Lease and release
Encyclopedia
Lease and release is a temporary transfer (by sale) of title
to real estate
under real property law. Lease and release was "a mode of conveyance of freehold
estates, formerly common in England
and in New York
, its place is now supplied by a simple deed
of grant.
"a species of conveyance, invented by Serjeant Moore, soon after the enactment of the statute of uses
. It is thus contrived; a lease
, or rather bargain and sale, upon some pecuniary consideration
, for one year, is made by the tenant
of the freehold to the lessee or bargainee
. This, without any enrollment, makes the bargainor stand seised to the use of the bargainee, and vests in the bargainee the use of the term for one year, and then the statute immediately annexes the possession. Being thus in possession, he is capable of receiving a release of the freehold and reversion, which must be made to the tenant in possession; and, accordingly, the next day a release is granted to him."
This cites the New York common law
treatise
that "lease and release was the usual mode of conveyance in England (until) 1841 ... and in New York until 1788...." This same source from the 19th Century claims that it was created by one Sergeant Moore on behalf of one Lord Norris, "to avoid the unpleasant notoriety of a livery
or attornment
."
This was a:
"special form of grant called a release could be used to convey a future interest to someone who already had a current interest. (The modern version is called a quitclaim.) This resulted in a very popular form of conveyance called a lease and release. Two agreements were required. First, a bargain and sale contract was executed by the seller to convey a lease on the land. (Unlike an outright sale, leases did not require enrollment in a public registry.) The seller then separately executed a release to grant to the buyer (who was now his tenant) a reversion of the seller’s interest. Voila! The effect was to transfer title to the buyer, since he now owned both the current and future interests in the land."
The lease and release was:
"developed as another strategy to avoid public transfer of seisin
, in response to the limitations imposed by the Statute of Enrolments
. Since uses had been limited by the Statute of Uses
, another instrument had to be found. That instrument was the lease for a year (lease for possession) followed on the following day by a release of the property, thus avoiding livery of seisin. The instrument thus consists of two parts: (i) a lease for one year on one day; (ii) a release on the following day. In the lease for a year, the consideration was nominal (usually 5s.) and the term of the lease one year. The release was executed the day after the lease, releasing the property to the 'lessee' in perpetuity; the full purchase price (consideration) is recited in the release; the release recites the lease of the previous day; the release is executed 'according to the statute for converting uses into possession' (the Statute of Uses). "
This document was:
"the most common method of conveying freehold property from the later seventeenth century onwards, before the introduction of the modern conveyance in the late nineteenth century. The lease was granted for a year (sometimes six months), then on the following day the lessor released their right of ownership in return for the consideration."
Title
A title is a prefix or suffix added to someone's name to signify either veneration, an official position or a professional or academic qualification. In some languages, titles may even be inserted between a first and last name...
to real estate
Real estate
In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
under real property law. Lease and release was "a mode of conveyance of freehold
Fee simple
In English law, a fee simple is an estate in land, a form of freehold ownership. It is the most common way that real estate is owned in common law countries, and is ordinarily the most complete ownership interest that can be had in real property short of allodial title, which is often reserved...
estates, formerly common in England
England
England is a country that is part of the United Kingdom. It shares land borders with Scotland to the north and Wales to the west; the Irish Sea is to the north west, the Celtic Sea to the south west, with the North Sea to the east and the English Channel to the south separating it from continental...
and in New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
, its place is now supplied by a simple deed
Deed
A deed is any legal instrument in writing which passes, or affirms or confirms something which passes, an interest, right, or property and that is signed, attested, delivered, and in some jurisdictions sealed...
of grant.
History
Lease and release was:"a species of conveyance, invented by Serjeant Moore, soon after the enactment of the statute of uses
Statute of Uses
The Statute of Uses was an Act of the Parliament of England that restricted the application of uses in English property law. The Statute was originally conceived by Henry VIII of England as a way to rectify his financial problems by simplifying the law of uses, which moved land outside the royal...
. It is thus contrived; a lease
Lease
A lease is a contractual arrangement calling for the lessee to pay the lessor for use of an asset. A rental agreement is a lease in which the asset is tangible property...
, or rather bargain and sale, upon some pecuniary consideration
Consideration
Consideration is the central concept in the common law of contracts and is required, in most cases, for a contract to be enforceable. Consideration is the price one pays for another's promise. It can take a number of forms: money, property, a promise, the doing of an act, or even refraining from...
, for one year, is made by the tenant
Tenement (law)
A tenement , in law, is anything that is held, rather than owned. This usage is a holdover from feudalism, which still forms the basis of all real-estate law in the English-speaking world, in which the monarch alone owned the allodial title to all the land within his kingdom.Under feudalism, land...
of the freehold to the lessee or bargainee
Buyer
When someone gets characterised by their role as buyer of certain assets, the term "buyer" gets new meaning:A "buyer" or merchandiser is a person who purchases finished goods, typically for resale, for a firm, government, or organization...
. This, without any enrollment, makes the bargainor stand seised to the use of the bargainee, and vests in the bargainee the use of the term for one year, and then the statute immediately annexes the possession. Being thus in possession, he is capable of receiving a release of the freehold and reversion, which must be made to the tenant in possession; and, accordingly, the next day a release is granted to him."
This cites the New York common law
Common law
Common law is law developed by judges through decisions of courts and similar tribunals rather than through legislative statutes or executive branch action...
treatise
Treatise
A treatise is a formal and systematic written discourse on some subject, generally longer and treating it in greater depth than an essay, and more concerned with investigating or exposing the principles of the subject.-Noteworthy treatises:...
that "lease and release was the usual mode of conveyance in England (until) 1841 ... and in New York until 1788...." This same source from the 19th Century claims that it was created by one Sergeant Moore on behalf of one Lord Norris, "to avoid the unpleasant notoriety of a livery
Livery
A livery is a uniform, insignia or symbol adorning, in a non-military context, a person, an object or a vehicle that denotes a relationship between the wearer of the livery and an individual or corporate body. Often, elements of the heraldry relating to the individual or corporate body feature in...
or attornment
Attornment
Attornment , in English real property law, is the acknowledgment of a new lord by the tenant on the alienation of land. Under the feudal system, the relations of landlord and tenant were to a certain extent reciprocal...
."
This was a:
"special form of grant called a release could be used to convey a future interest to someone who already had a current interest. (The modern version is called a quitclaim.) This resulted in a very popular form of conveyance called a lease and release. Two agreements were required. First, a bargain and sale contract was executed by the seller to convey a lease on the land. (Unlike an outright sale, leases did not require enrollment in a public registry.) The seller then separately executed a release to grant to the buyer (who was now his tenant) a reversion of the seller’s interest. Voila! The effect was to transfer title to the buyer, since he now owned both the current and future interests in the land."
The lease and release was:
"developed as another strategy to avoid public transfer of seisin
Seisin
Seisin is the term denoting the legal possession of a feudal fiefdom . It was used in the form of "the son and heir of X has obtained seisin of his inheritance", and thus is effectively a term concerned with conveyancing in the feudal era...
, in response to the limitations imposed by the Statute of Enrolments
Statute of Enrolments
The Statute of Enrolments was a 1536 Act of the Parliament of England that regulated the sale and transfer of land. The Statute is commonly considered an addition to the Statute of Uses, which was passed within the same Parliament, probably due to an omission in the Statute of Uses...
. Since uses had been limited by the Statute of Uses
Statute of Uses
The Statute of Uses was an Act of the Parliament of England that restricted the application of uses in English property law. The Statute was originally conceived by Henry VIII of England as a way to rectify his financial problems by simplifying the law of uses, which moved land outside the royal...
, another instrument had to be found. That instrument was the lease for a year (lease for possession) followed on the following day by a release of the property, thus avoiding livery of seisin. The instrument thus consists of two parts: (i) a lease for one year on one day; (ii) a release on the following day. In the lease for a year, the consideration was nominal (usually 5s.) and the term of the lease one year. The release was executed the day after the lease, releasing the property to the 'lessee' in perpetuity; the full purchase price (consideration) is recited in the release; the release recites the lease of the previous day; the release is executed 'according to the statute for converting uses into possession' (the Statute of Uses). "
This document was:
"the most common method of conveying freehold property from the later seventeenth century onwards, before the introduction of the modern conveyance in the late nineteenth century. The lease was granted for a year (sometimes six months), then on the following day the lessor released their right of ownership in return for the consideration."