Knight v Fernley: Motivation For Registration

The High Court has recently handed down their judgment in Knight v Fernley and another [2021] EWHC 1343 (Ch) which concerns the consequences of a purchaser failing to register their interest with the Land Registry.

The judgment applies the well-established principle that following the sale of registered freehold land, the legal estate remains vested in the seller until the purchaser is registered as the proprietor at the Land Registry. Until then, only the equitable  (i.e. beneficial) interest in the property passes to the purchaser.

The judgment also serves as an important reminder of doctrine of 'overreaching'. The reasons behind this doctrine are technical but its practical effect is that someone who purchases property for capital from at least two trustees cannot have their legal interest in the property overridden by an occupier of the property or anyone else with an equitable interest in the property.