Land Law – Enforcement of Estates & Interests Case list Tutorial Three
LLB Land Law
3. Enforcement of Estates & In-
terests
Case Name Facts Held/Established
1
,Land Law – Enforcement of Estates & Interests Case list Tutorial Three
Case Name Facts Held/Established
1 Kingsnorth Finance Mr. T held the legal titile of the unregistered mat- The court had to consider if Mrs. T. equitable interest was
Co Ltd v Tizard rimonial home on trust for himself and his wife. binding on the plaintiff finance company.
[1986] 1 W.L.R. The marriage broke down & Mrs. T. moved out The lender‟s mortgage was subject to the wife‟s equitable interest.
783 of the matrimonial home. However, she would She was in occupation even though she did not live at the matri-
Statute: SS70(1)(G) still arrive back at the house to look after the monial home all the time. The inconsistency between the statement
& 199(1)(ii)(b) Law children(getting them ready for school & cooking on the application form that the lender was single and his disclo-
of Property Act them meals). she kept her clothing, toiletries and sure to the valuer that he was married put the lenders on notice.
1925 dressing gown at the house. She would stay over- The same could be said of the presence of the son and daughter.
night when Mr. T. was away on business. Mr. T. The lender should have made further inquiries but did not do so.
negotiated a loan secured by a legal mortgage The lender had failed to take reasonable steps to avoid being fixed
with the plaintiff finance company. On the appli- with constructive notice. The inspection was inadequate since it
cation form for the loan he described himself as was at a pre-arranged time. The surveyor was held to have con-
single, even though when a surveyor came to in- structive notice of Mrs T. interest. The result was that the
spect the house he explained that his wife had left finance company could only claim against Mr T. equitable share of
him and was no longer living in the property. The the home and not
surveyor made no further enquiries on the basis the whole property. It was held that he held the property on trust
of his report & the loan was agreed. Mr. T. emi- for himself and his wife.
grated to America with one of the children and
defaulted on the loan.
2
, Land Law – Enforcement of Estates & Interests Case list Tutorial Three
Case Name Facts Held/Established
2 Midland Bank Trust A father granted his son an option to buy a prop- Key principle – an unprotected interest falling under C(IV) or D of
Co Ltd v Green erty. The son did not register his estate contract. the land charges Act 1972 will not survive a sale to purchase for
[1981] A.C. 513 The father conveyed the land to his wife for £500 money or money‟s worth. Such a purchaser need not act in good
when the property was worth £40,000, almost faith nor have to provide a commercial price as long as there is
twice the fixed sum which the option was set at. valuable consideration.
The conveyance was done with some haste and
secrecy. On the evidence the sale was made in Held – the house of lords found that the mother took free of the
order to defeat the unprotected option. The son sons unprotected interest such as this, s.13(2) of the land charges
purported to exercise the option but the mother Act 1925, now s.4(6)of the 1972 act, requires that there be a pur-
refused to sell. The son sought a declaration that chaser for money or money‟s worth. Money or money‟s worth did
the option was binding. By the time the case not have to be a fair commercial price but merely valuable consid-
reached the house of Lords the property was eration. This could even be nominal consideration. The meaning of
worth £400,000. The dispute became one be- purchaser did not, according to statute, require that the purchase be
tween the sons widow and children against his in good faith. This requirement was one of the problems in the old
parents estate. The difference in the widow and system of discerning motive and intention, which the act sought to
children‟s inheritance would be huge depending remove.
on the outcome of the case.
Commentary - the decision may look unfair given the apparent in-
tention to take advantage of the son. However, in the long run jus-
tice is served better by a system that provides certainty of dealings.
The answer to plaintiffs in such a position of the son is to register
their interest. Failure to do so will otherwise lead to people taking
advantage of one‟s carelessness. It is not a fraud to take legal ad-
vantage of another‟s failings. A similar conclusion was reached in
– Lloyds Bank Plc v Carrick.
3
LLB Land Law
3. Enforcement of Estates & In-
terests
Case Name Facts Held/Established
1
,Land Law – Enforcement of Estates & Interests Case list Tutorial Three
Case Name Facts Held/Established
1 Kingsnorth Finance Mr. T held the legal titile of the unregistered mat- The court had to consider if Mrs. T. equitable interest was
Co Ltd v Tizard rimonial home on trust for himself and his wife. binding on the plaintiff finance company.
[1986] 1 W.L.R. The marriage broke down & Mrs. T. moved out The lender‟s mortgage was subject to the wife‟s equitable interest.
783 of the matrimonial home. However, she would She was in occupation even though she did not live at the matri-
Statute: SS70(1)(G) still arrive back at the house to look after the monial home all the time. The inconsistency between the statement
& 199(1)(ii)(b) Law children(getting them ready for school & cooking on the application form that the lender was single and his disclo-
of Property Act them meals). she kept her clothing, toiletries and sure to the valuer that he was married put the lenders on notice.
1925 dressing gown at the house. She would stay over- The same could be said of the presence of the son and daughter.
night when Mr. T. was away on business. Mr. T. The lender should have made further inquiries but did not do so.
negotiated a loan secured by a legal mortgage The lender had failed to take reasonable steps to avoid being fixed
with the plaintiff finance company. On the appli- with constructive notice. The inspection was inadequate since it
cation form for the loan he described himself as was at a pre-arranged time. The surveyor was held to have con-
single, even though when a surveyor came to in- structive notice of Mrs T. interest. The result was that the
spect the house he explained that his wife had left finance company could only claim against Mr T. equitable share of
him and was no longer living in the property. The the home and not
surveyor made no further enquiries on the basis the whole property. It was held that he held the property on trust
of his report & the loan was agreed. Mr. T. emi- for himself and his wife.
grated to America with one of the children and
defaulted on the loan.
2
, Land Law – Enforcement of Estates & Interests Case list Tutorial Three
Case Name Facts Held/Established
2 Midland Bank Trust A father granted his son an option to buy a prop- Key principle – an unprotected interest falling under C(IV) or D of
Co Ltd v Green erty. The son did not register his estate contract. the land charges Act 1972 will not survive a sale to purchase for
[1981] A.C. 513 The father conveyed the land to his wife for £500 money or money‟s worth. Such a purchaser need not act in good
when the property was worth £40,000, almost faith nor have to provide a commercial price as long as there is
twice the fixed sum which the option was set at. valuable consideration.
The conveyance was done with some haste and
secrecy. On the evidence the sale was made in Held – the house of lords found that the mother took free of the
order to defeat the unprotected option. The son sons unprotected interest such as this, s.13(2) of the land charges
purported to exercise the option but the mother Act 1925, now s.4(6)of the 1972 act, requires that there be a pur-
refused to sell. The son sought a declaration that chaser for money or money‟s worth. Money or money‟s worth did
the option was binding. By the time the case not have to be a fair commercial price but merely valuable consid-
reached the house of Lords the property was eration. This could even be nominal consideration. The meaning of
worth £400,000. The dispute became one be- purchaser did not, according to statute, require that the purchase be
tween the sons widow and children against his in good faith. This requirement was one of the problems in the old
parents estate. The difference in the widow and system of discerning motive and intention, which the act sought to
children‟s inheritance would be huge depending remove.
on the outcome of the case.
Commentary - the decision may look unfair given the apparent in-
tention to take advantage of the son. However, in the long run jus-
tice is served better by a system that provides certainty of dealings.
The answer to plaintiffs in such a position of the son is to register
their interest. Failure to do so will otherwise lead to people taking
advantage of one‟s carelessness. It is not a fraud to take legal ad-
vantage of another‟s failings. A similar conclusion was reached in
– Lloyds Bank Plc v Carrick.
3
