Enforcement of interests over unregistered land?

Question 1

Unregistered land how it is protected?

Answer 1

Pre-1926 position
- Principle was simple and depended on whether interests was legal or equitable in nature
- Legal rights – bind the whole world
- Equitable interest – were not automatically binding – equity would only intervene where successor conscience had been affected in some way, making it just to take the land subject to that interest. This was when successor was aware of interest or should have been aware.
- However, where successor was a bona fide purchaser for value of legal estate in land without notice – (equity’s darling) – they would take land free form that interest
- This was called doctrine of notice
Post 1926 position
Legal interest
- Position stayed the same
Equitable interest
- Majority are protected in some way by a land charge
- Some continue to exist outside – like equitable interests in a trust of land that has not been overreached.

Question 2

Land charges?

Answer 2

One exception to the rule that only equitable interests are registered as land charges. This is pusine mortgage

Pusine mortgage – is a second legal mortgage
A first legal mortgage over unregistered land is protected by disposition of title deeds with mortgage lender. Second mortgage cannot do this do protect interest by way of land charge.

Effect of entry of a land charge
- Interests will be binding on a purchaser ‘overcomes uncertainty
- If not entered will not be valid against a purchaser but will be against a done.

Question 3

Doctrine notice?

Answer 3

Enforceability of certain equitable interest in unregistered land depends on doctrine of notice
- Notice is binding on anyone except equity’s darling
- Bona fide purchaser for value in legal estate without notice.
Notice
- Actual notice – actually knows
- Imputed notice – notice received by buyer agent
- Constructive notice – if they fail to pursue a line of enquiry which ought to have reasonably been made.