Trustees authorized to purchase land to be held on trust for persons entitled in succession, as tenant for life and remainderman in fee, should take care that the property they buy is of a nature to confer upon all the persons so entitled their due share of the benefit to be derived from the purchase. Generally speaking, they should seek to obtain a property which will produce a fair immediate return in the way of income to the

(e) See He Theobald, 19 Times L. R. 536.

(f) See Davidson, Prec. Conv. vol. iii. 250, 722, 3rd ed.; vol. iv. 55. 3rd ed.; 1 Dart, V. & P. 90, 5th ed.; 100, 6th ed; 98, 7th ed.; 2 Kev & Elph. Free. Conv. 537, 4th ed.; 528, 8th ed. It may be mentioned here that trustees investing trust, money on a mortgage of lands were bound equally as on a purchase to invest on the security of property with a good marketable title; and there were not the same reasons in the case of an investment on mortgage for relaxing the stringency of the rule. It has long been the regular conveyancing practice expressly to authorize trustees to dispense with the investigation of the lessor's title in lending money on the security of leasehold hereditaments or otherwise to lend on any security with less than a marketable title; see the authorities last cited. And now the above-quoted enactment (sect. 8 (3) of the Trustee Act, 1893) applies equally in the case of trustees lending money on the security of any property as in that of a purchase; and by sect. 8 (2) of the same Act a trustee lending money on the security of any leasehold property shall not be chargeable with breach of trust only upon the ground that in making such loan he dispensed wholly or partially with the production or investigation of the lessor's title.

Trustees selling land under a trust for or power of sale should, as a rule, obtain a valuation of the property from a competent professional surveyor acting for them independently and in nowise concerned on behalf of any purchaser, in order to guide them as to the sum to be accepted on a sale by private contract or to be fixed as the reserve price on a sale by auction. And trustees intending to purchase land should obtain similar advice with regard to the value of the land they propose to buy (m). But, of course, cases may occur in which trustees are practically safe in acting on their own judgment, as where obviously favourable terms are proposed to them. If all the cestui-que-trusts should be sin juris, and not too numerous, the best plan is to obtain their sanction as to the price to be taken, paid or fixed. Where a title depends on the exercise in the past of a trust for or power of sale or purchase of land, the purchaser may assume, if nothing appear to the contrary, that the trust or power was duly exercised to the best advantage of the cestui-que-trusts as regards price or value and otherwise; and he need not and should not make any inquiry or ask for any evidence as to this (n). But if it appear that the property was sold at an undervalue, or the trust or power was otherwise improperly exercised, the case is different and the title cannot safely be accepted (o).

Valuation on behalf of trus-selling or purchasing.

(g) Lewin on Trusts, 438, 439, 6th ed.: 582, 583, 11th ed.

(h) Lewin on Trusts, 138, 6th ed.; 582, 11th ed.

(i) Re Peyton's Settlement Trust, L. R. 7 Eq. 463; and see Re Theobald, 19 Times L. R. 536.

(k) Lewin on Trusts, 439, 6th ed.; 582, 11th ed.

(l) Stat. 45 & 46 Vict c. 38, ss. 9-11. See Bellot v. Littler, W. N. 1874, p. 156; 22 W. R. 836; 30 L. T. N. S. 861.

19(2)

(m) Lewin on Trusts, 375, 376, 436, 6th ed.; 495, 578, 11th ed.; 1 Dart, V. & P. 79, 5th ed.; 90, 6th ed.; 89, 7th ed.; above, p. 263. As to the valuation which ought to be obtained by trustees proposing to invest trust money on a mortgage of lands, see stat. 56 & 57 Vict. c. 53, s. 8.

(n) See Borell v. Dann, 2 Hair. 440, 449-452; Ware v. Egmont, 4 De G. M. & G. 460, 471-474; Hurrell v. Littlejohn, 1904, 1 Ch. 689; above, p. 117.

(o) See A.-G. v. Pargeter, 6 Beav. 150; Ker v. Dungannon, 1 Dru. & War. 509, 542: Stevens v. Austen, 3 E. & E. 685.