Citizens Advice Bureau

Housing, Land & Property Law

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Boundaries - "Relief" ( 11.8.54.L1 )
Clameur de Haro ( 4.6.0.L10 )
Control of Housing and Work Law Housing Status ( 11.5.0. )
Establishing ownership of property ( 11.8.52.L7 )
Eviction Proceedings ( 11.12.12 )
House Purchase - removal of goods ( 11.1.30.L4 )
Housing Regulations and Property ( 11.6.0 )
Housing Status - Methods of proving residence ( 11.5.0.L5 )
Joint ownership of property ( 11.1.54. )
Joint purchase / leasing ..... Married and unmarried ( 11.5.0.L12 )
Land measurements in Jersey ( 11.1.50.L5 )
Life enjoyment of property - "Usufruct" (11.5.20)
Lodgers and the Law ( 11.1.8.L4 )
Parish Rates and Appeals Procedure ( 11.8.40. )
Personal possessions left behind by a tenant or lodger ( 11.8.2 )
Purchase of Freehold Property (11.1.30.L2)
Purchase of property - Flying freehold ( 11.1.30.L7 )
Purchase of property - Share Transfer ( 11.1.30.L6 )
Registration of Tourism Properties / Keeping Records ( 11.8.0 )
Residential Statuses (11.5.0.L6)
Residential Tenancy Law / Agreements / Regulations and Orders / Condition Reports ( 11.1.14. )
Restrictive Covenants ( 11.8.54 )
Stamp duty on property purchase/transfer and death ( 11.1.50 )
Status of occupiers - ( 11.5.0.L7 )
Statutory Nuisances (Jersey) Law 1999 ( 11.8.52.L2 )
Three month exemption rule (11.1.15)
To obtain a copy of house deeds ( 11.1.50.L2 )
Transfer or Jersey realty into joint names ( 11.1.30.L5 )
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LOCAL INFORMATION

11.1.30.L6
Purchase of property - Share Transfer

Extent: Jersey
Updated 16 April 2014

 

What is Share Transfer?

1.  Usually applies to blocks of flats and larger properties containing several units.

2.  The property is owned by a holding company. Purchasers acquire a block of shares in the holding company which entitles them to rights but limited by rules contained in the Articles of Association of the holding company. There is no requirement to pass a contract before the Royal Court. Completion is usually effected by the execution of a Share Vending Agreement, the issue of a new share certificate and an entry in the Register of Members of the holding company.

3.  Once a shareholder, the client becomes responsible for a certain percentage of all communal outgoings.

4.  Purchasers of share transfer property are able to take out a mortgage as the lender will take a charge over the shares under the Security Interests [Jersey] Law 1983.

5.  Entitled/ Licenced/ Entitled to Work or Registered persons can purchase shares. The sale of shares is not generally governed by housing law, however, any occupier must possess Entitled or Licenced Status .

6.  It is recommended that clients use a lawyer to check the Share Vending Agreement, investigate the company and any restrictive clauses of the company. It is also important to establish that the company does not have any pre-existing liabilities. There are reduced legal fees for first time buyers.

7. Share certificates and Registers are not public documents.

8. The States approved the Taxation (Land Transactions) (Jersey) Law in June 2008 which came in to force, on the 1st January 2010. See www.gov.je/TaxesMoney/LandTransaction/Pages/FactSheet.aspx The tax payable on a share transfer purchase is exactly equal to that which would have been payable under the Stamp Duties and Fees (Jersey) Law 1998 for freehold transactions. See 11.1.50

9.  A property purchased by share transfer is classed as movableestate and must therefore be included in a Will of Personalty.