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Mr and Mrs Charlton (S) sold to Mr Craggs (C) part of their farm comprising fields, barns and an adjacent yard on 17 January 2012. However C’s application to register the transfer (lodged on 10 February 2012) was initially rejected by the Land Registry because the plan attached to the transfer was incomplete (an access route granted to C was missing). A new plan was not submitted in time and C’s application was cancelled (with the resulting loss of priority). C was not actually registered as owner of the farm until 16 May 2012.
On 20 February 2012, S transferred some land to Mr and Mrs Baker (B). This transfer purported to grant to B a right of way over the yard already sold to C. B claimed that the right of way bound C as S was still the legal owner of the yard at the time of the grant of the easement over it (C only holding a beneficial interest in the yard during the registration gap).
The parties agreed that C would be bound by the easement unless C was in actual occupation of the yard when the easement was granted to B (so that C’s beneficial interest constituted an overriding interest under Paragraph 2 of Schedule 3 of the Land Registration Act 2002) and C’s interest was not overreached by the grant of the easement to B.
Points to note/consider
Acredart Limited & Car Giant Limited v London Borough of Hammersmith and Fulham  EWHC 197 (TCC) is a wide–ranging High Court decision and a must-read for anyone who deals with dilapidations. Landlords and section 18 valuers will be particularly interested.
The Supreme Court (and House of Lords) has considered through various cases the correct approach to adopt when interpreting, or constructing, contracts.
A case illustrating the danger of using a restrictive covenant to secure an overage payment.
A case illustrating the importance of drafting complex commercial contracts precisely and consistently.
The content on this page is provided for the purposes of general interest and information. It contains only brief summaries of aspects of the subject matter and does not provide comprehensive statements of the law. It does not constitute legal advice and does not provide a substitute for it.
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