The appellant purchased a property formerly owned by a library board, which was subject to a registered restrictive covenant prohibiting commercial use.
The registered covenant failed to identify the benefitted lands, rendering it legally unenforceable.
The respondent, owner of the adjacent lands, successfully applied to a motion judge to rectify the Land Titles Registry to include the benefitted lands.
On appeal, the Divisional Court set aside the rectification, holding that the appellant was a bona fide purchaser for value without actual notice of the benefitted lands.
The court emphasized that constructive notice is insufficient to defeat a registered interest under the Land Titles Act, and the appellant was entitled to rely on the registry's mirror and curtain principles.