Understanding Proprietary Estoppel: What you need to know and what you need to prove to give you the best chance of succeeding with a claim
Proprietary estoppel is a legal remedy that permit people who have been promised land, property or a combination of both usually being a farm; relied on that promise; and suffered detriment as a result. It often comes into play in family disputes and nearly always in the context of inheritance or expected inheritance based on promises made during lifetime.
If you have worked on a farm all your life for little to no wages based on a promise that the farm would eventually be passed to you, only to find that is no longer the case – whether that be during the lifetime of a parent or after they have died, you may have a claim based on proprietary estoppel, and this guide will help you understand what needs to be proved and what steps to take.
What Is Proprietary Estoppel?
Proprietary estoppel is the legal principle used to describe a situation where:
- A promise or assurance is made about land or property;
- That promise is relied on; and
- The person who relied on it suffers a detriment – whether that be financial or some other form of detriment e.g. giving up a more lucrative career - if the promise is withdrawn.
If these elements are satisfied and proved to the Court, it can stop the promise-maker, or their estate (through its executors), from going back on their word, even if there was no formal legal agreement.
What do you need to prove?
To bring a successful proprietary estoppel claim, you must demonstrate three key elements:
1. Clear Assurance or Promise
There must be a clear statement or conduct by the promisor that led you to believe you would receive an interest in the property. This doesn’t have to be a formal promise—it can be implied through actions or repeated conversations over time.
A very common example is when a parent repeatedly says to their child, “The farm will be yours one day,” resulting in you willingly committing your life, time and sometimes, finances to the farm.
2. Reliance
You must have acted on the promise in a way that then causes detriment. This can include making life decisions and choices based on the promise, such as working for free on a family farm, turning down job offers for a more lucrative career – or one which offers benefits such as life insurance, pensions - or moving home because you trusted the assurance.
3. Detriment
You need to show that losses you suffered or sacrifices you made because of your reliance, amounted to detriment. This could include unpaid work, financial investment, or loss of other opportunities.
If these three elements are present, the Court must also find that it would be unjust or unconscionable to allow the person (or their estate) to go back on their promise. The Court takes a holistic approach to this analysis but for the purpose of addressing each element, they are singularly described.
How can you prove a proprietary estoppel claim?
Proprietary estoppel claims are notorious for relying heavily on witness evidence and that can, in some circumstances, be difficult to prove. The following examples outline the sort of evidence that would be particularly helpful to the Court and improve your chances of success:
- Witnesses who can support your case, for instance by hearing the promise made to you on several occasions, should be considered early on. Alert your legal adviser promptly if any of those witnesses are in poor health or elderly, so that prompt action can be taken.
- Collate and retain any documentary evidence you have to corroborate your witness evidence. For example, historic wills in which you are named as beneficiary of the land or farm, which have properly come into your possession; or attendance notes from meetings with partnership accountants, which record discussions about who would be the ultimate owner of the land or farm.
- Consider, and document to the best of your ability, the detriment suffered. Evidence of this can be job offers for more lucrative career opportunities, or your relocation to allow you live closer to the farm so you spend more time working there or to be on-hand at all times.
Can you bring a claim before your parents or other promisor have died?
Yes, if a promise made to you has been broken during lifetime, you can bring a proprietary estoppel claim before a parent has passed away. This usually comes about in circumstances where the family has fallen out and a parent confirms they intend to change (or have already changed) their will to disinherit the original beneficiary.
Take action quickly if it comes to light that the promisor has withdrawn their promise or has taken steps to sell the promised property.
While these cases can be more sensitive while the promisor is still alive, such claims can be justified if delaying would create a potential defence to the proprietary estoppel claim.
What can you do if your siblings have been left the property you were promised?
You can still bring a claim, even if the farm or land has been left to someone else in the will, such as your siblings. If you were promised the land and relied on that promise to your detriment, you may be entitled to a remedy regardless of what the will says. Mediation is particularly useful in these circumstances where both farming and non-farming siblings, are due to inherit from an estate.
Who should you make a claim against if your parents, or other promisor, have died?
If the person who made the promise has died and their will does not gift the land to you as promised, you will need to direct your claim to personal representatives of the estate – the executors if there is a will, or administrators in the absence of a will. If you do not know if there is a will, or the specific terms of it, you will need to find out before embarking on a proprietary estoppel claim.
Acting quickly is key, particularly if the farm or land is at risk of being sold or transferred. In some circumstances, if you are able to satisfy the Land Registry’s requirements, you may be able to enter a restriction to prevent the sale of the farm or land, or at the very least, be given notice if there are any dealings with the farm or land.
Summary
Proprietary estoppel is a well-established principle to ensure fairness when informal promises about land or property have been broken. These claims are often emotionally complex, especially when they involve close family members or estates after a death.
If you believe a promise was made to you, you relied on it and suffered detriment as a result, you may have a claim which can be pursued.
It is important to act without delay. Early legal advice can help you understand your position, preserve your rights, and take the correct steps to prove your claim in Court, if that becomes necessary.
The information provided in this article is provided for general information purposes only, and does not provide definitive advice. It does not amount to legal or other professional advice and so you should not rely on any information contained here as if it were such advice.
Wright Hassall does not accept any responsibility for any loss which may arise from reliance on any information published here. Definitive advice can only be given with full knowledge of all relevant facts. If you need such advice please contact a member of our professional staff.
The information published across our Knowledge Base is correct at the time of going to press.
