InkElites LMS

Bona Fide Purchaser for Value Without Notice

EQUITY & TRUST | Page 4 of 8
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3. LEGAL ESTATE: The doctrine requires that the purchaser must have obtained a legal estate. Having obtained the legal estate for value without notice, the pur- chaser takes free from all prior equities affecting the property. See the following cases Cole Folami (1956) 1 F.S.C. 66; Okunubi v. Assaf (1951) 13 WA.C.A. 226; Johnson v. Onisiwo (1943) 9 W.A.C.A. 189. The position may be constrasted with that of the pur- chaser of an equitable interest for value without notice of prior equities. In this case, the temporal order of priority applies; provided the equities are equal. See the following: As- saf v. Fuwa (1954) 13 W.A.C.A. 232; Phillips v. Phillips (1862) 4 De G.F. & J. 208; Cave v. cave (1880) 15 Ch.D.639. The strength of the doctrine lies in the acquisition of the legal estate. See Soremekun v. Sodipo (1959) L.L.R. 32. If the purchaser is in the process of acquiring the legal estate at the time he receives notice of prior equitable interest affecting the property, he will be bound by such inter- est The position is the same even if the purchaser has completed negotiation and offered or paid the purchase money but the legal estate has not been conveyed to him. See Allen v. Knight (1846) 5 Hare 272. Modifications The emphasis on the acquisition of the legal estate is however subject to qualifications. Better or Superior right to Legal Estate: Where a purchaser acquires an equitable interest without notice of the prior equitable interest affecting the property, and he, by virtue of his equitable interest, subsequently acquires a superior right to call for the legal estate, he takes precedence over the prior equitable interest. Acquisi- tion of a superior right to legal estate may arise where a third party without notice of the