294. Purported legal leases granted by a purchaser.

294.     Purported legal leases granted by a purchaser.

Prior to the acquisition of the legal estate, a purchaser cannot grant rights of a proprietary character. Accordingly, if a purchaser purports to grant a legal tenancy1 before completion, the rights so granted remain personal unless and until the purchaser acquires the legal estate, whereupon the estoppel created by the grant is fed by the legal interest acquired on conveyance and the tenancy becomes a legal tenancy2.

Where both a mortgage and a tenancy have been granted by a purchaser of property before he has acquired the legal estate, it