The Building Societies (Prescribed Equitable Interests) Order 1997

Protection of contracts

7.—(1) In relation to the third type of equitable interest, the building society or the subsidiary undertaking must be satisfied when accepting it as security for a loan that, where the contract is a contract for the development of—

(a) land in England and Wales, the requirements of paragraph (2) below, and

(b) land in Northern Ireland, the requirements of paragraph (3) below,

will be satisfied in respect of that contract.

(2) The requirements of this paragraph are satisfied in respect of a contract for the development of land if—

(a) where the land is not registered land, the contract is protected by being registered as an estate contract under the Land Charges Act 1972(1), and

(b) where the land is registered land, the contract is protected by registration of a notice or entry of a restriction under Part IV of the Land Registration Act 1925(2).

(3) The requirements of this paragraph are satisfied in respect of a contract for the development of land if—

(a) where the land is not registered land, the contract is protected by being registered in the Registry of Deeds maintained in Northern Ireland under the Registration of Deeds Act (Northern Ireland) 1970(3), and

(b) where the land is registered land, the contract is protected by entry of a burden under Part IV or lodgement of a caution or entry of an inhibition under Part VII of the Land Registration Act (Northern Ireland) 1970(4).

(1)

1972 c. 61.

(2)

1925 c. 21.

(3)

1970 c. 25 (N.I.).

(4)

1970 c. 18 (N.I.).