Doctrine of Notice Flashcards
Meaning of doctrine of notice
Provided that an equitable interest will bind all persons except for ‘equity’s darling’.
Substantially replaced by system of land charges registration - LCA 1972
Pre 1926 all equitable interests were protected by doctrine of notice
Largely successful but a few problems
What is ‘equity’s darling’
Bona fide purchaser for value of the legal estate with no notice of the equitable interest.
Types of notice
Actual - Purchaser has actual notice
Constructive - Purchaser makes reasonable enquiries before completing transaction
Imputed - Purchaser employs agent to make enquiries
Types of land charge under LCA 1972 previously LCA 1925
c(iv) - estate contract
d(ii) - Post 1925 restrictive covenant
d(iii) - Post 1925 equitable easement
2 cases of doctrine of notice
Peffer v Rigg - unregistered minor interest
Chowdry v Yavuz - passing of staircase not overriding.
Act in good faith
A case which shows problem with name based system - LCA 1972
Oak Co -Operative Building Society v Blackburn
Search carried out against incorrect name did not protect the purchaser
Purpose of s198 LPA 1925
Actual Notice - Rights that are registrable in the land charges register and are registered constitute actual notice
Purpose of s199 LPA 1925
Constructive notice - knowledge would of had should proper enquiries have been made.
What is overreaching?
Mechanism which allows a purchaser in good faith for valuable consideration of the legal estate take free of any beneficiaries interest provided purchase money paid to two trustees or a trust corporation.
Important case of overreaching
City of London Building Society v Flegg [1988]
Parents interest swept into the sale proceeds and not in the land.
Important to identify at outset how many people hold the legal estate
Breach of trust
Benefits of overreaching
Benefits purchaser who will be assured taking property free from any family equitable interests.
Land transferred without consent of those who have beneficial interest under trust.
Case where only trustee appointed
Kingsnorth Trust Co Ltd v Tizard [1986]
What has replaced doctrine of notice
Land charges registration - 1925
Overreaching
