Chaudhary v Yavuz [2011] EWCA Civ 1314 (22 November 2011)

Chaudhary v Yavuz [2011] EWCA Civ 1314 (22 November 2011)

An equitable easement or right of way not protected by registration or actual occupation is not binding on a purchaser under the Land Registration Act 2002. The mere discoverability of the right by inspection or general words in the contract does not impose a constructive trust or new obligation on the purchaser. The claimant's rights were not overriding interests nor binding by constructive trust.

Citation
[2011] EWCA Civ 1314
Parties
Claimant/respondent: Shamim Chaudhary; Defendant/appellant: Huseyin Yavuz
Jurisdiction
England and Wales
Judgment Date
22 November 2011
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Appeal From Central London County Court
Outcome
Appeal allowed; injunctions and declarations in favour of the claimant set aside.
Legal Topics
Easements, Proprietary Estoppel, Constructive Trusts, Overriding Interests, Land Registration Act 2002
Property Law Land Registration Easements Proprietary Estoppel Constructive Trusts Overriding Interests Land Registration Act 2002

Case Brief

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Parties

Shamim Chaudhary

Claimant/respondent

Huseyin Yavuz

Defendant/appellant

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Appeal From Central London County Court

Legal Issues

  1. 1 Whether an informal, unregistered equitable easement or right of way is binding on a purchaser under the Land Registration Act 2002
  2. 2 Whether the claimant's right was an overriding interest by virtue of actual occupation
  3. 3 Whether the purchaser is bound by a constructive trust due to the terms of the contract and the circumstances of purchase

Ratio Decidendi

An equitable easement or right of way not protected by registration or actual occupation is not binding on a purchaser under the Land Registration Act 2002. The mere discoverability of the right by inspection or general words in the contract does not impose a constructive trust or new obligation on the purchaser. The claimant's rights were not overriding interests nor binding by constructive trust.

Court Disposition

Appeal allowed; injunctions and declarations in favour of the claimant set aside.

Orders

  • The claimant's rights are not binding on the defendant as purchaser.
  • Injunctions and declarations granted by the lower court are set aside.