Sale of land
the transfer of land is a two stage process: 1 a binding contract of sale is drawn up and signed by
both vendor and purchaser; 2 completion takes place by means of a conveyance of the legal title
by the vendor to the purchaser (unregistered land) or a transfer of the legal title (registered land)
at the land register.
Before the contract of sale is signed a surveyor is employed to est. the property boundaries; and
a land engineer to carry out inspection of the buildings. Other detailed inspection can be carried
out. e.g. drainage
The written memorandum
A contract for the sale of land must be either in writing or evidenced by a sufficient note or
memorandum and signed by the parties, as affected by ss 2 and 4 of the statute of frauds 1677.
the written memorandum must contain: 1 description of the parties; 2 description of the property
i.e. the property must be sufficiently identified; 3 price
The memorandum must contain other terms agreed between the parties such as payment terms
and deposits.
The memorandum must contain the signature of the party to be charged that is the party against
whom the agreement is being enforced or by his agent.
The memorandum can be any written evidence e.g. a letter or purchase receipt will suffice.
several doc. can be joined together to make of complete memorandum, in elias v George sahely
and co. Barbados ltd. D agreed to sell his property to P, P attorney wrote a letter to D's attorney
confirming the oral agreement and enclosed a cheque for the deposit, D's attorney sent back a
receipt that they received the deposit. The letter from the attorney; the receipt and the evidence
from P's attorney that the receipt had been given in response the letter concluded an oral
contract.
Part performance
In equity an oral contract for the sale of land can be specifically enforced despite the written
memorandum. That is where the party seeking to enforce the agreement has done a sufficient act
of part performance of the contract. In jackman v jones, without any written memorandum V
agrees to sell his house to P for $18,200a and the same day P paid the amount to V. V put P into
possession of the property. The agreement was enforceable. However, in a Jamaican case
McLean v espeut, it was held that the payment of electricity bills and the cutting of grass by P on
the property alleged to be sold to P, were insufficient act.
Open contract
Once the formalities are concluded the contract is termed closed, however where there is only the
description the parties and the land and the purchase price the contract is termed open. in chaital
v ramlal, it was stated that it cud be implied from an open contract that the vendor had a good
and marketable title to the land; that the vendor would deliver an abstract of title to the purchaser
in reasonable time from date of contract and both vendor and purchaser would complete the
contract in a reasonable time. However it is not until the vendor had delivered an abstract of title
that the purchaser would come under an obligation to complete. -once there is a specifically
enforceable contract the V holds the legal title for the benefit of the P.
Payment of deposit
The deposit paid by a purchaser can be retained by the vendor where P defaults. Normally
deposits are 10% of the purchase price. Where the vendor is in default then the purchaser is
entitled to a return of his deposit. As provided in s 7 of the conveyance and law of property act.
Vendor’s duties regarding title
In a sale of unregistered land V is under a duty to disclose to the purchaser all defects in title
except those which the purchaser is aware (notice). And V must make a good title to the whole
legal and equitable interest in the freehold hence V's attorney should prepare an abstract of title
describing the deed and other facts such as births, deaths and marriages which affect the
ownership of land.
A good root of title must be given by V, at least 20yrs, such as doc. that includes a conveyance on
sale, or a legal mortgage. The effect of est. a good root of title is that the purchaser cannot make
any inquiry of objection about matters previous the date of the root of title.
Purchaser’s duty to investigate the:
Abstract title received from the vendor; search the land registry form adverse interests affecting
the title; compare the abstract title and the deed produced by V' attorney and investigate the land.
(constructive notice)
A tenant must make inquiries about person in possession and find out what his rights are. In hunt
v luck it was held that a tenant's occupation is notice of all that tenant 's rights.
Registered land
Where land is registered the vendor does not need to trace the history of the transaction dealing
with the property, since the register, which is a public doc. contains all info. That would be found
on the title deed such as name, description of property, and other encumbrances, such as
mortgages, easements and restrictive covenants.
