W301 UNIT 3-5b: third party rights

Pre-1926 rules
1. Legal interests
  1. Bind the world
2. Equitable interests
  1. Bind the world except equity's darling
    1. Notice
      1. Actual
      2. Constructive
      3. Would have found out if took steps of a prudent purchaser
      4. Implied
      5. Agents had knowledge
Post-1925 rules: unregistered land
1. Land Charges Registry
  1. Land Charges Act 1972
  2. Register of encumbrances
  3. Certificate of search for purchasers
  4. Equivalent to actual notice
    1. s198 LPA 1925
2. Rights capable of registration
  1. Restrictive covenant
    1. Class D(ii)
  2. Legal easement
    1. Not registrable
  3. Legal lease
    1. Not registrable
  4. Equitable easement
    1. Class D(iii)
  5. Spouse's right of occupation under FLA 1986
    1. Class F
  6. Estate contract
    1. Class C(iv)
    2. e.g. option to buy freehold
  7. First legal mortgage
    1. Not registrable
  8. Second legal mortgage
    1. Class C(i)
    2. i.e. puisine mortgage
  9. Equitable interest under trust
    1. Not registrable
  10. Petition to make a landowner bankrupt
    1. PA(B)
  11. Orders making a landowner bankrupt
    1. WO(B)
3. If unregistered
  1. Void against purchaser of legal estate for money or money's worth
    1. Class C(iv)
    2. Class D(ii)
    3. Class D(iii)
  2. Void against purchaser of any interest in the land for value
    1. All rest
    2. Class C(i)
    3. Class F
  3. Midland Bank Trust Co Ltd v Green [1981]
    1. Purchaser does not have to act in good faith
    2. Takes free even if has actual knowledge
4. Pre-1926 rules
  1. Still apply if interest cannot be registered
    1. Most legal interests
      1. Legal lease
      2. Legal easement
      3. First legal mortgage
      4. Bind the world
    2. Restrictive covenants created pre-1926
    3. Equitable interests under trusts
    4. Bind all except equity's darling or (if trust) buyer who overreaches
Post-1925 rules: registered land
1. Registrable dispositions
  1. Two legal estates
    1. Fee simple absolute in posession
    2. Legal lease of more than seven years
  2. Registered with separate title number
  3. Until registered, buyer takes equitable interest only
    1. Interest affecting registered estate
  4. Also other legal interests
    1. Legal mortgage
    2. Legal easement
      1. if created by express grant by deed
2. Interests affecting registered estate
  1. Residual category
    1. Registrable disposition which is not registered and takes effect as equitable interest
    2. Equitable lease
    3. Equitable easement
    4. Restrictive covenants
    5. Estate contract
    6. Right to occupy under FLA 1996
    7. Equitable interest under trust
    8. All registrable as land charges if land unregistered
  2. Need to be registered to bind the land
    1. Notice on charges register of burdened land
      1. Any encumbrance except
      2. Interests arising under trust
      3. Leases not exceeding three years
      4. Restrictive covenants between landlord and tenant
      5. Includes
      6. Restrictive covenants between freeholders
      7. Post-1925
      8. Equitable easements
      9. Equitable lease
      10. Estate contracts
      11. Right of occupation
      12. Unilateral or agreed notice
      13. If not registered
      14. s29 LRA 2002
      15. Purchaser of a registrable disposition for valuable consideration takes free
    2. Restriction on proprietorship register
      1. Interest arising under trust
      2. Is a warning to purchaser
      3. Must overreach
      4. Must pay to two trustees
      5. City of London BS v Flegg [1988]
3. Unregistered interests which override registered dispositions
  1. Bind the land without registration
  2. Override on first registration
    1. Schedule 1 LRA 2002
  3. Override when dealing with a registered title
    1. Schedule 3 LRA 2002
      1. Legal lease of 7 years or less
      2. para 1
      3. Legal easement created by implied grant or prescription
      4. para 3
    2. Schedule 3 para 2 LRA 2002
      1. Applies to a person in actual occupation
      2. Lloyds Bank plc v Rosset [1989]
      3. Wife occupied by supervising renovation
      4. Kingsnorth Finance co Ltd v Tizard [1986]
      5. Wife occupied although had moved out but came back frequently
      6. Abbey National v Cann [1991]
      7. Mother did not occupy by sending in furniture
      8. Hypo-Mortgage Services ltd v Robinson [1997]
      9. Minor children not in actual occupation
      10. Strand Securities ltd v Caswell [1965]
      11. Malory Enterprises Ltd v Cheshire Homes (UK) [2002]
      12. Epps v Esso Petroleum Ltd [1973]
      13. Only applies to land actually being occupied
      14. eg garage may not be occupied although house is
      15. With interest in land
      16. Must be more than purely personal interest
      17. Unclear eg contractual licence
      18. Equitable lease with tenant in occupation
      19. Equitable interest under trust where beneficiary in occupation
      20. Williams & Glyn's Bank v Boland [1981]
      21. Complication
      22. Mortgages
      23. Registration gap between completion of purchase and registration of purchase and mortgage
      24. What happens if Sch 3 p2 overriding interest created in the registration gap?
      25. Does not create overriding interest
      26. Completion date is key date
      27. i.e. date of disposition
      28. For other overriding interests, key date is registration of purchase or mortgage
      29. Will not apply if
      30. Enquiry is made
      31. and fails to disclose when would be reasonable to do so
      32. Occupation is not obvious on a reasonably careful inspection of the land
      33. and does not have actual notice
      34. OR if interest under trust and is overreached
4. Can be overlap
  1. eg an overriding interested which is protected on register as interest affecting registered estate