Constructive Trusts Arising from 'Subject To' Undertakings: The Boundaries of Liability Revisited

Abstract

This paper considers critically the current state of the law on constructive trusts arising in the context of 'subject-to' purchaser undertakings in the land conveyancing context. It analyses and discusses the role of such trusts and the current rules surrounding the imposition of such 'subject to' constructive trusts on purchasers of land to the benefit of certain third parties. Significantly, the paper proposes fresh guidelines as to how, in future, the law here should be further refined and developed at senior appellate court level. It is argued these fresh guidelines would both introduce doctrinal clarity and better secure the interests of justice in relation to the operation of these 'subject-to' constructive trusts.