The parties contracted to buy and sell a property. The lending bank sought possession, saying that it had advanced the money which had been spent acquirng the property. The defendant purchasers said that completion had not taken place, the full price had not been paid, possession had not been given, and the parties had agreed to rescission.
Held: An executed transfer had been delivered. That delivery had not been explicitly in escrow, but the full purchase price had not been paid. The possibility that a vendor’s lien could apply ‘shows that it is perfectly possible in law for a vendor to complete a transfer unconditionally, even where part of the purchase price has not been paid.’ In this case the document had not been delivered in escrow.
The vendors were to be taken to have consented to their vendors’ lien being subordinated to the interests of the claimants. The Bank was entitled to register its charge.
Judges:
Morgan J
Citations:
[2007] EWHC 2747 (Ch)
Links:
Statutes:
Law of Property (Miscellaneous Provisions) Act 1989 1(5)
Jurisdiction:
England and Wales
Citing:
Cited – Bowker v Burdekin 1843
Parke B considered how a court identified whether a document had been delivered in escrow: ‘you are to look at all the facts attending the execution, to all that took place at the time, and to the result of the transaction; and therefore, though it . .
Cited – Thompson v McCullough CA 1947
Thompson had agreed to buy a tenanted property, had paid part of the purchase price, and had received a conveyance in escrow pending payment of the balance. He at that point gave McCullough notice to quit. Two months later Thompson paid the balance . .
Qualified – Watkins v Nash 1875
The instrument at issue was delivered to the solicitor acting for the party intended to benefit under it. It was claimed that it was delivered in escrow.
Held: On the detailed facts the delivery was not intended to be a delivery to the . .
Qualified – London Freehold and Leasehold Property Company v Suffield 1897
Where an instrument is delivered to the party who is to benefit under the instrument, any oral statement that the delivery is not an absolute delivery of the deed is of no effect. Where several persons are parties to a deed as grantees and one of . .
Cited – William Cory and Son Limited v Inland Revenue Commissioners CA 1964
Lord Denning MR discussed what was meant by delivery of a document in escrow: ‘When an instrument is delivered in escrow, that only means that it is delivered on condition (which may be expressed or implied by conduct) that it is not to be operative . .
Cited – Bentray Investments Limited v Venner Time Switches Limited ChD 1985
Stuart-Smith J discussed the circumstances under which a deed was said to have been delivered in escrow: ‘the passages to which I have referred seem to establish that the intention of the maker must be made clear, at least where the deed is . .
Cited – Kettlewell v Watson 1884
A vendor’s lien was postponed to the equitable interest of a third party with whom the purchaser from the vendor had had dealings. . .
Cited – Barclays Bank Plc v Estates and Commercial Limited CA 20-Feb-1996
Millett LJ discussed the assertion of a vendor’s lien where a third party would be adversely affected: ‘A party with an equitable charge can be taken to agree to the postponement of his property against any party who was allowed to his knowledge to . .
Lists of cited by and citing cases may be incomplete.
Registered Land, Contract
Updated: 12 July 2022; Ref: scu.261500