Execution of instruments on behalf of a trust
19 Execution of instruments on behalf of a trust
If a trust proposes to enter into a transaction with respect to land that is vested in it, the Minister may, by instrument in writing, authorise a person other than the trust board or the local authority that is managing the trust’s affairs to act on the trust’s behalf for the purpose of executing instruments and doing all other things that are necessary to effect the transaction.
The receipt of a person authorised under subsection (1) is a sufficient discharge to any purchaser, lessee, mortgagee, licensee or other person who pays money in good faith in relation to a land transaction entered into on behalf of a trust in accordance with this section.
If:
land that is the subject of a transaction under this Division is subject to the Real Property Act 1900, and
the instrument that gives effect to the transaction is signed by a person authorised under subsection (1),
the instrument has the same effect as it would have if executed under seal by the trust concerned.
A purchaser, lessee, mortgagee, licensee or other person who deals in good faith with a person authorised under subsection (1) is not prejudiced or affected by any defect or irregularity arising from a contravention of this Division.
This Act’s bill:Explanatory memorandum
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