LEGAL PRINCIPLE: LAND LAW – Equitable Interest – Acquisition of Equitable Interest in Land – Protection Against Purchaser for Value Without Notice
PRINCIPLE STATEMENT
By these two factors it is to be presumed that she entered into the property not as a trespasser but under a contract of sale. This being so, she has acquired an equitable interest in the land which may be converted into a legal estate by specific performance; it can only be defeated by a purchaser of the land for value without notice of the prior equity: See Ogunbambi v. Abowab (supra); Obijuru v. Ozims (1985) 2 NWLR (pt. 6) 167.
RATIO DECIDENDI (SOURCE)
Per Katsina-Alu, JSC, in Elema & Anor v. Akenzua (2000) NLC-371995(SC) at p. 11; Paras C–D.
"By these two factors it is to be presumed that she entered into the property not as a trespasser but under a contract of sale. This being so, she has acquired an equitable interest in the land which may be converted into a legal estate by specific performance; it can only be defeated by a purchaser of the land for value without notice of the prior equity: See Ogunbambi v. Abowab (supra); Obijuru v. Ozims (1985) 2 NWLR (pt. 6) 167."
EXPLANATION / SCOPE
Where a person enters land under a contract of sale, they acquire an equitable interest—not legal title but a right enforceable in equity. This interest can be converted to legal estate through specific performance. Such equitable interest is protected against all except a bona fide purchaser for value without notice of the prior equity. The protection is strong: a subsequent purchaser with notice, actual or constructive, takes subject to the prior equitable interest. This principle balances protection of equitable rights with the need for certainty in land transactions.