Amarjit was the owner of a freehold property known as Ashdown Farm, title to which was unregistered when he purchased it in 1988. The purchase did not trigger first registration at the Land Registry as the area that Ashdown Farm was located in did not become a compulsory registration area until December 1990.
In 2005, Amarjit granted his son, Sabeer, an option to purchase Oak Cottage, which was part of Ashdown Farm. The option was for a period of twenty years from 2005. The option agreement was in writing and signed by both parties. The document provided that the option could be exercised by the service of a notice by Sabeer to Amarjit.
A couple of years later, Amarjit and Sabeer quarrelled and, without Sabeer’s knowledge, in 2009, Amarjit sold Oak Cottage to his brother, Caleb. The purchase price Caleb paid for Oak Cottage was about half its market value. Caleb was fully aware of the option granted in favour of Sabeer. Caleb later sold Oak Cottage back to Amarjit.
Last year, Amarjit’s farm got into difficulties and his other brother, Daksha (who was in Australia at the time), agreed to lend him a sum of money to help him out. He lent him the money on condition that he could have a share of the farm if it was sold.
Notwithstanding the loan, Amarjit’s business continued to struggle and he has now decided to sell the farm to a neighbouring farmer, Edwin.
He explains to Edwin all that has happened to the land and Edwin now seeks your advice as to whether he will be bound by any right or interest Sabeer or Daksha may have and, if he is, if there is any way he could avoid these.
...we were on a break