Law of Property Act 2000
206Protection of purchasers claiming under certain void
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206 Protection of purchasers claiming under certain void appointments (1) An instrument purporting to exercise a power of appointment over property that, in default of and subject to any appointment, is held in trust for a class or number of persons including the appointee is not void on the ground of fraud on the power as against a purchaser in good faith. (2) Notwithstanding subsection (1), if, having regard to any advances made in the appointee's favour and to any hotchpot provision, the interest appointed exceeds, in amount or value, the interest in property to which immediately before the execution of the instrument referred to in subsection (1) the appointee was presumptively entitled under the trust in default of appointment, the protection afforded by this section to a purchaser does not extend to the excess interest. (3) A person deriving title under a purchaser entitled to the benefit of this section is entitled to the same benefit as the purchaser would have been. (4) This section applies only to dealings effected after the (5) In this section, purchaser in good faith means a person dealing with an appointee who is an adult for valuable consideration in money or money's worth and without notice of the fraud or any circumstances from which, if reasonable inquiries had been made, the fraud might have been discovered.