Page:Mental Capacity Act 2008.pdf/17

18 :(b) is aware of circumstances which, if a lasting power of attorney had been created, would have terminated his authority to act as a donee.

(3) Any transaction between the donee and another person is, in favour of that person, as valid as if the power had been in existence, unless at the time of the transaction that person has knowledge of a matter referred to in subsection (2).

(4) If the interest of a purchaser depends on whether a transaction between the donee and the other person was valid by virtue of subsection (3), it is conclusively presumed in favour of the purchaser that the transaction was valid if—
 * (a) the transaction was completed within 12 months of the date on which the instrument was registered; or
 * (b) the other person makes a statutory declaration, before or within 3 months after the completion of the purchase, that he had no reason at the time of the transaction to doubt that the donee had authority to dispose of the property which was the subject of the transaction.

(5) Where 2 or more donees are appointed under a lasting power of attorney, this section applies as if references to the donee were to all or any of them.

Powers of court in relation to validity of lasting powers of attorney

17.—(1) This section and section 18 apply if—
 * (a) a person (“P”) has executed or purported to execute an instrument with a view to creating a lasting power of attorney; or
 * (b) an instrument has been registered as a lasting power of attorney conferred by P.

(2) The court may determine any question relating to—
 * (a) whether one or more of the requirements for the creation of a lasting power of attorney have been met;
 * (b) whether the power has been revoked or has otherwise come to an end.

(3) Subsection (4) applies if the court is satisfied—
 * (a) that fraud or undue pressure was used to induce P—