Suggested Answer to Exercise 5.2
Planning your answer
Issues
- What interests do Lucy, Emma and Clive have in the house?
- If the contract for sale is completed, will Dee be subject to them?
- Is there anything that Lucy, Emma or Clive should or can do to protect their interests?
- What is the relevance, if any, of the restrictive covenant?
Rules
1. The relationship between registered and unregistered title when an event triggers first registration: LRA 2002, ss 4(1)(a)(i) and 11(4) and Sch 1 (see Land Law, Section 4.7).
2. Distinguishing legal and equitable interests (especially leases): section 54 of the LPA 1925 and section 2 of the Law of Property (Miscellaneous Provisions) Act 1989. The relevance of these provisions is considered in Land Law, Sections 15.3 and 15.5.
3. Protection of equitable interests in unregistered land.
- Land Charges Act 1972 (Land Law, Section 5.4).
- Overreaching (Land Law, Sections 5.5 and 14.6.1).
- The doctrine of notice (Land Law, Sections 5.2.2 and 5.6).
Answer Plan
1) Introduction:
a) The transfer of the legal estate to Dee will trigger first registration (LRA 2002, s 4(1)(a)(i)).
b) Dee will take the land subject to any interests entered on the register or capable of overriding it (LRA 2002, s 11(4)), provided that these interests were valid at the date of the transfer of the estate.
c) The validity of the interests will depend upon the basic rules of unregistered land.
2) Clive:
a) Legal lease?
b) Equitable lease?
c) Personal contract with Hilary?
3) Lucy (beneficial interest):
a) Overreached?
b) The doctrine of notice?
c) Capable of overriding the register on first registration?
4) Emma:
a) Legal lease?
b) Subject to first registration?
c) Capable of overriding the Register?
d) A breach of the restrictive covenant?
Does the covenant have priority over the lease?
- Does the covenant render the lease void?
5) Make sure that you have stated your conclusions and that these conclusions follow logically from your reasoning.
Before you go to the next page, prepare a more detailed answer plan, incorporating references to the statute law and relevant cases.
