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Home > Law > Law glossary > Law glossary
Estate contract
Last modified: Thu Feb 23 16:37:37 2006
A contract to convey an InterestInLand, or a contract creating the right to take an
InterestInLand. If A makes a contract with B to sell him his house, then an estate
contract arises in B's favour. B now has an equitable interest (under a
ConstructiveTrust) in A's land. The question then arises what would happen if A
did not transfer the estate to B with the appropriate formalities, and later
sells the land again to someone else? As an equitable
interest, B's right must be duly protected if it is to be enforceable against the
later purchaser. This means, in practice, the registration of a class C(iv) LandCharge if
the land is unregistered, or a notice if it is registered.
In a straightforward
conveyancing transaction, where the contract is specifically to transfer a
registered legal estate, then the application for a PrioritySearch usually makes it unecessary
to enter a specific notice of the contract.
A contract to convey is not the only estate contract that is recognized. Other
examples include an OptionToPurchase and, with a lease, and OptionToRenew.
LandAndPropertyLaw
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