Schedule 19: Application of Part 7 to Crown land Part 1: General Demesne land, land subject to escheat and bona vacantia
Paragraph 3 deals with the situation where no freehold estate in land exists and, as a result of the feudal origins of land law and the fact that the Crown has dominion over all land as lord paramount, the Crown owns the land directly. This is "demesne land". For the purposes of Part 7, demesne land will be treated as if the Crown held a freehold estate in the land. This enables the Crown to create a conservation covenant over demesne land. Further, the owner of an estate in land granted or created out of demesne land will be treated as a successor and the normal rules governing whether a successor is bound by a conservation covenant will apply.
	Paragraph 4 deals with the situation where land reverts to the Crown through escheat. This occurs when the freehold interest in land ceases to exist, for example where it is disclaimed by a trustee in bankruptcy or liquidator. Where there is no freehold in land, the Crown resumes its ownership of the land. A conservation covenant is not terminated when ownership of land reverts to the Crown through escheat. A future owner of the land can also be bound by the conservation covenant (see section 122, as modified by paragraph 9 of Schedule 19). Where land to which an obligation under a conservation covenant relates reverts to the Crown through escheat, the Crown will not be liable under the obligation in respect of any period before it takes possession or control of the land, enters into occupation of the land, or becomes the holder of an estate in the land. This replicates the general rule of land law regarding the Crown’s liability in respect of land that vests in it by operation of law.
	Paragraph 5 deals with the situation where an estate in land transfers to the Crown as bona vacantia. This occurs in particular where a person dies intestate and no one is entitled to his or her estate under the intestacy rules (contained in the Administration of Estates Act 1925), or where a company is dissolved. In these circumstances, property becomes vested in the Crown. Where an estate in land to which an obligation under a conservation covenant relates passes as bona vacantia, the appropriate authority will not be liable under the covenant in respect of any period before it takes possession or control of the land or enters into occupation of the land. This replicates the general rule of land law in relation to property that vests in the Crown by operation of law.