Peffer v Rigg [1977]

On breakdown of marriage, husband made registered transfer
of house to his wife for £1.
But, as wife aware, house had been purchased jointly
between Mr P (her brother-in-law) and her husband.
Husband held legal title on trust for himself and Mr
P, under formal trust deed.
But Mr P’s interest not protected in register.
Clear that wife did not purchase in good faith.
Must purchasers be in good faith in order to take
advantage of protection in ss20&59 of LRA1925?
s20 contains no ref to good faith.
s59(6) speaks of a ‘purchaser’ being unaffected by
notice of unprotected minor interests.
But s3 defines a ‘purchaser’ as a purchaser in good faith for valuable consideration.
Graham J held this means a purchaser not in good faith
is bound, despite purported protection of s20.
Mr P granted a declaration of a half-share in
property.