Explain why your client should appoint a second trustee to act jointly with her in the sale of 25 Kynaston Road.

• A. There is a joint ownership restriction in the proprietorship register; sale by two trustees overreaches the beneficial shares, allowing the buyer to take the property free of those shares
• B. It is optional
• C. It helps with mortgage payments
• D. It changes the SDLT treatment

Answer: (A)

The concept here is overreaching of beneficial interests when land is held on trust. When a property is held by trustees, the beneficiaries have equitable interests in the land while the trustees hold the legal title. For a sale to transfer the title free of those equitable interests, the disposition must be by two trustees (or a trust corporation). If two trustees act together in the sale, the beneficial interests are overreached and the buyer becomes the owner of the legal estate free from those interests. If only one trustee sells, the buyer would take subject to the beneficiaries’ interests, making the transaction less marketable and riskier. So appointing a second trustee allows the sale to proceed cleanly and ensures the buyer acquires good title. The reference in the register to joint ownership and the need for two trustees aligns with this overreaching rule.