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
