Reference no: EM133277281
In January 2021, Isla purchased 'HM Mansion', a two-storey bungalow which comes with a detached garage and a garden from Sir Lockwood. The title to the land has always been registered. In fact, prior to purchasing the property, she exercised her due diligence to inspect the land if the land had been adequately maintained. The sale and purchase agreement between Isla and Sir Lockwood was duly executed before Sir Lockwood moved to Bali, Indonesia.
In February 2021, when Isla first moved into 'HM Mansion', she was shocked to find Lalissa, a housekeeper, claiming that she has a five-year lease to occupy the detached garage. When Isla checked the garage, she was surprised to see that the interior of the garage does not look like a garage but a well-furbished room. Isla admitted that when she saw the detached garage from afar, she assumed that it was a garage. She did not expect that someone could have converted the garage into a living space. Lalissa also showed Isla a document which is written and signed in a deed form that states her right to occupy in the detached garage.
In March 2021, Isla found out that Martha, who is Sir Lockwood's estranged wife, has recently returned from Copenhagen where she spent three years completing her thesis. Martha has no knowledge of the sale of 'HM Mansion'. She is beyond belief to comprehend that Sir Lockwood has sold the house without informing her. Martha broke down in tears, crying in front of Isla telling her that she has been married to Sir Lockwood for 20 years and she has been accommodating her estranged husband's behaviour for years. She decided to pursue a doctoral degree because she needs a time-off from the husband but she did not expect that her own husband would sell the house without notifying her. Martha insists that she has a right over 'HM Mansion' especially when she has been maintaining the house since they were married.
In April 2021, Isla received a letter of demand from Tadaa Bank expressing their intention to exercise their right to possession and sale because Sir Lockwood has failed to keep up with his mortgage repayments since December 2020. When Isla inquired about the legal charge, Tadaa Bank showed a signed document which indicates that Tadaa Bank has a charge as a security of a loan of GBP 500,000 provided to Sir Lockwood.
Due to sudden high blood pressure, Isla fainted upon reading the document. An ambulance arrived and took her to Saint Me Hospital. She was admitted to the hospital for five days. Upon discharge, she immediately went to see you to seek advice about her situation.
Advise Isla about her legal position in relation to any claims made by Lalissa, Martha and Tadaa Bank. Indicate how your answer would differ if unregistered land law principles could still govern both title to and the claims to rights over the 'HM Mansion.'