BANKRUPTCY ACT 1966

PART XI - ADMINISTRATION OF ESTATES OF DECEASED PERSONS IN BANKRUPTCY  

SECTION 251   REAL PROPERTY DEVISED BY WILL THAT VESTS DIRECTLY IN DEVISEE TO FORM PART OF ESTATE IN CERTAIN CASES  

251(1)   [Real property to form part of estate]  

Subject to this section, where an order for the administration of the estate of a deceased person under this Part is made within 12 months after the death of that person, any real property of the deceased person devised by his or her will which, under a law of a State or Territory, vests, either upon the death of that person or upon compliance with a law of the State or Territory relating to the registration of interests in land, directly in the devisee, forms part of the divisible property of the estate.

251(2)   [Devisee may pass good title]  

Where, before the making of such an order, the devisee has disposed of the property devised, or has mortgaged or charged it, for valuable consideration, to a person acting in good faith, the property does not form part of the divisible property of the estate, or forms part of the divisible property of the estate subject to the mortgage or charge, as the case requires, but the devisee is liable to account to the trustee of the estate for the proceeds of the disposal of the property or for an amount equal to the amount for which it is mortgaged or charged, as the case requires.




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