Beneficial Interest Transfer Agreement

September 12, 2021

S53 Law of Property Act 1925 applies to land and buildings. For B to have an economic interest, there must be confidence in them or constructive. There are two types of property: legal property or economic property. We tend to think of the beneficial owners as the beneficial owners, so we make no distinction between the two, but sometimes it is useful to do so. A partner who is the exclusive owner of a property might want to give their long-term partner an advantageous interest if these two are probably not married. However, he or she may retain control by remaining the rightful owner. For income tax purposes, you need to know who is the beneficial owner of the income, that is, who is “eligible” for the income. B cannot claim an interest rate through a resulting trust because it did not contribute to the purchase price. Even if there is a valid declaration that A has actually transferred the economic share of the income to B, the Housing Act applies to consider rents as belonging to A. A has “retained a stake” when property or income can be claimed for the benefit of A or A`s civil partner. The exception for direct gifts to a spouse or life partner does not apply, since only the right to income has been transferred, not the underlying wealth. Section 52 Law of Property Act 1925 (LPA) provides that any transfer of legal title (transfer) of land is void unless it is made by deed. A transfer after 2002 must be registered with the land registry.

The cadastre documents indicate who has the legal title. A copy of the TR1 cadastre form used from 1 April 1998 can BE CONSULTED TR1 However, legitimate co-owners of a property may wish the economic interest to be distorted from the legal interest, in particular if they want one of the partners to be entitled to a larger share of the rental income. For example, if A and B are the common legitimate owners of a property, they may decide that A has an economic interest in 70% of the property and B has an economic interest in 30% of the property. . . .

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