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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
Here is the latest property quarterly update aimed at in house lawyers (and other professionals) practising in the property/real estate sector.
A case dealing with the validity of a non-reliance clause in a lease and whether the trustees’ liability for misrepresentation was limited to the trust assets.
A case dealing with a property owner’s liability for business rates when substantial refurbishment works are being carried out.
A developer successfully applied to the Upper Tribunal to modify restrictive covenants even though a development was knowingly carried out in breach of the covenants.
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