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Overreaching In Registered Land Law

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Abstract:

Beneficial interests under a trust were not intended to be overriding interests under section 70(1)(g) of the Land Registration Act 1925. The position was altered by Williams & Glyn's Bank Ltd v Boland, which determined that an interest under a trust for sale would bind a purchaser if the beneficiary were in actual occupation. The decision raised the question whether such interests could be overreached once the beneficiary was in occupation of the trust property. City of London Building Society v Flegg held that the relevant beneficial interest had been overreached. Both decisions assume that overreaching in registered conveyancing takes effect as it does in unregistered land. Yet there is considerable evidence that the Land Registration Act contains its own overreaching machinery. The House of Lords applied the wrong overreaching provisions in Boland and Flegg and there is no legal basis on which to recognise that trust interests can override a subsequent disposition under section 70(1)(g).

Keywords: 20; 28; 29; 3(2); 40–47; 49(1)(d); 58(3); 70(1)(g); 74; 78; 94; City of London Building Society v Flegg [1988] 1 AC 54; Minor and Overriding Trust Interests; Overreaching powers of trustees in registered land; Restrictions; Williams & Glyn's Bank Ltd. v. Boland [1981] AC 487; scheds 1(2); ss 11; ss 2 and 27; ss 3(xv); the Land Registration Act 1925; the Land Registration Act 2002; the Land Transfer Acts 1875–1897; the Law of Property Act 1925

Document Type: Research Article

DOI: https://doi.org/10.1111/j.1468-2230.2006.00582.x

Affiliations: University of Manchester

Publication date: 2006-03-01

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