4.3: Methods to protect and enforce third party interest Flashcards
Do legal interests bind a buyer irrespective if they had notice or not?
Yes - they bind a buyer irrespective of notice
Where are legal interests registered in an unregistered property?
Deed creating legal interest included in title documents given to the buyer - epitome of title
Where are legal interests registered in a registered property?
Registered as a notice on the register of title
Is a buyer bound by legal interests even if their solicitor does not find them
Yes - they are bound
How is a buyer bound by equitable rights
Only if they had notice of them
How are equitable rights protected in unregistered land?
Must be registered at the Land Charges Department
A buyer is only bound by an equitable interest if they have
Notice of the charge / made aware of the equitable interest
In an unregistered property, registration of a land charge constitutes
Notice
Registration of legal interests is
sufficient protection
Equitable interests in unregistered land is listed under which legislation
Land Charges Act 1972
Unregistered land and a puisne mortgage is registered under which charge
C(i) under a Class C land charge
What is a puisne mortgage?
A mortgage not protected by the deposit with the lender of the title deeds, for example a second legal charge
Class C land charge, C(iv) is a
in a unregistered property, denotes an estate contract ie. a contract to purchase, an option agreement, right of pre-emption or similar
D(ii) land charge in a unregistered system
denotes a restrictive covenant - right to not do something
D(iii) land charge in a unregistered system
equitable easement
Class F land charge in an unregistered property
Protects a non-owning spouse or civil partner statutory right of occupation of the matrimonial home
The doctrine of notice is relevant to
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
An equitable right that is not registrable as a land charge will only bind a buyer if the
The buyer had notice of it
What is the land charges register
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
How does a buyer overcome a behind the scenes beneficial interest
by overreaching
paying the purchase money to two trustees
Overreaching applies in both
registered and unregistered land
How are estate contracts and restrictive covenants protected in registered land?
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.
In registered land, a beneficial interest under a trust must be protected by
The registration of a restriction Form A restriction on the proprietorship register
Form A restriction on the proprietorship register
Denotes a behind the scenes beneficial interest
The land registry does not denote any
behind-the-scenes beneficial interest on
the register of title. The proprietorship register is the only place which denotes this
Overreaching is relevant where
There is only one registered proprietor, buyer must ensure that a second trustee is appointed to overreach the beneficial interest
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
overriding interests
What are the most common overriding interests?
- 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.
If a party will a overriding interest fails to disclose it to the buyer when they make an enquiry - what is the consequence?
the buyer will take free of the overriding interest
Class C (iv) land charge
in unregistered land, denotes an estate contract for example a contract to purchase
Lender ie. a bank holds the X as security for the loan in a unregistered title
The charge would be protected because the lender will hold the title deeds as security for the loan.
D(ii) land charge denotes a
restrictive covenant in unregistered land
When is legal title passed to the buyer
Legal title passes upon completion
Class F land charge
protects a non-owning spouse statutory right of occupation of the matrimonial home / civil partnership in an unregistered property
