Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mr Black owns a fee simple and enters into a contract of sale with Mr Brown who pays a deposit and agrees to a settlement

Mr Black owns a fee simple and enters into a contract of sale with Mr Brown who pays a deposit and agrees to a settlement in three months' time. Prior to settlement, Mr Brown asks to view the title documents, and Mr Black agrees to allow a 'temporary' viewing to Mr Brown. As soon as Mr Brown receives the title, he takes it to the bank and deposits the title in return for a mortgage advance. Mr Brown then disappears with the mortgage money and does not settle. In the meantime, Mr Black enters into a contract to sell the property to Mr Green. In a dispute between the bank and Mr Green, explain who is likely to have priority.

Step by Step Solution

3.51 Rating (164 Votes )

There are 3 Steps involved in it

Step: 1

In this scenario a few legal principles come into play such as the doctrine of bona fide purchaser for value without notice and the concept of priorit... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting and Reporting a Global Perspective

Authors: Michel Lebas, Herve Stolowy, Yuan Ding

4th edition

978-1408066621, 1408066629, 1408076861, 978-1408076866

More Books

Students also viewed these Law questions

Question

discuss ways of measuring sickness absence and sickness presence;

Answered: 1 week ago