(1)Where a personal representative or trustee liable as such for—
(a)any rent, covenant, or agreement reserved by or contained in any lease; or
(b)any rent, covenant or agreement payable under or contained in any grant made in consideration of a rentcharge; or
(c)any indemnity given in respect of any rent, covenant or agreement referred to in either of the foregoing paragraphs;
satisfies all liabilities under the lease or grant [F1which may have accrued and been claimed] up to the date of the conveyance hereinafter mentioned, and, where necessary, sets apart a sufficient fund to answer any future claim that may be made in respect of any fixed and ascertained sum which the lessee or grantee agreed to lay out on the property demised or granted, although the period for laying out the same may not have arrived, then and in any such case the personal representative or trustee may convey the property demised or granted to a purchaser, legatee, devisee, or other person entitled to call for a conveyance thereof and thereafter—
(i)he may distribute the residuary real and personal estate of the deceased testator or intestate, or, as the case may be, the trust estate (other than the fund, if any, set apart as aforesaid) to or amongst the persons entitled thereto,without appropriating any part, or any further part, as the case may be, of the estate of the deceased or of the trust estate to meet any future liability under the said lease or grant;
(ii)notwithstanding such distribution, he shall not be personally liable in respect of any subsequent claim under the said lease or grant.
[F2(1A)Where a personal representative or trustee has as such entered into, or may as such be required to enter into, an authorised guarantee agreement with respect to any lease comprised in the estate of a deceased testator or intestate or a trust estate (and, in a case where he has entered into such an agreement, he has satisfied all liabilities under it which may have accrued and been claimed up to the date of distribution)—
(a)he may distribute the residuary real and personal estate of the deceased testator or intestate, or the trust estate, to or amongst the persons entitled thereto—
(i)without appropriating any part of the estate of the deceased, or the trust estate, to meet any future liability (or, as the case may be, any liability) under any such agreement, and
(ii)notwithstanding any potential liability of his to enter into any such agreement; and
(b)notwithstanding such distribution, he shall not be personally liable in respect of any subsequent claim (or, as the case may be, any claim) under any such agreement.
In this subsection “authorised guarantee agreement” has the same meaning as in the Landlord and Tenant (Covenants) Act 1995.]
(2)This section operates without prejudice to the right of the lessor or grantor, or the persons deriving title under the lessor or grantor, to follow the assets of the deceased or the trust property into the hands of the persons amongst whom the same may have been respectively distributed, and applies notwithstanding anything to the contrary in the will or other instrument, if any, creating the trust.
(3)In this section “lease” includes an underlease and an agreement for a lease or underlease and any instrument giving any such indemnity as aforesaid or varying the liabilities under the lease; “grant” applies to a grant whether the rent is created by limitation, grant, reservation, or otherwise, and includes an agreement for a grant and any instrument giving any such indemnity as aforesaid or varying the liabilities under the grant; “lessee” and “grantee” include persons respectively deriving title under them.
Textual Amendments
F1Words substituted by Law of Property (Amendment) Act 1926 (c. 11), Sch.
F2S. 26(1A) inserted (1.1.1996) by 1995 c. 30, s. 30(1), Sch. 1 para.1 (with ss. 2(2), 26(1)(2)); S.I. 1995/2963, art.2
(1)With a view to the conveyance to or distribution among the persons entitled to any real or personal property, the trustees of a settlement [F3, trustees of land, trustees for sale of personal property] or personal representatives, may give notice by advertisement in the Gazette, and [F4in a newspaper circulating in the district in which the land is situated] and such other like notices, including notices elsewhere than in England and Wales, as would, in any special case, have been directed by a court of competent jurisdiction in an action for administration, of their intention to make such conveyance or distribution as aforesaid, and requiring any person interested to send to the trustees or personal representatives within the time, not being less than two months, fixed in the notice or, where more than one notice is given, in the last of the notices, particulars of his claim in respect of the property or any part thereof to which the notice relates.
(2)At the expiration of the time fixed by the notice the trustees or personal representatives may convey or distribute the property or any part thereof to which the notice relates, to or among the persons entitled thereto, having regard only to the claims, whether formal or not, of which the trustees or personal representatives then had notice and shall not, as respects the property so conveyed or distributed, be liable to any person of whose claim the trustees or personal representatives have not had notice at the time of conveyance or distribution; but nothing in this section—
(a)prejudices the right of any person to follow the property, or any property representing the same, into the hands of any person, other than a purchaser, who may have received it; or
(b)frees the trustees or personal representatives from any obligation to make searches or obtain official certificates of search similar to those which an intending purchaser would be advised to make or obtain.
(3)This section applies notwithstanding anything to the contrary in the will or other instrument, if any, creating the trust.
Textual Amendments
F3Words in s. 27(1) substituted (1.1.1997) by 1996 c. 47, s. 25(1), Sch. 3 para. 3(7) (with ss. 24(2), 25(4)); S.I. 1996/2974, art.2
F4Words substituted by Law of Property (Amendment) Act 1926 (c. 11), Sch.
A trustee or personal representative acting for the purposes of more than one trust or estate shall not, in the absence of fraud, be affected by notice of any instrument, matter, fact or thing in relation to any particular trust or estate if he has obtained notice thereof merely by reason of his acting or having acted for the purposes of another trust or estate.
Textual Amendments
F5S. 29 repealed by Power of Attorney Act 1971 (c. 27), Sch. 2
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Textual Amendments
F6S. 30 repealed (1.2.2001) by 2000 c. 29, s. 40(1)(3), Sch. 2 Pt. II para. 24, Sch. 4 Pt. II (with s. 35); S.I. 2001/49, art. 2