Midland Bank v Green [1981] AC 513

House of Lords

Basic Facts: G had an option to purchase land but failed to register it. W colluded with E to defeat G’s option by selling the land for £500.

Issue for the Court: What is the effect of bona fide purchaser status and lack of registration?

Held: The court determined that equitable interests in a property should be determined by considering the whole course of dealings between the parties, not just contributions to the purchase price.

• Lord Wilberforce explained that bona fide purchaser status requires both lack of notice and good faith. Lack of registration can be defended without proving good faith, as the legislative intention was to avoid inquiries into motives.