N3 Living Ltd v Burgess Property Investments Ltd & Anor

N3 Living Ltd v Burgess Property Investments Ltd & Anor

The Vendor's proposal to complete the sale using the executed TR1 and appointment of a second trustee was a proper and conventional method, in accordance with Land Registry Practice Guide 21 and the 2002 Act. The Purchaser would obtain good title free from Ms Bennett's interest, which would transfer to the proceeds of sale. The Purchaser's objections were unfounded, and it was contractually obliged to complete. There was no risk of the Purchaser acting in bad faith or assisting a breach of trust.

Parties
Claimant: N3 Living Limited; First Defendant: Burgess Property Investments Limited; Second Defendant: Belinda Jayne Bennett (as Personal Representative of the Estate of Elizabeth May O’Neill)
Jurisdiction
England and Wales
Judgment Date
02 July 2020
Procedural Posture
Vendor and Purchaser Summons Under Section 49 Law of Property Act 1925 / Judgment After Contested Application
Outcome
Claim dismissed as to substantive relief; costs awarded to Vendor.
Legal Topics
Vendor and Purchaser Summons, Overreaching, Land Registration, Trusts of Land, Restriction (form A), Completion of Sale, Costs
Property Law Trusts and Estates Vendor and Purchaser Summons Overreaching Land Registration Trusts of Land Restriction (form A) Completion of Sale +1 more

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Parties

N3 Living Limited

Claimant

Burgess Property Investments Limited

First Defendant

Belinda Jayne Bennett (as Personal Representative of the Estate of Elizabeth May O’Neill)

Second Defendant

Procedural Posture

Vendor and Purchaser Summons Under Section 49 Law of Property Act 1925 / Judgment After Contested Application

Legal Issues

  1. 1 Whether the Vendor's proposal to complete the sale in accordance with an executed TR1 and appointment of a second trustee would provide good title to the Purchaser free from Ms Bennett's claimed interest.
  2. 2 Whether the Purchaser was justified in refusing to complete without an escrow arrangement for the proceeds of sale.
  3. 3 Whether the Purchaser would be at risk of claims in equity for assisting a breach of trust or lacking good faith.

Ratio Decidendi

The Vendor's proposal to complete the sale using the executed TR1 and appointment of a second trustee was a proper and conventional method, in accordance with Land Registry Practice Guide 21 and the 2002 Act. The Purchaser would obtain good title free from Ms Bennett's interest, which would transfer to the proceeds of sale. The Purchaser's objections were unfounded, and it was contractually obliged to complete. There was no risk of the Purchaser acting in bad faith or assisting a breach of trust.

Court Disposition

Claim dismissed as to substantive relief; costs awarded to Vendor.

Orders

  • Purchaser to pay Vendor's costs of the claim, assessed on the standard basis.
  • No order as to costs against or for Ms Bennett.