Does a subsequent purchaser of the legal estate have to pay the full consideration of the purchase, even after the purchase was completed, if the subsequent purchaser has paid the entire amount of consideration, even though the previous purchaser had a prior equitable interest in the property?

Saskatchewan, Canada


The following excerpt is from Alexander v. Gesman, 1911 CanLII 103 (SK CA):

First, as in Tourville v. Naish, 3 Peere Williams 307; 24 E.R. 1077, where the subsequent purchaser, after the purchase but before the payment of the full consideration money, had notice of a previous incumbrance. In such case the money in his hands is affected by such notice, and he takes the estate subject to the prior incumbrance; if he, after such notice, pays the purchase money without discharging the incumbrance, and this is the case even where he has given a bond for the payment of the balance of the purchase money, because he would be entitled to relief in equity from the payment of his bond to the extent of the prior incumbrance; and secondly, in such cases as Allen v. Knight (1845), 15 L.J.Ch. 430, where the holder of the legal estate was a trustee for the person having the prior equitable interest, because, by taking a conveyance with notice of the trust, he himself becomes the trustee, and must not, to save himself, be guilty of a breach of trust.

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