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KembaraXtra – Legal Terms – Overreaching
Overreaching is the legal process by which equitable interests in land are transferred from the land itself to the money arising from its sale.
Under the Law of Property Act 1925, where land is held on a *trust of land, purchasers can acquire the land free from beneficiaries’ equitable interests if the purchase money is paid to at least two trustees or a trust corporation.
The beneficiaries’ rights then attach to the sale proceeds rather than the land.
Overreaching commonly occurs in sales by trustees, mortgagees exercising a *power of sale, and tenants for life under settled land arrangements.
The doctrine is intended to facilitate secure and marketable land transactions.
Overreaching is the legal process by which equitable interests in land are transferred from the land itself to the money arising from its sale.
Under the Law of Property Act 1925, where land is held on a *trust of land, purchasers can acquire the land free from beneficiaries’ equitable interests if the purchase money is paid to at least two trustees or a trust corporation.
The beneficiaries’ rights then attach to the sale proceeds rather than the land.
Overreaching commonly occurs in sales by trustees, mortgagees exercising a *power of sale, and tenants for life under settled land arrangements.
The doctrine is intended to facilitate secure and marketable land transactions.
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