Ending Settled Land Act settlements TOLATA 1996 s. 2
Prevents creation of new settlements under the Settled Land Act 1925 and ends settled land status for public, ecclesiastical, and charitable trusts.
No settlement created after the commencement of this Act is a settlement for the purposes of the Settled Land Act 1925; and no settlement shall be deemed to be made under that Act after that commencement. Subsection (1) does not apply to a settlement created on the occasion of an alteration in any interest in, or of a person becoming entitled under, a settlement which— is in existence at the commencement of this Act, or derives from a settlement within paragraph (a) or this paragraph. But a settlement created as mentioned in subsection (2) is not a settlement for the purposes of the Settled Land Act 1925 if provision to the effect that it is not is made in the instrument, or any of the instruments, by which it is created. Where at any time after the commencement of this Act there is in the case of any settlement which is a settlement for the purposes of the Settled Land Act 1925 no relevant property which is, or is deemed to be, subject to the settlement, the settlement permanently ceases at that time to be a settlement for the purposes of that Act. In this subsection “ relevant property ” means land and personal chattels to which section 67(1) of the Settled Land Act 1925 (heirlooms) applies. No land held on charitable, ecclesiastical or public trusts shall be or be deemed to be settled land after the commencement of this Act, even if it was or was deemed to be settled land before that commencement. Schedule 1 has effect to make provision consequential on this section (including provision to impose a trust in circumstances in which, apart from this section, there would be a settlement for the purposes of the Settled Land Act 1925 (and there would not otherwise be a trust.
Text in force at .
Source: legislation.gov.uk — The National Archives (legislation.gov.uk), reproduced under licence Open Government Licence v3.0.
What it actually says
This section stops the creation of new settlements governed by the Settled Land Act 1925. Any attempt to set up a new settlement after the Act comes into force creates a trust of land instead, unless it arises from a settlement established before commencement.
It also ends settled land status for property held on charitable, ecclesiastical, or public trusts. In addition, if a settlement governed by the Settled Land Act 1925 no longer holds any land or heirlooms under section 67(1), it permanently ceases to be a settlement under that Act.
When it applies
- A landowner creates a deed granting a lifetime interest in property, which now operates as a trust of land rather than a settlement under the Settled Land Act 1925.
- A public charity holding property confirms that its land is held on trust rather than as settled land.
- An existing settlement governed by the Settled Land Act 1925 disposes of all its remaining land and heirlooms, ending its settlement status permanently.
What this section does not say
- Determining whether a beneficiary has a right to occupy trust land, which is governed by provisions on occupation rights.
- Deciding court applications to resolve disputes between trustees or co-owners over property.
- Defining the general powers granted to trustees of land.
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This page reproduces the text of TOLATA 1996 s. 2 in force at the date shown and explains it in general terms. It is not legal advice and takes no account of the circumstances of your case, which can change the answer completely. For a live dispute, for limitation periods, and before taking any step in court, consult a qualified lawyer in England and Wales.