Mallory v Cheshire Homes [2002] 3 WLR 1

In this case, a company fraudulently sold and transferred land to Cheshire Homes who were then registered as the legal proprietors. The issue was if the original owners had overriding interest in the land under s.82(3) of the 1925 Act.

Held: Since the transaction was fraudulent and Cheshire homes was on the register, they remained on the title but were deemed to be holding on trust the property for the previous owner who was defrauded. Thus, only the former legal interest has been passed on and not the equitable. The fraud voided any transfer of the equitable interest. This was decided under the 1925 LRA. Accordingly, conclusiveness of register existed only in relationship to legal title but not equitable interest.

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