a▓▓▓▓▓ is ..

today i'll deal with a son of a bitch chapter which i failed to grasp for the past few months but finally understood a bit while reading this afternoon with a glass of iced coffee and a couple of fags. also included situational examples.. treat it like reading a lala-fied law notes.. =D

Powers of the trustees of land

1. Trustees of land have all the powers of an absoulte owner. Many of the powers can be expressly excluded

lets say this house called HIROSHI MANSION is owned by hiroshi. and hiroshi appoints me as a trustee for the shop and the beneficiary is my son, alvon (which means my son will inherit the sale proceeds, or the mansion itself)

i am the trustee, i can deal with the shop however i want like the absolute owner (hiroshi)

2. trustee have duty to consult beneficiary if full age, to give effect to their wishes where possible , s11 TOLATA 1996

means, if alvon aredy reach 18 years old, i have a duty to consult him about what i can do to the shop

3. trustees have wide power to sell, lease n mortgage legal estate in the trust land.

means, i can sell, lease it, or mortgage the legal title of HIROSHI MANSION.


Rights of the beneficiaries under a trust of land

1. s8 TOLATA '96 = right to require express consents

2. s11 = right to be consulted (if alvon reach 18yrs old)

3. s12 = right to occupy land (alvon is entitled to stay in HIROSHI MANSION) , but no right to occupy if the land is for investment purposes

4. s19 = right to appoint and remove trustees (means alvon can ask me to fuck off and appoint yvonne as trustee)

5. s14 = right to apply for court order (to resolve any dispute in land)


Overreaching under a trust of land

1. Overreaching allows a purchaser to take free of certain beneficial interests

2. beneficial rights are transferred from the land to the purchase money

means. initially alvon has beneficial interest in the house itself. then there's this guy hiroki nakamura wants to buy HIROSHI MANSION, and pay 1million for it (and follow the condition of overreaching), he take the HIROSHI MANSION and alvon got no more beneficial interest in it.. the beneficial interest shifts to the money paid for the mansion

3. conditions under LPA'25 :

a. conveyance must be made by trustees of land
b. must be conveyance, eg mortgage, lease, sale..
c. interests must be capable of being overreached (easement, restrictive covenant cannot be overreached.. remain as burden on the land where hiroki has notice)

4. hiroki must comply with s27 LPA and pay the money to two trustees (got exception if pay to trust corporation or sole personal representative)


Effects of overreaching

1. hiroki takes land free of all interests in equity behind the trust

2. alvon's beneficial rights are transferred to the 1mil, and alvon can make a claim against me for the money.


Applications to the court under TOLATA 1996

1. s14 = any person who has interest in the trust property (in this case, alvon)

2. court may resolve the dispute by declaring the nature or extent of alvon's interest in HIROSHI MANSION or its proceeds (the 1mil)

3. court must consider certain criteria in s15 as well as circumstances and wishes of alvon

4. criteria :

a. intention of hiroshi (person who created the trust)
b. purposes for which HIROSHI MANSION is held (whether to stay, or investment, or for fucks)
c. welfare of any minor who occupies HIROSHI MANSION (if alvon got a kid named alyvonne, then the court must take into account got a kid staying there)
d. interest of any secured creditor (if alvon hailat owe ppl money, or mortgage HIROSHI MANSION to a bank, then the bank got interest in the land lor)