Q&As

Are two trustees or a trust corporation required to let land in the same way as a transfer of land?

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Produced in partnership with James Smith of Mishcon de Reya
Published on LexisPSL on 04/12/2019

The following Private Client Q&A produced in partnership with James Smith of Mishcon de Reya provides comprehensive and up to date legal information covering:

  • Are two trustees or a trust corporation required to let land in the same way as a transfer of land?

Are two trustees or a trust corporation required to let land in the same way as a transfer of land?

We have assumed that this Q&A relates to registered land and that there is a tenants in common restriction on the title as set out below:

‘No disposition by a sole proprietor of the registered estate (except a trust corporation) under which capital money arises is to be registered unless authorised by an order of the court.’

The effect of the above restriction (which is a restriction in Land Registry standard Form ‘A’) is to prevent dispositions by a sole proprietor where capital money arises. Further, where the above restriction appears on an Official Copy of the Register of title, a disposition may not be registered unless it is made by at least two trustees or a trust corporation or the court authorises it.

This Q&A asks whether the above restriction itself also prevents a sole trustee from granting a lease of land.

Section 2 of the Law of Property Act 1925 (LPA 1925) relates to ‘Conveyances overreaching certain equitable interests and powers’.

LPA 1925, s 27(2) provides:

‘(2) Notwithstanding anything to the contrary in the instrument (if any) creating a [trust] of land or in [any trust

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