PROPERTY LAW ACT 1974 - SECT 204
Protection of purchasers claiming under certain void appointments
PROPERTY LAW ACT 1974 - SECT 204
Protection of purchasers claiming under certain void appointments
204 Protection of purchasers claiming under certain void appointments
(1) An instrument purporting to exercise a power of appointment over property,
which, in default of and subject to any appointment, is held in trust for a
class or number of persons of whom the appointee is one, shall not be void on
the ground of fraud on the power as against a purchaser in good faith.
(1A)
However, if the interest appointed exceeds, in amount or value, the interest
in such property to which immediately before the execution of the instrument
the appointee was presumptively entitled under the trust in default of
appointment, having regard to any advances made in the appointee’s favour
and to any hotchpot provision, the protection afforded by this section to a
purchaser shall not extend to such excess.
(2) In this section—
"a purchaser in good faith" means a person dealing with an appointee of the
age of not less than 25 years for valuable consideration in money or money’s
worth, and without notice of the fraud, or of any circumstances from which, if
reasonable inquiries had been made, the fraud might have been discovered.
(3)
Persons deriving title under any purchaser entitled to the benefit of this
section shall be entitled to the like benefit.
(4) This section applies only
to dealings effected after the commencement of this Act.
