competetion of title Flashcards
prior tempore potior juire
the person who is first to obtain the real right prevails over all other competitors
burnetts trss v grainger
the person who is first to obtain the real right prevails over all other competitors:
“nice guys finish last and don’t get the real right”
offside goals rule
sometimes the person who completes the title fist is DQ
LORD JUSTICE CLERK THOMSPON OFFSIDE GOALS RULE
the appelents aaumed that their title would be safe once the goal of the reg house was reached. BUT in this area of the law as in football offside goals are disallowed
when is the grant of a real right is voidable?
if and ONLY IF:
the grant is in breach of the terms express/ implied of an obligation on the granter. normally obl is between granter and third party BUT may alsop be delivered as part of the conveyance or trust. breach of warrandice in contract of sale
the obligation must pre date any right to grant, personal/ real in the grantee
the obl must include an element of a real right. the offside goals rule is about competion of title
the grantee must either know of the personal right at the time of obtaining his real right or be done contructive knowledge counts
what is the danger associated with insolvency associated with one of the parties
the sale involves an exchange of assets.
if the transaction was similtaneos then there would be no risk.
but as often somone can be left with the price and the property. if that person goes insolvent then the property will be ceased by the creditors.
if either the disp has not been reg to stae that x is the new ownwer
or the transaction for the price has not gone through yet to pay y. OFFSIDE GOALS RULE DOES NOT APPLY TO COMPETETION WITH CREDITIORS
what is the way to protect youself from issues associated insolvency from one of the parties
sharp v Thompson. HL- upgraded the personal right of the buyer to a quasi-real right
what is the way to protect youself from issues associated insolvency from one of the parties
sharp v Thompson. HL- upgraded the personal right of the buyer to a quasi-real right known as beneficial interest.
DIFFICULTY SHARP WAS DESIGNED TO SOLVE HAS BEEN LARGELY REMOVED BY ARTL AND EREG SUCCESOR AND BANKRUPCYCY SCOT ACT S.78(3) 28 DAYS TO SEQUES.
ADVANCE NOTICE
Burnets trs v grainger - concerned with sequestration not receivership sharp remains good law as to its actual result. BUT sequestration did effect the buyer.
what is an advance notice
s.56 and 57 LRA where a disp or other deed is to be granted an advance notice can be put on the land reg or sasine reg . in the former it appears only on app record and must be done by the granter or someone acting on granters content. NO NEED TO WAIT FOR CONCLUSION OF MISSIVES
GIVES PRIORTY OF 35 DAYS S.58 DETAILS SPEELED OUT S.59. If a competeting deed is reg first during protected period then the latter is treated as being ref first
