Which statement best describes the effect of a Form A restriction in a co-ownership scenario when the sale is by two trustees?

• A. It binds the buyer on completion
• B. It is overreached on completion and does not bind the buyer
• C. It becomes a separate charge on the property
• D. It is extinguished on completion

Answer: (B)

Form A restrictions are meant to protect beneficial interests when land is held on trust, especially in situations where a trustee is dealing with the property. In a co-ownership where two trustees are selling, the sale triggers overreaching under the Law of Property Act 1925. This means the beneficial interests are moved from the land to the sale proceeds, and the buyer takes the legal title free from those trust restrictions. As a result, the Form A restriction does not bind the buyer on completion because the disposition has been overreached. The buyer receives a free title, with the trust interests now represented by the proceeds rather than the land itself.