Q&As

Three parties hold a freehold property on trust for a partnership. Two are continuing partners of the partnership and the other individual has retired and is no longer involved in the partnership. Is there a mechanism for applying to court to transfer the freehold title into the names of the two continuing partners?

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Published on LexisPSL on 04/05/2018

The following Property Q&A provides comprehensive and up to date legal information covering:

  • Three parties hold a freehold property on trust for a partnership. Two are continuing partners of the partnership and the other individual has retired and is no longer involved in the partnership. Is there a mechanism for applying to court to transfer the freehold title into the names of the two continuing partners?

Three parties hold a freehold property on trust for a partnership. Two are continuing partners of the partnership and the other individual has retired and is no longer involved in the partnership. Is there a mechanism for applying to court to transfer the freehold title into the names of the two continuing partners?

A partnership is not a legal entity but is a relationship between partners. It is defined in the Partnership Act 1890 (PA 1890) as ‘the relation which subsists between persons carrying on a business in common with a view of profit’ (PA 1890, s 1(1)).

When the composition of a partnership changes, eg a partner dies or retires from a partnership or a new partner is admitted to a partnership, the partnership in existence immediately before the change is dissolved. It is usual for a new partnership, taking into account that change in composition, to succeed the dissolved partnership immediately and for that new partnership to take on the assets and liabilities of the dissolved partnership and to continue its business—in which case there is said to have been a ‘technical dissolution’ of the dissolved partnership because it is not necessary to wind up its affairs. For further details, see Practice Note: Ending a general partnership—what is dissolution?

Where a technical dissolution occurs as a result of a partner leaving a partnership, the terms

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