Q&As

A money judgment has been obtained. A British Virgin Islands company owns a property which is about to be sold. The judgment debtor is putatively a shareholder of the company registered as proprietor. There is a restriction on the property. Can it be said that the client is therefore an incumbrancer for the purposes of section 105 of the Law of Property Act 1925?

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Produced in partnership with Christopher Snell of New Square Chambers
Published on: 14 February 2018
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Application of proceeds for sale

Section 105 of the Law of Property Act 1925 (LPA 1925) provides thus:

‘Application of proceeds of sale

The Money which is received by the mortgagee, arising from the sale, after discharge of prior incumbrances to which the sale is not made subject, if any, or after payment into court under this Act of a sum to meet any prior incumbrance, shall be held by him in trust to be applied by him, first, in payment of all costs, charges, and expenses properly incurred by him as incident to the sale or any attempted sale, or otherwise; and secondly, in discharge of the mortgage money, interest, and costs, and

Christopher Snell
Christopher Snell

New Square Chambers

Advice and representation in all areas of commercial and chancery litigation.

Instructed on behalf of both retail and investment banks [including BNY Mellon; HSBC; Royal Bank of Scotland] in relation to a variety of commercial issues.

Retained in relation to a wide range of international disputes; including disputes in the Bahamas; Isle of Man; BVI and Kuwait.

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Money definition
What does Money mean?

Money may be defined as a medium of exchange and is generally accepted in the final discharge of debts and the payment of goods and services.

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