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Flashcards in Unregistered land Deck (25)
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1

What is the old equitable doctrine of notice and to which kinds of equitable interests does it apply?

A bona fide purchaser of a legal estate for value will not be bound by the following equitable interests unless he has notice of them:
1. Beneficial interests under a trust
2. Pre-1926 equitable easements and restrictive covenants
3. Interests arising by estoppel

2

What are the three kinds of notice?

1. Actual knowledge of the interest
2. Constructive notice - all interests reasonably discoverable by inspection of the property (including by making an enquiry about potential interests and, if the purchaser or his agent find evidence of presence, to conduct further enquiries)
3. Imputed notice - refers to the actual or constructive notice of the purchaser's agent

3

What formalities are required to create a valid legal lease over 7 years over unregistered land?

1. Created by deed and
2. Registered (long leases trigger first registration)

4

Which interests trigger first registration on CREATION?

1. Leases > 7 years (whether for consideration, by gift, or pursuant to order of court)
2. A first legal mortgage
3. A lease or sub-lease which takes effect in possession after the end of the period of three months beginning with the date of the grant
4. A lease with discontinuous possession

5

Which interests trigger registered disposition on TRANSFER?

1. Freehold title (including for purposes of creating a trust)
2. Leasehold title with > 7 years left to run

6

When can a legal interest be enforced against a purchaser of unregistered land?

Automatically enforceable - see Mercer v Liverpool.

7

When will equitable leases bind purchasers for value of unregistered land (2 situations)

1. When the lease is registered as a Class C(iv) land charge, this constitutes actual notice
2. If the purchaser is not a purchaser for value

8

When can an unregistered legal easement bind a purchaser of unregistered land?

Legal interests automatically bind purchasers of unregistered land - see Mercer v Liverpool.

9

When will an equitable easement bind a purchaser of unregistered land?

1. Easements after 1 January 1926 - if (i) purchaser is not a purchaser for value OR (ii) easement is registered as a Class D(iii) land charge, which constitutes actual notice
2. Easements before 1 January 1926 - subject to the doctrine of notice

10

When will a restrictive covenant bind a purchaser of REGISTERED land? What if purchaser has notice of the right?

So long as not protected by notice on Charges register AND does not constitute an overriding interest protected by actual occupation, will not bind purchaser, irrespective of notice.

11

When will an equitable restrictive covenant bind a purchaser of UNREGISTERED land? What if covenant is legal?

1.Covenants after 1 January 1926 - if (i) purchaser is not a purchaser for value OR (ii) easement is registered as a Class D(ii) land charge, which constitutes actual notice
2. Covenants before 1 January 1926 - subject to the doctrine of notice

Freehold restrictive covenants can only ever be equitable.

12

When will a matrimonial home right bind a purchaser of UNREGISTERED land?

If (i) purchaser is not a purchaser for value OR (ii) easement is registered as a Class F land charge, which constitutes actual notice

13

When will an estate contract bind a purchaser of unregistered land (2 requirements)

1. The estate contract must have become exercisable to constitute an interest in land capable of binding a purchaser.
2. It must also be registered as a Class C(iv) land charge which constitutes actual notice. It will also bind if purchaser is not a purchaser for value.

14

When will a beneficial interest under a trust bind a purchaser of unregistered land? When will it never bind?

1. Will bind only if purchase price is paid to one trustee AND purchaser is not Equity's Darling (i.e., not bona fide, did not give value, or has notice)
2. Will not bind in any event if purchase price is paid to two trustees so as to overreach the beneficiary's interest

15

When will leases of 5 years bind a purchaser of unregistered land?

Must be created by deed (need not be registered) to constitute a legal interest and therefore bind a BFP. If no deed is used, then the lease will only be equitable under an estate contract and must be registered as a C(iv) Land Charge to bind BFP.

16

Which five interests are capable of existing as legal interests

1. Easement
2. Rentcharge
3. Mortgage
4. Charge on land created otherwise than by an instrument
5. Rights of entry annexed to a rentcharge or leasehold estate

17

What is the consequence of failure to register an interest capable of being legal?

It will only ever be equitable.

18

Define good root of title (3 points). What must the landowner registering unregistered land to register absolute title?

Good Root of Title - (i) document at least 15 years old; (ii) deals with legal and beneficial interest in the property; and (iii) contains nothing to cast any doubt upon the validity of the landowner's title?

Must show an unbroken chain of title from the Good Root of Title to the landowner.

19

Distinguish puisne legal mortgage from first legal mortgage.

Puisne legal mortgage (i) is not protected by the deposit of title deeds; and (ii) must be registered as a Class C(i) land charge to bind purchasers for value (first legal mortgages, by contrast, bind the world)

20

4 interests overriding on first registration?

1. Leases < 7 years
2. Interests of persons in actual occupation
3. Legal easements
4. Encumbrances registered in the land charges register

21

4 interests overriding on first registration

1. Leases < 7 years
2. Interests of persons in actual occupation
3. Implied or prescriptive legal easements
4. Encumbrances registered in the land charges register

22

Which four kinds of interests need not be registered to bind a purchaser of registered land?

1. Interests under a trust - but can be protected by Restriction or overreached
2. Leases < 3 years
3. Leases with < 1 year to run
4. Restrictive covenants between landlord and tenant which relate to the lease premises

23

When will a mortgagee have the right to tack further advances for a mortgage over unregistered land? Registered land?

S.94 LPA -
1. Subsequent mortgagee consents
2. Prior mortgagee had no notice of subsequent mortgagee when making the further advance
3. Prior mortgagee had an obligation under the first mortgage to make further advances

Registered - same under S.49, and additionally where both mortgagees have agreed a maximum sum for which the first mortgage will serve as security, which agreement is noted on the register

24

What is the "priority period"?

After an interest-holder's search of the Land Registry, his interest will take precedence over any interests registered in the next 30 days from the date of the search certificate provided he registers his own interest within the same 30 days.

25

1 similarity and 2 differences between the priority of estate contracts in registered and unregistered land?

Similarity - both need to be protected by a notice on the Charges Register in order to bind purchasers (Class C(iv) charge for unregistered land)

Differences
1. Registered land - possible that estate contract will be overriding interest
2. Registered land - interest becomes one in land from the time of the contract's creation; unregistered land - interest only becomes an interest in land when it becomes exercisable (e.g. for an option to purchase, when the land is put on sale)