LPA 1925

[CYNthesys]

Section 22 LPA 1925 relates to -
Conveyances on behalf of lunatics and defectives and as to land held by them on trust for sale.

Can anyone please explain/clarify what land held by them on trust for sale means

[Judge mental]

Re: LPA 1925

Hi CYNthesys

You appear to be looking at an outdated version of the LPA. Section 22 was amended and now reads somewhat clearer

22 Conveyances on behalf of persons suffering from mental disorder and as to land held by them in trust
(1)Where a legal estate in land (whether settled or not) is vested, either solely or jointly with any other person or persons, in a person lacking capacity (within the meaning of the Mental Capacity Act 2005) to convey or create a legal estate, a deputy appointed for him by the Court of Protection or (if no deputy is appointed for him) any person authorised in that behalf shall, under an order of the Court of Protection, or of the court, or under any statutory power, make or concur in making all requisite dispositions for conveying or creating a legal estate in his name and on his behalf.
(2)If land subject to a trust of land is vested, either solely or jointly with any other person or persons, in a person who lacks capacity (within the meaning of that Act) to exercise his functions as trustee, a new trustee shall be appointed in the place of that person, or he shall be otherwise discharged from the trust, before the legal estate is dealt with by the trustees.

My understanding of this is that no person, either by themselves or with another, who lacks capacity (as defined under Mental Health Act) must have a deputy appointed to deal with his legal estate, if he does not have one the court will appoint one for him.
That person also cannot be a trustee of land, if he is a new trustee must be appointed.

Hope it helps

Stuart

[righty]

Re: LPA 1925

Hi CYNthesys

You appear to be looking at an outdated version of the LPA. Section 22 was amended and now reads somewhat clearer

22 Conveyances on behalf of persons suffering from mental disorder and as to land held by them in trust
(1)Where a legal estate in land (whether settled or not) is vested, either solely or jointly with any other person or persons, in a person lacking capacity (within the meaning of the Mental Capacity Act 2005) to convey or create a legal estate, a deputy appointed for him by the Court of Protection or (if no deputy is appointed for him) any person authorised in that behalf shall, under an order of the Court of Protection, or of the court, or under any statutory power, make or concur in making all requisite dispositions for conveying or creating a legal estate in his name and on his behalf.
(2)If land subject to a trust of land is vested, either solely or jointly with any other person or persons, in a person who lacks capacity (within the meaning of that Act) to exercise his functions as trustee, a new trustee shall be appointed in the place of that person, or he shall be otherwise discharged from the trust, before the legal estate is dealt with by the trustees.

My understanding of this is that no person, either by themselves or with another, who lacks capacity (as defined under Mental Health Act) must have a deputy appointed to deal with his legal estate, if he does not have one the court will appoint one for him.
That person also cannot be a trustee of land, if he is a new trustee must be appointed.

Hope it helps

Stuart

& this is the problem The CoP is intervening anywhere its found that a person doesn't have capacity EVEN when an LPA has been pre-lodged & trustees appointed. As a result exorbitant fees are being charged for the simplest of transaction such as paying a bill etc.

[CYNthesys]

Re: LPA 1925

This appears to be a power v authority scenario that I'm struggling with -

LPA 1925 section 22
(1)Where a legal estate in land (whether settled or not) is vested in a person suffering from mental disorder, either solely or jointly with any other person or persons, his receiver or (if no receiver is acting for him) any person authorised in that behalf shall, under an order of the authority having jurisdiction under [F1Part VII of the Mental Health Act 1983], or of the court, or under any statutory power, make or concur in making all requisite dispositions for conveying or creating a legal estate in his name and on his behalf.
Its the bold text that I'm finding difficult to clarify.

Does the part that states any person authorised in that behalf refer to someone who has obtained the courts authority, eg a guardian or an attorney under a registered Enduring Power of Attorney etc., or would it extend to Law of Property Act Receivers (who dont need a court order if the property is non domestic) but who have had statutory powers of sale conferred on them by a lender under the provisions of a legal charge?

[labman]

Re: LPA 1925

I would read it alongside the Mental Capacity Act 2005

Law of Property Act 1925

is an updated version of LPA. Section 22, as you will see, refers you to the MCA 2005

Mental Capacity Act 2005

[CYNthesys]

Re: LPA 1925

Think I may have found the answer under section 9 of the Trustee Delegation Act, that is if my interpretation is correct.

(1)In section 22 of the [1925 c. 20.] Law of Property Act 1925 (requirement, before dealing with legal estate vested in trustee who is incapable by reason of mental disorder, to appoint new trustee or discharge incapable trustee), after subsection (2) insert—

“(3)Subsection (2) of this section does not prevent a legal estate being dealt with without the appointment of a new trustee, or the discharge of the incapable trustee, at a time when the donee of an enduring power (within the meaning of the Enduring Powers of Attorney Act 1985) is entitled to act for the incapable trustee in the dealing.”

I read this as - if there is no valid enduring power of attorney in place the estate cannot be dealt with without first obtaining a court order.

[labman]

Re: LPA 1925

As long as your EPA was signed by BOTH before October 2007 it is fine. If it wasn't, the EPA has been replaced by a Lasting Power of Attorney.

This gives a good explanation:

Enduring Power of Attorney and Lasting Powers of Attorney - Alzheimers Society

[UnpaftpaX]

New Here

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