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Property Rights and Interests in Land Transactions

SUPERVISION 3 PQ WORKED ANSWERS 5. In November 2005, Henry bought Sellafields Farm, a large estate, and became first registered proprietor of it. Shortly after registration of Henry's title was completed, Henry entered into a deed granting to Alan the use of a gravel path over the farm. In 2006, Henry wrote to Bill, granting him, in return for £1000, a lease of his garage for 20 years, so that Bill could use it as an amateur handyman's workshop and to park his car. The lease was reduced to a written document, signed by both parties. In 2007, Henry executed a deed in favour of Giles, saying, "If you pay me £500, then if I ever seek to sell or lease Sellafields, I shall let you have first opportunity of buying it at a fair market value to be determined by Crabtree & Co, Chartered Surveyors. [Signed] Henry". Giles paid the £500. In 2008, Henry borrowed £20,000 from Bill; they both signed a piece of paper on which was written: "In consideration of the £20,000 Bill has paid to Henry, Henry acknowledges that Sellafields is security for repayment, and if so required, he will execute a formal charge over the land". In 2009, Henry decided that he wanted to give his niece, Emily, an interest in Sellafields. In a signed document he declared that thenceforth he would hold one of the cottages in the grounds on trust for her. Delighted, she moved all her things in immediately. This year, Charles purchased Sellafields from Henry for £520,000. No entries in favour of Alan, Bill or Emily were on the register when Charles obtained his priority search. Charles had visited the garage twice before he completed the purchase; he saw no car, only tools, which he assumed belonged to Henry. After completion of the purchase, but before Charles was registered as proprietor, Charles met Bill who, in the course of the conversation, told him what rights he and Alan had: Charles was surprised, and said he had a priority search from the Land Registry which showed no adverse rights over Sellafields. Also, immediately after completion of the sale to Charles, but before the transfer was registered, Emily had an argument with Henry, and in protest moved out of the cottage immediately, taking all of her belongings with her. (a) Charles has now become registered proprietor of Sellafields. Advise Charles. (b) Would it make a difference if, after his conversation with Charles, Bill put a notice on the register in respect of the lease? Part (a) The question is whether C is bound by any of the interests of A, B, E and G. None of these interests will have been overreached under ss2 and 27 LPA 1925 given the sale to Charles was from a single owner (Henry) as opposed to two trustees. Alan's right of way 1 A deed granting a right of way over property to a neighbouring landowner (query whether A is indeed a neighbour - if not the