Enforceability of 3rd party rights - Unregistered Land

Question 1

Legal Interests

Answer 1

Automatically enforceable against purchaser of burdened land, no need to register “legal rights bind the whole world”

EXCEPT: pusine mortgage - subject to registration as land charge

Question 2

Equitable interests

Answer 2

• equitable interests subject to LCA 1972
• interests subject to overreaching
• residuary interests

Question 3

Equitable interests subject to LCA 1972

Answer 3

If not legal, not overreachable AND not subject to the doctrine of notice, interest should be registered at the Central Land Charges Registry in Plymouth to bind a purchaser

Once registered, interest in binding on purchaser irrespective of purchaser’s state of knowledge - s198 LPA

Non -registration makes interest void against certain types of purchasers - depends on charge

Question 4

Class C - s2(4)

Answer 4

Puisne mortgages; general equitable charges (residuary class); estate contracts

Question 5

Class D - s2(5)

Answer 5

Restrictive Covenants (post 1926) and equitable easements (post 1926)

Question 6

Class F - s2(7)

Answer 6

FLA 1996

Question 7

Registration must be against correct name of estate owner at time of creation -s3(1) LCA

Answer 7

Standard Property Investments - name as it appears on title deeds

Diligent Finance v Alleyne - missed out middle name - not binding

Question 8

Non registration: puisne mortgage; general equitable charge; FLA charge

Answer 8

Void against purchaser for value (inc being given land on marriage and purchasers of equitable estate) but donee will be bound

-s4(5) and s4(8) LCA

Question 9

Non-registration: estate contract; restrictive covenant and equitable easement

Answer 9

Void against purchaser of a legal estate for money or money’s worth

Remains binding against purchaser of equitable estate and a purchaser of a legal estate for other/no consideration

Question 10

Son failed to register option to purchase - land sold to mother for £500 (market value was £40,000)- she was a purchaser for money and as the option was void against her. Questions of notice are irrelevant

Answer 10

Midland Bank Trust v Green

Question 11

Unregistered contract for equitable lease void against buyer of leasehold reversion despite buyer having notice of it ad having negotiated price accordingly.

Answer 11

Hollington Bros v Rhodes

Question 12

Interests subject to overreaching

Answer 12

• co-ownership
• s2 and s27 LPA
• if not overreached, buyer may take subject to beneficiary’s equitable interests, depending on doctrine of notice

Question 13

Residuary category of interests - doctrine of notice

Answer 13

• interests expressly excluded from LCA 1972: pre-1926 easements and covenants; restrictive covenants between lessor and lessee
• beneficial interest under trust where no overreaching
• more equities (claim to equitable remedy)
• interests arising from estoppel (ER Ives v High)

Question 14

Doctrine of notice

Answer 14

Binding on anyone except a bona fide purchaser for value of a legal estate without notice

Question 15

Actual notice

Answer 15

s199(1)(ii)(a) LPA

Question 16

Constructive notice

Answer 16

s199(1)(ii)(a) LPA - would have come to buyer’s knowledge if such inquiries and inspections had been made as ought reasonably be made

Failure to pursue inquiry/ shutting eyes to facts will be constructive notice

Obligation to make proper investigation of title deeds and land

Question 17

Presence of tenant placed purchaser on constructive notice of tenant’s leasehold interests

Answer 17

Hunt v Luck

Question 18

Imputed notice

Answer 18

s199(1)(ii)(b) LPA - agent’s actual or constructive notice is imputed to buyer

Question 19

Agent failed to make further enquiries and didn’t tell buyer that ex-wife lived ‘nearby’ - imputed knowledge

Answer 19

Kingsnorth Finance v Tizard

Question 20

Equitable interest in void against equity’s darling. Once it becomes void it cannot be revived to bind a subsequent purchaser with notice

Answer 20

Wilkes v Spooner