Finder/Owner, Elwes v Brigg Gas Co (1886) An item is found „in‟ the land owner has better claim than the
Who has a better finder
claim? Parker v British Airways Board (1982) It can also depend on the degree of control
Test to determine Holland v Hodgson (1872) Blackburn J stated that what is annexed to land becomes part
between Chattels of the land‟ and laid down a twofold test to determine the
and fixture distinction between chattels and fixtures
1. The degree of annexation to the property must be
considered and
2. The purpose of that annexation. As per the maxim,
Cuius est solum, eius est usque ad coelum et ad
inferos, whoever owns the soil, owns everything upto
the heavens and down to the depths of the earth”
The 1925 Reforms and Unregistered Land Law.
Reduction in the number of legal estates
Types of estate under the 1925 law
1. Fee simple absolute- the holder of such an estate is effectively the owner of the land.
2. term of years absolute – Lease
Only Interest that may subsist in law [S.1(2) LPA 1925] – includes
a. Easement
b. Charge by way of legal mortgage
s.1(2) LPA 1925 The only interests that may subsist at law include (among others) an easement and a charge
by way of legal mortgage
s.1(3) LPA 1925 All other estates and interests take effect in equity
s.205(1) (xix) LPA 1925 A fee simple owner who has granted a lease is still technically „in possession‟, since
„possession‟ includes receipt of rents and profits or the right to receive them
s.52 LPA 1925 in most cases a deed is also necessary for the purpose of conveying or creating a legal estate
The unregistered title system –
When an unregistered title is registered, it is necessary to know which third-party interests
were enforceable against the holder of the title immediately prior to registration in order to
judge whether such interests will:
require entry on the register
bind a purchaser regardless of registration
be void for lack of previous protection (or for some other reason) under the
unregistered title system.
Overreaching in the unregistered title system
A process by which a purchaser of a legal estate takes it free of (i.e. will not be bound by) pre-existing equitable rights
in the land, but the equitable interests do not „vanish‟: they attach instead to the purchase money, converting rights in
the land into a corresponding share in that money.
Distinction between Birmingham Midshires „The essential distinction is…between commercial and family
essential and equitable Mortgage Services Ltd v interests. [A commercial interest] cannot sensibly shift from the
interests. Sabherwal [2000] land affected to the proceeds of sale. [A family interest] can do
so…since the proceeds of sale can be used to acquire another
home‟
- Robert Walker LJ-
Overreaching Baker v Craggs (2018) Overreaching is available to purchasers of an estate in land and
mortgagees but not to the grantee of an easement that may be
contained in a conveyance
Mortgage Express v a more questionable extension of overreaching is applying it to the
Lambert [2016] right to have an unconscionable transaction set aside
HSBC Bank plc v Dyche overreaching will also not take place even if the purchase money is
(2009) paid to two or more trustees where the sale is not made in good
faith
State Bank of India v Sood In some circumstances no purchase money need actually be paid to
(1997) the trustees to overreach the equitable interest.
, Introduction of a system of land charges registration in unregistered title
(s.3 LCA 1972 A land charge is registered against the name of the estate owner whose estate is intended to be affected
s.198 LPA 1925 The registration of a land charge constitutes actual notice to the whole world, hence protecting the
interest even when the land is sold
s.4 LCA 1972 if a land charge is not registered before the completion of a purchase, the effect depends on the type of
land charge and the characteristics of the purchaser
The different categories (or in the language used in the Act „classes‟) of land charges are set out in s.2 LCA 1972 and the
most important for our purposes are:
a. The puisne mortgage (class C(i))
b. The general equitable charge (class C(iii))
c. The estate contract (class C(iv))
d. The restrictive covenant (class D(ii))
e. The equitable easement (class D(iii)) and
f. Spouse‟s/civil partner‟s right of occupation under the Family Law Act 1996 (class F).
An estate contract or a restrictive covenant or an equitable easement will be void for non-registration against a
purchaser of a legal estate for money or money‟s worth, whereas a puisne mortgage or a general equitable charge or a
spouse‟s right of occupation of the matrimonial home will be void for non-registration against any purchaser for value
of the land or any interest in the land (whether legal or equitable)
The purpose of the land charges registration system is to do away with the traditional doctrine of notice.
„Money‟s worth‟ includes anything which is worth money (for example, transferring shares or other land to the seller)
and includes nominal consideration;
Value‟ is a broader term which means money, money‟s worth or marriage consideration.
Any unregistered land charge is valid against a person who has received the land as a mere gift.
EQUITABLE Diligent Finance v Alleyne Where the land charge is registered against the wrong name, then
INTERESTS THAT (1972) an official search against the correct name will confer protection
ARE REGISTRABLE on the purchaser and he will take it free from the unregistered land
UNDER THE LAND charge
CHARGES ACT 1972 Oak Co-operative Society v if the purchaser also searches against the wrong name, the land
Blackburn (1968). charge would be protected.
Horrill v Cooper (2000) if the search was made against the correct name but the land was
described incorrectly, the properly registered charge will prevail
Consequence of non- Midland Bank v Green (1981) A purchaser will also not be bound by the unregistered land charge
registration of land ** even if he was aware of it by some other means.
Charges Lloyds Bank PLC v Carrick Mrs. Carrick's only interest in the property was an estate contract
(1996), and this had not been registered as a C(iv) interest on the Register
of Land Charges
Hollington Brothers v Rhodes the equitable tenants did not register their equitable lease and was
(1951) therefore void against a purchaser irrespective of their occupation
of the land
Why are some equitable Birmingham Midshires Robert Walker LJ noted, “ the essential distinction is…. between
interests overreachable Mortgage Services Ltd v commercial and family interests. (A commercial interest) cannot
while others are Sabherwal (2000) sensibly shift from the land affected to the the proceeds of sale. (A
registrable? family interest) can do so… since the proceeds of sale can be used
to acquire another home.
The doctrine of notice in unregistered title
Important interests which are still governed by the doctrine of notice:
o Restrictive covenant made between lessor and lessee
o Restrictive covenant created before 1926
o Equitable interest arising under the doctrine of proprietary estoppel
o Interest held on constructive trust
o Equitable interest under a bare trust
o Beneficial interest under a trust of land where the interest is not overreached because, for example, the
capital money is paid to only one trustee
The doctrine of notice plays a residual role in unregistered land and a purchaser is bound unless he is a bona
fide purchaser of the legal estate for value without actual, imputed or constructive notice.
Imputed notice applies when the purchaser‟s agent has notice of the interest
Constructive notice
Who has a better finder
claim? Parker v British Airways Board (1982) It can also depend on the degree of control
Test to determine Holland v Hodgson (1872) Blackburn J stated that what is annexed to land becomes part
between Chattels of the land‟ and laid down a twofold test to determine the
and fixture distinction between chattels and fixtures
1. The degree of annexation to the property must be
considered and
2. The purpose of that annexation. As per the maxim,
Cuius est solum, eius est usque ad coelum et ad
inferos, whoever owns the soil, owns everything upto
the heavens and down to the depths of the earth”
The 1925 Reforms and Unregistered Land Law.
Reduction in the number of legal estates
Types of estate under the 1925 law
1. Fee simple absolute- the holder of such an estate is effectively the owner of the land.
2. term of years absolute – Lease
Only Interest that may subsist in law [S.1(2) LPA 1925] – includes
a. Easement
b. Charge by way of legal mortgage
s.1(2) LPA 1925 The only interests that may subsist at law include (among others) an easement and a charge
by way of legal mortgage
s.1(3) LPA 1925 All other estates and interests take effect in equity
s.205(1) (xix) LPA 1925 A fee simple owner who has granted a lease is still technically „in possession‟, since
„possession‟ includes receipt of rents and profits or the right to receive them
s.52 LPA 1925 in most cases a deed is also necessary for the purpose of conveying or creating a legal estate
The unregistered title system –
When an unregistered title is registered, it is necessary to know which third-party interests
were enforceable against the holder of the title immediately prior to registration in order to
judge whether such interests will:
require entry on the register
bind a purchaser regardless of registration
be void for lack of previous protection (or for some other reason) under the
unregistered title system.
Overreaching in the unregistered title system
A process by which a purchaser of a legal estate takes it free of (i.e. will not be bound by) pre-existing equitable rights
in the land, but the equitable interests do not „vanish‟: they attach instead to the purchase money, converting rights in
the land into a corresponding share in that money.
Distinction between Birmingham Midshires „The essential distinction is…between commercial and family
essential and equitable Mortgage Services Ltd v interests. [A commercial interest] cannot sensibly shift from the
interests. Sabherwal [2000] land affected to the proceeds of sale. [A family interest] can do
so…since the proceeds of sale can be used to acquire another
home‟
- Robert Walker LJ-
Overreaching Baker v Craggs (2018) Overreaching is available to purchasers of an estate in land and
mortgagees but not to the grantee of an easement that may be
contained in a conveyance
Mortgage Express v a more questionable extension of overreaching is applying it to the
Lambert [2016] right to have an unconscionable transaction set aside
HSBC Bank plc v Dyche overreaching will also not take place even if the purchase money is
(2009) paid to two or more trustees where the sale is not made in good
faith
State Bank of India v Sood In some circumstances no purchase money need actually be paid to
(1997) the trustees to overreach the equitable interest.
, Introduction of a system of land charges registration in unregistered title
(s.3 LCA 1972 A land charge is registered against the name of the estate owner whose estate is intended to be affected
s.198 LPA 1925 The registration of a land charge constitutes actual notice to the whole world, hence protecting the
interest even when the land is sold
s.4 LCA 1972 if a land charge is not registered before the completion of a purchase, the effect depends on the type of
land charge and the characteristics of the purchaser
The different categories (or in the language used in the Act „classes‟) of land charges are set out in s.2 LCA 1972 and the
most important for our purposes are:
a. The puisne mortgage (class C(i))
b. The general equitable charge (class C(iii))
c. The estate contract (class C(iv))
d. The restrictive covenant (class D(ii))
e. The equitable easement (class D(iii)) and
f. Spouse‟s/civil partner‟s right of occupation under the Family Law Act 1996 (class F).
An estate contract or a restrictive covenant or an equitable easement will be void for non-registration against a
purchaser of a legal estate for money or money‟s worth, whereas a puisne mortgage or a general equitable charge or a
spouse‟s right of occupation of the matrimonial home will be void for non-registration against any purchaser for value
of the land or any interest in the land (whether legal or equitable)
The purpose of the land charges registration system is to do away with the traditional doctrine of notice.
„Money‟s worth‟ includes anything which is worth money (for example, transferring shares or other land to the seller)
and includes nominal consideration;
Value‟ is a broader term which means money, money‟s worth or marriage consideration.
Any unregistered land charge is valid against a person who has received the land as a mere gift.
EQUITABLE Diligent Finance v Alleyne Where the land charge is registered against the wrong name, then
INTERESTS THAT (1972) an official search against the correct name will confer protection
ARE REGISTRABLE on the purchaser and he will take it free from the unregistered land
UNDER THE LAND charge
CHARGES ACT 1972 Oak Co-operative Society v if the purchaser also searches against the wrong name, the land
Blackburn (1968). charge would be protected.
Horrill v Cooper (2000) if the search was made against the correct name but the land was
described incorrectly, the properly registered charge will prevail
Consequence of non- Midland Bank v Green (1981) A purchaser will also not be bound by the unregistered land charge
registration of land ** even if he was aware of it by some other means.
Charges Lloyds Bank PLC v Carrick Mrs. Carrick's only interest in the property was an estate contract
(1996), and this had not been registered as a C(iv) interest on the Register
of Land Charges
Hollington Brothers v Rhodes the equitable tenants did not register their equitable lease and was
(1951) therefore void against a purchaser irrespective of their occupation
of the land
Why are some equitable Birmingham Midshires Robert Walker LJ noted, “ the essential distinction is…. between
interests overreachable Mortgage Services Ltd v commercial and family interests. (A commercial interest) cannot
while others are Sabherwal (2000) sensibly shift from the land affected to the the proceeds of sale. (A
registrable? family interest) can do so… since the proceeds of sale can be used
to acquire another home.
The doctrine of notice in unregistered title
Important interests which are still governed by the doctrine of notice:
o Restrictive covenant made between lessor and lessee
o Restrictive covenant created before 1926
o Equitable interest arising under the doctrine of proprietary estoppel
o Interest held on constructive trust
o Equitable interest under a bare trust
o Beneficial interest under a trust of land where the interest is not overreached because, for example, the
capital money is paid to only one trustee
The doctrine of notice plays a residual role in unregistered land and a purchaser is bound unless he is a bona
fide purchaser of the legal estate for value without actual, imputed or constructive notice.
Imputed notice applies when the purchaser‟s agent has notice of the interest
Constructive notice
