Overreaching

Question 1

Definition of overreaching

Answer 1

Mechanism allowing a buyer to attain good title, free of the interests of beneficiaries (the curtain principle)

Question 2

Basic rule

Answer 2

S28 - first in time prevails

Question 3

Exception

Answer 3

S29 - Buyer postpones all other unprotected interests if disposition is for valuable consideration EXCEPT overriding interests

Question 4

What is the effect of overreaching

Answer 4

Converts a beneficiary’s interest in land into an interest in money

Question 5

Can easements be overreached?

Answer 5

No, no, never

Question 6

Where are the provisions regarding overreaching

Answer 6

S2 LPA - conveyance shall overreach if the interest is capable of being overreached AND S27 proceeds of sale paid to 2 or more trustees

Question 7

A case where overreaching did bot occur

Answer 7

Mortgage paid to one person only. Overreaching did not occur. Wife’s interest protected by actual occupation. Williams & Glyns Bank v Boland

Question 8

A case where overreaching occured

Answer 8

City of London BS v Flegg: Mortgage money paid to 2 or more trustees, so overreached. Parents’ interest converted to money

Question 9

A case that shows that overreaching occurs even where money isn’t “paid”

Answer 9

State Bank of India v Sood

Question 10

3 cases that show that fraudulent disposition is not valuable consideration

Answer 10

Halifax v Popeck, Hegerty, Shaire