Partnership land treated as personal estate PA 1890 s. 22
PA 1890 s. 22: Partnership land is treated as personal or moveable estate between partners and their representatives, unless contrary intention appears.
Where land or any heritable interest therein has become partnership property, it shall, unless the contrary intention appears, be treated as between the partners (including the representatives of a deceased partner), and also as between the heirs of a deceased partner and his executors or administrators, as personal or moveable and not real or heritable estate.
Text in force at .
Source: legislation.gov.uk — The National Archives (legislation.gov.uk), reproduced under licence Open Government Licence v3.0.
What it actually says
This section says that when land becomes part of a partnership’s assets, it is treated as personal property (like cash or shares) when working out the rights of the partners themselves, and also when dealing with the estate of a partner who has died. That means the land is not treated as real estate (like a house you own outright) for these internal purposes. The rule applies unless the partners have agreed otherwise – for example, if they wrote in their partnership deed that the land should stay as real estate. The effect is that on a partner’s death, their share of the land goes to their executors or administrators (who handle the personal estate) rather than directly to their heirs (who would inherit real estate).
When it applies
- A partner dies and his will leaves his personal estate to his wife but his real estate to his children; the partnership land is treated as personal estate, so the wife gets it.
- The remaining partners want to sell the partnership land and divide the proceeds; the land is treated as personalty, so the proceeds are shared according to the partnership rules.
- A partner retires and demands his share of the partnership land; it is valued and paid out as personal property, not as a physical piece of land.
- A partner's personal representative claims the deceased partner's interest in partnership land as part of the personal estate to pay creditors.
What this section does not say
- This section does not decide whether land is partnership property in the first place – that is covered by sections 20 and 21.
- It does not affect the rights of outside parties, such as a bank that has a mortgage on the partnership land.
- It does not apply if the partnership agreement shows a clear intention to keep the land as real estate.
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This page reproduces the text of PA 1890 s. 22 in force at the date shown and explains it in general terms. It is not legal advice and takes no account of the circumstances of your case, which can change the answer completely. For a live dispute, for limitation periods, and before taking any step in court, consult a qualified lawyer in England and Wales.