Equity's Darling, Actual Occupation, Overreaching and the registers Flashcards
(17 cards)
Who is Equity’s Darling?
- Bona fide (acting in good faith, not fraudulent)
- Purchaser (receives property other than by operation of law – i.e. not via intestacy rules or bankruptcy)
- Of the legal estate
- For value (have given consideration)
- Without notice (hard to prove)
a. Actual (s.198 LPA 1925)
b. Imputed (solicitor/agent had actual/constructive knowledge)
c. Constructive
i. Would have come to notice if such inquiries/inspections had been made as ought reasonably to have been made (s.199(1) LPA)
ii. Kingsnorth Finance v Tizard: Presence would have been apparent from inspection. the purchaser or his agent must make all inquiries and inspections that, in the circumstances, ought reasonably to have been made
Actual occupation?
Obvious on a reasonably careful inspection of land, or buyer knew of it; OR
Person disclosed right if inquiry was made of it, and if could reasonably be expected to do so
What interests will actual occupation not protect?
- FLA right (s31(10)(b) FLA 1996)
- Easement (because dominant owner is not in AO of the and affected)
Boland
AO necessitates ‘physical presence on the land’
Lloyds Bank v Rosset
AO can be visiting the property regularly to supervise renovation work
Kling v Keston
AO = car parked regularly in the garage
Chhokar v Chhokar
Temporary absence can still be AO
Stockholm
Prolonged absence is not AO
Abbey National v Khan
Preparatory steps leading to AO are not AO
Strand securities
An agent can have AO for you; a relative cannot
How does a buyer overreach an interest?
City of London v Flegg:
- Buyer purchasing legal estate
- Pays monies to all trustees
- Being at least 2 in number or a Trust Corporation
Which transactions require compulsory registration at the Land Registry?
s.4 LRA 2002 - sale, gift, mortgage or assent of a freehold/leasehold which has more than seven years left to run
What is on the property register?
Describes the property and the legal estate held in it. Also details of rights which benefit the land
What is on the charges register?
Third party interests that burden the land
Proprietorship register
Nature of the title held (e.g. absolute), details of owners including restrictions on their power to deal with the property.
What does not appear on the and register?
Leasehold covenants and overriding interests (need only exist, not be registered)
How should a purchaser avoid being fixed with constructive or imputed notice?
Purchaser or his agent should investigate the seller’s title (going back 15 years) and he should follow up anything that appears inconsistent with that title. S.44(1) LPA 1925 – gives purcharser right to inspect the seller’s title deeds back to a good point of title.
