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    Im confused what kind of rights and interest someone would have if they have agreed to lend a sum of money to help someone out, but lent the money on condition that they could have a share of the farm if it was sold... this is on registered land.

    could this be binding on a future purchaser?

    My thoughts were it would be a beneficial interest in the property that could be be protected by a notice or a restriction on the land register. is this correct?
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    No, and you're about the 100th person to ask this question this month.

    Take a step back and forget about third parties and the land register and anything else for a moment. Suppose that there are only two parties, B the borrower and L the lender. I hope you agree that the supposed agreement is not even remotely certain enough to amount to a contract since the 'share of the land' that L is to receive is not defined. I hope you also agree that the supposed agreement is not even remotely certain enough to found a proprietary estoppel.

    That should lead you to the answer - L has absolutely no interest in the land, so he can't register it, and it doesn't matter what third parties come into the story, and he can't obtain an injunction to prevent B selling, and you don't need to worry about whether the form of the agreement complied with s 2(1) LP(MP)A 1989, or anything else.

    I don't quite understand why all of the above isn't completely obvious?
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    I completely understand your explanation - thank you

    So just to clarify, contributing a sum of money for the up keep of a farm for instance, would not create any interests or rights over the farm or any future purchasers?


    (Original post by Forum User)
    No, and you're about the 100th person to ask this question this month.

    Take a step back and forget about third parties and the land register and anything else for a moment. Suppose that there are only two parties, B the borrower and L the lender. I hope you agree that the supposed agreement is not even remotely certain enough to amount to a contract since the 'share of the land' that L is to receive is not defined. I hope you also agree that the supposed agreement is not even remotely certain enough to found a proprietary estoppel.

    That should lead you to the answer - L has absolutely no interest in the land, so he can't register it, and it doesn't matter what third parties come into the story, and he can't obtain an injunction to prevent B selling, and you don't need to worry about whether the form of the agreement complied with s 2(1) LP(MP)A 1989, or anything else.

    I don't quite understand why all of the above isn't completely obvious?
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    (Original post by ChocoRaisans)
    I completely understand your explanation - thank you

    So just to clarify, contributing a sum of money for the up keep of a farm for instance, would not create any interests or rights over the farm or any future purchasers?
    It depends on the circumstances of the contribution. It is *possible* that it could give rise to an interest under a constructive trust, in the same way that contributions to a family home can give rise to a constructive trust of the home.

    But I'm not sure I understand the relevance of that here. The transaction is described as a loan, i.e. the capital sum is repayable. I doubt very much that such an arrangement could ever give rise to a constructive trust or any other right over a property even if the borrower said that they intended to expend the capital on the property. (Of course, often a lender will take a charge over the property but there is no indication of that here).
 
 
 
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