This happens, according to City of London Building Society v Flegg in any case where property is bought or mortgaged in a contract with two or more title holders.
It occurs when the purchaser paid to at least two trustees in monies.
By purchasing the property from trustees, under Section 2 of the Law of Property Act 1925,[1] the occupation rights of any other party are automatically extinguished.
If only one owner exists, there is a risk that a third party could claim occupation and overreaching cannot apply.
The issues of overreaching and overriding interests are often closely linked, and the case of Birmingham Midshires v Sabherwal[2] examined both issues.