Overview of commonhold Glossary

Glossary

Act

The Act means Part 1 of the Commonhold and Leasehold Reform Act 2002.

Articles of Association

These regulate the internal organisation and affairs of the commonhold association, such as voting powers and the calling of meetings. They also determine how the power conferred on the association by the memorandum of association is exercised. If there is an inconsistency between the memorandum and articles of association, the memorandum prevails and any alteration to the articles that conflicts with the memorandum is void.

Commonhold Association

A private limited company incorporated under the Companies Act 1985 limited by guarantee with the specific object of exercising the functions of a commonhold association in relation to defined land. The association is responsible for the upkeep of the common parts and levies a service charge (commonhold assessment) to meet its expenses. The association and its members have the power to enforce the obligations in the commonhold; i.e. members can enforce directly against other members.

Commonhold Community Statement

The document which defines by plan and description the extent of the commonhold units, and makes provision for the rights and duties of the commonhold association and the unit holders.

Common Parts

Every part of the commonhold which is not for the time being shown as a commonhold unit by the commonhold community statement. These are owned by the commonhold association.

Commonhold Unit

One of at least two parcels of land within the commonhold, the extent of which are defined by the commonhold community statement. A unit may, for example, comprise a flat, bin store, garage or an industrial unit.

Memorandum of Association

The document that contains the name of the association, the address of its registered office, the objects of the association and its powers. It also contains provisions requiring that the income of the association is used for the objects of the association (except on termination), states that the liability of its members is limited and states the amount of guarantee.

Regulations

The Commonhold Regulations 2004

Rules

The Commonhold (Land Registration) Rules 2004

Transitional Period

The period between registration of the freehold estate in the land as a freehold estate in commonhold and the time when another person is entitled to be registered as proprietor of one or more, but not all, of the commonhold units. A transitional period occurs only when there is an application to register without unit holders.

Unit Holder

A person who is entitled to be registered as the proprietor of the freehold estate in a commonhold unit. They can be a sole proprietor or a joint proprietor - the provisions relating to the number of registered proprietors are the same as for any other estate in land.