Manchester Conveyancing Solicitors | Ford Banks Irwin Solicitors

Manchester Conveyancing Solicitors | Ford Banks Irwin Solicitors - The Property Lawyers in Manchester on Transfer, Equity and Trusts of Land

Please note: Not to be used or relied upon without legal advice. These notes are for illustrative purposes ONLY.

. . . continued from page 9

Private Trusts of Land / Property

Applications to register trustees:

Name and address of the trustees:
Conveyancing Solicitors and Property Lawyers must complete the application form FR1 or AP1, as appropriate, with the full name of each of the trustees, and an address or addresses for service for each of them. Each trustee must give an address for service that is a postal address, either in the UK or abroad. They may each give up to two additional addresses, which may be a postal address, a box number at the document exchange in the United Kingdom or an email address. However, where there are several trustees you may, if you prefer, have a single 'care of' address for service such as that of the trust's Conveyancing Solicitors and Property Lawyers.

A general description of the trustees, such as 'the trustees of the Alpha Limited Pension Fund', can be included on the basis that its purpose is to assist in identifying the capacity in which the proprietors hold the Property. It should not be regarded as giving notice of the trusts on which as estate is held since that would be contrary to the principles on which the register (Property Title Deeds) is kept. In certain cases, Land Registry practice used to be to register trustees under a collective title of this kind, rather than in their individual names. This practice was abandoned several years ago, and the names of the individual trustees will now always be entered on the register (Property Title Deeds)

Declaration of Trust:
All the prescribed transfer and assent forms, and prescribed clauses Leases, include a 'declaration of trust' panel for use where the disposition is in favour of joint proprietors. For example:

'Declaration of trust. The transferee is more than one person and
[ ] they are to hold the Property on trust for themselves as joint tenants
[ ] they are to hold the Property on trust for themselves as tenants in common in equal shares
[ ] they are to hold the Property on trust'

For first registrations, there is a similar panel on form FR1, which you must complete. The conveyance or transfer to the applicants should also contain an appropriate declaration.

For a new Lease of registered Land the form of application (AP1) contains no panel to specify the trusts. It is therefore essential that a Lease in favour of joint proprietors contains an appropriate clause declaring them or, if the Lease contains the clauses set out in schedule 1A, Land Registration Rules 2003, clause LR14 is completed. Failure to do this will mean that the Registrar will enter a Form A restriction by default.

The purpose of this is to to give the registrar notice of the trusts under which the Land / Property is held, but simply to enable Land Registry to decide whether they need to enter a form A restriction.

It also serves as a memorandum of the trusts on which the Property is held. Although details of the trusts will not appear on the register (Property Title Deeds), the transfer or Lease will be returned to the Conveyancing Solicitors and Property Lawyers for the applicant on completion of the registration, it it is requested and a certified copy of it is supplied. Alternatively, an official copy can be obtained of any original or copy Lease or transfer, and any application form, held by the Registrar.

Where the Conveyancing Solicitors and Property Lawyers complete the third box, they must complete it to indicate the capacity in which the trustees hold the Land. for example:

- on trust for themselves as tenants in common in the following shares (specify shares)
The shares should be specified. If the phrase 'as tenants in common' is used without further information, it will not be clear whether income and capital receipts are to be shared equally, on the basis of the maxim 'equality is equity', or in such shares as the trustees may appoint. If clients intend the latter, a separate declaration of trust should be executed containing appropriate directions as to the basis on which a division is to be made.

- on trust for the members of (unincorporated association) to be dealt with according to its rules.
This wording creates a bare trust for the members of an unincorporated association, but subject to any contract between the members created by its rules. Unless the association' objects are exclusively charitable, a trust for the purposes of the association will be invalid and the Land Registry say should be avoided.

- on the trusts of a trust deed (or as the case may be) dated (etc)
This wording is suitable when the trusts are set out in a trust deed, partnership deed, will or other document. Conveyancing Solicitors and Property Lawyers should do this if the terms of the trust are complex or if the clients would like them to remain confidential. Any person may apply to inspect, or ask for an official copy of, a document held by the Registrar and received by the Registrar after 13 October 2003, unless it has been designated an exempt document. Generally, if a document has been made an exempt document, only an edited version of the document omitting the sensitive information will be open to inspection or copying. It may still be possible for someone to inspect or request a full copy of an exempt document under the provisions of the Freedom of Information Act 2000. If no other aspect of the transfer is confidential, it will be simpler to set out the terms of the trust in a separate deed than to apply for exemption. The deed (or other document creating the trust) does not need to be lodged with the application.

Applications for restrictions: In certain cases Conveyancing Solicitors and Property Lawyers will need to apply for a restriction, either in the Transfer Deed, Lease or Assent to the trustees or in form RX1.

(All italics in this page are Crown Copyright and reproduced here for your information with permission from HM Land Registry)

. . continued on page 11 (Property Lawyers and Conveyancing Solicitors in Manchester - Transfer, Equity and Trusts of Land page 11)

Please telephone Paul on 0161 866 8999 if you require any further information.

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Manchester Conveyancing Solicitors | Ford Banks Irwin Solicitors - The Property Lawyers in Manchester on Transfer, Equity and Trusts of Land