Equitable rights: rights in property not recognised by common law; rights in personam; personal actions

Proprietary rights: claim rights in the property itself, rights in rem to real actions
Unregistered land with legal easement, right in the land itself and anyone acquired the land would be
bound by that right even they did not know about it
Registered land with legal interest, the right had to be registered in Land Registry if it was to be a right
binding on the land
Equity
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enforce right only on certain persons; beneficiary could only enforce the trust against the trustee.
later the trust is enforceable against third parties who purchased the land knowing there were third
party rights in that land

Bona fide purchaser for value

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act in good faith,

something of value must be given, does not have to be money
of a legal estate in the land (proprietary)
must be without notice of equitable rights

Notice
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actual: been told of rights or had found out for himself

constructive: if he would have been aware of the estate if he had checked
imputed: legal agents had made investigation

Overreaching (whether registered or unregistered title)

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Sale of property which is held under a trust, only applies where there are two or more trustees or a
trust corporation and the purchase money is paid over to both of them
Rights arising under a trust in equity which attach to the land are transferred from the land to $
Rights may have been entered on the register against the title of the property
Allows land under trust to be sold free of certain rights, also safeguard rights of beneficiaries by
making trustee statutorily obliged to transfer capital money

Overreaching cannot apply unless certain conditions apply:

(1) There must be a purchase of the legal estate (includes mortgagee or charge)
(2) Must be conveyance of rights to the purchaser
(3) Interest itself must be capable of being overreached:
Certain equitable rights will continue to attach to land, e.g. restrictive covenants, equitable
easements and estate contracts even after the property has been transferred
(4) Law of Property Act 1925 s 27, purchase must be paid to at least 2 trustees or a trust corporation
(5) Overreaching can take place even where $$ are not paid over contemporaneously
(6) Overreaching can still apply where purchaser has notice of the equitable rights
Law of Property Act 1925

Legal estates:
terms of years absolute in possession (leaseholders), fee simple absolute (freeholders)
Legal interests:
easement, right or privilege in or over land, rentcharge, legal mortgage
Equitable interests:
rights of beneficiaries under trust, restrictive covenant, interests that became equitable e.g. life estates. If
the required formalities are not complied with then the interest conveyed will be equitable only, includes
leases, easements and mortgage charges
Land Registration Act 1925 (LRA 1925): every title should be registered so there would be no need to
actually prove good title each time the property changed hands

Land Charges Act 1925: system of registration of equitable interests in land; replaced by LCA 1972
Class D:
(1) Inland Revenue charges: inheritance tax payable on death
(2) Restrictive covenants: ones that created after 1926, exclude covenants created by lessor and
lessee; once interest is registered the purchaser is bound by the covenant (if holder of right fails to
register, even purchaser knows about it is irrelevant)
(3) Equitable easements: any created after 1st Jan 1926 (legal easement in unregistered land not be
registrable, as it would take effect in law and be binding)
Class F:
(1) Matrimonial home rights: the right can only be claimed by a spouse or civil partner who is not
a legal owner of the matrimonial home. The right is dependent on marriage not on contributions,
will be lost if the parties later divorced
Registration of Land Charges