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Limitation of Actions Consultation - Law Commission

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the limitation period running from the time when the right <strong>of</strong> action originally<br />

accrued. 13<br />

However, if the transferor <strong>of</strong> the land was in possession at the date when<br />

the assurance took effect, and no-one has been in possession under the assurance<br />

(so that no right <strong>of</strong> action had accrued before the assurance took effect), the right<br />

<strong>of</strong> the person entitled to the land under the assurance to bring an action to recover<br />

the land is treated as accruing on the date when the assurance took effect. 14<br />

Example 1 D starts squatting on P1’s land in 1993. P1 does not deal with the<br />

land. P1’s title is extinguished, by adverse possession, in 2005 (12 years after<br />

1993).<br />

Example 2 D starts squatting on P1’s land in 1993. P1 sells the land to P2 in<br />

1996. P2’s title is extinguished, by adverse possession, in 2005 (12 years after<br />

1993).<br />

Example 3 D starts squatting on P1’s land in 1993 but leaves in 1994. P1 sells<br />

the land to P2 in 1996. D returns to the land in 1995. P2’s title is extinguished, by<br />

adverse possession, in 2007 (12 years after 1995).<br />

6.9 The Act also contains provisions to deal with the problems, now rarely<br />

encountered in practice, posed by a defective disentailing assurance <strong>of</strong> land which<br />

is subject to an entail. 15<br />

If any person takes possession in reliance on the defective<br />

disentailing assurance, section 27 <strong>of</strong> the 1980 Act (described by one commentator<br />

as “convoluted”) 16<br />

provides that the assurance shall be treated as operating to bar<br />

the issue in tail, with retrospective effect, regardless <strong>of</strong> its defects, once that person<br />

or anyone else, other than a person entitled to possession under the settlement, has<br />

been in possession <strong>of</strong> the land for twelve years after the time when the assurance<br />

could have effectively barred the entail. 17<br />

(b) Future interests in land<br />

6.10 Where the interest in land is a future interest, such as an interest in reversion or in<br />

remainder, the right <strong>of</strong> action will be treated as accruing when the interest falls<br />

into possession through the determination <strong>of</strong> the preceding interest, provided that<br />

the person entitled to the preceding interest was in possession <strong>of</strong> the land at that<br />

13 Section 15(4).<br />

14 Schedule 1, para 3. The date when an assurance takes effect is not defined in the 1980 Act:<br />

it must be strongly arguable, in the case <strong>of</strong> registered land, that a transfer would take effect<br />

when it is registered.<br />

15 Under the Fines and Recoveries Act 1833 an entail can be barred if the tenant in tail<br />

executes a disentailing assurance (eg a conveyance), whereupon, as long as the<br />

requirements <strong>of</strong> the statute are complied with, the grantee will take a fee simple, free from<br />

the subsequent interests. A disentailing assurance may, however, be defective because, eg,<br />

the requisite consents were not obtained from the protectors <strong>of</strong> the settlement. See R E<br />

Megarry and<br />

H W R Wade, The <strong>Law</strong> <strong>of</strong> Real Property (5th ed 1984), pp 83 - 85.<br />

16 T Prime and G Scanlan, The Modern <strong>Law</strong> <strong>of</strong> <strong>Limitation</strong> (1993), pp 180 - 181.<br />

17 Section 27(2). The time specified in s 27(2) is the time at which the assurance, if it had<br />

been executed by the person entitled to the entailed interest, would have operated, without<br />

the consent <strong>of</strong> any other person, to bar the issue in tail and the estates and interests taking<br />

effect on the determination <strong>of</strong> the entailed interest: s 27(3).<br />

95

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