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~Allodi~l title - W ikipedia, the free encyclopedia <br />Page 2 of 5 <br />sons, who had the opportunity to will their estates to the Church, whereas in the absence of testamentary <br />instructions, the estate would have reverted to the Crown automatically. <br />These rights, which eventually could be relied upon by even the smallest property owners, guaranteed ownership <br />in fee simple, or free of any obligations to a noble or the sovereign. To distinguish it from feudal title, and [o <br />allow for situations like land used for religious or educational purposes which could be held free of crown tax, the <br />term "allodial", from the Germanic for "all one's own", was used. <br />Development of equitable title <br />As late as the Tudor period, in order to avoid estate taxes, a legal loophole was exploited where land was willed to <br />a trustee for the use of the beneficiary. However, trustees often abused this privilege, and heirs found that the <br />courts of common law would refuse to recognize the "use" clause, and would instead grant title in law to the <br />trustee. However, the courts of equity, which were developed by the sovereign to deal with obvious injustices in <br />the common law courts, ruled that the heirs were entitled to the use of the property, and gave them title in equity. <br />As rulings of equity courts ranked above those of common law courts, this gave heirs the use of the land, but not <br />title to it in the common law. <br />However, this distinction between common law and equity title helped develop forms of security based on the <br />distinction, now known as the mortgage. Enjoyment of the property during the period where the mortgage was in <br />good standing could be assured through the equity courts, while the right to foreclose on the property to merge the <br />common law and equity title were guaranteed in the common law courts. <br />Proof of ownership <br />Until the 18th century, almost all common law property ownership depended on proving a link of possession from <br />a royal grant of title to the property owner. Although the feudal system was rapidly disappearing from England in <br />the 18th century, to be replaced with a system of taxation, in theory the feudal chain of title still existed, although <br />it was a formality. <br />However, proving ownership in absence of the documents was an impossibility, and forgeries of crown grants <br />were common and difficult to detect. Moreover, it was nearly impossible to determine if land was subject to <br />common law encumbrances (i.e. mortgages). This led to the establishment in the 18th century of land registry <br />systems, where a central office in each county was responsible for the filing of land deed, mortgages, liens and <br />other evidence of ownership, transfer or encumbrance. Under land registry, deeds and charges were not <br />recognized unless [hey were filed, and persons who filed were given priority over previous transactions that had <br />not been filed. Moreover, under statutes of limitation, only documents that had been filed in the past 40 years had <br />to be consulted to determine the chain of ownership. <br />By the time of the American Revolutionary War in 1774, this was essentially the land system in place in the <br />thirteen American colonies. <br />The Treaty of Paris <br />Prior to 1774, all land in the American colonies could also be traced to royal grants, usually one grant creating <br />each colony. However, when the colonies won the Revolutionary War, they did not want to create a feudal <br />system. As a result in the Treaty of Paris (1783), which ended formal hostilities and recognized American <br />independence, England agreed to give up any Crown rights to the land, and agreed that all land in the American <br />colonies was held in allodial title. Essentially, this recognized that no person holding land in the new United <br />http://en.wikipedia.org/wiki/AI lodial_title 11 /9/2005 <br />