Question
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...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get StartedRecommended Textbook for
Financial Accounting and Reporting a Global Perspective
Authors: Michel Lebas, Herve Stolowy, Yuan Ding
4th edition
978-1408066621, 1408066629, 1408076861, 978-1408076866
Students also viewed these Law questions
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
View Answer in SolutionInn App