Raymond is negotiating to sell his café, title to which is registered, to Alice. Having checked the Land Register and visited the café several times, Alice has discovered the following:
(a) Gail, a neighbour, tells Alice that she has an easement to use the drains belonging to the café. She explains that last year, a month before Raymond renewed the lease of her house, he gave her permission to use the café’s drains.
(b) Peggy, a local bistro owner, meets Alice in the street outside the café and shows her a copy of an option agreement by which Peggy may buy the café at any time during the next five years.
(c) Hayley, Raymond’s partner, paid half of the purchase price when Raymond acquired the café some years ago. Hayley had also personally renovated the café to cater for the large morning crowd that visits the café. Raymond tells Alice that Hayley is currently in New Zealand where she is helping a friend start a catering business. Hayley has also put up many of her hand painted pictures on the walls of the café and her signature is on all of them.
(d) Rita, the owner of the local newsagents shop, has four years left to run on a lease to use a shed in the backyard of the café in which she stores newspapers and magazines.
(e) Tom, who owns the neighbouring land to the café had been promised by Raymond through a deed that he will not build tall buildings or extensions on that land.
(i) Advise Alice, who wants to know about the impact of all of the matters she has discovered if she goes ahead and buys the registered title of the café from Raymond.
(ii) Indicate how your advice would differ if the proposed purchase of the café could be undertaken solely subject to the principles of unregistered title.
Any kind souls that could help tackling this question or provide me a direction as to how should i go?
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