§ Clause 8:
§ Existing settlements and instruments not complying with this Act to operate as "trust deeds."
§ 8.—(l) Every settlement of land subsisting at the commencement of this Act (including settlements created by virtue of this Act), and every instrument inter vivos intended to create a settlement which is executed after the commencement of this Act and does no' comply with the requirements of this Act respecting vesting deeds, shall, for the purposes of this Act, be deemed a "trust deed."
§ (2) Until a vesting instrument is executed or made pursuant to this Act in respect of the settled land, any purported disposition thereof inter vivos shall operate only as a contract for valuable consideration to carry out the transaction after the requisite vesting instrument has been obtained, and a purchaser of a legal estate shall not be concerned therewith unless the contract is registered w, a land charge.
§ (3) This section does not apply to land subject to an immediate trust for sale, with or without a power to postpone the sale, nor to settled land vested in a personal representative, but save as aforesaid applies to a will (creating a settlement) of a person who dies before the commencement of this Act and to settlements deemed to be subsisting or to have been made by any person.
§ THE LORD CHANCELLORMy first Amendment to this clause is drafting.
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Amendment moved—
Page 209, line 44, at end insert ("save that if a legal estate is conveyed to trustees for the purpose of creating a settlement the conveyance shall be valid, and the trustees shall hold the legal estate on trust to create a settlement in the manner required by this Act").—(The Lord Chancellor.)
§ On Question, Amendment agreed to.
§ THE LORD CHANCELLOR moved, at the end of Clause 8, subsection (2), to insert "but this subsection does not invalidate a conveyance to a purchaser of a legal estate who does not have notice of the existence of the trust." The noble and learned Lord said: This is another drafting Amendment to make it clear that a conveyance of a legal estate to a purchaser without notice of the trust creating the settlement will still be valid.
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Amendment moved—
Page 210, line 7, at end insert the said words.—(The Lord Chancellor.)
§ On Question, Amendment agreed to.