Hodgson v Marks
A person in actual occupation may have an overriding interest even though the vendor also lives in the house and their presence is not obviously inconsistent with the vendor's title.
Facts
Mrs Hodgson, an elderly widow, transferred her house to her lodger, Mr Evans, on the understanding that she would remain the beneficial owner. She continued to live there. Mr Evans, who was registered as proprietor, sold the house to Mr Marks, who mortgaged it to a building society. Mr Marks made no inquiry of Mrs Hodgson.
Legal principle
The Court of Appeal held that Mrs Hodgson's beneficial interest was an overriding interest under section 70(1)(g) of the Land Registration Act 1925, because she was in actual occupation, and it bound Mr Marks and the building society. Russell LJ said that the purchaser could not escape by showing that her occupation appeared consistent with the vendor's title. The burden was on the purchaser to make inquiries of everyone in occupation.
Related cases on registered and unregistered land
- Abbey National Building Society v Cann [1991] 1 AC 56
- Baxter v Mannion [2011] EWCA Civ 120, [2011] 1 WLR 1594
- Chhokar v Chhokar [1984] FLR 313
- City of London Building Society v Flegg [1988] AC 54
- Ferrishurst Ltd v Wallcite Ltd [1999] Ch 355
- Kingsnorth Finance Co Ltd v Tizard [1986] 1 WLR 783
- Link Lending Ltd v Bustard [2010] EWCA Civ 424
- Malory Enterprises Ltd v Cheshire Homes (UK) Ltd [2002] EWCA Civ 151, [2002] Ch 216
Studying land law? Our tutors help you understand and apply cases like this in essays, problem questions and exams. Request a quote or browse our law notes.
This summary is for study and revision and is not legal advice. Although our case summaries are checked for accuracy, we do not guarantee that they are free from errors or omissions. Always read the full judgment for the court's reasoning.
