Does anyone know whether these rights will bind a purchaser or not? It seems to me the second one won't since it is an equitable easement.
Laurence, a neighbouring farmer, is in possession of a seven-year lease, granted to him by Paris two years ago, to one of the outbuildings, in which he has been storing corn and hay. This lease contains an option to buy the freehold of the outbuilding at any time within the next five years at full market price.
John, another farmer, tells Montague’s solicitor that he has an equitable easement, which entitles him to the use of a footpath running from his property to the main road, crossing through part of the grounds of ‘Capulet House’.
Rosaline, Paris’s girlfriend, who has always lived with him in ‘Capulet House’, is very much opposed to the sale as she believes that old houses and estates should be preserved. Rosaline tells Montague’s solicitor that she provided 20% of the purchase price when Paris bought the property. Two years ago, she and Paris moved into a small cottage in the grounds of ‘Capulet House’. Rosaline considers the cottage her home though she and Paris now spend a good deal of their time in Italy, where they have a holiday villa.
Land Law Undergraduate Help!! Watch
- Thread Starter
- 15-05-2016 19:37
- 15-05-2016 20:24
1. A leasehold must be granted for a period in excess of seven years for compulsory registration; a lease not exceeding 7 years can be registered if under 3 years voluntarily by notice (if registered = binding)
- Option to purchase takes effect as an equitable interest (not a registrable disposition under s. 27); but can be protected by a notice, since it is not excluded by s. 33 (if a notice was entered the interest will be protected thus binding)
2. A purchaser will only be bound by an equitable easement, if the interest is protected by entry on the Register.
3. Beneficial interest under a trust of land - beneficial interest can be protected by a restriction (notice cannot be entered - s. 33) - if it has not been registered, it may take priority as an overriding interest (Sch 3, para 2)
If there are two or more trustees, overreaching will take place - if so, the interest will not be binding - the beneficiary will receive proceeds from sale