Exchange, Deed Of - Definition - Law Dictionary Home Dictionary Definition exchange-deed-of

Definition :

Exchange, Deed of [fr. excambium, Lat.], an original Common Law conveyance, for the reciprocal transfer of interests ejusdem generis, as fee simple for fee simple, legal estate for legal estate, copyhold for copyhold of the same manor, and the like the one in consideration of the other. It takes place between two distinct contracting parties only, although several persons may compose each party. The operative and indispensable verb was 'exchange,' which no longer implies a general warranty or right of re-entry [(English) L.P. Act, 1925, s. 59, replacing Real Property Act, 1845 (8 & 9 Vict. c. 106), s. 4]. An actual entry upon the pro-perty exchanged by the parties themselves to the deed was essential. The exchange was void if either party died before entry, for, under such cir-cumstances, the parties had no freehold in them, for the heir could not enter and take as a purchaser, because he took under the deed, only by way of limitation in course of descent, but by the L.P. Act, 1925, s. 57, the conveyance of the interest is sufficient without entry. An exchange of corporeal hereditaments lying in the same county could be made by parol perfected by entry; but under L.P. Act, 1925, s. 52, replacing with amendment Real Property Act, 1845, s. 3, an exchange of heredita-ments is void at law unless made by deed; see, however, s. 55(d), L.P. Act, 1925, and K. & E., tit. 'Exchanges,' in regard to the effect in equity of an exchange by parol, followed by part performance.

In consequence of the inconvenience arising from the implied warranty and re-entry, exchange fell into disuse, and mutual conveyances, the one in consideration of the other, were resorted to. In modern practice no exchange is ever made without either a deed or (under conditions in regard to equality of value) a Statutory Order of the Ministry of Agriculture. Registration of an exchange is not compulsory under the Land Registration Act, 1925, unless money is paid for equality of exchange.

The General Inclosure Act (8 & 9 Vict. c. 118, s. 92) provides for the allotment and award of any land to be inclosed in exchange for any other land within the parish in which the land to be inclosed shall be situate. Consult Cooke on Inclosures.

The Settled Land Act, 1925, ss. 38 and 40, replacing the S.L. Act, 1882 (45 & 46 Vict. c. 38), allows a tenant for life and limited owners included in that term (see s. 20, S.L. Act, 1925), to make an exchange of settled land for other land. As to power of local authorities to exchange lands for statutory purposes, see, e.g., Housing Act, 1936.