Vesting order

Vesting order means the instrument whereby settled land is conveyed to or vested or declared to be vested in a tenant for life or statutory owner.

Vesting order may occur in a number of circumstances. One is where the rights, duties, obligations, rights of suit, property and other matters pertaining to a statutory corporation are transferred, for example, from a statutory corporation to the government or to another statutory corporation. Once all arrangements have been made on the ground to effect the transfer, a vesting order is made and gazetted. It will state that with effect from a certain date these matters will stand transferred. Once they are transferred, the vesting order is spent, in that it has had its effect.

Vesting orders of land

In any of the following cases, namely:

• Where the court appoints or has appointed a trustee, or where a trustee has been appointed out of court under and statutory or express power
• Where a trustee entitled to or possessed of any land or interest therein, whether by way of mortgage or otherwise, or entitled to a contingent right therein, either solely or jointly with any other person
• Where it is uncertain who was the survivor of two or more trustees jointly entitled to or possessed of any interest in land
• Where it is uncertain whether the last trustee know to have been entitled to or possessed of any interest in land is living or dead
• Where there is no personal representative of a deceased trustee who was entitled to or possessed of any interest in land, or where it is uncertain who is the personal representative of a deceased trustee who was entitled to or possessed of any interest in land
• Where a trustee jointly or solely entitled to or possessed of any interest in land, or entitled to a contingent right therein, has been required, by or on behalf of a person entitled to require a conveyance of the land or interest or a release of the right, to convey the land or interest or to release the right, and has wilfully refused or neglected to convey the land or interest or release the right for twenty-eight days after the date of the requirement
• Where land or any interesting is vested in a trustee whether by way of mortgage or otherwise, and it appears to the court to be expedient; the court may make an order vesting land interest therein any such person.

Vesting order consequential on judgment for specific performance

Where a judgment is given for the specific performance of a contract concerning any interest in land, or for sale or exchange of any interest in land, or generally where any judgments is given for the conveyance of any interest in land either in cases arising out of the doctrine of election or otherwise, the court may declare:

• That any of the parties to the action are trustees of any interest in the land or any part thereof within the meaning of this Act,or
• That the interest of unborn persons who might claim under any party to the action, or under the will or voluntary settlement of any deceased person who was during his lifetime a party to the contract or transaction concerning which the judgment is given, are the interests of persons who, on coming into existence, would be trustees within the meaning of this Act;

and thereupon the court may make a vesting order relating to the rights of those persons, born and unborn, as if they had been trustees.

Examples of Vesting order

• A vesting order is an instrument used to transfer legal title of land from one person to another. For example, a parent may transfer a title to a child through a vesting order. The vesting order will specify the terms of the transfer, such as the interest rate, length of time the title is held, and any restrictions on the use of the land.
• A vesting order can also be used to transfer title to land from a trustee to a beneficiary. The vesting order will specify the terms of the transfer, such as the interest rate, length of time the title is held, and any restrictions on the use of the land.
• In a real estate transaction, a vesting order is a legal document that transfers title of a property from the seller to the buyer. The vesting order will specify the terms of the transfer, such as the purchase price, interest rate, length of time the title is held, and any restrictions on the use of the land.

Advantages of Vesting order

A Vesting Order is a useful instrument that offers many advantages to the tenant for life or statutory owner. These advantages include:

• The Vesting Order ensures that the tenant for life or statutory owner has clear legal title to the land, securing their position as the rightful owner of the land.
• The Vesting Order also provides the tenant for life or statutory owner with greater control over the land, allowing them to make decisions about how to use the land and who may have access to it.
• The Vesting Order can also be used to create a trust for the benefit of the tenant for life or statutory owner, ensuring that the land is managed and maintained for the benefit of the tenant for life or statutory owner.
• The Vesting Order also removes any uncertainty over the ownership of the land, allowing the tenant for life or statutory owner to claim their rights to the land without fear of being challenged.
• The Vesting Order also allows the tenant for life or statutory owner to transfer the land to other people or entities, such as family members, without having to go through the lengthy and costly process of obtaining a transfer of title.

Limitations of Vesting order

Vesting orders are an instrument used to convey settled land to a tenant for life or statutory owner, but they come with several limitations. These include:

• They can only be used to convey settled land, meaning that it cannot be used to transfer freehold land or interests in freehold land.
• Vesting orders are only effective between the date of the order and the date of registration of the order in the Land Registry.
• Vesting orders are only effective if the tenant for life or statutory owner has the legal capacity to accept the land.
• The tenant for life or statutory owner must also have the capacity to accept any liabilities attached to the land.
• Vesting orders cannot be used to transfer land that is subject to a trust or a mortgage.
• The tenant for life or statutory owner must receive the land in its entirety. They cannot receive only a part of the land.
• The tenant for life or statutory owner must accept the land in the same condition that it was in when the order was granted.

Other approaches related to Vesting order

Vesting order is not the only approach when it comes to settled land. There are other legal instruments that can be used, such as:

• Leasehold - a leasehold is a type of land tenure that involves the tenant entering into a contract with the landlord to have exclusive use of the land for a specified period of time. The tenant is entitled to all the rights and privileges associated with the lease, such as the right to occupy, use and enjoy the land.
• Freehold - a freehold is the absolute and unconditional ownership of land. It is acquired by purchasing the land outright and is the most common type of land tenure. The freeholder has full ownership rights and can do whatever they wish with the land as long as it is within the law.
• Crown lease - a Crown lease is a type of tenure where the Crown (usually the government) grants a lease to the tenant for a set period of time. The tenant is usually the owner in fee simple and has exclusive use and control of the land. The tenant may be responsible for paying rent to the Crown, as well as any taxes or fees associated with the land.
• Licence - a licence is a type of land tenure that grants the tenant the right to use the land for a specific purpose, such as for agricultural purposes or for setting up a business. The licence does not grant the tenant any ownership rights, but does grant exclusive use of the land for a specified period of time.

In summary, the instrument used to convey settled land can vary depending on the circumstances. Vesting order is just one of the legal instruments that can be used. Other instruments include leasehold, freehold, Crown lease and licence.

Footnotes

Vesting order — recommended articles

Absolute assignment — Affirmative Covenant — Tenancy At Sufferance — Confession Of Judgment — Limited warranty deed — Absolute title — Executed consideration — Clear title — Hold over tenant

References

• Hewitson R., (2012), Property Law Statutes, Routledge, London.
• Luther P., Moran A., (2016), Core Statutes on Property Law , Macmillan International, New York.
• Simamba B.H., (2013), How To Make Effective Legislative Proposals, Author House, Ottawa.
• Thomas M., (2015), Blackstone's Statutes on Property Law, Oxford University Press, Glasgow.

Author: Klaudia Piotrowska