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Kettlewell v Watson

(1884) 26 Ch D 501, 53 LJ Ch 717, 32 WR 865, 51 LT 135

Court: CA

Judgment Date: circa 1884

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LIEN - EQUITABLE LIEN - EXTINCTION OF EQUITABLE LIEN - UNPAID VENDOR - OF LAND - BY WAIVER - IN GENERAL - LAND IN REGISTER COUNTY - OMISSION TO REGISTER MEMORIAL - PURCHASERS ALLOWED TO RESELL

A vendor of land in a register county, part of whose purchase-money remains unpaid, is under no obligation to register a memorial of the vendor's lien, but is entitled to rely on his equitable lien against sub-purchasers who have notice of it actual or constructive. A purchaser of land in a register county is bound to inquire for and examine the deeds and documents memorials of which are registered. Land belonging to the trustees of a charity, in Y, was sold by the trustees to R and W, who were estate agents, and bought the land with the intention of selling it in lots for building purposes. Part of the purchase-money remained unpaid, and the vendors retained this deed of conveyance in their possession, but, at the request of the purchases, the vendors' solicitor registered a memorial of it in the Y registry. The vendors took no written security for unpaid purchase-money but relied on their equitable lien. R and W sold the land again in lots. P, one of the sub-purchasers, who took a mortgage on a small lot, made no inquiries himself, but left it, as he said, to R and W, to 'manage the whole business' for him, and they prepared the conveyance to him. The original vendors having brought an action to enforce their lien for the unpaid purchase-money against some of the sub-purchasers: Held (1) there was no obligation on the original vendors to register a memorial of the vendor's lien. Quaere: whether the neglect of the sub-purchaser to search the register and inquire for the deed affected them with constructive notice of plaintiffs' lien. But the court being convinced on the evidence that the vendors knew that R and W wanted the deed of conveyance registered for the purpose of selling, and that they did sell, the land in lots, and that by their conduct in registering the deed they had led the sub-purchasers to believe that R and W had power to dispose of the land as absolute owners; (2) the vendors had waived their lien and could not enforce it against the sub-purchasers.

MORTGAGES - CLASSIFICATION OF MORTGAGES - REGISTERED CHARGES ON LAND - UNDER REGISTRATION ACTS - REGISTRATION IN YORKSHIRE - WHAT CHARGES MUST BE REGISTERED - VENDOR'S LIEN

A vendor of land in a register county, part of whose purchase-money remains unpaid, is under no obligation to register a memorial of the vendor's lien, but is entitled to rely on his equitable lien against sub-purchasers who have notice of it, actual or constructive.

MORTGAGES - PRIORITY OF MORTGAGEES - FAILURE TO GAIN OR LOSS OF PRIORITY - BY CONDUCT - IN RELATION TO TITLE DEEDS - POSTPONEMENT OF UNPAID VENDOR - PURCHASER OBTAINING TITLE DEEDS - MORTGAGE BY PURCHASER - RECEIPT ENDORSED ON TITLE DEEDS - CONDUCT OF AGENT OF VENDOR

Trustees of a charity, with the sanction of the Charity Commissioners, sold a piece of land in Yorkshire to R and W. A receipt for the whole of the purchase-money was indorsed on the conveyance, but part of it was allowed to remain unpaid. On the application of R and W the conveyance was registered, but the deed was retained by D, the solicitor and agent of the trustees, who was authorised to receive the unpaid purchase-money, as security for it. The piece of land was cut up into building plots by R and W and sold to various sub-purchasers. One plot was granted by R and W to one of their clerks, who mortgaged it to P, who had no actual notice of the trustees' lien; he did not employ any solicitor to act for him, but left it to R and W to manage the business for him. Another plot was granted to the same clerk, who, after raising a sum on mortgage on it, sold the equity of redemption to O. The clerk was a nominee of R and W, they failed to pay the purchase-money: Held the trustees had by the conduct of their agent D induced the purchasers to believe that R and W had power to deal with the different plots, and they had thereby lost their lien.

SALE OF LAND - COMPLETION - ENROLMENT, ETC, STAMPS AND NOTICES - WHAT MUST BE REGISTERED - VENDOR'S LIEN

A vendor of land in a register county, part of whose purchase-money remains unpaid, is under no obligation to register a memorial of the vendor's lien, but is entitled to rely on his equitable lien against sub-purchasers who have notice of it actual or constructive. Land belonging to the trustee of a charity, situated in the West Riding of Yorkshire, was sold by the trustee to R and W, who were estate agents, and bought the land with the intention of selling it in lots for building purposes. Part of the purchase-money remained unpaid, and the vendors retained the deed of conveyance in their possession, but, at the request of the purchasers, the vendor's solicitor registered a memorial of it in the West Riding registry. The vendors took no written security for their unpaid purchase-money, but relied on their equitable lien. R and W sold the land again in lots. P, one of the sub-purchasers, who took a mortgage on a small lot, made no inquiries himself, but left it, as he said, to R and W to 'manage the business' for him, and they prepared the conveyance to him. The original vendors having brought an action to enforce their lien for the unpaid purchase-money against some of the sub-purchasers: Held there was no obligation on the original vendors to register a memorial of the vendor's lien.