The point is that, under English law, the trusts in the case of stock
attach to the trustees, not to the stock; in the case of land, the
trusts attach to the land itself as well as to the trustees. Hence,
when I purchase stock of trustees I need not trouble about how they
apply the purchase money; in the case of land I have to go into the
whole title.
A simple illustration. I provide for a daughter L300 a year by
putting L10,000 in the hands of two trustees in the funds. Should the
trustees prove rascals, sell the stock, and decamp with the money, my
daughter will lose everything; the purchaser from the trustees can
hold the stock clear of all charges or liability. But if I provide
for my daughter by charging an estate with L300 a year for her, then
however wrongfully that estate may be sold, mortgaged, or otherwise
dealt with, she gets safely her L300 a year. If the bank B has
advanced money on mortgage on that estate, not knowing the existence
of the charge of L300 a year for my daughter's benefit, the law
simply says to the bank, "It was your business to know; you should
have completely investigated the title before you advanced your
money."
It follows, therefore, that if, with a Government Land Registry
Office (say one for each county), you required the purchaser only to
get in the legal estate, _i.
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