enforcement over unregistered land My Modules Flashcards

1
Q

What does it mean for someone to be equity’s darling?

A

If someone is equity’s darling, it means they will not be bound by the equitable interest, and this means the interest will be lost forever.

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2
Q

What is the purpose of the doctrine of notice in relation to unregistered land?

A

The doctrine of notice now only applies to equitable easements and restrictive covenants created pre-1926 and interests in a trust of land that have not been overreached. It determines whether a purchaser has notice of an interest in the land.

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3
Q

What happens if a land charge is not registered correctly?

A

Failure to register a land charge correctly means it will not be binding on a purchaser of the land. Actual knowledge is irrelevant, but it would still be binding on someone who is gifted or inherits the land.

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4
Q

How are equitable interests protected in unregistered land?

A

Equitable interests created after 1926 over unregistered land need to be protected by way of a Land Charge, under the Land Charges Act 1972. This provides a means of ensuring the binding nature of these interests on purchasers.

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5
Q

What are the two categories of people affected by the enforcement of interests over unregistered land?

A

The enforcement of interests over unregistered land affects both interest holders (those with a benefit in a piece of land) and new owners of a piece of land. Interest holders want to ensure their interests are binding on future owners, while new owners need to know what interests they will be bound by before purchasing the land.

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6
Q

What is the doctrine of notice in relation to equitable interests in unregistered land

A

The doctrine of notice determines the enforceability of certain equitable interests in unregistered land. Before 1926, it applied to all equitable interests, but since then, it only applies to equitable easements and restrictive covenants created before 1926, as well as equitable interests in a trust of land that have not been overreached.

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7
Q

What is an epitome of title and when is it used?

A

An epitome of title is a bundle of relevant copy documents that contain relevant details about the property. It is used to show the buyer the history of the land and is required during the process of deducing title.

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8
Q

How are legal and equitable third-party rights enforced in unregistered land?

A

To ascertain if there are any third-party proprietary rights that could bind them as the new owner of unregistered land, purchasers need to identify whether any legal or equitable rights exist. Unlike registered land, there is no central register for these rights. Instead, a buyer must conduct extensive searches to determine what rights exist.

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9
Q

Which equitable interests can be protected by entry into the Land Charges Act 1972?

A

Interests that can be protected by entry into the Land Charges Act 1972 include puisne mortgages, estate contracts, restrictive covenants created after 1926, equitable easements created after 1926, and a spouse’s matrimonial right of occupation. However, interests in a trust of land and equitable easements and restrictive covenants created pre-1926 cannot be protected by a Land Charge.

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10
Q

What are the three types of notice under the doctrine of notice?

A

The three types of notice are actual notice, constructive notice, and imputed notice. Actual notice refers to the purchaser actually knowing of the equitable interest. Constructive notice occurs when the purchaser fails to pursue a line of enquiry that should have been made. Imputed notice is notice received by the buyer’s agent, which is imputed to the buyer.

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11
Q

What is the rule regarding the enforceability of legal interests over unregistered land?

A

All legal interests, such as a legal lease, legal easement, or first legal mortgage, are binding on new owners of unregistered land. The enforceability of legal interests does not depend on whether the purchaser has knowledge of them.

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12
Q

What is the consequence of non-entry of a Land Charge?

A

If a Land Charge is not registered before the completion of a purchase, it will be void against a purchaser of the land or any interest in the land. However, it will still be binding on someone who is gifted or inherits the land.

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13
Q

What were the rules for enforcing legal and equitable rights before 1926?

A

Before 1926, legal rights were automatically binding on a successor in title to the land affected. Equitable rights, on the other hand, were only enforceable against a successor if their conscience had been affected, making it just for them to take the land subject to that interest. A bona fide purchaser for value of a legal estate without notice of a prior interest would take the land free from that interest.

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14
Q

What obligations does a purchaser have to avoid constructive notice?

A

A purchaser must make proper investigations of the title deeds and inspect the land to avoid constructive notice. This includes checking for any evidence of rights of way and making enquiries of all occupiers of the land. Failing to pursue reasonable enquiries may result in being fixed with constructive notice.

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15
Q

How are equitable interests over unregistered land enforced?

A

Equitable interests over unregistered land must be protected by registering them as a Land Charge. Failure to protect equitable interests by Land Charge means they will not be binding on a purchaser of the burdened land, even if the purchaser has knowledge of the interest. However, equitable interests in a trust of land cannot be registered as a Land Charge.

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16
Q

What is the significance of the case Midland Bank Trust Co Ltd v Green [1981] AC 513?

A

In this case, it was established that the state of the purchaser’s knowledge is irrelevant when it comes to the entry of a Land Charge. The case involved an option to purchase unregistered land that was not protected by a Land Charge, and the court held that the option was not binding on the purchaser, who was the mother of the person with the option.

17
Q

What is the significance of the Land Charges Act (LCA) 1972 in protecting equitable interests in unregistered land?

A

The majority of equitable interests created post-1926 need to be protected as a Land Charge under the Land Charges Act (LCA) 1972. However, not all equitable interests can be protected under the LCA 1972. The doctrine of notice continues to apply for certain equitable easements and restrictive covenants created before 1926, as well as equitable interests in a trust of land that have not been overreached.

18
Q

Can an equitable interest be revived after becoming void for want of notice?

A

No, once an equitable interest becomes void for want of notice, it cannot be revived. It is then not binding on a subsequent buyer who has notice of the equitable right. This ensures that ‘Equity’s Darling’ can realize the full value paid for the land on a subsequent sale.

19
Q

What is the requirement for entry of a Land Charge?

A

The Land Charge is entered against the name of the landowner as it appears in the title deeds. If the Land Charge is entered against an incorrect name, the protection is considered null and void.

20
Q

What interests cannot be protected by a Land Charge?

A

Interests in a trust of land and equitable easements and restrictive covenants created pre-1926 cannot be protected by a Land Charge. However, a spouse’s matrimonial right of occupation, which is not an interest in the land, can be protected.

21
Q

What is the purpose of the Land Charges Register?

A

The Land Charges Register is a mini scheme of registration that applies to unregistered land only. It allows for the entry of Land Charges against the name of the landowner, providing notice to all persons for all purposes.

22
Q

What equitable interests are subject to the doctrine of notice since 1926?

A

Since 1926, the doctrine of notice only applies to equitable easements and restrictive covenants created before 1926, as well as equitable interests in a trust of land that have not been overreached.

23
Q

What are the differences in enforcing legal and equitable rights in registered and unregistered land?

A

In registered land, legal rights automatically bind successors in title, while equitable rights need to be protected as a Land Charge. In unregistered land, legal rights still bind the whole world, but equitable rights require extensive searches and may need to be protected as a Land Charge depending on the circumstances.

24
Q

What is the effect of overreaching on equitable interests in unregistered land?

A

Overreaching is the process by which a beneficiary’s interest in unregistered land is detached and transferred to the monies paid. If overreaching occurs, the equitable interest is no longer binding on the land and becomes attached to the monies. However, if overreaching does not occur, the equitable interest remains in the land and its enforceability depends on the doctrine of notice.

25
Q

What is the purpose of a Land Charges search and what does it reveal?

A

A Land Charges search is conducted against the names of the unregistered landowners to determine if any land charges are registered against them. The search reveals the presence of land charges, such as a puisne mortgage, estate contract, restrictive covenant, or equitable easement. The registration of a Land Charge confirms the validity of the interest in the land and ensures it is binding on future owners.

26
Q

What is the significance of nominal consideration in relation to equitable interests over unregistered land?

A

Nominal consideration refers to a small or token amount paid for the transfer of an interest in unregistered land. Even if the consideration is nominal and the buyer has knowledge of the interest, an equitable interest that is not protected by Land Charge will not be binding on the purchaser of the burdened land. However, it will still be binding on a donee (someone who is gifted or inherits the land).

27
Q

On the sale of unregistered land, the seller must deduce title (proof ownership) by sending what to the buyer?

A

Epitome of title

28
Q

Which of the following category of rights may need protecting by way of a Land Charge?

Legal interests

Equitable interests created post-1926

Equitable interests created pre-1926

A

Equitable interests created post-1926

29
Q

Could a person who is gifted the land ever be ‘equity’s darling’?

A

No, because they are not a purchaser for value

30
Q

Which of the following category of rights are only subject to the doctrine of notice?

Equitable interests created post-1926

Equitable interests created pre-1926

Legal interests

A

Equitable interests created pre-1926

31
Q

Which of the following rights over unregistered land should be protected by a Land Charge?

Puisne mortgage

Restrictive covenant created in 1910

Equitable easement created in 1922

A beneficial interest in a trust a trust

Legal mortgage

A

Puisne mortgage (a second legal mortgage)

32
Q

The entry of a Land Charge is protected against what?

A

The name of the land owner at the time the interest is created

33
Q

A buyer is purchasing a piece of unregistered land, which is subject to an equitable easement granted in 1960 by the current owner. The owner is called Peter James Wells, though his name in the title deeds appears as Peter Wells. A search of Land Charges against the name Peter James Wells reveals no entries.

Which of the following options best explains what this means for the buyer?

The buyer could still be bound by the equitable easement because the search was not against the correct name

The buyer will not be bound by the equitable easement because it is registered against the wrong name

The buyer will not be bound by the equitable easement because it has not been correctly protected

The buyer will not be bound by the equitable easement because it is a purchaser for value

The buyer could still be bound by the equitable easement if it appears in the Charges Register

A

The buyer could still be bound by the equitable easement because the search was not against the correct name

The land charge must be entered against the correct name(s) of the estate owner(s) at the time of the creation of the land charge. This is the version of the name as it appears in the title deeds ie Peter Wells. The buyer has searched against the wrong name on the facts, and therefore could still be bound by the easement if it has been entered as a Land Charge against the name Peter Wells.

34
Q

A landlord and tenant entered into an agreement for lease last year. The parties failed to complete the lease, but the tenant moved in anyway under the terms of the agreement, which it did nothing with. The landlord died a few months ago. The new owner inherited the unregistered freehold estate from the landlord. The new owner knows about the agreement for lease.

Which of the following options best describes if the new owner will be bound by the agreement for lease?

The new owner will not be bound by the estate contract because it will be regarded as Equity’s Darling

The new owner will be bound by the estate contract because it is not a purchaser for value

The new owner will not be bound by the estate contract because the estate contract has not been protected

The new owner will be bound by the estate contract because it has actual notice of the interest

The new owner will be bound by the estate contract because the interest holder is in actual occupation of the land

A

The new owner will be bound by the estate contract because it is not a purchaser for value

The agreement for lease, as an estate contract, should be protected by a Class C (iv) Land Charge under the LCA 1972. Failure to do this means that it will not be binding on a purchaser for value. However, the new owner is not a purchaser for value, it has inherited the freehold estate. For this reason, the new owner will be bound by the equitable interest. Notice is irrelevant as the estate contract was created after 1926.

35
Q

Which of the following rights over unregistered land would be subject to the doctrine of notice?

Restrictive covenant created in 1960

Interest in a trust of land that has not been overreached

Legal mortgage

Puisne mortgage

Equitable easement created in 1928

A

Interest in a trust of land that has not been overreached

36
Q

Which of the following options correctly describes Equity’s Darling?

A purchaser for value of an estate without notice

A bona fide purchaser of a legal estate with notice

A bona fide purchaser for value of a legal estate without notice

A purchaser for value of an estate with notice

A bona fide seller of a legal estate without notice

A

A bona fide purchaser for value of a legal estate without notice

37
Q

Which of the following options correctly describes constructive notice?

A buyer will be bound by those equitable interests its solicitor knows about

A buyer will be bound by all equitable interests its agent knows or ought to know about

A buyer will be bound by all legal interests as legal rights bind the world

A buyer will be bound by those equitable interests it ought reasonably to have known about

A buyer will be bound by those equitable interests it knows about

A

A buyer will be bound by those equitable interests it ought reasonably to have known about

38
Q

Once an interest is void against Equity’s Darling, will it be binding on a subsequent owner who has actual notice of the right?

No, it cannot be revived so as to bind a subsequent buyer

Yes, if the subsequent owner is not Equity’s Darling

Yes, if the land is then registered

No, it will not be binding because it should be entered as a Land Charge

A

No, it cannot be revived so as to bind a subsequent buyer