Lyus v Prowsa Developments [1982]

Facts

  • A registered estate was sold to a purchaser ‘subject to a separate contract’, which gave a third party an interest in the land
  • The estate was sold for a second time, to a purchaser who had actual notice of the interest and the contract which created it
  • At no point in time was the contract recorded on the charges register of the estate

Issue

  • Did the final purchaser take the land subject to the contract?

Decision

  • Yes

Reasoning

  • On its facts, the case undermines the registration system, but it has never been expressly overruled; it suggests the possibility that licences can bind successors in title through successive sales
  • Unless the facts in a new case are exactly the same, it is assumed following Chaudhary v Yavuz [2011] that actual notice will no longer bind a purchaser of a registered estate
RELATED CASE  Re Sharpe [1980]

Posted in Land Law Revision Notes.

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