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Kingsnorth Finance Co Ltd v Tizard

[1986] 1 WLR 783

Case summary last updated at 09/01/2020 19:48 by the Oxbridge Notes in-house law team.

Judgement for the case Kingsnorth Finance Co Ltd v Tizard

P had an equitable interest in a house, which her husband mortgaged to D without telling her. Issue was whether D bought its rights subject to those of P. Court held that the bank had constructive notice of P’s interest and therefore bought subject to it. 
 
Judge John Finlay Q.C: D 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 P’s interest. 

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