Delegating land trustee powers: TOLATA 1996 s. 9
Trustees of land can delegate functions to adult beneficiaries with an interest in possession by power of attorney under TOLATA 1996 s. 9.
The trustees of land may, by power of attorney, delegate to any beneficiary or beneficiaries of full age and beneficially entitled to an interest in possession in land subject to the trust any of their functions as trustees which relate to the land. Where trustees purport to delegate to a person by a power of attorney under subsection (1) functions relating to any land and another person in good faith deals with him in relation to the land, he shall be presumed in favour of that other person to have been a person to whom the functions could be delegated unless that other person has knowledge at the time of the transaction that he was not such a person. And it shall be conclusively presumed in favour of any purchaser whose interest depends on the validity of that transaction that that other person dealt in good faith and did not have such knowledge if that other person makes a statutory declaration to that effect before or within three months after the completion of the purchase. A power of attorney under subsection (1) shall be given by all the trustees jointly and (unless expressed to be irrevocable and to be given by way of security) may be revoked by any one or more of them; and such a power is revoked by the appointment as a trustee of a person other than those by whom it is given (though not by any of those persons dying or otherwise ceasing to be a trustee). Where a beneficiary to whom functions are delegated by a power of attorney under subsection (1) ceases to be a person beneficially entitled to an interest in possession in land subject to the trust— if the functions are delegated to him alone, the power is revoked, if the functions are delegated to him and to other beneficiaries to be exercised by them jointly (but not separately), the power is revoked if each of the other beneficiaries ceases to be so entitled (but otherwise functions exercisable in accordance with the power are so exercisable by the remaining beneficiary or beneficiaries), and if the functions are delegated to him and to other beneficiaries to be exercised by them separately (or either separately or jointly), the power is revoked in so far as it relates to him. A delegation under subsection (1) may be for any period or indefinite. A power of attorney under subsection (1) cannot be an enduring power of attorney or lasting power of attorney within the meaning of the Mental Capacity Act 2005 . Beneficiaries to whom functions have been delegated under subsection (1) are, in relation to the exercise of the functions, in the same position as trustees (with the same duties and liabilities); but such beneficiaries shall not be regarded as trustees for any other purposes (including, in particular, the purposes of any enactment permitting the delegation of functions by trustees or imposing requirements relating to the payment of capital money). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Neither this section nor the repeal by this Act of section 29 of the Law of Property Act 1925 (which is superseded by this section) affects the operation after the commencement of this Act of any delegation effected 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
Trustees holding land under a trust can grant a power of attorney to delegate any of their trustee functions concerning the land. The person receiving these powers must be an adult beneficiary who holds an interest in possession in the trust land. All trustees must grant the power jointly.
A single trustee can revoke the delegation at any time unless it was made irrevocable as security. The power revokes automatically if new trustees are appointed, or if the beneficiary loses their interest in possession. Beneficiaries exercising delegated powers assume the same duties and liabilities as trustees regarding those actions.
Third parties dealing in good faith with a delegate are protected against invalid delegation unless they knew the delegate lacked authority. Purchasers making a statutory declaration within three months after purchase receive conclusive protection under this rule.
When it applies
- Two trustees holding title to a family house delegate management and letting powers to an adult beneficiary living in the property.
- Joint trustees grant a power of attorney to a beneficiary with an interest in possession so they can negotiate building repairs.
- A property buyer relies on a beneficiary's statutory declaration made within three months of completion to confirm a land transaction was valid.
What this section does not say
- Granting a lasting power of attorney or enduring power of attorney over trust property, which is governed under the Mental Capacity Act 2005.
- General trustee delegation not relating specifically to land, which falls under general trust law provisions.
- Excluding or restricting trustee powers altogether, which is covered under TOLATA 1996 s. 8.
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This page reproduces the text of TOLATA 1996 s. 9 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.