4.3: Methods to protect and enforce third party interest

Question 1

Do legal interests bind a buyer irrespective if they had notice or not?

Answer 1

Yes - they bind a buyer irrespective of notice

Question 2

Where are legal interests registered in an unregistered property?

Answer 2

Deed creating legal interest included in title documents given to the buyer - epitome of title

Question 3

Where are legal interests registered in a registered property?

Answer 3

Registered as a notice on the register of title

Question 4

Is a buyer bound by legal interests even if their solicitor does not find them

Answer 4

Yes - they are bound

Question 5

How is a buyer bound by equitable rights

Answer 5

Only if they had notice of them

Question 6

How are equitable rights protected in unregistered land?

Answer 6

Must be registered at the Land Charges Department

Question 7

A buyer is only bound by an equitable interest if they have

Answer 7

Notice of the charge / made aware of the equitable interest

Question 7

In an unregistered property, registration of a land charge constitutes

Answer 7

Notice

Question 7

Registration of legal interests is

Answer 7

sufficient protection

Question 8

Equitable interests in unregistered land is listed under which legislation

Answer 8

Land Charges Act 1972

Question 9

Unregistered land and a puisne mortgage is registered under which charge

Answer 9

C(i) under a Class C land charge

Question 10

What is a puisne mortgage?

Answer 10

A mortgage not protected by the deposit with the lender of the title deeds, for example a second legal charge

Question 11

Class C land charge, C(iv) is a

Answer 11

in a unregistered property, denotes an estate contract ie. a contract to purchase, an option agreement, right of pre-emption or similar

Question 12

D(ii) land charge in a unregistered system

Answer 12

denotes a restrictive covenant - right to not do something

Question 13

D(iii) land charge in a unregistered system

Answer 13

equitable easement

Question 14

Class F land charge in an unregistered property

Answer 14

Protects a non-owning spouse or civil partner statutory right of occupation of the matrimonial home

Question 15

The doctrine of notice is relevant to

Answer 15

unregistered land, a buyer will take free an equitable interest if they can show that they are ‘equity’s darling’ which means they are a bona fida purchaser for value of a legal estate without notice

Question 16

An equitable right that is not registrable as a land charge will only bind a buyer if the

Answer 16

The buyer had notice of it

Question 17

What is the land charges register

Answer 17

searchable public register that was set up toe protect third-party rights in unregistered land by allow registration against the landowner who has taken the burden of an equitable interest in unregistered land

Question 18

How does a buyer overcome a behind the scenes beneficial interest

Answer 18

by overreaching
paying the purchase money to two trustees

Question 19

Overreaching applies in both

Answer 19

registered and unregistered land

Question 20

How are estate contracts and restrictive covenants protected in registered land?

Answer 20

By registration of a notice on the charges register of the burdened title. If no such notice is registered, a buyer is not bound if they are a purchaser for valuable consideration, that is, for money or
money’s worth.

Question 21

In registered land, a beneficial interest under a trust must be protected by

Answer 21

The registration of a restriction Form A restriction on the proprietorship register

Question 22

Form A restriction on the proprietorship register

Answer 22

Denotes a behind the scenes beneficial interest

Question 23

The land registry does not denote any

Answer 23

behind-the-scenes beneficial interest on the register of title. The proprietorship register is the only place which denotes this

Question 24

Overreaching is relevant where

Answer 24

There is only one registered proprietor, buyer must ensure that a second trustee is appointed to overreach the beneficial interest

Question 25

What class of interests must a buyer be aware of which can bind a buyer despite the fact they do not appear on the register of title

Answer 25

overriding interests

Question 26

What are the most common overriding interests?

Answer 26

* a lease for seven years or less * an unregistered legal easement, and * a person with rights in the property who is in actual occupation of the property.

Question 27

If a party will a overriding interest fails to disclose it to the buyer when they make an enquiry - what is the consequence?

Answer 27

the buyer will take free of the overriding interest

Question 28

Class C (iv) land charge

Answer 28

in unregistered land, denotes an estate contract for example a contract to purchase

Question 29

Lender ie. a bank holds the X as security for the loan in a unregistered title

Answer 29

The charge would be protected because the lender will hold the title deeds as security for the loan.

Question 30

D(ii) land charge denotes a

Answer 30

restrictive covenant in unregistered land

Question 31

When is legal title passed to the buyer

Answer 31

Legal title passes upon completion

Question 32

Class F land charge

Answer 32

protects a non-owning spouse statutory right of occupation of the matrimonial home / civil partnership in an unregistered property