Types of Property
Property refers to anything that a person can own.
This is freehold land.
2. Personal property (personalty)
Personal property is all property apart from freehold land. For example:
- Chattels (choses in possession). These are tangible things like jewellery, cars and furniture.
- 'Choses in action'. These are intangible things which must be recovered by bringing a claim in court. This category can include company shares. copyrights and bank accounts.
- Leasehold land.
Transfers of Title when the Donor Owns the Legal Title
The transferor must execute a deed. Section 52(1) of the Law of Property Act 1925 states that all conveyances of land are void for the purpose of creating a legal estate unless made by deed.
A deed is a document that satisfies section 1 of the Law of Property (Miscellaneous Provisions) Act 1989:
(a) The document is stated to be a deed or is signed as a deed;
(b) The person making the deed signs the deed in the presence of a witness, who also signs it.
Where the land is registered, the deed is Form TR1, as issued by the Land Registry.
The deed must also be sent to Land Registry to register the transferee as the new legal owner.
Shares in a Company
The basic method of transfer is that the transferor to sign the form of transfer and for this to be sent to the company along with the existing share certificate. The new shareholder is then registered in the Registrar of Members, and the legal title passes to him when registered. The company sends the new shareholder a certificate in his name.
No writing is necessary. Transfer of monetary rights is effected by delivery of the note to the transferee.
Title to chattels (choses in possession) is passed by physical delivery of the asset to the transferee, or by a deed (Jaffa v Taylor Gallery Ltd).
Requirements for the Creation of an Express Private Trust
Methods of Creation of Express Trusts