Western Australian Current Acts Western Australian Current Acts (1) An instrument
purporting to exercise a power of appointment over property, that, in default
of and subject to any appointment, is held in trust for a class or number of
persons of whom the appointee is one, is not, except as provided in subsection
(2), void on the ground of fraud on the power as against a purchaser in good
faith.
(2) If the interest
appointed exceeds, in amount or value, the interest in that property to which
immediately before the execution of the instrument the appointee was
presumptively entitled under the trust in default of appointment, having
regard to any advances made in his favour and to any hotchpot provision, the
protection afforded by this section to a purchaser does not extend to such
excess.
(3) In this section a
purchaser in good faith means a person dealing with an appointee of the age of
not less than 25 years for valuable consideration in money or money’s
worth, and without notice of the fraud, or of any circumstances from which, if
reasonable inquiries had been made, the fraud might have been discovered.
(4) Persons deriving
title under any purchaser entitled to the benefit of this section are entitled
to the like benefit.
(5) This section
applies only to dealings effected after the coming into operation of this Act.