Overreaching
Created by 121.1.18.242 on 29 December 2009, at 08:08
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If an Estate in land is subject to a Trust, the purchaser of the estate will be bound to give effect to the beneficiaries' interests if he has, or should have, notice of then (see: Doctrine of notice). This will generally be very unfortunate for a purchaser. Under s.2 of the Law Of Property Act (1925), the purchaser escapes the beneficiaries' claims if he pays the money to two trustees or a trust corporation. This is 'overreaching'; the beneficiaries intersts are said to be 'overreached'. It has been suggested that overreaching gives too much power to the purchaser, at the expense of the beneficiaries but, despite the efforts of the Law Commission, it remains in effect.
Land Law article


