Overreachingā€”sales by trustees of land


Published by a UUĀćĮÄÖ±²„ Property expert
Practice notes

Overreachingā€”sales by trustees of land


Published by a UUĀćĮÄÖ±²„ Property expert

Practice notes
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Broadly, the doctrine of overreaching enables purchasers (which includes tenants and mortgagees) in good faith for money or moneyā€™s worth to rely solely on the legal title. In the case of registered land, this means the entries entered on the register of title, as it records ownership of the legal estate and is not concerned with equitable interests.

A buyer of a legal estate in land from trustees will not be affected by any of the trusts on which the land is held if the purchase price is paid to all the trustees (of whom there must be at least two) or to a trust corporation. Payment of the price in this manner means that the interests of the beneficiaries are said to be ā€˜overreachedā€™. This is commonly known as the 'two trustee' rule.

Overreaching also occurs in sales:

  1. ā€¢

    under the powers of the Settled Land Act 1925

  2. ā€¢

    by a mortgagee (see Overreaching by a mortgagee) or personal representative

  3. ā€¢

    under a court order

This Practice Note deals only with sales by trustees of land.

What

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Overreaching definition
What does Overreaching mean?

The transfer of beneficial interests from land to the proceeds of sale.

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