Ownerless land

Addressing the problems that can arise when land ceases to have an owner and transfers to the Crown.

The problem (Back to top)

In England and Wales, ownerless land passes to the Crown. If a UK registered company that owns land is dissolved, the land transfers to the Treasury Solicitor as “bona vacantia” (the Crown’s right to unowned goods). The Treasury Solicitor has a power to disclaim their title to the land. Additionally, if a person or a company who owns land becomes insolvent, their trustee in bankruptcy or liquidator has a power to disclaim their title to the land. If a freehold title is disclaimed, the land reverts (“escheats”) to the Crown and becomes part of the Crown Estate. (The rules governing ownerless land are slightly different where the land falls within the boundaries of the Duchies of Cornwall or Lancaster.)

Where ownerless land reverts to the Crown, it is believed that the Crown Estate is generally not liable for it unless it performs an act of possession or control. However, it is unclear what qualifies as a sufficient act of possession or control. For example, giving someone permission to enter the land or participating in legal proceedings relating to the land may be acts of control. We have heard that uncertainties about when the Crown may incur liability can contribute to some of the problems described below.

While many plots of land that become ownerless may cause no issues, we understand that this is not always the case. For example, problems can arise where land containing dangerous buildings or environmental hazards becomes ownerless. We have also heard that there can be difficulties in managing ownerless land (for example, in securing dangerous sites or giving people access to the land). There can also be difficulties in bringing the land back into profitable use. The land may require remedial work to make it sellable (with nobody in a position to perform it) or it may still be burdened by mortgages, which make it unattractive to potential buyers.

More generally, the law governing ownerless land is antiquated. The law may be confusing for third parties with rights or interests affecting the land, who may need to move from dealing with the land’s original owner, to dealing with the Treasury Solicitor, to dealing with the Crown Estate.

Project (Back to top)

This project will carry out a review of the law of bona vacantia and escheat. It will review the Crown’s liability shield for ownerless land. We will consider whether some types of ownerless land should pass to a body other than the Crown and review powers of certain parties to obtain vesting orders. The project will also examine the rights of leaseholders where the landlord’s title escheats.

Alongside these areas of reform, the project will aim to clarify the law, addressing the survival of derivative interests that affect ownerless land and the impact of bona vacantia and escheat on the land registration system.

This project forms part of the Law Commission’s 14th Programme of Law Reform.