Which register entry would relate to an equitable interest?

• A. A notice relating to a restrictive covenant
• B. A mortgage charge
• C. A lease
• D. A transfer of equity

Answer: (A)

Equitable interests in land are protected on the title by a notice, so anyone looking at the register is warned about rights that exist in equity and bind the land regardless of who holds the legal title. A restrictive covenant creates such an equitable benefit—the person who has the benefit of the covenant holds an equitable right in relation to the land. To secure that right on the register and ensure it is enforceable against future owners, a notice is entered on the title. That makes the entry relating to a restrictive covenant the one that corresponds to an equitable interest.

The other entries relate to different kinds of interests. A mortgage charge records a loan secured on the property as a legal charge. A lease records a tenancy in the land, usually a legal estate. A transfer of equity describes changing who holds the beneficial ownership, not a register entry that itself reflects an equitable interest.