Enforceability of Third Party Rights in the Unregistered System - SUMMARY FLOWCHART of Enforceability in the Unregistered System

6 important questions on Enforceability of Third Party Rights in the Unregistered System - SUMMARY FLOWCHART of Enforceability in the Unregistered System

In the first step of an enforceability in the unregistered system problem question, what party rights must you identify?

Easement, trust interest, covenant, lease, etc.

Explain the second step of ensuring that the third party interests have been created by correct formalities? Has it been validly created?

The third-party interests must have been created by correct formalities

If the third-party interest has been registered, who does it bind under step four?

Binds buyer
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If the third-party interest has not been registered, what happens to the buyer under step four?

Buyer will take free (Section 4 Land Charges Act 1972).

If the third party interest is not registered on the Land Charges Register, what do we have to consider if it is legal?

Must consider whether it is legal or equitable under the pre-1926 rules (CHECKPOINT - if interest falls outside of the Land Charges Act rules, must apply pre-1926 rules).  If it is legal, the legal estate and interest bind the world. 

If the third party interest is not registered on the Land Charges Register, what do we have to consider if the interest is equitable and is under a non-trust?

Consider whether it is a non-trust interest that is not registrable on the Land Charges Register (eg a pre-1926 restrictive covenant)? If so, buyer bound unless he is equity darling.

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