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Arrangement of Clauses (Contents)

Commonhold and Leasehold Reform Bill
 
 

 
 
A

B I L L

[AS AMENDED IN GRAND COMMITTEE]

TO

Make provision about commonhold land and to amend the law about leasehold property.

BE IT ENACTED by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:-
 

  PART I
  COMMONHOLD
 
Nature of commonhold
Commonhold land.     1. - (1) Land is commonhold land if-
 
 
    (a) the freehold estate in the land is registered as a freehold estate in commonhold land,
 
    (b) the land is specified in the memorandum of association of a commonhold association as the land in relation to which the association is to exercise functions, and
 
    (c) a commonhold community statement makes provision for rights and duties of the commonhold association and unit-holders (whether or not the statement has come into force).
      (2) In this Part a reference to a commonhold is a reference to land in relation to which a commonhold association exercises functions.
 
      (3) In this Part-
 
 
    "commonhold association" has the meaning given by section 33,
 
    "commonhold community statement" has the meaning given by section 30,
 
    "commonhold unit" has the meaning given by section 11,
 
    "common parts" has the meaning given by section 24, and
 
    "unit-holder" has the meaning given by sections 12 and 13.
      (4) Sections 7 and 9 make provision for the vesting in the commonhold association of the fee simple in possession in the common parts of a commonhold.
 
 
Registration
Application.     2. - (1) The Registrar shall register a freehold estate in land as a freehold estate in commonhold land if-
 
 
    (a) the registered freeholder of the land makes an application under this section, and
 
    (b) no part of the land is already commonhold land.
      (2) An application under this section must be accompanied by the documents listed in Schedule 1.
 
      (3) A person is the registered freeholder of land for the purposes of this Part if-
 
 
    (a) he is registered as the proprietor of a freehold estate in the land with absolute title, or
 
    (b) he has applied, and the Registrar is satisfied that he is entitled, to be registered as mentioned in paragraph (a).
Consent.     3. - (1) An application under section 2 may not be made in respect of a freehold estate in land without the consent of anyone who-
 
 
    (a) is the registered proprietor of an estate in the whole or part of the land,
 
    (b) is the registered proprietor of a charge over the whole or part of the land,
 
    (c) is registered as a cautioner in respect of the whole or part of the land, or
 
    (d) falls within any other class of person which may be prescribed.
      (2) Regulations shall make provision about consent for the purposes of this section; in particular, the regulations may make provision-
 
 
    (a) prescribing the form of consent;
 
    (b) about the effect and duration of consent (including provision for consent given by the proprietor of an estate, interest or charge to bind his successors);
 
    (c) about withdrawal of consent (including provision preventing withdrawal in specified circumstances);
 
    (d) for consent given for the purpose of one application under section 2 to have effect for the purpose of another application;
 
    (e) for consent to be deemed to have been given in specified circumstances;
 
    (f) enabling a court to dispense with a requirement for consent in specified circumstances.
      (3) An order under subsection (2)(f) dispensing with a requirement for consent-
 
 
    (a) may be absolute or conditional, and
 
    (b) may make such other provision as the court thinks appropriate.
Land which may not be commonhold.     4. Schedule 2 (which provides that an application under section 2 may not relate wholly or partly to land of certain kinds) shall have effect.
 
Registered details.     5. - (1) The Registrar shall ensure that in respect of any commonhold land the following are kept in his custody and referred to in the register-
 
 
    (a) the prescribed details of the commonhold association;
 
    (b) the prescribed details of the registered freeholder of each commonhold unit;
 
    (c) a copy of the commonhold community statement;
 
    (d) a copy of the memorandum and articles of association of the commonhold association.
      (2) The Registrar may arrange for a document or information to be kept in his custody and referred to in the register in respect of commonhold land if the document or information-
 
 
    (a) is not mentioned in subsection (1), but
 
    (b) is submitted to the Registrar in accordance with a provision made by or by virtue of this Part.
      (3) Subsection (1)(b) shall not apply during a transitional period within the meaning of section 8.
 
Registration in error.     6. - (1) This section applies where a freehold estate in land is registered as a freehold estate in commonhold land and-
 
 
    (a) the application for registration was not made in accordance with section 2,
 
    (b) the certificate under paragraph 7 of Schedule 1 was inaccurate, or
 
    (c) the registration contravened a provision made by or by virtue of this Part.
      (2) The register may not be rectified by the Registrar under section 82(1) of the Land Registration Act 1925 (rectification).
 
      (3) The court may grant a declaration that the freehold estate should not have been registered as a freehold estate in commonhold land.
 
      (4) A declaration under subsection (3) may be granted only on the application of a person who claims to be adversely affected by the registration.
 
      (5) On granting a declaration under subsection (3) the court may make any order which appears to it to be appropriate.
 
      (6) An order under subsection (5) may, in particular-
 
 
    (a) provide for the registration to be treated as valid for all purposes;
 
    (b) provide for rectification of the register;
 
    (c) provide for land to cease to be commonhold land;
 
    (d) require a director or other specified officer of a commonhold association to take steps to alter or amend a document;
 
    (e) require a director or other specified officer of a commonhold association to take specified steps;
 
    (f) make an award of compensation (whether or not contingent upon the occurrence or non-occurrence of a specified event) to be paid by one specified person to another;
 
    (g) apply, disapply or modify a provision of section 83 or 84 of the Land Registration Act 1925 (indemnity).
 
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