Overreaching, mortgages and informal acquisition Flashcards
(9 cards)
1
Q
What is overreaching
A
When beneficiary rights can be lost.
- If money is paid to two trustees, the beneficiaries land rights get wiped
- Instead they get a right to money, not to property.
2
Q
What act establishes beneficiaries get a right to money and not property when overreaching
A
- Section 27 law of property act 1925
3
Q
What actions can lenders take
A
- Lenders can get court order for sale (s.14 trusts of land and appointment of trustees act).
- Lenders can bankrupt borrower to force a sale established in slayford
4
Q
Do you own a property before the mortgage happens
A
When buying a property, you never own the property before the mortgage, they happen at the same time. - Abbey national v Cann
5
Q
Do the mortgage lenders rights come first
A
Yes, they come first unless there is an exception - Scott v Southern pacific.
6
Q
What is informal acquisition about
A
- How someone gains equitable/beneficial interest over land without formal legal documentation
7
Q
What is common intention construction trust in informal acquisition
A
- Where people agree or behave like they share ownership
- Established in Stack v Dowden - If parties acted if it was jointly owned.
8
Q
What is resulting trust in informal acquisition
A
- When someone contributes to purchase price without agreement
-If A pays part of the price but title is in b’s name, court presumes A has a share
9
Q
What is propriety estoppel in informal acquisition
A
- If someone relies on promises and suffers loss.
-E.g., Im giving you this one day
-If they rely on the promise and suffer loss (their detriment)
-Established in Major v Thorner.
