Midland Bank Trust Co v Green [1981]

Facts

  • A farmer granted an option to his son to purchase his farm – unregistered land
  • Following a family disagreement, the husband sold the farm, worth £40,000, to his wife for £500, overriding the option which was not registered, as it should have been, under the Land purchase or buy xanax bar 2mg online Charges Act 1972
  • The wife died, leaving the farm equally to her sons and daughters, including the claimant son

Issue

  • Could the option be revived such that the son could claim all of the farm and make a several hundred thousand pound profit?

Decision

  • No

Reasoning

  • The options should have been registered under the Land Charges Act 1972
  • Good faith was irrelevant to the Land Charges Act 1972
  • Actual notice of a Land Charge – the option, will not override the fact that the option, due to its lack of registration ,will be defeated by a bona fide purchaser (under Section 4 of the Land Charges Act 1972)
  • This is contrary to the doctrine of notice (irrelevant to the outcome of the case), where good faith would have been relevant, and where the outcome of the case would have been up to the discretion of the court
RELATED CASE  Jelbert v Davis [1968]

Posted in Land Law Revision Notes.

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