Who's Right? Leasehold or Freehold?
property cuet_pg intermediate mcq_debateMy friend Rohan and I have been going back and forth on this question. We both did our internships at the same law firm, and I'm sure it'll be a useful question for CUET PG Law aspirants.
Question: A property is sold by a leaseholder with a remaining lease term of 20 years. The buyer is unaware of a restriction in the deed that prohibits sublease. Who has the higher title, the seller or the buyer?
Rohan says: "Easy, seller has a higher title. The buyer is aware of the restriction and therefore cannot claim a better title."
But I think: "Hold on! The buyer bought a property, not the lease itself. The seller's interest is in the lease, not the freehold. The buyer has an interest in the freehold and has a valid title for that."
Who's right? What's the law? Help us settle this!
Additional Info: Jab apko kuch samajh nahin aati hai, bas yeh jaano ki leasehold ka ek fixed term hota hai, jabki freehold ka yeh nahi hota. Leasehold me property ka ownership kisi dubey ke paas hota hai, jabki freehold me pehle se hi ownership apko hota hai. Iska matlab yeh hai ki jab lease expiry ho jati hai, toh apko renewal ya extension karna pad sakta hai. Freehold me ye problem nahin hoti.