The short answer
Islamic finance arrangements can complicate ownership checks because a Land Registry search may show the finance provider as the registered owner even though someone else occupies the property and has the practical benefit. The Act uses a wider definition of “owner” than everyday language, so the registered proprietor is not always the only relevant owner.
Why it matters
Section 20 includes, among others, a person entitled to receive rents or profits from land, and a person in possession of land other than as a mortgagee or short-term tenant. Some Islamic finance structures have the finance provider holding registered legal title while the occupier has possession and economic benefit, so the occupier may still fall within the Act’s definition of owner even where the Land Registry entry looks unhelpful. Getting this wrong can mean serving the wrong person, or missing a relevant owner, and a defective process.
What to do now
- Review the Land Registry title and ask for written confirmation of the finance arrangement.
- Identify who is in possession and who receives or is entitled to rents or profits.
- Where there is uncertainty, serve all relevant parties — over-serving is usually safer than under-serving, provided notices are accurate and properly addressed.
- As a building owner whose property is under such an arrangement, make sure your surveyor understands the structure before notices are served.
Common mistakes
- Treating the registered proprietor as the only owner.
- Serving only the finance provider and missing the occupier.
- Leaving ownership ambiguity unresolved until the process has moved on.
When to call Coburns
If Islamic finance affects who owns a property in your matter, on either side, send us the details and we will identify the correct parties to serve.