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.

Answer rating: 100% (QA)

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... View the full answer