Green Acres

In this essay, issues on equitable interests, fixtures and chattels and finder’s rights will be analysed. Carol will be then advised accordingly.

Primarily, we need to establish whether Carol has any interests as per s1(2) LPA 1925. Carol contributed to the purchase, she has an equitable interest in the property as per s1(3) LPA 1925. She also has an interest under a constructive trust or resulting trust as in Gissing v Gissing.

Secondly, we need to discuss whether Carol will have priority over the mortgages in relation to Green Acres (GA). Starting with Prestown Bank’s (PB) mortgage, since this is an acquisition mortgage we need see whether Carol’s interest is overreached under s2 and s27 LPA 1925 which states that overreaching applies to

The mirror principle allows the purchaser to see the state of the title of the property he is buying in terms of rights and interests except from overriding interests. Overriding interests under LRA 2002 prevail over the sale of land and remain binding upon the purchaser, irrespective of their discoverability. To have an overriding interest, the conditions of schedule 3 para.2(1) LRA 2002 have to be satisfied; there must an interest in the property at the time of disposition, the interest is disclosed on reasonable enquiry;

However, since Parker v British Airways Board, the finder of a chattel who was not a trespasser acquired the object if the landowner did not intend to have sufficient control over the land; “finders keepers”. That being said, the finder must also take all reasonable steps to find the true owner.

Carol and Tim are unlikely to be trespassers as stately homes are likely to allow visits. The history of Estate back page states that any items found by visitors will be the property of the owners of the home, so they could argue that they had certain control over the property. Furthermore, there is no evidence to show that Carol and Tim took reasonable steps to find the true owner of the coins. Hence, it seems that the Estate will have a better claim.

As for the coins found, the s1 TA 1996 defines a treasure as any object at least 300 years old and has a 10% content of gold or silver and when found, is one of at least two coins …”. If the coins fulfill the requirement above, then it will belong to the Crown as per s4 TA 1996 and Case of Mines. It could be argued that the coins are treasures. If not, then the coins belong to the crown. Hence, it is unlikely that Carol and Tim will be entitled to keep the coins they found, however it remains at the court’s discretion to decide