Queensland Consolidated Acts

LIMITATION OF ACTIONS ACT 1974 - SECT 16

16 Provisions in cases of land held in trust

(1) Subject to the provisions of section 27 (1) , this Act shall apply to equitable interests in land including interests in the proceeds of the sale of land held upon trust for sale in like manner as they apply to legal estates and accordingly a right of action to recover the land shall, for the purposes of this Act but not otherwise, be deemed to accrue to a person entitled in possession to an equitable interest in the like manner and circumstances and on the same date as it would accrue if the person’s interest were a legal estate in the land.

(2) Where land is held by a trustee upon trust including a trust for sale and the period prescribed by this Act for the bringing of an action to recover the land by the trustee has expired, the estate of the trustee shall not be extinguished if and so long as the right of action to recover the land of any person entitled to a beneficial interest in the land or in the proceeds of sale has not accrued or has not been barred by this Act, but if and when every such right has been so barred the estate of the trustee shall be extinguished.

(3) Where land is held upon trust including a trust for sale, an action to recover the land may be brought by the trustee on behalf of any person entitled to a beneficial interest in possession in the land or in the proceeds of sale whose right of action has not been barred by this Act, notwithstanding that the right of action of the trustee would, apart from this provision, have been barred by this Act.

(4) Where land held upon trust for sale is in the possession of a person entitled to a beneficial interest in the land or in the proceeds of sale, not being a person solely and absolutely entitled thereto, a right of action to recover the land shall be deemed for the purposes of this Act not to accrue during such possession to any person in whom the land is vested as trustee or to any person entitled to a beneficial interest in the land or in the proceeds of sale.