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Civil Law (Property) Act 2006
232Purchaser not to be concerned with trusts of proceeds of
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232 Purchaser not to be concerned with trusts of proceeds of
sale
(1) A purchaser of property from trustees for sale, or from trustees having
a power of sale, need not be concerned with the trusts affecting the
proceeds of sale or the income of the property until sale, whether or
not the trusts are declared by the same instrument that created the trust
for sale or the power of sale.
(2) Despite anything to the contrary in the instrument (if any) creating a
trust for sale of property, or a power of sale of property, or in the
settlement of the proceeds of sale of property, proceeds of sale or
other capital money may only be paid or applied by the direction of
at least 2 trustees, unless the trust has only 1 trustee and—
(a) the trustee is a trust corporation; or
(b) the trustee was appointed as the sole trustee by the instrument
creating the trust.
(3) However, subsection (2) does not affect the right of a sole personal
representative to give valid receipts for, or direct the application of,
proceeds of sale or other capital money.
(4) Also, subsection (2) does not make it necessary to have more than
1 trustee unless capital money arises on a transaction.