- The Lapins executed a transfer of Torrens title land to Mrs Heavener as security for a loan.
- The Lapins did not put a caveat on the title.
- Mrs Heavener then mortgaged the property to the Abigails and absconded with the money, however the mortgage was not registered by the Abigails.
- Which party had the better equitable interest?
- The Abigails’ interest had priority, even though the general rule is the first equitable interest succeeds unless there is good reason not to.
- This is because the Lapins “armed” Mrs Heavener by not putting a caveat out on the property, even though a caveat is not compulsory.
The full text is available here: https://jade.io/summary/mnc/1934/UKPCHCA/1
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