, 36. specific performance, 89. stamps on, 94. tenant’s fixtures, 34. timber, 33. vendor, death of, 85. what it must contain, 35. Conveyance, Acts of Parliament, private* as, 103. aliens, by and to, 16. charities, to, 20. charities, to, registration of, 194. choses in action, 177. colleges, for, 23. consideration in, 132. convicts, by, 16. copyholds, 174. corporations, by, 17. costs of, 186, 542. disentailing, 195. estoppel, doctrine of, 131. farm, 136. felons, by, 16. form of, 153. fraudulent, 449. gateway, 136. general words in, 137. house, 135. infants’, 5. lunatics’, 8. manor, 135. married women, by, 10. mines, 137. museiun, for, 22. operative words in, 134. parcels in, 134. park, for, 22. parties to whom made, 130. partners, to, 130. persons not parties, 131. recitals in, 131. religious bodies, to, 23. rivers, 136. schools, for, 23. special kinds of property, 173. stamps on, 183. sub-purchaser, to, 128. tender of, before action, 90. tenement, 136. traitors, by, 16. trustees, by, 26. university, for, 23. water, 136. Working Classes Act, under, 24. And see under Deeds and Land Transfer. Conveyancing Act, 1881, sect. 2, mortgagees’ powers, 175, 223, 225, 255, 343. sect. 3, expenses as to documents not in vendor’s possession, 50 —53, 55, 77, 98, 100, 132, 208. deeds forming part of anterior title, 100. sect. 4, on death of vendor, personal representative can convey, 51, 86. x x 2 676 INDEX. Conveyancing Act, 1881 — continued . sect. 5, discharging incumbrances, 79. sect. 6, general words, &c., 138. sect. 7, implied covenants, 142, 175, 176, 222, 245, 255, 386, 585, 598. sect. 8, execution of deed in pur- chaser’s presence, 166, 283, 588. sect. 9, acknowledgment and under- taking as to deeds retained, 170. sects. 10 — 12, assignment of rever- sion on leases, 316, 345. sect. 13, grants of underleases, 50, 306. sect. 14, forfeiture of leases, 241, 308, 335, 340—344. sect. 15, transfer of mortgages, 221. sect. 17, abolishes consolidation, 220 . sect. 18, leasing mortgaged pro- perty, 233, 236, 237. sect. 19, cutting timber, 222, 223. sects. 19 — 22, and 67, mortgagee’s power of sale, 223, 250. sects. 19, 24, receivers, 230. sect. 25, sales by mortgagee, 219, 251. sects. 26 — 29, statutory mortgages, 245. sect. 30, devolution of mortgaged estates, 259. sect. 41, infant’s lands, 6, 298. sect. 42, management of infant’s lands, 411. sect. 43, maintenance, &c. of infant cestui que trust, 386. sect. 44, rentcliarges, 403, 406. sect. 46, execution of deeds under power of attorney, 103, 298. sect. 49, the word “ grant,” 134, 298. sect. 51, words of limitation, 140. sect. 52, release of powers, 535. sects. 54, 55, receipts, 55, 78, 133. sect. 56, authority to receive pur- chase-money, 167, 168. sect. 61, joint account clause in mortgages, 213. sect. 63, grant of easements, 138. Conveyancing Act, 1882, sect. 3, notice, 121. sect. 4, leases, 51. sect. 6, disclaimer of powers, 514, 535. sect. 7, acknowledged deeds, 11. sects. 8, 9, irrevocable powers, 78, 102, 166. sect. 12, transfer of mortgages, 221. Convicts, 16, 203. conveyances by, 17. Convicts — con t in ued . mortgages by, 203. property of, 16. Co-owners, sales by, 144. sale by, under Settled Land Act r 418. Copies, land registry, for, 567. Copyholders, leases by, 304. Copyholds, 14, 174, 522. abstract of, proof of, 104. admittance to, 174. attorney, admittance by, 174. conveyance of, 174. covenant to surrender, 175. enfranchised, conditions as to, 51 _ enfranchisement of, 522. enfranchisement, proof of, 105. fines, 174. joint tenants, 175. leases of, 304. mortgage of, 240. proof as to, 104. sale of, 14. surrender of, 175. tenant for life, 175. tenants in common, 175. Corporations, 17. leases by and to, 300. sales by, 17. sales to, 18. Costs, 536. abstract of title, 546. agreements for leases, 545. assignments, 186. attempted sales, 543. bills of sale, 296. building leases, 545. cases as to, 547. conducting sales, 542, 544, 547. conveyances, 542. deeds as to, 546. fractions of 100Z., 543. further charges, 544. journeys from home, 547. land registry, 645, 656. Lands Clauses Acts, under, 199. leases, 369, 545. mortgages, 208, 252, 542. negotiating fee, 542, 544. person joining in conveyance, 543. purchases, 542. reconveyance of mortgage, 257. registration of title, 645, 656. Remuneration Act, decisions under,. 547. Remuneration Order, 537. rules as to, 543, 546. INDEX. 677 Costs — continued. sales, 542, 547. sales, attempted, 543. sales, conducting", 542, 544, 547. sales, in separate lots, 543. sales, negotiating, 542, 544. separate lots, sales in, 543. settlements, 456. small cases, 544. specific performance, registered titles, 645. transfer of mortgage, 257. wills, &c., 546. Cottage gardens compensation, 359. Bee under Agricultural Leases. Courts, proof of proceedings in, 108. rolls, searches in, 155. Covenants, 141. affirmative, 152. assign, not to, 331. bankruptcy, effect of, 319, 332. beneficiaries, by, 141. breaches of, 144. construction of, 145. co-owners, by, 142, 144. Crown, sales by, 144. enforcement of, 150. equity of redemption, sale of, 146. free from incumbrances, 145. further assurance, 145. good right to convey, 144. goodwill, assignment of, 182. heirs bound by, 145. husband, by, 142. implied, 142. incumbrances, against, 145. release of, 143. insure, to, by mortgagor, 222. land, not running with, 148. landlord, by, 326. lease, sale of, 147. leaseholds, as to, 141. leases, in, 147. Bee under Leases, lunatic, committee of, 141. marriage settlements, 377. mortgagee, sale by, 141. mortgages, life policies, 244. mortgagor, by, 222. mortgagor, by, to repay, 209. not to assign, 331. not to underlet, 331. parties, joining of, for, 143. pay rent, 600. personal representative, by, 141. purchaser’s, 146. quiet enjoyment, for, 144. rates, payment of, 312, 323. registered title, 600. Covenants — continued. rent, to pay, 600. repair, to, 222, 326. repayment by mortgagor, for, in mortgages, 212. restrictive, 147. reversion, sale of, 147. running with the land, 316. settle after-acquired property, 377. settlements, 377. special cases, in, 143. statutory provisions, as to, 142. tenant for life, by, 144. title, for, 141. trustees, by, 143. trustee-vendor, by, 141, 143. two classes of, 141. underlet, not to, 331. usual, by vendor, 141. vendor’s, 141. wife, by, 142. Creditors, conveyances to defeat, 452. gifts to, by will, 492. legacy to, 492. Crops, bill of sale of, 271. compensation for, 358. sale of, 33. tenant’s right to, 358. Crown, covenants on sale by, 144. debts, registration of, 155. debts, searches for, not necessary, 155. grants, proof of, 105. land, grant of, by, condition as to, 77. lands, registration of, 629. leases by and to, 300. sales by, 144. Curtesy, estates in, notice of, 621. D. Damages, breach of contract, 88. Date, i 1 bills of sale, 285. deeds, 127. lease, 308. wills, 478. Daughters, cross remainders in favour of, 410. portions for, 406. Death, mortgagee, 256. party, registered title, 614. 678 INDEX. Death — continued . presumption as to, 106. proof of, 106. proof of, for Land Registry, 615. purchaser, 88. tenant for life, 612. trustee in bankruptcy, 615. vendor, 85. Debentures, when not bills of sale, 268. Debts, judgment, tacking of, 247. legacy in satisfaction of, 492. will, charge of, on realty by, 469. will, direction by, to pay, 469. Declarations, births, &c., 106. registration of title, in, 622. Deeds, 127. acknowledged, 12, 104, 163. acknowledged, searches for, 163. acknowledgment as to, 170. all estate clause in, 138. alterations in registered mortgage, 600. appurtenances, 138. arrangement, of, searches for, 158. attestation of, 165. bankruptcy, sale under, 129. concurrence of trustees to, 128. consideration, the, 132. contents of, 127. conveyance for persons not parties, 130. co-owners, sale by, 130. Court, sales by order of, 129. covenants for title, 129. covenants in, 141. And see under Covenants. Crown, sale by, 144. date of, 127. delivery of, 165. disclaimer, of, 513. disentailing, 516. ditches, as to, 136. doctrine of estoppel, 131. easements, passing’, 138. enrolled, 104. escrow as, 165. estoppel, doctrine of, 131. evidence, recitals for, 131. exceptions in, 139. execution of, 165. execution, presumption of, 109. execution of, how proved, 101. farm, meaning of, 136. fixtures, as to, 137. form of, 153. Deeds — eon tin ned. gateway, meaning of, 136. general words in, 137. grant, meaning of, 134. habendum, the, 140. highways, as to, 136. house, meaning of, 135. implied covenants, 142. incumbrances on property, 154. incumbrances, release of, 143. indorsed, 78. land, meaning of, 136. leaseholds, as to, 141. legal appurtenances, 138. liquidator, sales by, 129. lost, proof of, 103. lost, requisition as to, 103. manor, meaning of, 135. messuage, meaning of, 135. minerals, as to, 137. mines, as to, 137. mortgage on property, 128. mortgagor, concurrence of, 128. operative words in, 134. order of Court, under, 129. parcels, the, 134. parties to, 127. parties to whom made, 130. partners, conveyance to, 130. payment of purchase-money, 167. persons not parties, 130. pool, meaning of, 136. production of, 101. protector of settlement, concurrence of, 129. purchase, form and contents of, 127. purchase-money, payment of, 167. purchaser, conveyance by direction of, 128. purchasers, covenants by, 146. recitals in, 130. registration of, purchaser must see to, 102. release, 515. And see under Re- lease. reservations in, 139. rights of mortgagee, 601. river beds, as to, 136. sealing of, 165. signature to, 165. statutory covenants, 142. sub-purchaser, conveyance to, 128. technical words in, 135. tenant for life, concurrence of, 129. tenant for life, party to, 129. tenement, meaning of, 136. timber, as to, 137. title, covenants for, 129. trustees, concurrence of, 128. trustees, sale by, 143. INDEX 679 Deeds — continued . undertaking, as to, 170. unstamped, conditions as to, 65. vendor’s covenants, 141. water, meaning of, 136. will, beneficiaries joining, 129. witnesses to, 167. words, general, in, 137. words, technical, in, 135. And see under Conveyances; Title Deeds. Defences, action for specific perform- ance, 91. Delivery, abstract, 96. And see under Ab- stract of Title, deed, 165. Deposit, conditions of sale as to, 58. forfeiture of, 75. land certificate, as to registered titles, 608. notice of, 608. title deeds, 249. See under Equit- able Mortgages. Devise, general, what it includes, 487. lapsed, 485. limitation, without words of, 487. title, beginning with, 78. Die unmarried, settlements, in, meaning of, 384. will, in, meaning of, 511. Die without issue, meaning of, 487. Disabilities, copyholds, as to, 522. legal, 5. redemption actions, 226. registered titles, 633, 643. Disclaimer, 513. bankruptcy, of contract in, 85. deeds of, 513. effect of, by trustee, 514. form of, of trust, 514. legacy, 513. power, of, 514. stamp on, 515. trustees, by, 513. Discovery of documents, registered titles, 647. Disentailing assurances, 163, 195, 516. copyholds, 520. enrolment of, 195, 520. natural protector under, 517. searches for, 163. stamp on, 521. when used, 516. Disputes, registered titles, 579. vendor and purchaser, between, 124. Distress, 239, 322. mortgages, as to, 239. District land registries, 559. District registries for registration of titles, 559. Distringas, 180. Disturbance, tenancy, compensation for, 347. Doctor, gift to, 31. purchases by, 31. Documents, discovery of, registered titles, 647. Dower, estates in, 621. Drainage, compensation for, 359. Dumpor’s case, 345. E. Easements, 34. contract to grant, 34. land, when appurtenant to, 137. quasi, 138. registered titles, 579. Effects, meaning of, in will, 508. Elegit, writ of, effect on lands, 158. Emblements, right to, 359. Enfranchisements, 522. compulsory, 523. copyholds, 522. registration of, 524. settled estates, 523. And see under Copyholds. Enlargement, leaseholds to freeholds, 524. 680 INDEX. Enrolment, annuity, grant of, 194. charitable conveyances, 194. deeds, 104. disentailing deeds, 195. fees for, 194. office, search in, 163. proof of, 104. time for, 194. Entailed estates, proof of bar of, 108. Entry, power of, to landlord, to view repairs, 315. Equitable, mortgages, 249. costs of, 252. form of, 250. how created, 249. power of sale in, 250. receiver, appointment of, 251. waste, liability of tenant for life for, 404. Equity of redemption, 215. Errors, conditions of sale as to, 63. discovered after completion of pur- chase, 64. Escrow, delivery of deed as, 165. Essence of contract, condition as to time being, 67. Estate, duties, 582. meaning of, in will, 507. Estoppel, doctrine of, 131. Evidence, acknowledged deeds, 104. awards, as to, 104. copyholds, as to, 104, 105. Crown grants, 104. enrolled deeds, 104. execution, &c. of deeds abstracted, 101 . facts, of, 105. identity, of, 61. proceedings in court of justice, 108. recitals are, 131. registration of deeds, 103. wills, 104. Examination of title. See under Abstract of Title. Exceptions and reservations, 139. Exchanges of land, 76. Execution, bills of sale, 273. deeds, 165. wills, 462, 479. Executors, appointment of, 467. business, carrying on, by, 475. disclaimer by, 513. duties, as to wasting property, 476. gifts to, 506. leases by, 302. mortgages by, 203. position of, as to residue, 478. who may be, 468. Expense of production of deeds not in vendor’s possession, 101. F. Facts, proof of, 105. Falsa demonstratio non nocet, maxim, 135. Falsification of pedigree, penalty for, 99. Family, provision in will for, 471. Farm, meaning of, 136. Fees, enrolment, 194. registration of title, 659. Felons, sales by, 16. wills of, 459. Fiduciary capacity, sales by persons in, 29. Fiduciary relation, sales by persons in, 29. Fire, destruction of property by, after contract, 83. Fixtures, bill of sale of, 270. contract for sale of, 34. Flats, registration of, Land Registry, 639. Foreclosure, 218, 601. Forfeiture, equity of redemption, 215. leases, 338. none now in felony, &c., 16. INDEX 681 Forms, absolute title, registration of, 566. application, register of title, 566. bill of sale, 295. certificate of charge, 635. charge, under Land Transfer Act, 596. charge, transfer of, 604. conveyance, 153. deed, 153. land certificate, 634. Land Registry, 566, 586, 592, 596, 604, 634. lease, 349. mortgage, 240. reconveyance, 260. statutory, 246. purchase deed, 153. registration of title, for, 566, 586, 592, 596, 604, 634. statutory mortgage, 246. transfer of charge, 604. transfer of land, 586. transfer of leasehold land, 592. Frauds, abstract of title, as to, 99. registration of title, 646. Frauds, Statute of, auctions, how complied with, 59. contracts, what within, 33. Fraudulent, concealment by mortgagor, 218. conveyances, 452. Freeholds, enlargement of leaseholds into, 524. Furniture, meaning of, in will, 509. Further advances, mortgage to secure, 212. tacking of, 247. Further assurance, covenant for, 145. G. Game, damage by, compensation for, 354. Ground, Acts, 360. poisoning of, 362. rights as to, 360. tenant’s right to, 360. Gateway, right of, 136. Gavelkind lands, 6. General devise, what it includes, 485. General legacies, 464. Gifts, charities, to, 22. children, 501. children, illegitimate, 501. conditional, 496. cousins, to, 504. creditors, &c., to, 492. executors, to, 506. family, to a, 505. grandchildren, to, 504. heirs, to, 505. husband, to, 501. issue, to, 489, 504. legal representatives, to, 506. nephews and nieces, to, 503. next of kin, to, 506. relations, to, 504. requisitions as to, 111. step-children, to, 503. tenants in common, to, 503. wife, to, 501. Gifts over, life interest in settlements, 384. Good right to convey, covenant as to, 144. Goods, chattels, or effects, meaning of, 509. contract for sale of, 35. meaning of, 35. Goodwill, assignment of, 182. covenants on sale of, 172. customers, dealings with, 182. customers, soliciting, 182. name, use of, 182. purchaser, precautions by, 182. trade, covenant in restraint of, 173. vendor, position of, 182. Grandchildren, gifts to, by will, 504. “ Grant,” conveyance, in, not necessary, 134. Ground game, rights as to, 360. Growing crops, sale of, 33. Growing timber, sale of, 34. Guardian, appointment of, by will, 468. gift to, 30. purchases by, 30. H. Habendum, leases in, 309. use of, 140. 682 INDEX. Habitable repairs, meaning- of, 328. Hares, Ground Game Act, as to, 360. Heirs, covenantor, of, &c., 140. gifts to, by will, 505. High Court, proof of proceedings in, 108. Highways, repair of, 580. Hiring agreement, when not a bill of sale, 266. ! Hops, growing, contract for sale of, 34. Hotchpot clause, settlements of personalty, 383. settlements, strict, 407. House, meaning of, 135. Household effects, meaning- of, 509. goods, meaning of, 509. Housing of Working Classes Act, land- lord’s liability under, 315. Housing, Town Planning, &c. Act, 315. Howe v. Dartmouth rule, 476. Husband, estate of, by curtesy, 15. Hypothecation, letters of, 268. I. Identity, condition as to, 61. parcels, proof of, 105. property, registered title, 598. Idiots. See under Lunatics. Impeachable for waste, when tenant for life is, 405. Improvement of Land Acts, 435. Improvements, capital money, with, 431. compensation for, to tenants, 352. raising money for, 435. tenant for life, by, Settled Land Act, 434. Inclosed lands, conditions as to, 76. Inclosure Act, awards under, proof of, 104. exchanges under, 76. Income, accumulation of, 411. application of, for maintenance, 386. Inconsistent clauses in wills, 482. Incorporation, documents relating to sale, 37. Increment value duty, 73, 118, 370. stamp, 167. Incumbrances, concealment of, 99. conditions as to, 79. Land Registry, 579. Land Registry, discharge of, 583. redemption of, 79. requisitions as to, 120. search for, 154. See under Searches, shifting* of, by tenant for life, 417. tacking, 247. See under Mortgages. Indemnity, clause, settlements, 393. sale of leases, 147. Indorsed receipt, 133. Infants, 5. applications to Court as to, 643. contracts, 7. conveyances by, 5. conveyances to, 7. disabilities of, 445. lands, 445. leases, 298. maintenance of, by trustees, 385. management of lands by trustees, 445. mortgages, 202. provision as to, on registered titles, 643. purchase by, 7. sales by, 5. sales to, 7. Settlements Act, 6. settlements by, 373. specific performance bj r , 90. Inhibitions, Registered Titles, 625. Inquiries as to title. See under Abstract of Title and Conditions of Sale. Instalments, repayment of mortgage by, 212 . Insurance, covenant for, in leases, 330. fund, registered titles, 649. mortgaged property, 222, 229. purchaser’s position as to, 83. INDEX. 683 Interesse termini in land, 310. Interest, arrears, recovery of, on mortgage, 210 . covenant for payment of, in mort- gage, 209. deposit on, 59. land, in, what is, 33. purchase-money, on, G9. Intestacy, proof of, 107. Inventory of goods, when bill of sale, 268. Investments, capital money, Settled Land Act, 426. trustees, 387. And see under Trustees. Issue, die without, meaning of, 487. gifts to, 489, 504. J. Joint account clause, mortgages, 213. Joint tenants, admittance of, to copyholds, 175. how far mortgagees are, 213. Jointure, how secured, 405. Judgment debts, tacking of, 247. Judgments, how far, affect lands, 155. searches for, 155. Judicature Act, assignment of choses in action, as to, 177. waste, as to, 404. K. Kin, next of, gifts to, by will, 506. L. Land, covenants running with, 316. Crown, 77. exchanged, 76. interest in, what is, 33. judgments, how far, affect, 155. Land — continued . meaning of, 136. Statute of .Frauds, what is, within sect. 4. ..33. writs affecting, 158. Land certificates, 634. Land charge, what is, 158. Land charges, 158. searches for, 158. Land Clauses Act, 196. See under Lands Clauses. Land Commissioners, duties of, as to enfranchisement, 522. Land Registry, 555. See under Regis- tration of Title. Land Tax, liability as to, 580. loss of redemption certificate, 79. proof of redemption of, 107. Land Transfer Acts, conveyancing under, 555. See under Registration of Title. Landlord, actions by, 322. consent of, to assigning lease, 331. covenants by, 310, 337. distress by, 322. enter and view, right to, 315. forfeiture by, 338. re-entry by, 326, 338. remedies of, 321. repairs, not liable for, 313. repairs by, covenant for, 326. restrictive covenants by, 337. Landlord and Tenant, 297. See under Leases. Lands Charges, &c. Act, 164. Lands Clauses Consolidation Acts, 196. compensation, application of, 197. compensation under, 197. copyholds, as to, 199. lands, surplus, 197. mortgages, redemption of, 199. notice to treat, 197. objects of, 196. outline of, 196. price, fixing of, 200. procedure under, 176. promoters, estates vested in, 199. remedies under, 200. sales under, 196. 684 INDEX Lands Clauses Consolidation Acts — continued. specific performance under, 200. summary of procedure under, 196. surplus lands, disposal of, 199. treat, notice to, 197. Lapse, devise, of, 485. Wills Act, provisions of, 472. Lease. See under Leases. Leaseholds, assignee, position of, 176. assignment of, 176. enlargement of, into freeholds, 524. mortgage of, 241. mortgage of, covenant on, 242. Leases, 297. administrators, by, 302. agents, by, 302. agreements for, 305. agricultural, 351. agricultural holdings, 351. agricultural leases, 351. See under Agricultural Leases, assessments, meaning of, 324. assign, covenant not to, 331. assignee of, 176. assignment of, 176. attorney, power of, under, 303. bankruptcy of lessee, 319, 332. breach of contract, for, remedies for, 305. breach of covenants in, 329. building, 419. business, covenant not to carry on, 335. by whom prepared, 308. capacity of parties, 297. charges, meaning of, 325. companies, by and to, 300. compensation for improvements, 352. conditions for forfeiture, 338. conditions for re-entry, 338. conditions on grant or sale of, 50, 77. consent, lessor’s, to assign, 331. consideration in, 309. contents of, 308. contract for, 305. contract for sale of, specific per- formance of, 89. copyholders, by, 304. corporations, by and to, 300. costs of, 369. cottage gardens compensation, 359. Leases — continued . covenants in, 311. breach of, remedy for, 329. business, covenant not to carry on, 335. enter and view, 315. express, 320. generally, 311. implied, 312. insurance, for, 330. keep in repair, to, 313. lessee, by, 312. lessor, by, 310, 337. not to assign, 331. not to underlet, 331. quiet enjoyment, 312. rates, &c., payment of, 312, 323. rent, to pay, 312, 320. repair, to, 312. restrictive, 318, 335. running with the land, 315. running with the reversion, 316. taxes, to pay, 312, 323. trade, not to carry on, 335. usual, 319. usual, what are, 319. usual, what are not, 319. And see under Covenants. Crown, by, 300. damages under, measure of, 329. date of, 308. definition of, 297. determination of, option for, 310. disputes under, 306. distress for rent, 322. Dumpor’s case, 345. duration of term, fixing of, 310. duties, meaning of, 324. ecclesiastical corporations, 300. emblements, tenant’s right to, 359. enter and view, right to, 315. executors, by, 302. fixtures, tenant’s, rights to, 356. forfeiture, costs as to, 342. game, damage by, 354. mining lease, 344. notice as to, 342. relief for, 340. forfeiture of, 338. form and contents of, 307. form of, 349. game, ground, as to, 360. ground game, 360. habitable repair, meaning of, 328. habendum, the, 309. idiots, by and to, 299. impositions, meaning of, 324. improvements, compensation for, 352. . indemnity to vendor on sale of, 141. INDEX. 685 Leases — continued. infants, by and to, 297. insurance, covenant for, 330. investigation of title for, 305. legal charges for, 369. lessee, I bankruptcy of, 319. covenants by, 311. lessor, covenants by, 347. restrictive, by, 337. re-entry by, 338. repairs by, 314, 326. title of, investigation of, 305. l im ited owners, by, 303. lunatics, by and to, 299. market gardens, 358. married women, by, 299. mortgage of, 233. mortgagee, by, 233. mortgagor, by, 233. notice of, on registration of title, 618. notices to quit, 357, 364. obligations of parties to, 311. operative words in, 309. option to determine term, 310. outgoings, meaning of, 324. owners, limited by, 303. parcels in, 309. 1 parties, capacity of, 297. obligations of, in absence of ex- press covenants, 311. parties to, 308. partnership tenancy, 310. persons non compos, 299. powers, as to, in mortgages, 233. in settlement, 418. powers under, 302. preparation of, 307. property tax, as to, 312. quiet enjoyment, covenant for, 312, 347. quit, notice to, 357, 364. And see under Quit. rates, covenant to pay, 312, 323. landlord’s, 325. meaning of, 323. &c., payment of, 312, 323. recitals in, 308. reddendum, the, 311. re-entry, conditions for, 338. demand for, where required, 339. effect of waiver of right of, 345. notices as to, 342. operation of proviso for, 339. Leases — continued. r e - e nt r y — co n t in ued. relief as to, 340. underlessees, rights as to, 341. waiver of right to, 345. registration of, in Land Registry, 575. rent, action for, 322. covenant for payment of, 312, 320. deductions, 321. distress for, 322. forfeiture for non-payment of, 344. landlord’s remedies for, 322. payment of, 320. remedy for, 322. reservation of, 312. when due, 320. where it is payable, 320. repair, breach of covenant for, 329. measure of damage, 329. habitable, 328. tenantable, meaning of, 328. repairs, covenant for, 313, 326. landlord, by, 326. lessor, by, 314. tenant, by, 313, 327. requisitions as to, 119. restrictive covenants, 318, 335. reversioners, by, 304. running with land, covenant, 315. settled estates, 303, 418. solicitor, costs, employment of, 342. stamps on, 367. strict settlement of, 418. surrender of, 362, 421. surveyor, employment of, cost of, 342. taxes, covenant to pay, 312, 323. tenant, remedy of, against landlord for non-pay- ment, 325. what are usual, 323. tenant, compensation to, 352. fixtures of, 356. repairs by, 313, 327. tenant for life, by, 303, 418. tenant for years, by, 304. tenantable repair, meaning of, 328. term, commencement of, 310. duration of, 310. fixing of, 310. option to determine, 310. testatum, the, 309. title, lessor’s, investigation of, 305. 686 INDEX. Leases — continued. trade, not to carry on, 335. trustees, by, 301. under powers, 302. underlease, covenant not to, 331. underlessee, relief for, 341. underlet, covenant not to, 331. unsound mind, persons of, 299. usual covenants, what are, 319. what are not, 319. view, lessor’s right to, 315. voidable, 298. waiver, what is, 345. will, tenant at, by, 304. years, tenants for, by, 304. And see under Registration of Title. Leaseholds, enlargement of, to freeholds, 524. mortgage of, 241. Leasing, powers of, mortgaged property, i 233. Legacies, 464. ademption of, 464. annuities, of, 500. bankruptcy as to, 499. bequest of, 470. charged on land as, 495. charities, 22. child, to, 489, 501. conditions, upon, 496. contingent, 494. creditors, to, 492. cumulative, 491. debt, satisfaction of, by, 492. demonstrative, 464. disclaimer of, 508. duty on, 470. general, 464. husband, to, 5 j 01. land, charged on, 494. land, of, 494. legal representatives, to, 506. life interests, 498. money charged on land, 495. nephew, to, 503. niece, to, 503. particular purpose, for, 496. personal property, 497. realty, 497. relatives, to, 504. requisition as to, 111. residuary, 465. satisfaction of debts, for, 492. several to same person, 491. specific, 464. various kinds of, 464. vested, 494. vested and contingent, 464. wife, to, 501. And see under Wills. Legacy duty, Act, 112. free from, in wills, 470. I Legal charges. See under Costs. Legal estate, outstanding, 78. I Legal representatives, gifts to, 506. Legitimacy, proof of, 106. Lessors and lessees, 297. See under Lease. Letters, contract by, 37. hypothecation, of, 268. License to take possession, 266. Liens, 92. purchaser’s, 92. , vendor’s, 92. Life interests, conditions as to, 498. Life policy, assignment of, 181. mortgage of, 244. settlement of, 399. Limitation, Statute of, contracts, effect of statute as to, 93. land, money charged on, 218. legacies, as to, 112. mortgages, redemption of, 218. Limited owners, leases by, 303. Lis pendens, 156. registration of, 156. searches for, 156. Livery of seisin, proof of, 105. Loans, improvement of settled estates, for, 435. trustees and executors, by, 203. Local registries, land transfer, 650. Lodgings, furnished, contracts as to, 34. Lord St. Leonards’ Act, concealment of incumbrances, &c., 98. Lost, deed, proof of, 103. documents, conditions as to, 79. evidence of redemption, 79. land certificate, 79. requisitions as to deeds, 103. INDEX. 687 Lunacy Act, 1890. ..109. orders, 109. proceedings, proof of, 109. Lunatics, 8, 202, 299, 633, 643. application to Court as to, 643. committee, powers of, 9. sales by, 9. conveyances by, 8. conveyances to, 10. leases by and to, 299. mortgages by, 202. provisions as to registered titles, 633, 643. sales by, 8. sales to, 10. wills of, 458. M. Maintenance, clause for, in settlements, 386. Manor, meaning of, 135. registration of, on registered title, 638. Maps, land transfer, 562. Market gardens, 358. Marriage, conditions in restraint of, 496. proof of, 106. Marriage settlements, 372. See under Settlements. Married women, acknowledgment by, 12, 14. anticipation, restraint on, 11, 377. applications to Court as to, 643. appointment by, 12, 527. bare trustee, as, 12. chattels, sale of, 14. child-bearing, when past, 110. contracts of, 13, 16. conveyances to, 15. copyhold land of, 14. deeds by, 11. disabilities of, 12. disclaimers by, 14. exercise of power by, 527. freehold land of, 12. leaseholds, sale of, 14. leases by and to, 299. mortgages by, 202. past child-bearing, 110. powers; sales under, 12. provision as to registered titles, 643. Married women — continued. restraint on, 11, 377. reversionary interests of, 12, 14. sales by, 10. sales to, 15. separate property of, 11. wills of, 458. Maxims, Caveat emptor, 44. Falsa demonstratio non nocet, 135. Dans locum contractui, 42. Medical man, sales to, 31. Memorandum of deposit title deeds, 249. Messuage, meaning of, 135. Middlesex Registry, 161, 188. registration in, 188. searches in, 162. And see under Searches, stamps in, 190. wills, as to, 189. Minerals, right to, 580. Mines, conveyance of, 137. lease of, 420. registration of, 639. reservation of, 137. right to, 580. Minister, gifts to, 30. purchase by, 30. Misdescription, compensation for, 45, 63. Misrepresentation in particulars of sale, 41. Money, meaning of, in will, 508. Mortgagee. See under Mortgages. Mortgages, 201. abortive, costs of, 209. abstracting, 98. actions as to, 210. actions on covenant to repay, 210. agreement for, 207. aliens, by, 203. arrears of interest, 210. attornment clause in, 238. bankruptcy, effect of, 242. Bills of Sale Act, effect of, 239. building society, 258, 606. business premises, 205. capacity of parties, 202. choses in action, 243. 688 INDEX. Mortgages — continued. companies, by, 203. consolidation of, 219, 249. consolidation, risks of, 220. contents of, 209. contract for, 208. contributory, 205. conveyance to mortgagee, 214. convicts, by, 203. copyholds, 240. copyholds, transfer of, 256. corporations, by, 203. costs of, 208, 252. covenant, actions on, 214. covenant for repayment, 209. covenants by mortgagor, 222. covenants in, 209. covenants, title for, 222. date of, 209. deed, preparation of, 209. definition of, 201. disadvantages of second, 246. discharge of, registered, 605. distress clause in, 239. equitable, 205, 249. And see under Equitable Mortgagefs. equity of redemption, 215. felons, by, 203. fixtures, mortgagee’s right to, 224. foreclosure, 218. form of, 209, 240. form of, in special cases, 240. fraudulent concealment by mort- gagor, 218. further advances, 212. future advances, 212. ground rents, 205. how made, registered land, 596. implied covenants in registered mortgage, 600. infants’, 202. instalments, repayment by, 212. insurance, 222, 229. insurance moneys, application of, 229. interest on, 209. arrears of, 210. compounding, 212. punctual payment of, how in- sured, 211. investigating title, 207. joint account clause, 213. leaseholds, 241. leases, grant of, 233. leasing, power as to, 233. life policies, 244. limitation, period of, 210. loan, proportion of, to security, 206. lunatics, 202. married women, 202. Mortgages— continued. mortgagee, accounts of, 253. conveyance to, 214. death of, 256. fixtures, duties as to, 224. foreclosure by, 218. insurance by, 229. leases by, 233. power of sale, 223. powers of, 222. receiver, appointment of, 230. repairs by, 222. sales by, 34, 219. second, 205, 239. timber, cutting by, 233. transfers by, 221. mortgagor, concurrence of, in transfer, 253. covenants by, 222. fraudulent concealment by, 218. insurance by, 222. leases by, 233. redemption by, loss of right to. 218. repairs by, 222. title of, 208, 222. transfer, right as to, 253. notice to pay off, 217, 225. form of, 225. to whom given, 225. parties, capacity of, 202. parties to, 209. pay covenant to, 209. persons in a fiduciary position, 203. persons of unsound mind, 202. policies, 244. power of sale, 219, 223, 227. power to insure, 222, 229. powers of mortgagee, 222. proviso for redemption, 215. receiver, appointment of, 230. advantages of appointing, 232. distress by, 231. powers of, 230. removal of, 231. remuneration of, 231. And see under Receiver, recitals in, 209. reconveyance of, 260. costs of, 260. form of, 260. leaseholds, 260. parties to, after death of mort- gagee, 259. proviso for, 215. stamps on, 262. redeem, notice of intention to, 217. redeem, right to, 216. redeem, who can, 216. INDEX. 689 Mortgagees — con t in ued. redemption, equity of, proviso for, 215. loss of right to, 218. proviso for, 215. registered, alterations in, 600. registration of, evidence of, 599. repairs, 222. repairs, covenant for, 222. repayment by instalments, 212. repayment, covenant for, 209. repayment of, 209. sale, power of, 219, 223. sale, when it arises, 223. under, 219. second, 205, 239. disadvantages of, 246. second testatum, 214. security, value of, 206. specific performance! of contract for, 208. stamps on, 261. statutory, 245. form of, 246. sub-mortgage, 206. tacking, doctrine of, 247. restriction on, 248. tenant for life, by, under Settled Land Act, 418. testatum, first, 209. testatum, second, 214. timber, cutting and selling, 233. title, abortive investigation of, 209. covenant for, 222. investigation of, 207. of mortgagor, 207. traitors, 203. transfer of, 221, 253, 604. copyholds, 256. costs of, 257. mortgagor a party, 255. mortgagor, concurrence of , 253. mortgagor not a party, 254. parties to, after death of mort- gagee, 256. statutory, 256. See under Transfers, trustees, by, 203. valuation for, 207. value of security, 206. valuer, selection of, by trustee, 206. who can redeem, 216. Mortgagor. See under Mortgages. Mortmain, 21. forfeiture under, 21. institutions exempt from, 23. parks, provision as to, 22. requirements under, 21. working classes’ dwellings, as to, 19. Municipal corporations, conveyances by, 17. leases, 300. Museum, sale for, 22. N. Naturalization Act, effect of, 16. Nephews, gifts to, by will, 503. Next of kin, gifts to, by will, 506. Nieces, gifts to, by will, 503. Non-production, deeds, 101. Notice, actual, 121. annuity, as to, 157. assignment of chose in action, 179. assignment of policies, 182. bankruptcy, disclaimer in, 85. constructive, 121. defects in title, of, 120. enfranchise, right to, 522. estates by curtesy, 621. estates in dower, 621. generally, 120. implied, 121. interest, claim to, 70. land, registered counties, in, 161. Lands Clauses Act, under, 197. law as to, lands in registered county, 161. lease on registration of title, 618. mortgagee, by, prior to sale, 225. payment off mortgage, 225. purchaser, as to interest, 70. quit, 357. quit, notice to, agricultural hold- ings, 357. And see under Quit. second mortgage, 247. tenant’s, removal agricultural fix- tures, 357. treat, under Lands Clauses Act, 197. trust, registration of title, 617. trustees, to, 179, 438. O. Objections to title, waiver of, 123. Observations on title, 111. Official receiver, registration of title by, 614. Operation of law, surrender of lease b}', 363. G. — C. Y Y 690 INDEX. Operative, part of deed, how affected by re- citals, 130. words in conveyances, 134. words in leases, 309. mines, as to, 405, 420. mining leases, 420. mortgages, 423. foreclosure of, 430. i options to purchase, 420. object of, 372. on trust for sale, 400. open spaces, dedication for, 422. parents, advances for, 385. parties to, 380. partitions, 416. ! Settlements — continued. personalty, form of, 380. pin-money, as to, 402. policy, of, 399. portion term, trusts of, 407. portions, division of, 406. lapsing of, 409. portions for younger children, 406. post-nuptial, 449. power of appointment, 383. powers in, 443. preparation of, 376. property, after-acquired, 377. property, transfer of, to trustees, 376. purchase, option to, 420. realty, 400. receipt clause, 392. recitals in, 380. re-imbursement clauses, 393. rent-charges, 403. repairs, as to, 405. retirement of trustees, 397. revocation of, 453. sale of heirlooms, 423. sale, power of, 416. sales by tenant for life, 447. sales by trustees, 448. sales under, 416, 447. settled land, definition of, 413. meaning of, 414. Settled Land Acts, object of, 412. settlor, investigating title of, 376. sham, 449. solicitor’s duty as to, 453. solicitor trustee, 394. sons, younger, who are, 408. stamps on, 454. strangers, on, 449. streets, dedication for, 422. strict, 400. And see under Tenant for Life and Settled Land Acts, strict form of, 401. surrender of leases, 421. tenant for life, contracts by, 436. definition of, 414. disabilities of, 445. infant, 445. limited owners having powers of, 444. lunatic, 446. married woman, 446. powers of, 415. sales by, 447. who is, 414. term of years, object of, 401. timber, as to, 423. title, covenants for, 379. title deeds, custody of, 405. INDEX. 701 Settlements — continued . transfer of property under, 376. trust for sale, 400, 447. trustee, a solicitor, 394. appointment of, by Court, 437. appointment of new, 394. death of, 396. new, appointment of, 394. solicitor, 394. trustee clauses, 387. trustees, decrease in number of, 396. trustees, definition of, 415. trustees, different sets of, 395. trustees, discretion of, 391. trustees, increasing number of, 395. trustees, new, powers of, 396. trustees, number of, 437. trustees, receipts of, 438. trustees, retirement of, 397. trustees, separate sets of, 395. trustees, transfer of property to, 376. trustees, vesting property in, 376. trustees, who are, under Settled Land Acts, 415. trusts for sale, settlement upon, 447 . trusts of, 381. usual trusts of, 381. vesting property in trustees, 376. void, 374. voidable, 374. voluntary, 118, 449. And see under Voluntary Settlements, waste, as to, 405. what are, 413. wife, covenant by, to settle pro- perty, 379. wife, death of, 382. younger children, portions for, 406. younger sons, who are, 408. Sewers rate, liability of tenant for, 323. Shares, meaning of, in will, 510. vesting of, in new trustees, 399. Signature, bills of sale, 273. contracts, 36, 59. deeds, 165. wills, 462. Solicitors, abstracts, duty as to, 100. attestation of bill of sale by, 273. costs of, as trustee, 394. costs of, for conveyancing, 536. duty of, as to voluntary settlement, 453. Solicitors — continued. liability of, as to searches, 154. notice to, 122. purchases and sales by, 31. sales to, by himself, 31. Solicitors’ Remuneration Acts, decisions under, 547. outline of, 536. Special conditions of sale, 76. See under Conditions of Sale and Requisitions. Special searches, 155. See under Searches. Specific legacies, 464. Specific performance, 89, 645. costs of, on registered titles, 645. damages in lieu of, 90. defences to action for, 91. discretion of Court as to, 90. remedy by, 89. Spencer’ s case , 318. Spring traps, use of, 353. Stamps, 183. acknowledgment and undertaking as to deeds, 186. appointments, on, 535. assignment, 262. bill of sale, 296. bonds, on, 261. building society mortgage, 262. consideration, the, 132. consideration under 500/., 185. contracts for sale, 94, 185. conveyances, 185. conveyance to sub-purchaser, 185. copyholds, sale of, 186. debentures, on, 261. declaration on appointment, new trustees, 456. denoting, 186. disclaimers, 515. disentailing assurances, 521. duties, rates of, 183. exemptions from, 262. Land Registry, in, 190. leases, 367. memorials, on, 190, 193. mortgages, 261. penalties, as to, 133. purchaser, risks of, as to, 102. re-conveyance, on, 362. releases, 262. renunciation, on, 262. re-surrender, on, 262. 702 INDEX. Stamps — continued. sale of stocks, on, 185. settlements, 454. surrenders, on, 262. transfer of mortgage, 262. transfers, on, 185, 588. undertakings, on, 186. vesting orders, 456. voluntary conveyance, 184. warrant of attorney, on, 261. warrant to vacate, on, 262. Yorkshire Registry, in, 193. Statute of Frauds. See under Frauds. Statutory mortgages, 245. form of, 246. transfers of mortgages, 256. Stock, assignment of, 181. Stocks and shares, vesting of, in new trustees, 399. Stop orders, 180. Streets, dedication by tenant for life, 422. Strict settlements, 400. Sub-purchaser, conveyance to, 128. Succession duty, 107, 112. payable by charities, 113. rates of, 113. when payable, 115. Successor, who is, 113. Suggestio falsi, ground for setting aside sale, 42. Snppressio veri, when misrepresenta- tion, 43. Supreme Court, proof of proceedings in, 108. Surplus lands, disposal of, under Lands Clauses Acts, 199. Surrender, copyholds, 175. leases, 362. Surveyor, choice of, by trustees, 207. employment of, by solicitor, 548. Survivor, meaning of, in will, 510. T. Tacking, <247. doctrine of, 247. judgment cannot be tacked, 248. mortgages, 247. restrictions as to, 248. right to, 247. Taxes, 312, 319, 323. See under Rates. Tenant at sufferance, 304. at will, leases by, 304. Tenant for life, building leases, by, 419. capital money, 425. contracts by, 436. conveyances by, 424. copyholds, as to, 425. dealings of, 436. deeds, execution of, by, 424. definition of, 414. disabilities of, 445. forfeiture, as to, 442. heirlooms, sale of, 423. improvements by, 434. improvements, raising money for, 435. infant, 445. investments, as to, 426. land in trust for sale, 447. lease, surrender of, 418, 421. leases by, 303, 418, 422. limited owners having powers of, 444. lunatic, 446. married woman, 446. mines, as to, 420. mining leases, as to, 420. mortgages by, 423. powers of, 416. sale, power of, 416. sales by, 416. sales to, 436. settlement, powers in, 443. streets, as to, 422. timber, cutting and sale of, 423. trustee for all parties, is, 442. waste bjr, 435. who is, 414. And see under Settled Land Acts. Tenant for years, leases by, 304. repairs, liability of, for, 313. when within Settled Land Act, 444. Tenant in fee simple, 444. INDEX. 703 Tenant in tail, after possibility of issue,