Practice Direction 1/2026 - Property which has become Bona Vacantia or Escheat
Bona Vacantia and Escheat are legal doctrines which relate to property ownership, focusing specifically on situations where a property lacks a legal claimant. They are both principles which return the interest in the land to the Crown when events have occurred to render the property without a legal owner.
Bona Vacantia
If a company which is regulated by the Companies Act 2006 or any of its statutory predecessors (the “2006 Act”) is dissolved, all its property, as at the moment of dissolution (together with all rights vested in, or held on trust for, but excluding property held on trust for another), passes to the Crown as bona vacantia (i.e. ownerless goods) under section 1012 (1) of the 2006 Act.
If a person dies intestate, Part II of the Administration of Estates Act (Northern Ireland) 1955 (the “1955 Act”) sets out the manner in which the estate of that person, including any property, is to be distributed to any surviving descendants. Section 16 of the 1955 Act sets out that, in default of any person taking the property under the 1955 Act, albeit that such a situation is very rare, the property shall pass to the Crown as bona vacantia.
Dealing with Bona Vacantia Land
The Crown may choose to sell such property to a third party.
If it does so, a transfer for the property which had been held by a corporate entity will be prepared by the Crown Solicitor’s Office. The Crown Solicitor’s Office has agreed a form of transfer with Land Registry which is set out at Annex 1 (available at Practice Direction 1/2026 - Property which has become Bona Vacantia or Escheat - annexes). No Solicitor’s Certificate will be required to accompany this transfer as such transfer will be executed by the Crown Solicitor. Contact details for the Crown Solicitor’s Office can be found at Crown Solicitor's Office | nidirect.
The Crown Solicitor’s Office will also provide a transfer on the rare occasion that bona vacantia property, which had belonged to individuals, is agreed for sale.
Escheat
Escheat, a remnant of feudal law, is the common law doctrine by which freehold property, which has become ownerless, may be returned to the Crown. Properties which may be subject to escheat within Northern Ireland are dealt with by the Crown Estate, by convention only, through its nominated solicitor (currently Burges Salmon LLP).
Freehold property disclaimed by the Crown may then become subject to escheat.
Other possible events
The freehold property can also be disclaimed by the Official Receiver/ Trustee in Bankruptcy, or by a Liquidator when dealing with an insolvency event.
Dealing with Disclaimed Freehold Land
In the event that freehold property has been subject to escheat, the Crown Estate, currently acting by its nominated solicitor, may agree to dispose of the property and agree terms for disposal.
The Crown Estate, currently acting by its nominated solicitor, has agreed a form of transfer with Land Registry as set out at Annex 2 (available at Practice Direction 1/2026 - Property which has become Bona Vacantia or Escheat - annexes).
Land Registry has also agreed a form of Solicitor’s Certificate which must accompany the application (see Annex 3 available at Practice Direction 1/2026 - Property which has become Bona Vacantia or Escheat - annexes). Please note that this Certificate must be given by the lodging solicitor as the nominated solicitor will not provide the Certificate.
This Certificate has been drafted on the basis that the disclaimer has been made by the Crown Solicitor.
In the event that the disclaimer has been made by the Official Receiver or a Liquidator, the Certificate should be amended to refer to such disclaimer by the correct entity and the relevant legislation, i.e. Article 288 of the Insolvency (Northern Ireland) Order 1989 (the “1989 Order”) in the event of disclaimer by the Official Receiver/ Trustee in Bankruptcy or Article 152 of the 1989 Order in the event of disclaimer by a Liquidator.
Applications should refer to the “Former Folio Number”, as, upon registration of the transfer, a new Folio will be created since the act of disclaimer will have brought the existing Folio to an end.
Disclaimed Leasehold Land
It should be noted that only freehold properties may be subject to escheat. If the property is leasehold, then the act of disclaimer effectively determines the lease and a court order will be required to “revive” the lease and vest it in the appropriate party/ entity.
CHRISTINE FARRELL
Registrar of Titles
6 August 2026