TOLATA

Question 1

What is a Trust of Land according to TOLATA 1996?

Answer 1

A trust of land is any trust of property which consists of or includes land (TOLATA 1996, s1(1)).

Question 2

What did the Law of Property Act 1925 mandate regarding trusts for sale?

Answer 2

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).

Question 3

Why was TOLATA 1996 introduced?

Answer 3

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.

Question 4

What significant report influenced the creation of TOLATA 1996?

Answer 4

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.

Question 5

What was the traditional judicial approach under the pre-TOLATA framework?

Answer 5

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].

Question 6

What are the different ways to create a trust of land?

Answer 6

Trusts of land can be created through express trusts, statutory trusts, or implied trusts.

Question 7

What is required for an express trust of land to be enforceable?

Answer 7

An express trust must be evidenced in writing and signed by the creator, declaring beneficial ownership and terms of the trust.

Question 8

What is a statutory trust of land?

Answer 8

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.

Question 9

What is an implied trust?

Answer 9

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.

Question 10

What powers do trustees have under TOLATA 1996?

Answer 10

Under s6(1), trustees have all the powers of an absolute owner, including the ability to sell, lease, and mortgage the property.

Question 11

What does s9 of TOLATA 1996 allow trustees to do?

Answer 11

s9 allows trustees to delegate their powers to beneficiaries who are entitled to an interest in possession in the land.

Question 12

What is required before trustees can exercise their powers according to s11 of TOLATA 1996?

Answer 12

Trustees are usually required to consult the beneficiaries before exercising any of their powers.

Question 13

What is the significance of s6(6) TOLATA 1996 regarding the duty to sell?

Answer 13

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.

Question 14

Under s12 of TOLATA 1996, when is a beneficiary entitled to occupy the land?

Answer 14

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.

Question 15

What does s13 of TOLATA 1996 allow trustees to do regarding occupancy?

Answer 15

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.

Question 16

What case illustrates the application of s13 TOLATA 1996?

Answer 16

Rodway v Landy (2001), where the court ruled on the division of a joint practice due to restrictions imposed by NHS funding.

Question 17

What does s14 of TOLATA 1996 provide for?

Answer 17

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.

Question 18

What factors must the court consider under s15 of TOLATA 1996 when resolving disputes?

Answer 18

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.

Question 19

What is overreaching in the context of trusts of land?

Answer 19

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.

Question 20

What conditions must be met for overreaching to occur?

Answer 20

The buyer must acquire a legal estate and pay the purchase price to at least two trustees or a trust corporation.

Question 21

What case established the doctrine of overreaching?

Answer 21

City of London Building Society v Flegg (1988), where the House of Lords upheld the doctrine of overreaching under s2 and s27 LPA 1925.

Question 22

What was the outcome in Chan v Leung (2003)?

Answer 22

The court decided that a large house was suitable for the occupation of a student, highlighting trustees’ responsibilities regarding beneficiary occupation rights.

Question 23

What did the court decide in Rodway v Landy (2001)?

Answer 23

The court ruled that the practice could not be divided due to NHS restrictions, illustrating the complexity of trustee decisions under TOLATA.

Question 24

How did the court rule in Bank of Ireland v Bell (2001)?

Answer 24

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.

Question 25

What is the significance of Re Evers Trust (1980)?

Answer 25

The court declined an application for sale, emphasizing the trust’s purpose to provide a home for the family.

Question 26

What was the decision in Mortgage Corp Ltd v Shaire (2001)?

Answer 26

The court stated that the interests of secured creditors should not automatically take precedence over the beneficiaries.

The court used Section 15 factors to prioritise resident welfare and the trust’s intentions over automatically ordering a sale, showing TOLATA’s balanced approach.

Question 27

What does s16 of TOLATA 1996 provide for buyers?

Answer 27

s16 provides that buyers are protected if they believe that two trustees have consented to the purchase, giving them good title to the land even if there was a breach of trust.

Question 28

What is the role of s335A of the Insolvency Act 1986 in relation to TOLATA?

Answer 28

s335A applies in bankruptcy cases, considering the interests of creditors, the needs and resources of the bankrupt’s spouse and children, and ensuring a just resolution.

Question 29

What was the outcome in Barca v Mears (2004)?

Answer 29

The court ruled that the application for sale did not contravene Article 8 of the Human Rights Act as there were no exceptional circumstances.

Question 30

How does the Trustee Act 2000, s1 relate to trustees’ duties under TOLATA?

Answer 30

The Trustee Act 2000, s1 emphasizes the general duty of care, requiring trustees to exercise reasonable care and skill, considering their knowledge and expertise.

Question 31

What did Martin Dixon argue about the flexibility of TOLATA in “Modern Land Law”?

Answer 31

Martin Dixon highlights that TOLATA 1996 introduces significant flexibility for trustees, allowing them to manage trust property effectively while balancing the diverse interests of beneficiaries. This modern approach contrasts with the previous rigid duty to sell, facilitating better outcomes in co-ownership disputes.

Question 32

How does Elizabeth Cooke view the role of consultation in TOLATA, as discussed in “The New Law of Land Registration”?

Answer 32

Elizabeth Cooke emphasizes that TOLATA’s consultation requirement is vital in ensuring that trustees consider the beneficiaries’ interests, promoting fairer decision-making and preventing unilateral actions that might adversely affect the beneficiaries.

Question 33

What critique does Sarah Nield offer about TOLATA in “Land Law: Text, Cases, and Materials”?

Answer 33

Sarah Nield critiques TOLATA for potentially creating conflicts between trustees and beneficiaries, especially within family contexts. She argues that while TOLATA enhances trustees’ powers, it may lead to disputes over property use, indicating the need for careful balancing of interests.

Question 34

What limitations does TOLATA 1996 impose on trustees’ powers?

Answer 34

S6(5): Consider the beneficiaries’ rights.
S6(6): Not act in bad faith or violate equity rules.
S6(9): Exercise reasonable skill and care (duty of care).
S8(2): Obtain required consents before exercising certain powers.

Question 35

What are the rights of beneficiaries under TOLATA 1996?

Answer 35

Beneficiaries have the right to be consulted (S11) and to occupy the land if it is suitable and intended for occupation (S12).

Question 36

How does Section 13 of TOLATA 1996 address the right to occupy?

Answer 36

Trustees can restrict or exclude the right to occupy in certain circumstances, such as when the land is purchased for investment rather than occupation.

Question 37

How did Abbey National Building Society v Moss (1994) illustrate the court’s approach to trust property?

Answer 37

The court delayed the sale of property due to the trust’s purpose, showing a move towards protecting beneficiaries’ interests and considering their circumstances.

Question 38

What did Edwards v Bank of Scotland (2010) establish about the factors influencing court orders under TOLATA?

Answer 38

The court ordered a sale considering the husband’s ability to find alternative accommodation and the equitable interests, reflecting the discretionary approach under Sections 14 and 15.