Equitable Interest and Overriding Interest in Land Law

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Business Law Assignment
Individual Assignment
03-Dec-17
(Student Details: )

2 Business Law Assignment
Introduction
Equitable interest is a concept which covers an interest held by a person due to the virtue
of equitable title, or something which is claimed on equitable grounds, and an example of this is
the interest of beneficiary interest (Atkins, 2015). This equitable title shows the beneficial
interest which is held in the property, as a result of which the holder has the right of acquisition
of the formal legal title. The right in equity is formed through the equitable interest protected
through the equitable remedies (Moffat, Bean & Probert, 2009). The given case study revolves
around this concept and the ones associated with it.
Part 1
Issue
The defendant in the case study was Jane and the plaintiff would be the bank. The main
issue stems from the legal rights which are available with Jane for the apartment given in the
case study. The legal rights here are available as a result of the possibility of a case of eviction
being brought by bank against Jane.
Rule
Overriding interest refers to the general rules related to conveyancing under the land law.
This requires the rights and interests regarding a piece of land to be written on register, which in
turn enables the entry on the land (Dixon, 2016). Williams & Glyn’s Bank v Boland [1981] AC
487 was a case in which the house was solely registered in the name of husband and the wife had
made significant contributions towards the payment of mortgage and purchase price as a result of

3 Business Law Assignment
which she was entitled to the beneficial interest of the house. The husband took the loan on
house and defaulted in making payments. Upon the bank claiming the possession of house, the
wife claimed overriding interest due to the beneficial interest. The court held that as a result of
the actual occupation of wife, she did hold the beneficial interest which was overriding. As a
result of this, the claim of the bank became unsuccessful (E-Law Resources, 2017a).
In Gissing v Gissing [1971] AC 881, there was a lack of declaration regarding the trust
which implied the presence of constructive trust. The court held that where as a result of the
inducement of trustee, another individual acted in their own detriment, a beneficiary interest in
land would again be attained (E-Law Resources, 2017b).
Eves v Eves [1975] 1 WLR 1338 saw the claimant and defendant being in a relationship,
where the claimant was impregnated and the promise was made by the defendant to marry the
claimant upon divorcing his first wife. The two bought a home but the same was in the
defendant’s name only. There was no contribution of the claimant in a direct manner towards the
house’s purchase price; though she had carried on the majority work at this home. After the
divorce was completed and the duo had another child, the defendant refused to marry the
claimant. As a result of another woman, he left the claimant. This led to the Court of Appeal
holding that the claimant had the right to get one quarter of the beneficial inertest as a result of
operation of constructive trust in this case (E-Law Resources, 2017c).
Through the concept of proprietary interest, a proprietary interest in land is created
particularly when the standard formalities are not present. The operation of this is on the
unconscionable behaviour for awarding the interest in land as a remedy, in such cases where the
denial of entitlement of the claimant would be unconscionable in the eyes of law (Wilken &