A comparison between Share Transfer and Flying Freehold

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Under the customary law of Jersey, the owner of land is the owner of all that is directly above and below it (“qui a le sol a le dessus et le dessous”).

Over the years, mechanisms have been devised to enable properties to be divided into apartments for individual sale namely:

  • Share Transfer
  • Flying Freehold
  • Long Leasehold (very rarely used)

Comparison of Flying Freehold and Share Transfer

Share Transfer Flying Freehold
  • Involves the sale of the block of shares in a Company which owns a freehold property
  • The Articles of Association divide the Company’s shares into separate blocks
  • Ownership of a block of shares gives the owner the right to occupy a particular apartment / garage / parking space
  • Anyone can own a block of shares but in the majority of cases, Licenced or Entitled status is required in order to occupy
  • Completion can take place on any day
  • Introduced in 1991 as an alternative to share transfer ownership
  • The land and buildings are owned in common by the owners of the units (or “lots” or “shares”) who are called “co-owners” and together form an Association
  • The registration of the Declaration of Association before the Royal Court creates the Association
  • The Declaration defines the areas that are commonly owned and those that are  privately owned
  • Licenced or Entitled status is required in order to own and to occupy
  • Completion takes place by passing a contract before the Royal Court on a Friday

 

Share Transfer and Flying Freehold in further detail

Share Transfer Flying Freehold
  • Ownership of shares
  • Owners known as Shareholders
  • Each Shareholder usually becomes a Director
  • Directors usually manage the day to day affairs and carry out decisions on behalf of the Shareholders
  • Administration is usually carried out by the Company Secretary, appointed by the Directors
  • Periodic payments of service charges in accordance with the Articles
  • Ownership of a freehold “lot”
  • Owners known as Co-owners
  • Voting rights as Co-owners
  • Administration is carried out by the Association Representative, who is appointed by the Co-owners
  • Periodic payments of service charges in accordance with the Declaration

 

The information and expressions of opinion contained in this guide are not intended to be a comprehensive study or to provide legal advice and should not be treated as a substitute for specific advice concerning individual situations.