Land Law I

Protection of
Legal & Equitable
Estates/Interests

Belkıs Şahinoğlu
Fall 2021-2022
Before 1925
Unregistered Land
1. LEGAL
Creation Legal = Deed
Protection of Legal Estates
& Interests= No Protection
Needed
2. EQUITABLE – SUBJECT TO
DOCTRINE OF NOTICE
Creation of Equitable =
Contract etc.
Protection of Equitable:
Doctrine of Notice
After 1925
Unregistered Land Registered Land
LRA 2002
1. LEGAL 1. REQUIRING SUBSTANTIAL
Limited Estates capable of being REGISTRATION
Legal – Fee Simple Absolute, Leases Fee simple
Legal leases over 7 years
Limited Interests capable of being
Legal- Easements & profits 2. OVERRIDING
Capable of binding w/out
Protection of Legal = No Protection registration:
Needed Legal leases less than 7 years
2. LEGAL THAT NEEDS PROTECTION 3. MINOR INTERESTS REQUIRING
Pusine Mortgage REGISTRATION
Estate contracts
3. EQUITABLE THAT NEEDS Equitable lease
REGISTRATION Equitable easements & profits
Estate Contracts
Restrictive Covenant after 1925
Equitable easement & profit after
1925
Home Rights
*minor interests can be upgraded
4. EQUITABLE SUBJECT TO DOCTRINE to overriding if in ‘actual
OF NOTICE occupation’
Restrictive Covenant, Easement &
Profit before 1925
Constructive Trust Interest
› Unregistered Land
› Land subject to Pre-1925 Reforms

› The importance of these rules comes into

play upon the SALE OF LAND
 Protection of Legal Rights

› Created by deed, s. 52 LPA 1925 ( s.1 LP(MP)A

1989)

› Binding – “good against the whole world”

 Protection of Equitable Property
Rights

Created by:

- Express trust
- Contracts(s.2 LP(MP)A)
- Informal grant void at common law
- Giving interests only recognised by equity
› Equitable interests are good against the
whole world EXCEPT…(will be lost to a …)

Good faith purchaser of value who

acquires a legal estate or interest without
notice of the equitable interest already on
the land
“equity’s darling’

› Good faith
› Purchaser of value
› Of a legal estate
› Without notice of the 3rd party interest/estate

v Why?

If any of these elements are missing, the 3rd

party interest will be binding…
ELEMENTS OF THE DOCTRINE
OF NOTICE
A. BONA FIDE

› Good faith

› Honestly

› Without fraudulence
B. PURCHASER FOR VALUE
-Consideration needs to be given*
-Nominal value is not important e.g. 1 Stg
-Detriment (swap)

› Inherits
› Gift
Tatiana is the owner of Blueacre. She grants
Brian a right of way by deed in 1910 and
enters into a contract with Betty under
which she promises to use Blueacre for
residential purposes only.

Tatiana passes away, giving her property to

her son Timothy.

› Is Timothy bound by the interests?

C. PURCHASER OF A LEGAL
ESTATE

› DEED – s. 52(1) LPA 1925

› If equitable, the 3rd party interests will bind

him
Tatiana is the owner of Blueacre. She grants
Brian a right of way by deed in 1910 and enters
into a contract with Betty, her neighbour,
under which she promises to use Blueacre for
residential purposes only.

Tatiana entered into a contract with Timothy

whereby she agreed to sell him the property.
Tatiana does not execute a deed.

› Is Timothy bound by the interests?

› Would anything change if Tatiana had given
Betty the interest by deed?
D. WITHOUT NOTICE OF THE
EQUITABLE INTEREST
› The purchaser must prove that he did not
have notice in order to receive the land
FREE from the 3rd party interest…

1. Actual Notice
2. Constructive Notice (s. 199(1)(ii)
LPA1925)
3. Imputed Notice (s. 199(1)(ii) LPA1925)
1. Actual Notice

At the time of the purchase, the purchaser

ACTUALLY KNEW of the existence of the
equitable interest
› The purchaser ‘has in some way been
brought to an intelligent apprehension of
the nature of the equitable interest which
has come upon the property.’
Lloyds v. Banks (1868)

› Vague rumour is not actual notice!

(Barnhart v. Greenshields 1853)

… the development of other forms of notice…

2. Constructive Notice

› The purchaser will be deemed to have

had notice if he OUGHT TO HAVE KNOWN
of the equitable interest

› Each purchaser is expected to make

enquiries! If he doesn’t, he will be bound if
examination would have given him notice
- INSPECT THE LAND
Physical evidence
Anyone else in possession? Hunt v. Luck 1902

- INVESTIGATE THE TITLE – TITLE DEEDS (root of title)

Constructive notice: would have been aware if

he made the necessary inquiries
 Proving Title to Land

› Ensure “good title”

› If the land is unregistered – Title deeds

prove good title
-Conveyancing
-Mortgages
-Third Party interests
› Toensure you receive ‘good title’ and
to check the third party interests, you
must check back to the
ROOT OF TITLE – s.23 LPA 1925

› Root
of title is the most recent
conveyance at least 15 years old!
Isobel bought a property from Keith in 1996.
She should have looked at the transaction
from 1981 (-15 years) which would have
shown a restrictive covenant.

NOTE…if the root of title does not state any

equitable interest (but the prior
conveyances do) the purchaser will not
have constructive notice as he is not
required to go back further than the root of
title.
3. Imputed Notice

› If, at the time of purchase the purchaser’s

agents (solicitors, surveyors etc.) KNEW OR
OUGHT TO HAVE KNOWN of the existence
of the equitable interest, then the
purchaser will have notice.
Which of the following purchasers of 12 Silver Street would
be bound by a restrictive covenant in favour of 10 Silver
Street not to keep or breed any animals on the land?
1. John who has a pet Labrador, buys 12 Silver Street for
100,000 without notice of the covenant
2. Jason who keeps tropical fish buys 12 Silver street for
110,000 with notice of the covenant
3. Mary who breeds poodles inherits 12 Silver Street from
her aunt without notice of the covenant
4. Erin who wishes to run a cattery from the premises, is
given 12 Silver Street from her father as a wedding
present without notice of the covenant
5. Jim keeps hens. He swaps 12 Silver street for his
property in the country, without notice of the
covenant.
6. Elizabeth who has a pony buys 12 Silver Street for
125,000 without notice of the covenant. There is a
notice of interest in the deeds of the property but
Elizabeth’s solicitor failed to notice it.
POSITION OF SUCCESSORS TO
TITLE TO A PURCHASE WITHOUT
NOTICE
If POV of a legal estate is able to free himself
from the equitable interest on the land, then
all persons who derive their title from that
purchaser will be free from the equitable
interest also.
Interest becomes VOID …

What if there was notice?

Binding & Competing interests:
The first in time rule

› In 1920 Harry acquired Blueacre. His

partner Harriet obtained a constructive
trust interest.
› Harry granted a lease by contract to
Martha for 4 years.

› Blueacre is sold to Jonathon. If Johnathan

is bound by both, whose will prevail?
› In 1920 Harry grants equitable lease for 5
years to Harriet. In 1922 he grants
equitable lease to Martha for 5 years.

› If Harriet transfers her lease to Betty…what

type of interest will Betty have?

› In 1923, the land is sold to Jonathon.

Whose interests will bind? Whose interests
will prevail?