- Published on
Land Law - Estates eligible for substantive registration
As we previously mentioned, there are currently only two kinds of legal estates accessible. They are leasehold (for a set period of time) and freehold (forever). Substantial registration is available only to legitimate estates.
Important phrase: duly registered
This implies that each parcel of land will have a distinct title number that is created at the time of the land's initial registration. If a legal estate is not substantively registered, the transfer is null and void, and the seller of the land will keep the land in bare trust for the buyer.
Important word: naked trust
The property will stay in the former owner's legal ownership if substantive registration does not occur, but if the new owner is 18 years of age or older, they will always be able to enjoy the benefits of the property. It is better to avoid these trusts by completing the substantive registration process, even if this might not seem like a big deal. If the new owner wants to resell the property, it could present some serious challenges.
Since an estate in land must be registered upon the occurrence of a "triggering event," the substantive registration process demonstrates the link to unregistered land. You should be aware of the following trigger events: any kind of land transfer, including sales, gifts, inheritances, and court orders; the granting of a lease out of the freehold estate for a period longer than seven years (or one that will begin to take effect more than three months after the grant); and the establishment of a protected first legal mortgage.
The first registration procedure will be "triggered" if any of these things happen with unregistered land.
Ella possesses the original, unregistered paper title documents to her property, which she has owned since 1976. She has never experienced a trigger event while she has been the owner. Ella now wants to give Dion, her daughter, the property. Could anything trigger this? It would, indeed. The land is being given to Dion as a gift from Ella, the previous owner. It makes no difference if it is a gift of land or if it is between family members. Since the land's ownership is changing, it needs to be registered with HM Land Registry. Once this is done, the appropriate legal estate—freehold or leasehold—will be created on the property. Next, a title number—a special reference number—will be assigned to the property.
As we previously mentioned, there are currently only two kinds of legal estates accessible. They are leasehold (for a set period of time) and freehold (forever). Substantial registration is available only to legitimate estates.
Important phrase: duly registered
This implies that each parcel of land will have a distinct title number that is created at the time of the land's initial registration. If a legal estate is not substantively registered, the transfer is null and void, and the seller of the land will keep the land in bare trust for the buyer.
Important word: naked trust
The property will stay in the former owner's legal ownership if substantive registration does not occur, but if the new owner is 18 years of age or older, they will always be able to enjoy the benefits of the property. It is better to avoid these trusts by completing the substantive registration process, even if this might not seem like a big deal. If the new owner wants to resell the property, it could present some serious challenges.
Since an estate in land must be registered upon the occurrence of a "triggering event," the substantive registration process demonstrates the link to unregistered land. You should be aware of the following trigger events: any kind of land transfer, including sales, gifts, inheritances, and court orders; the granting of a lease out of the freehold estate for a period longer than seven years (or one that will begin to take effect more than three months after the grant); and the establishment of a protected first legal mortgage.
The first registration procedure will be "triggered" if any of these things happen with unregistered land.
Ella possesses the original, unregistered paper title documents to her property, which she has owned since 1976. She has never experienced a trigger event while she has been the owner. Ella now wants to give Dion, her daughter, the property. Could anything trigger this? It would, indeed. The land is being given to Dion as a gift from Ella, the previous owner. It makes no difference if it is a gift of land or if it is between family members. Since the land's ownership is changing, it needs to be registered with HM Land Registry. Once this is done, the appropriate legal estate—freehold or leasehold—will be created on the property. Next, a title number—a special reference number—will be assigned to the property.
0 Comments