Land Law- Please Help!!
The following question has confused me, we have to see whether third party rights are enforceable against the purchaser
Mary and Martin held the registered freehold title to their factory. Two months ago they sold the freehold title to the factory to Alex for £30 million.
In 2016 Martin and Mary told Martin's brother Jonny, that if he cleared their mortgage debt over the factory to the tune of £75,000 and refurbished the factory, Tony could have a 20% stake in the factory. Jonny immediately took up permanent residence at the factory, cleared the mortgage debt and refurbished the factory.
This right was not registered. Is it enforceable against Alex?
I cant decide if it is a beneficiary interest behind a trust or not, because the overreaching obligations don't really seem to apply.If someone could help that would be great! Many thanks.
Mary and Martin held the registered freehold title to their factory. Two months ago they sold the freehold title to the factory to Alex for £30 million.
In 2016 Martin and Mary told Martin's brother Jonny, that if he cleared their mortgage debt over the factory to the tune of £75,000 and refurbished the factory, Tony could have a 20% stake in the factory. Jonny immediately took up permanent residence at the factory, cleared the mortgage debt and refurbished the factory.
This right was not registered. Is it enforceable against Alex?
I cant decide if it is a beneficiary interest behind a trust or not, because the overreaching obligations don't really seem to apply.If someone could help that would be great! Many thanks.
(edited 6 years ago)
Original post by username3739346
The following question has confused me, we have to see whether third party rights are enforceable against the purchaser
Mary and Martin held the registered freehold title to their factory. Two months ago they sold the freehold title to the factory to Alex for £30 million.
In 2016 Martin and Mary told Martin's brother Jonny, that if he cleared their mortgage debt over the factory to the tune of £75,000 and refurbished the factory, Tony could have a 20% stake in the factory. Jonny immediately took up permanent residence at the factory, cleared the mortgage debt and refurbished the factory.
This right was not registered. Is it enforceable against Alex?
I cant decide if it is a beneficiary interest behind a trust or not, because the overreaching obligations don't really seem to apply.If someone could help that would be great! Many thanks.
Mary and Martin held the registered freehold title to their factory. Two months ago they sold the freehold title to the factory to Alex for £30 million.
In 2016 Martin and Mary told Martin's brother Jonny, that if he cleared their mortgage debt over the factory to the tune of £75,000 and refurbished the factory, Tony could have a 20% stake in the factory. Jonny immediately took up permanent residence at the factory, cleared the mortgage debt and refurbished the factory.
This right was not registered. Is it enforceable against Alex?
I cant decide if it is a beneficiary interest behind a trust or not, because the overreaching obligations don't really seem to apply.If someone could help that would be great! Many thanks.
It seems to me that there are 3 stages to this. First you must decide if Johnny does have a beneficial interest in the property (If not, there is no right to be enforced following sale). OIn the facts he clearly does but you must justify this conclusion by reference to relevant cases. The next issue is whether his proprietary interest can override under Schedule 3, para 2? If yes, the final issue is whether the overriding interest has been overreached?
I hope this helps.
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