Enforceability of Third Party Interest in the Registered System - General rule under section 29 LRA 2002 for binding a purchaser - Interests of beneficiaries under trusts of land (trust interests)
3 important questions on Enforceability of Third Party Interest in the Registered System - General rule under section 29 LRA 2002 for binding a purchaser - Interests of beneficiaries under trusts of land (trust interests)
How/where should an interest of BIUT be recorded under (s40 LRA 2002) as the interests are not protected by a notice?
Should be recorded as a restriction (LRA 2002, s 40) in the proprietorship register of the owner's title.
Even if the restriction is recorded on the register, explain how the BIUT may be overreached by the purchaser (LPA 1925, ss 2, 27)?
The registration will alert the buyer to overreach:
- The buyer pays the purchase money to at least two trustees (LPA 1925, ss 2, 27).
What happens if the buyer fails to overreach the BIUT under (LPA 1925, ss2, 27)?
If the buyer fails to overreach, they will be prevented from being registered as the new owner.
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