On learning that a sale of land has been “completed”, you would normally assume that the entire purchase price has been paid over. Now, suppose that this has not happened and the buyer has become insolvent. Can the unpaid seller claim priority over the unsecured creditors?
The answer in many cases is yes, thanks to that venerable equitable institution, the unpaid vendor’s lien.
Should a problem of this nature ever land on your desk, an advisable first port of call is
Possible pitfalls for otherwise secured lenders are carefully considered by Andrew Johnson and Jacqui Skovron of Allen and Overy, in
Related items:
Gracegrove Estates Ltd v Boateng [1997] EGCS 103
Chattey v Farndale Holdings [1997] 1 EGLR 153
Furness Building Society v Lilleby [1998] PLSCS 293
On learning that a sale of land has been “completed”, you would normally assume that the entire purchase price has been paid over. Now, suppose that this has not happened and the buyer has become insolvent. Can the unpaid seller claim priority over the unsecured creditors?
The answer in many cases is yes, thanks to that venerable equitable institution, the unpaid vendor’s lien.
Should a problem of this nature ever land on your desk, an advisable first port of call is Holding back the lien share Estates Gazette 6 May 2000, where Allyson Colby, property support lawyer at Wragge & Co, gets to grips with the basics.
Possible pitfalls for otherwise secured lenders are carefully considered by Andrew Johnson and Jacqui Skovron of Allen and Overy, in Lien time for lenders Estates Gazette 19 January 2002, p118.
Related items:
Gracegrove Estates Ltd v Boateng [1997] EGCS 103
Chattey v Farndale Holdings [1997] 1 EGLR 153
Furness Building Society v Lilleby [1998] PLSCS 293
