Problem
Land Transfer: Fraud
Jonathan owned a house in Nelson. Access to his neighbour's house was quite possible, but not very easy, without the use of a right of way over Jonathan's land. There was such a right of way over Jonathan's land but it was not registered. Later, Brad offered to buy Jonathan's property, for a generous amount. Jonathan raised the issue of the right of way out of concern for the neighbour's rights and Brad assured them that he would "look after the neighbour" if Jonathan sold him, Brad, the property. The offer was accepted and Brad moved into his new house three months later. A year later Brad became restless about the right of way, which he had allowed to continue as promised, and decided to terminate it. After speaking to a lawyer about the legal status, but not the history, of the right of way, Brad wrote to the neighbour and advised him that he, Brad, no longer considered himself bound by the right of way because "I have spoken to a lawyer and she says unregistered interests do not bind a bona fide purchaser for value".
The neighbour comes to you for legal advice. What are the neighbour's rights in relation to the right of way? In your answer, explain what "unregistered interests do not bind a bona fide purchaser for value" means and how this applies, or does not apply, in this situation. Give full reasons for your answer and cite relevant statute and case law.