Ratio Decidendi
A person in actual occupation of registered land has an overriding interest that binds a purchaser, even if the purchaser did not know of the occupation. A spouse who has contributed to the purchase price and is in actual occupation has a beneficial interest that constitutes an overriding interest.
Fakty
Mr Boland was the sole registered proprietor of the family home. His wife had made substantial contributions to the purchase price. Mr Boland mortgaged the property to the bank without his wife's knowledge. When he defaulted, the bank sought possession. Mrs Boland argued her beneficial interest, coupled with actual occupation, gave her an overriding interest binding on the bank.
Podsumowanie orzeczenia
The House of Lords held that Mrs Boland had a beneficial interest under a trust arising from her financial contributions, and that her actual occupation of the property gave her an overriding interest under s.70(1)(g) of the Land Registration Act 1925 (now Schedule 3 of the LRA 2002). The bank was bound by her interest and could not obtain possession of her share.
Kluczowe cytaty
"The provision for overriding interests assumes that there may be matters which the register does not or cannot disclose, and that a purchaser will be bound by these even though they are not on the register."
— Lord Wilberforce
Późniejsze zastosowanie
A leading authority on overriding interests in registered land, now governed by Schedule 3 of the Land Registration Act 2002.