Power to postpone sale of land - TOLATA 1996 s.4
Section 4 of TOLATA 1996 implies a power for trustees to postpone sale of land indefinitely, overriding any contrary disposition, with no liability.
In the case of every trust for sale of land created by a disposition there is to be implied, despite any provision to the contrary made by the disposition, a power for the trustees to postpone sale of the land; and the trustees are not liable in any way for postponing sale of the land, in the exercise of their discretion, for an indefinite period. Subsection (1) applies to a trust whether it is created, or arises, before or after the commencement of this Act. Subsection (1) does not affect any liability incurred by trustees before that commencement.
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 applies to every trust for sale of land created by a disposition (a will, deed, or other document that creates the trust). It says that, even if the disposition says something different, the trustees automatically have a power to postpone selling the land. They can decide to wait indefinitely and are not liable for doing so.
The power covers trusts created before or after the Act came into force, but it does not affect any liability trustees already incurred before the Act started. The key point is that a trust for sale no longer forces trustees to sell straight away – they have discretion to hold onto the land.
When it applies
- A family trust holds a house for sale, but the trustees decide to wait for property prices to rise before putting it on the market, despite the beneficiary demanding immediate sale.
- A will creates a trust for sale of a farm and says 'the trustees must sell within one year', but the trustees delay for several years to allow a tenant farmer to finish a lease.
- Beneficiaries sue trustees for losses caused by postponing the sale of a holiday cottage, only to find the trustees are protected from liability under this section.
- Trustees of a trust for sale of land decide to postpone the sale indefinitely because they believe the land will become more valuable, and the beneficiaries object.
What this section does not say
- It does not give trustees a power to keep land for investment or use as a dwelling – that power comes from other sections like s.6 (general powers of trustees).
- It does not apply to trusts that are not 'trusts for sale' – for example, bare trusts or trusts where the land is held without any duty to sell.
- It does not make postponement mandatory; trustees may still choose to sell immediately, and beneficiaries cannot force a sale under this section.
- It does not forgive liability for postponement that occurred before the Act came into force – that part of the section preserves existing claims.
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This page reproduces the text of TOLATA 1996 s. 4 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.