Property case law update: January 2013

Hughmans Solicitor v Central Stream Services Ltd (CoA) [2012] EWCA 1720

Judgment creditor’s charging order over a property did not have priority over an earlier unregistered equitable interest in the property created by an agreement compromising legal proceedings where the judgment creditor acted and incurred the fees secured by the charging order.

Davidsons Solicitors (a firm) v Nationwide Building Society (CoA) [2012] EWCA 1626

A solicitor holding a mortgage advance provided by a lender held it in trust for the mortgage and breached that trust by handing over the advance before completion. The solicitor had acted honestly and reasonably, the loss had been caused by the fraud of an unconnected third party. Accordingly the solicitor would be relieved from liability under s61 of the Trustee Act 1925.   

Fineland Investments Ltd v Pritchard & Anor (Ch D) 7.12.12 (Morgan J)

Judgment that a contract for transfer of property was valid and enforceable. The contract was protected by unilateral notice and the unilateral notice release was given by Land Registry error. The registered proprietor executed TR1 in favour of a friend. There was no power to order a change in the register and the TR1, if valid, was subject to the contract.   

Tweedie v Tweedie & Souglides [2012] EWCA Civ 1546

An option granted the tenant and his successors in title the right to extend the term of a lease. A second deed of variation the demise. The second deed operated as a surrender and regrant. The proper construction of successors in title extended lessees, not simply those in occupation. The current lessee was not a successor in title to the original lessee given the surrender and regrant.