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46 Termination application

(1) A “termination application” is an application to the Registrar that all the land in relation to which a particular commonhold association exercises functions should cease to be commonhold land.

(2) A termination application must be accompanied by a termination statement.

(3) On receipt of a termination application the Registrar shall note it in the register.

47 Termination statement

(1) A termination statement must specify—

(a) the commonhold association’s proposals for the transfer of the commonhold land following acquisition of the freehold estate in accordance with section 49(3), and

(b) how the assets of the commonhold association will be distributed.

(2) A commonhold community statement may make provision requiring any termination statement to make arrangements—

(a) of a specified kind, or

(b) determined in a specified manner,

about the rights of unit-holders in the event of all the land to which the statement relates ceasing to be commonhold land.

(3) A termination statement must comply with a provision made by the commonhold community statement in reliance on subsection (2).

(4) Subsection (3) may be disapplied by an order of the court—

(a) generally,

(b) in respect of specified matters, or

(c) for a specified purpose.

(5) An application for an order under subsection (4) may be made by any member of the commonhold association.

48 The liquidator

(1) This section applies where a termination application has been made in respect of particular commonhold land.

(2) The liquidator shall notify the Registrar of his appointment.

(3) In the case of a termination application made under section 44 the liquidator shall either—

(a) notify the Registrar that the liquidator is content with the termination statement submitted with the termination application, or

(b) apply to the court under section 112 of the Insolvency Act 1986 (c. 45) to determine the terms of the termination statement.

(4) The liquidator shall send to the Registrar a copy of a determination made by virtue of subsection (3)(b).

(5) Subsection (4) is in addition to any requirement under section 112(3) of the Insolvency Act 1986.

(6) A duty imposed on the liquidator by this section is to be performed as soon as possible.

(7) In this section a reference to the liquidator is a reference—

(a) to the person who is appointed as liquidator under section 91 of the Insolvency Act 1986, or

(b) in the case of a members' voluntary winding up which becomes a creditors' voluntary winding up by virtue of sections 95 and 96 of that Act, to the person acting as liquidator in accordance with section 100 of that Act.

49 Termination

(1) This section applies where a termination application is made under section 44 and—

(a) a liquidator notifies the Registrar under section 48(3)(a) that he is content with a termination statement, or

(b) a determination is made under section 112 of the Insolvency Act 1986 (c. 45) by virtue of section 48(3)(b).

(2) This section also applies where a termination application is made under section 45.

(3) The commonhold association shall by virtue of this subsection be entitled to be registered as the proprietor of the freehold estate in each commonhold unit.

(4) The Registrar shall take such action as appears to him to be appropriate for the purpose of giving effect to the termination statement.

Termination: winding-up by court

50 Introduction

(1) Section 51 applies where a petition is presented under section 124 of the Insolvency Act 1986 for the winding up of a commonhold association by the court.

(2) For the purposes of this Part—

(a) an “insolvent commonhold association” is one in relation to which a winding-up petition has been presented under section 124 of the Insolvency Act 1986,

(b) a commonhold association is the “successor commonhold association” to an insolvent commonhold association if the land specified for the purpose of section 34(1)(a) is the same for both associations, and

(c) a “winding-up order” is an order under section 125 of the Insolvency Act 1986 for the winding up of a commonhold association.

51 Succession order

(1) At the hearing of the winding-up petition an application may be made to the court for an order under this section (a “succession order”) in relation to the insolvent commonhold association.

(2) An application under subsection (1) may be made only by—

(a) the insolvent commonhold association,

(b) one or more members of the insolvent commonhold association, or

(c) a provisional liquidator for the insolvent commonhold association appointed under section 135 of the Insolvency Act 1986.

(3) An application under subsection (1) must be accompanied by—

(a) prescribed evidence of the formation of a successor commonhold association, and

(b) a certificate given by the directors of the successor commonhold association that its memorandum and articles of association comply with regulations under paragraph 2(1) of Schedule 3.

(4) The court shall grant an application under subsection (1) unless it thinks that the circumstances of the insolvent commonhold association make a succession order inappropriate.

52 Assets and liabilities

(1) Where a succession order is made in relation to an insolvent commonhold association this section applies on the making of a winding-up order in respect of the association.

(2) The successor commonhold association shall be entitled to be registered as the proprietor of the freehold estate in the common parts.

(3) The insolvent commonhold association shall for all purposes cease to be treated as the proprietor of the freehold estate in the common parts.

(4) The succession order—

(a) shall make provision as to the treatment of any charge over all or any part of the common parts;

(b) may require the Registrar to take action of a specified kind;

(c) may enable the liquidator to require the Registrar to take action of a specified kind;

(d) may make supplemental or incidental provision.

53 Transfer of responsibility

(1) Where a succession order is made in relation to an insolvent commonhold association this section applies on the making of a winding-up order in respect of the association.

(2) The successor commonhold association shall be treated as the commonhold association for the commonhold in respect of any matter which relates to a time after the making of the winding-up order.

(3) On the making of the winding-up order the court may make an order requiring the liquidator to make available to the successor commonhold association specified—

(a) records;

(b) copies of records;

(c) information.

(4) An order under subsection (3) may include terms as to—

(a) timing;

(b) payment.

54 Termination of commonhold

(1) This section applies where the court—

(a) makes a winding-up order in respect of a commonhold association, and

(b) has not made a succession order in respect of the commonhold association.

(2) The liquidator of a commonhold association shall as soon as possible notify the Registrar of—

(a) the fact that this section applies,

(b) any directions given under section 168 of the Insolvency Act 1986 (c. 45) (liquidator: supplementary powers),

(c) any notice given to the court and the registrar of companies in accordance with section 172(8) of that Act (liquidator vacating office after final meeting),

(d) any notice given to the Secretary of State under section 174(3) of that Act (completion of winding-up),

(e) any application made to the registrar of companies under section 202(2) of that Act (insufficient assets: early dissolution),

(f) any notice given to the registrar of companies under section 205(1)(b) of that Act (completion of winding-up), and

(g) any other matter which in the liquidator’s opinion is relevant to the Registrar.

(3) Notification under subsection (2)(b) to (f) must be accompanied by a copy of the directions, notice or application concerned.

(4) The Registrar shall—

(a) make such arrangements as appear to him to be appropriate for ensuring that the freehold estate in land in respect of which a commonhold association exercises functions ceases to be registered as a freehold estate in commonhold land as soon as is reasonably practicable after he receives notification under subsection (2)(c) to (f), and

(b) take such action as appears to him to be appropriate for the purpose of giving effect to a determination made by the liquidator in the exercise of his functions.

Termination: miscellaneous

55 Termination by court

(1) This section applies where the court makes an order by virtue of section 6(6)(c) or 40(3)(d) for all the land in relation to which a commonhold association exercises functions to cease to be commonhold land.

(2) The court shall have the powers which it would have if it were making a winding-up order in respect of the commonhold association.

(3) A person appointed as liquidator by virtue of subsection (2) shall have the powers and duties of a liquidator following the making of a winding-up order by the court in respect of a commonhold association.

(4) But the order of the court by virtue of section 6(6)(c) or 40(3)(d) may—

(a) require the liquidator to exercise his functions in a particular way;

(b) impose additional rights or duties on the liquidator;

(c) modify or remove a right or duty of the liquidator.

56 Release of reserve fund

Section 39(4) shall cease to have effect in relation to a commonhold association (in respect of debts and liabilities accruing at any time) if—

(a) the court makes a winding-up order in respect of the association,

(b) the association passes a voluntary winding-up resolution, or

(c) the court makes an order by virtue of section 6(6)(c) or 40(3)(d) for all the land in relation to which the association exercises functions to cease to be commonhold land.

Miscellaneous

57 Multiple site commonholds

(1) A commonhold may include two or more parcels of land, whether or not contiguous.

(2) But section 1(1) of this Act is not satisfied in relation to land specified in the memorandum of association of a commonhold association unless a single commonhold community statement makes provision for all the land.

(3) Regulations may make provision about an application under section 2 made jointly by two or more persons, each of whom is the registered freeholder of part of the land to which the application relates.

(4) The regulations may, in particular—

(a) modify the application of a provision made by or by virtue of this Part;

(b) disapply the application of a provision made by or by virtue of this Part;

(c) impose additional requirements.

58 Development rights

(1) In this Part—

• “the developer” means a person who makes an application under section 2, and

• “development business” has the meaning given by Schedule 4.

(2) A commonhold community statement may confer rights on the developer which are designed—

(a) to permit him to undertake development business, or

(b) to facilitate his undertaking of development business.

(3) Provision made by a commonhold community statement in reliance on subsection (2) may include provision—

(a) requiring the commonhold association or a unit-holder to co-operate with the developer for a specified purpose connected with development business;

(b) making the exercise of a right conferred by virtue of subsection (2) subject to terms and conditions specified in or to be determined in accordance with the commonhold community statement;

(c) making provision about the effect of breach of a requirement by virtue of paragraph (a) or a term or condition imposed by virtue of paragraph (b);

(d) disapplying section 41(2) and (3).

(4) Subsection (2) is subject—

(a) to regulations under section 32, and

(b) in the case of development business of the kind referred to in paragraph 7 of Schedule 4, to the memorandum and articles of association of the commonhold association.

(5) Regulations may make provision regulating or restricting the exercise of rights conferred by virtue of subsection (2).

(6) Where a right is conferred on a developer by virtue of subsection (2), if he sends to the Registrar a notice surrendering the right—

(a) the Registrar shall arrange for the notice to be kept in his custody and referred to in the register,

(b) the right shall cease to be exercisable from the time when the notice is registered under paragraph (a), and

(c) the Registrar shall inform the commonhold association as soon as is reasonably practicable.

59 Development rights: succession

(1) If during a transitional period the developer transfers to another person the freehold estate in the whole of the commonhold, the successor in title shall be treated as the developer in relation to any matter arising after the transfer.

(2) If during a transitional period the developer transfers to another person the freehold estate in part of the commonhold, the successor in title shall be treated as the developer for the purpose of any matter which—

(a) arises after the transfer, and

(b) affects the estate transferred.

(3) If after a transitional period or in a case where there is no transitional period—

(a) the developer transfers to another person the freehold estate in the whole or part of the commonhold (other than by the transfer of the freehold estate in a single commonhold unit), and

(b) the transfer is expressed to be inclusive of development rights,

the successor in title shall be treated as the developer for the purpose of any matter which arises after the transfer and affects the estate transferred.

(4) Other than during a transitional period, a person shall not be treated as the developer in relation to commonhold land for any purpose unless he—

(a) is, or has been at a particular time, the registered proprietor of the freehold estate in more than one of the commonhold units, and

(b) is the registered proprietor of the freehold estate in at least one of the commonhold units.

60 Compulsory purchase

(1) Where a freehold estate in commonhold land is transferred to a compulsory purchaser the land shall cease to be commonhold land.

(2) But subsection (1) does not apply to a transfer if the Registrar is satisfied that the compulsory purchaser has indicated a desire for the land transferred to continue to be commonhold land.

(3) The requirement of consent under section 21(2)(c) shall not apply to transfer to a compulsory purchaser.

(4) Regulations may make provision about the transfer of a freehold estate in commonhold land to a compulsory purchaser.

(5) The regulations may, in particular—

(a) make provision about the effect of subsections (1) and (2) (including provision about that part of the commonhold which is not transferred);

(b) require the service of notice;

(c) confer power on a court;

(d) make provision about compensation;

(e) make provision enabling a commonhold association to require a compulsory purchaser to acquire the freehold estate in the whole, or a particular part, of the commonhold;

(f) provide for an enactment relating to compulsory purchase not to apply or to apply with modifications.

(6) Provision made by virtue of subsection (5)(a) in respect of land which is not transferred may include provision—

(a) for some or all of the land to cease to be commonhold land;

(b) for a provision of this Part to apply with specified modifications.

(7) In this section “compulsory purchaser” means—

(a) a person acquiring land in respect of which he is authorised to exercise a power of compulsory purchase by virtue of an enactment, and

(b) a person acquiring land which he is obliged to acquire by virtue of a prescribed enactment or in prescribed circumstances.

61 Matrimonial rights

In the following provisions of this Part a reference to a tenant includes a reference to a person who has matrimonial home rights (within the meaning of section 30(2) of the Family Law Act 1996 (c. 27) (matrimonial home)) in respect of a commonhold unit—

(a) section 19,

(b) section 35, and

(c) section 37.

62 Advice

(1) The Lord Chancellor may give financial assistance to a person in relation to the provision by that person of general advice about an aspect of the law of commonhold land, so far as relating to residential matters.

(2) Financial assistance under this section may be given in such form and on such terms as the Lord Chancellor thinks appropriate.

(3) The terms may, in particular, require repayment in specified circumstances.

63 The Crown

This Part binds the Crown.

General

64 Orders and regulations

(1) In this Part “prescribed” means prescribed by regulations.

(2) Regulations under this Part shall be made by the Lord Chancellor.

(3) Regulations under this Part—

(a) shall be made by statutory instrument,

(b) may include incidental, supplemental, consequential and transitional provision,

(c) may make provision generally or only in relation to specified cases,

(d) may make different provision for different purposes, and

(e) shall be subject to annulment in pursuance of a resolution of either House of Parliament.

65 Registration procedure

(1) The Lord Chancellor may make rules about—

(a) the procedure to be followed on or in respect of commonhold registration documents, and

(b) the registration of freehold estates in commonhold land.

(2) Rules under this section—

(a) shall be made by statutory instrument in the same manner as land registration rules within the meaning of the Land Registration Act 2002 (c. 9),

(b) may make provision for any matter for which provision is or may be made by land registration rules, and

(c) may provide for land registration rules to have effect in relation to anything done by virtue of or for the purposes of this Part as they have effect in relation to anything done by virtue of or for the purposes of that Act.

(3) Rules under this section may, in particular, make provision—

(a) about the form and content of a commonhold registration document;

(b) enabling the Registrar to cancel an application by virtue of this Part in specified circumstances;

(c) enabling the Registrar, in particular, to cancel an application by virtue of this Part if he thinks that plans submitted with it (whether as part of a commonhold community statement or otherwise) are insufficiently clear or accurate;

(d) about the order in which commonhold registration documents and general registration documents are to be dealt with by the Registrar;

(e) for registration to take effect (whether or not retrospectively) as from a date or time determined in accordance with the rules.

(4) The rules may also make provision about satisfaction of a requirement for an application by virtue of this Part to be accompanied by a document; in particular the rules may—

(a) permit or require a copy of a document to be submitted in place of or in addition to the original;

(b) require a copy to be certified in a specified manner;

(c) permit or require the submission of a document in electronic form.

(5) A commonhold registration document must be accompanied by such fee (if any) as is specified for that purpose by order under section 102 of the Land Registration Act 2002 (c. 9)(fee orders).

(6) In this section—

• “commonhold registration document” means an application or other document sent to the Registrar by virtue of this Part, and

• “general registration document” means a document sent to the Registrar under a provision of the Land Registration Act 2002.

66 Jurisdiction

(1) In this Part “the court” means the High Court or a county court.

(2) Provision made by or under this Part conferring jurisdiction on a court shall be subject to provision made under section 1 of the Courts and Legal Services Act 1990 (c. 41) (allocation of business between High Court and county courts).

(3) A power under this Part to confer jurisdiction on a court includes power to confer jurisdiction on a tribunal established under an enactment.

(4) Rules of court or rules of procedure for a tribunal may make provision about proceedings brought—

(a) under or by virtue of any provision of this Part, or

(b) in relation to commonhold land.

67 The register

(1) In this Part—

• “the register” means the register of title to freehold and leasehold land kept under section 1 of the Land Registration Act 2002,

• “registered” means registered in the register, and

• “the Registrar” means the Chief Land Registrar.

(2) Regulations under any provision of this Part may confer functions on the Registrar (including discretionary functions).

(3) The Registrar shall comply with any direction or requirement given to him or imposed on him under or by virtue of this Part.

(4) Where the Registrar thinks it appropriate in consequence of or for the purpose of anything done or proposed to be done in connection with this Part, he may—

(a) make or cancel an entry on the register;

(b) take any other action.

(5) Subsection (4) is subject to section 6(2).

68 Amendments

Schedule 5 (consequential amendments) shall have effect.

69 Interpretation

(1) In this Part—

• “instrument” includes any document, and

• “object” in relation to a commonhold association means an object stated in the association’s memorandum of association in accordance with section 2(1)(c) of the Companies Act 1985 (c. 6).

(2) In this Part—

(a) a reference to a duty to insure includes a reference to a duty to use the proceeds of insurance for the purpose of rebuilding or reinstating, and

(b) a reference to maintaining property includes a reference to decorating it and to putting it into sound condition.

(3) A provision of the Law of Property Act 1925 (c. 20), the Companies Act 1985 (c. 6) or the Land Registration Act 2002 (c. 9) defining an expression shall apply to the use of the expression in this Part unless the contrary intention appears.

70 Index of defined expressions

In this Part the expressions listed below are defined by the provisions specified.