32Protection against liability in respect of rents and covenants

32 Protection against liability in respect of rents and covenants (1) Where a personal representative or trustee liable as such for— (a) any rent, covenant or agreement reserved by or contained in any lease; or (b) any rent, covenant or agreement payable under or contained in any grant made in consideration of a rentcharge; or (c) any indemnity given in respect of any rent, covenant or agreement referred to in either of the foregoing paragraphs— satisfies all liabilities under the lease or grant which may have accrued, and been claimed up to the date of the conveyance hereinafter mentioned, and where necessary, sets apart a sufficient fund to answer any future claim that may be made in respect of any fixed and ascertained sum which the lessee or grantee agreed to lay out on the property demised or granted, although the period for laying out the same may not have arrived, then and in any such case the personal representative or trustee may convey the property demised or granted to a purchaser, legatee, devisee or other person entitled to call for a conveyance thereof and thereafter— (i) he may distribute the residuary real and personal estate of the deceased testator or intestate, or as the case may be, the trust estate other than the fund (if any) set apart as aforesaid to or amongst the persons entitled thereto without appropriating any part, or any further part (as the case may be) of the estate of the deceased or of the trust estate to meet any future liability under the said lease or grant; (ii) notwithstanding such distribution he shall not be personally liable in respect of any subsequent claim under the said lease or grant. (2) This section shall operate without prejudice to the right of the lessor or grantor or the persons deriving title under the lessor or grantor, to follow the assets of the deceased or the trust property into the hands of the persons amongst whom the same may have been respectively distributed, and shall apply notwithstanding anything to the contrary in the will or other instrument (if any) creating the trust. (3) In this section ***lease*** includes an under-lease and an agreement for a lease or under-lease and any instrument giving any such indemnity as aforesaid or varying the liabilities under the lease; ***grant*** applies to a grant whether the rent is created by limitation, grant, reservation or otherwise, and includes an agreement for a grant and any instrument giving any such indemnity as aforesaid or varying the liabilities under the grant; ***lessee*** and ***grantee*** include persons respectively deriving title under them. Nos 5770 s. 33, 5896 s. 2.