TOLATA Flashcards
(38 cards)
What is a Trust of Land according to TOLATA 1996?
A trust of land is any trust of property which consists of or includes land (TOLATA 1996, s1(1)).
What did the Law of Property Act 1925 mandate regarding trusts for sale?
Under the LPA 1925, trusts for sale required trustees to sell the property and distribute the proceeds according to the terms of the trust (s30).
Why was TOLATA 1996 introduced?
TOLATA was introduced to modernize the law regarding the management and sale of land held in trust, allowing trustees more discretion and recognizing the diverse interests in land beyond just economic considerations.
What significant report influenced the creation of TOLATA 1996?
The Law Commission Report No.181 in 1989 proposed significant reforms, advocating for the abolition of trusts for sale in favor of a more flexible structure.
What was the traditional judicial approach under the pre-TOLATA framework?
Traditionally, courts would generally enforce a sale if any beneficiary or interested party, including creditors, requested it, as seen in Re Buchanan-Wollaston’s Conveyance [1939].
What are the different ways to create a trust of land?
Trusts of land can be created through express trusts, statutory trusts, or implied trusts.
What is required for an express trust of land to be enforceable?
An express trust must be evidenced in writing and signed by the creator, declaring beneficial ownership and terms of the trust.
What is a statutory trust of land?
A statutory trust is imposed when a legal estate in land is conveyed to two or more people in the absence of an express trust.
What is an implied trust?
An implied trust arises in circumstances where there is no express or statutory trust, often based on the conduct and intentions of the parties involved.
What powers do trustees have under TOLATA 1996?
Under s6(1), trustees have all the powers of an absolute owner, including the ability to sell, lease, and mortgage the property.
What does s9 of TOLATA 1996 allow trustees to do?
s9 allows trustees to delegate their powers to beneficiaries who are entitled to an interest in possession in the land.
What is required before trustees can exercise their powers according to s11 of TOLATA 1996?
Trustees are usually required to consult the beneficiaries before exercising any of their powers.
What is the significance of s6(6) TOLATA 1996 regarding the duty to sell?
s6(6) states that trustees are no longer under an obligation to sell the land if they disagree on its purpose, marking a departure from previous legislation.
Under s12 of TOLATA 1996, when is a beneficiary entitled to occupy the land?
A beneficiary is entitled to occupy the land if it is held by trustees to be available for occupation and the purposes of the land include making it available for their occupation.
What does s13 of TOLATA 1996 allow trustees to do regarding occupancy?
s13 allows trustees to restrict or exclude one or more beneficiaries from occupying the land, provided they act reasonably and may impose reasonable conditions on an occupying beneficiary.
What case illustrates the application of s13 TOLATA 1996?
Rodway v Landy (2001), where the court ruled on the division of a joint practice due to restrictions imposed by NHS funding.
What does s14 of TOLATA 1996 provide for?
s14 allows trustees or any person with an interest in the property to apply to the court for orders relating to the exercise of the trustees’ functions.
What factors must the court consider under s15 of TOLATA 1996 when resolving disputes?
The court must consider the intentions of the trust creator, the purposes for which the property is held, the welfare of any minors, the interests of secured creditors, the circumstances and wishes of the beneficiaries, and the special case of bankruptcy.
What is overreaching in the context of trusts of land?
Overreaching is the process by which beneficiaries’ rights are converted into monetary claims on conveyance, detaching from the land and attaching to the sale proceeds.
What conditions must be met for overreaching to occur?
The buyer must acquire a legal estate and pay the purchase price to at least two trustees or a trust corporation.
What case established the doctrine of overreaching?
City of London Building Society v Flegg (1988), where the House of Lords upheld the doctrine of overreaching under s2 and s27 LPA 1925.
What was the outcome in Chan v Leung (2003)?
The court decided that a large house was suitable for the occupation of a student, highlighting trustees’ responsibilities regarding beneficiary occupation rights.
What did the court decide in Rodway v Landy (2001)?
The court ruled that the practice could not be divided due to NHS restrictions, illustrating the complexity of trustee decisions under TOLATA.
How did the court rule in Bank of Ireland v Bell (2001)?
The court ordered a sale considering that the child was nearly 18, balancing the interests of creditors and the welfare of residents under Sections 14 and 15.
The court allowed the sale of the property despite no equity for Mrs. Bell, demonstrating the balance between creditor interests and beneficiary rights.
