Q&As

What was the effect of the Trusts of Land and Appointment of Trustees Act 1996 on trusts for sale?

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Produced in partnership with Chris Bryden of 4 King’s Bench Walk
Published on LexisPSL on 14/02/2018

The following Private Client Q&A produced in partnership with Chris Bryden of 4 King’s Bench Walk provides comprehensive and up to date legal information covering:

  • What was the effect of the Trusts of Land and Appointment of Trustees Act 1996 on trusts for sale?

What was the effect of the Trusts of Land and Appointment of Trustees Act 1996 on trusts for sale?

The Trusts of Land and Appointment of Trustees Act 1996 (TOLATA 1996) was introduced with the intent of simplifying the regime that existed previously under the Settled Land Act 1925 (SLA 1925) and the Law of Property Act 1925 (LPA 1925). From the coming into force of TOLATA 1996 on 1 January 1997, it was no longer possible to create new settlements under SLA 1925 (TOLATA 1996, s 2), though existing settlements thereunder would continue to be governed by the old regime.

TOLATA 1996, ss 4 and 5 further provided that the default provision in respect of any trust for sale is:

‘In the case of every trust for sale of land created by a disposition there is to be implied, despite any provision to the contrary made by the disposition, a power for trustees to postpone sale of the land;…’

Thus, where statutory provisions imposed a trust for sale of land, a trust of the land without a duty to sell would instead be imposed. TOLATA 1996 therefore replaced in most circumstances a trust for sale with a trust of land. However,

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