TRUST OF LAND AND APPOINTMENT OF TRUSTEES ACT 1996 – REVISION
NOTES
Trusts of Land and Appointment of Trustees Act 1996
Applies to any trust where the trust property includes land
▪ Includes constructive trusts
Sets out the powers and duties of trustees
Sets out the rights of beneficiaries
Provides a mechanism for applying to court to settle disputes over ownership, sale
etc.
Powers of Trustees
Section 6 TOLATA – (Power to convey / mortgage the land)
(1) For the purpose of exercising their functions as trustees, the trustees of land
have in relation to the land subject to the trust all the powers of an absolute owner.
(2) …(including) the power to convey the land to the beneficiaries even though they
have not required the trustees to do so...
So they can, among other things, sell, retain or mortgage the land.
There is a specific right to partition the land (S7) (i.e. divide it up) amongst tenants in
common and so bring the co-ownership to an end
Restrictions / Controls on Trustees’ Powers
Subject to the general law of trusts - Section 6(6) TOLATA - especially acting in the
best interests of the beneficiaries
Rights of the beneficiaries - Section 6(5) TOLATA - In exercising the powers
conferred by S6 trustees shall have regard to the rights of the beneficiaries.
Restrictions by Settlor - Section 8 TOLATA
Settlor (the person creating the trust) can exclude or modify the statutory powers.
Settlor may require consents before the exercise of a power and the power may not
be exercised without that consent.
- E.g. Settlor may require consent of a person before a sale of the land
Consents
The need for consent will be entered as a Restriction in Form B on the Register:
“No disposition by the proprietors of the registered estate is to be registered unless
one or more of them makes a statutory declaration or statement of truth, or their
conveyancer gives a certificate, that the disposition is in accordance with [you’d
identify the disposition creating the trust here] or some variation thereof referred to
in the declaration, statement or certificate.
- Where 3 or more consents are required Section 10 TOLATA protects a
purchaser if any two are obtained.
NOTES
Trusts of Land and Appointment of Trustees Act 1996
Applies to any trust where the trust property includes land
▪ Includes constructive trusts
Sets out the powers and duties of trustees
Sets out the rights of beneficiaries
Provides a mechanism for applying to court to settle disputes over ownership, sale
etc.
Powers of Trustees
Section 6 TOLATA – (Power to convey / mortgage the land)
(1) For the purpose of exercising their functions as trustees, the trustees of land
have in relation to the land subject to the trust all the powers of an absolute owner.
(2) …(including) the power to convey the land to the beneficiaries even though they
have not required the trustees to do so...
So they can, among other things, sell, retain or mortgage the land.
There is a specific right to partition the land (S7) (i.e. divide it up) amongst tenants in
common and so bring the co-ownership to an end
Restrictions / Controls on Trustees’ Powers
Subject to the general law of trusts - Section 6(6) TOLATA - especially acting in the
best interests of the beneficiaries
Rights of the beneficiaries - Section 6(5) TOLATA - In exercising the powers
conferred by S6 trustees shall have regard to the rights of the beneficiaries.
Restrictions by Settlor - Section 8 TOLATA
Settlor (the person creating the trust) can exclude or modify the statutory powers.
Settlor may require consents before the exercise of a power and the power may not
be exercised without that consent.
- E.g. Settlor may require consent of a person before a sale of the land
Consents
The need for consent will be entered as a Restriction in Form B on the Register:
“No disposition by the proprietors of the registered estate is to be registered unless
one or more of them makes a statutory declaration or statement of truth, or their
conveyancer gives a certificate, that the disposition is in accordance with [you’d
identify the disposition creating the trust here] or some variation thereof referred to
in the declaration, statement or certificate.
- Where 3 or more consents are required Section 10 TOLATA protects a
purchaser if any two are obtained.
