Options To Purchase - Definition - Law Dictionary Home Dictionary Definition options-to-purchase

Definition :

Options to purchase a legal estate (including a lease), made or acquired after 1925, must be registered in the Land Registry under ss. 4 and 10 of the (English) Land Charges Act, 1925, as ESTATE CONTRACTS (q.v.), or they will be void against a purchaser for value (with or without notice), for money or money's worth. They do not fall behind the curtain and must be abstracted as the person entitled may register at anytime before completion of the purchase by the later claimant. A tenant for life may grant an option for purchase or to take a lease exerciseable over any period not exceeding ten years [see (English) Settled Land Act, 1925, s. 51]. Attention should be given to the (English) Law of Property Act, 1925, s. 149(3), which prohibits the granting of a ease as a rent or upon payment of a fine after 1925 to take effect more than twenty-one years from the date of the instrument purporting to create in except in regard to terms or interests under a settlement or under equitable powers for a mortgage indemnity, etc.; and see (English) Law of Property Act, 1922, 15th Sched., par. 7(2), avoiding any contract to renew a lease for more than sixty years from the expiration of the lease.