The Equitable Doctrine of Proprietary Estoppel
Proprietary Estoppel is a legal remedy used to resolve disputes when an individual has relied on a promise or assurance that either property or land will be transferred to them at a later time, but this promise later goes on to be broken. It essentially can help to prevent someone from going back on a promise.
A typical example between families when a parent promises a child that they will inherit the family farm. The child relies on the promise by working on the farm and potentially sacrifices other opportunities. However, the parent later goes on to change their will which can lead to arguments and family breakdowns.
This can also occur when an individual helps maintain or invests money into a property believing they will later inherit it, but the property gets left to someone else.
Essential rules of Proprietary Estoppel
Proprietary estoppel can be a complex issue to pursue. This is because the promisor may deny making the promise or they may have passed away.
There are also three essential elements that must be present for an individual to bring a successful claim these are:
- Assurance – There must be assurance made by an individual to the claimant in relation to specific land. . This can be a clear statement or conduct that leads an individual to believe that they will have a right to the property or land.
- Reliance – The claimant must show that they relied on assurance which made them act in a way which they wouldn’t have if there was not a promise made. .
- Detriment - The reliance of the promise must have resulted in loss or caused the claimant to be at a disadvantage. However, this does not have to be financial loss.
Although there are essential elements to bring a successful claim, the courts do deal with these types of claims on a case-by-case basis.
Is there a time limit for a Proprietary Estoppel claim?
There is no strict time limit to bring a proprietary estoppel claim. However, if there is a significant delay in bringing a claim this can be used as a defence by the other party. It is advised to act promptly if you wish to bring this type of claim.
How can you prevent a Proprietary Estoppel claim?
To prevent this type of claim, owners of land and property should be mindful before they make promises that they might not be able to keep. Further preventions include:
- Clear communication - Being transparent and having clear conversations with family members can help to prevent misunderstandings and proprietary estoppel claims.
- Well drafted Will – A Will that clearly demonstrates who will inherit from your estate and also what they will inherit.
- Letter of Wishes - This clarifies the decisions that you have made within your Will.
Please contact our Wills, Trust and Probate team who can provide further advice and assistance with estate planning matters.
How can Brethertons help?
We understand that being involved within a dispute can be a stressful and a confusing time for individuals.
Here at Brethertons we offer expert legal advice and support to clients involved within these types of complex disputes.
If you believe you may have a claim for proprietary estoppel or would like some advice on whether you may have a claim, please contact our Private Client Litigation team at info@brethertons.co.uk or call 01295 270999 (Banbury Office), 01869 252161 (Bicester Office), 01788 579579 (Rugby Office), or 01242 472747 (Cheltenham Office), who will be happy to assist you.