1)Unregistered Land
*Where land is unregistered title, the vendor produces title deeds to the purchaser.
--Can be traced back to the root of title.
-Title Deeds: Documentary records which the vendor shows to the purchaser as proof if
ownership of the land, they are produced by the current owner of the land to show that his
title to the land cannot be disputed.
--Title deeds will include in them: conveyances, legal mortgages, grants fo probate from
executors, grants of letters of administration and administrators, and assents from personal
representatives.
*-Once a legal property right has been created with respect to a piece of land, that right binds
everybody else who later acquires that land or rights in that land. That is, legal rights are
indestructible.
*-Equitable rights however are NOT indestructible, they are good against the whole world
except a bona fide purchaser for value or legal interest who took without notice of the
equitable interest.
--Therefore, to remove EI one must prove the elements of the Doctrine of Notice are
satisfied.
Doctrine of Notice
*-All four elements must be proved by the purchaser if he is to take the piece of property free
from an EI affecting that property:
1) Purchaser must have acted ‘bona fide’ (in good faith)
2) Must be a purchaser for value
3) Must have acquired a legal estate or legal interest.
4) Must have had no notice of the EI affecting the property.
1)Bona Fide
-Bona fide: good faith.
Midland Bank Trust Co v Green [1981]: Equity required not only the absence of notice, but
genuine and honest absence of notice.
2)Purchaser for Value
*-If a person acquires a piece of land as a result of an inter vivos gift, or if they inherit it from
somebody, that person is NOT a purchaser for value. Therefore, always bound by any
equitable interests affecting the land.
*-Apply Doctrine of Consideration: Even the smallest payment, or the most minimal
detriment may constitute consideration (i.e. purchasing land for bargain price of even a pound
is considered consideration for the transaction).
3)Purchaser of a Legal Estate or Legal Interest
*-Purchaser of an EI cannot claim the benefit of the doctrine of notice. If you purchase an EI
in the land then any existing EI in the land is automatically binding on you.