Kingsnorth Finance Co Ltd v Tizard [1986] 1 WLR 783
Country:
United Kingdom
Reviewed By Oxbridge Law Team
Updated 2024-01-04 07:02:12 UTC
Plaintiff had an equitable interest in a house, which her husband mortgaged to Defendant without telling her.
Issue was whether Defendant bought its rights subject to those of Plaintiff.
Court held that the bank had constructive notice of Plaintiff’s interest and therefore bought subject to it.
Judge John Finlay Q.C
Defendant ought to have made further checks than they in fact did to establish whether there were other interests in the property.
They failed to discharge this duty to make reasonable inquiries and therefore were put on constructive notice of Plaintiff’s interest.
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