Kingsnorth Finance Co Ltd v Tizard
In unregistered land, a lender had constructive notice of a wife's beneficial interest, because its surveyor's inspection should have led to further inquiries.
Facts
Mr Tizard held the legal title to the matrimonial home, but his wife had a beneficial interest in it. After the marriage broke down, Mrs Tizard slept elsewhere but came to the house every day to look after the children, and kept her clothes there. Mr Tizard applied for a mortgage, describing himself as single. The lender's surveyor inspected the house on a Sunday afternoon, at a time arranged by Mr Tizard, and saw signs of children but not of Mrs Tizard. Mr Tizard then left the country with the loan money.
Legal principle
Judge Finlay QC held that the lender had constructive notice of Mrs Tizard's interest and was bound by it. The land was unregistered, so the question was whether the lender had notice. Mrs Tizard was in occupation, and the surveyor's inspection, which revealed evidence of children, should have led to further inquiries, since the presence of children was inconsistent with Mr Tizard's description of himself as single. The surveyor's knowledge was imputed to the lender.
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
- Hodgson v Marks [1971] Ch 892
- Link Lending Ltd v Bustard [2010] EWCA Civ 424
- Malory Enterprises Ltd v Cheshire Homes (UK) Ltd [2002] EWCA Civ 151, [2002] Ch 216
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