9 - Trusts of Land

Source: Unlocking Land Law

This chapter has some connection to chapter 5 and 8. The summary of this chapter is as under:

1) Old law - Two types of trusts viz (a) Strict settlement (under Settled Land Act) which gives effect to 'successive' interest; tenant for life takes managerial role while trustees only supervisory, overreaching is possible (b) Trust for sale (under LPA) which gives effect to 'concurrent' interest is for 'sale' as the name goes, TS will be implied in case of JT, all CTs are equitable only which takes effect behind TS, doctrine of conversion is applicable

2) New law - Trusts of Land and Appointment of Trustees Act - Earlier SS and TS have been combined into Trust of Land, SS and TS have been abolished in so far as new trusts are concerned (that means old settlements will be valid), TL covers both successive and concurrent ownerships, doctrine of conversion has also been abolished

3) Powers and duties of trustees - Please note that power of trustees cannot be excluded and trustees should exercise due care in delegation (Trustees Act 2000), right to appoint and remove trustees, right o make application u/s 14 to the court to resolve disputes

4) Rights of beneficiaries - right to occupy (but trustees can exclude this right), right to be consulted of sale, right to require that the consents from them be obtained, right to appoint and remove trustees, right o make application u/s 14 to the court to resolve disputes

5) Protection of purchaser - overreaching rule, conditions necessary for overreaching, equitable interest must be capable for overreaching (see the distinction between 'general burden' v 'real burden', effect of s16 of TOLATA (applicability of good faith for overreaching principle)