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Conveyancing Option
[2005] EWHC 1235 (Ch)
Chancery Division
Mann J
17 June 2005
Option agreement - Order for sale of land by mortgagee - Whether claimant's option constituting equitable interest binding on purchaser - Effect of failure to register title by grantor of option - Whether claimant entitled to rectification - Claim allowed
The fifth defendant purchased land from the second defendant. He subsequently entered into an agreement with the claimant to convey or make available to it such parts of the land as it required for certain works. The land was previously unregistered, and the fifth defendant's purchase attracted compulsory registration. Although he applied for registration, his application was later cancelled for failure to respond to certain requisitions.
The third defendant subsequently obtained a charging order over the fifth defendant's interest in respect of a judgment against him. It obtained an order for sale, and sold the site to the first defendant. On the same day, the land was charged to the fourth defendant.
Meanwhile, the claimant sought to protect its interests under the agreement by applying to enter a caution against first registration. It maintained that the effect of the agreement was to create an obligation on the fifth defendant that was potentially enforceable against third...