An Overview of the Land Registry

Rebecca Jones and Nicholas Loannou, Solicitors

Getting to grips with the Land Registry and understanding its procedure is a very important part of family law. In order to get the most from the Land Registry and the new rules that have come into force since the Land Registration Act 2002, it is vital to have a general understanding and overview of the basic principles of law involved and also which forms we should be using.

Protecting Interests
The main thing to remember is that Cautions and Inhibitions have been replaced by Notices and Restrictions.

Notices
Notices can be either agreed or unilateral. As under the old rules, these are interests that can be protected. A notice that is registered gives priority and will remain on the register until it is removed. The mere fact of registration does not mean the notice is valid. If an interest can be protected by a notice then a notice must be used to register the interest.

Notices on the Land Register protect an interest and are intended to bind a purchaser.

There are two types of notice:

AGREED NOTICES: Use Form AN1

An example of an agreed notice is a pending land action.

An agreed notice can be registered against the title to the property if the registered proprietor gives his consent or if the Registrar is satisfied that the application is valid. For example, documentary evidence in the form of a court order.

Matrimonial home rights are a form of agreed notice but must be registered against the property using forms MH1 or MH2 (if the matrimonial home rights are to be extended). No fee is required. It is possible to withhold personal information and use a "care of" address on the form. This may be useful in situations when it is not appropriate for the address of the client to be easily accessible. It is important to be aware that on receipt of the MH1 the Land Registry will send a notice of the registration to the other spouse. This is usually done on the day of receipt of the application. On registering a matrimonial home rights notice it should be made clear to the client that his/her spouse will be alerted to the fact immediately after registration.

Notices can be found in the charges register of the registered estate. A notice will only ensure that the priority of the interest protected will not be automatically postponed on the registration of a subsequent registerable disposition for value. As priority is the main protection afforded by a notice, it should be born in mind that the outline application is available for urgent applications and should be relied upon if necessary.

UNILATERAL NOTICE: Use Form UN1

A unilateral notice can be registered against the title of the property without the consent of the proprietor or without the Registrar being satisfied of the validity of the application. For example, this may be used if a court order is to be kept from the public domain, or if no order has yet been obtained. However, once the proprietor receives notice that the entry has been made, he may make an application to cancel the notice and the applicant must then provide evidence to prove the validity of the claim. Documentary evidence will be essential at this stage.

The evidential burden is greater for an agreed notice than for a unilateral notice. If you are not sure that the evidence is sufficient, use a unilateral notice to be sure that it will be protected from the moment of application.

Cancelling notices
To cancel an agreed notice use form CN1. Anyone can apply to cancel an agreed notice but the Registrar must be satisfied that the interest has come to an end.

Only the registered proprietor can cancel a unilateral notice. The Registrar serves notice on the beneficiary who has 15 business days to object to the application. The beneficiary can apply to remove the unilateral notice.

Restrictions
Certain interests cannot be protected by a notice, for example, beneficial interests. A restriction would be used to protect these.

RESTRICTIONS: Use Form RX1

These restrict the registered proprietor’s ability to deal with the land.

Practitioners should be cautious before applying for a restriction. It is not enough to make the application simply because there is an arguable case. It must be shown that there is a definite case for a restriction. There has to be a beneficial interest.

When applying to register a restriction on Form RX1 you must use the Land Registry’s standard forms. These are not actual forms, but are standard wording and can be found in Practice Guide 19 Appendix B. The form must be copied into Box 10 on the form and you must specify which form has been used (by using the relevant letter). The most familiar is Form A (used where a client has made direct contributions to the purchase of the property but is not the registered proprietor). If there is no available form of wording, the Registrar will only approve the form of wording if it is:

1. Reasonable;
2. The application would be straightforward;
3. The application would not place the Land Registry under an unreasonable burden.

(N.B. a higher application fee is also required)

Once an application has been made, the Registrar will inform the proprietor who has 15 days to object to the application.

Cancelling a restriction
If after being provided with evidence, the Registrar is satisfied that the restriction is no longer required it will be cancelled. However, if each party, with the benefit of the restriction, consents to the withdrawal, then it will be cancelled without investigation.

If a restriction is applied for under an order of the court, then Form AP1 should be used and the restriction ordered cannot be withdrawn.

Other forms
When making an application to transfer the legal ownership of a property between spouses it is necessary to complete three forms:

1. AP1: To apply to the Registrar to make the transfer
2. TR1: To transfer the actual title
3. STLD60: To exempt the transaction from stamp duty

The STLD60 form has to be signed by the transferee and should be sent to the client for signature before the solicitor completes the TR1. They can then be sent to the Land Registry simultaneously. Concerns in relation to stamp duty should be referred to the Inland Revenue helpline on 0845 6030135.

A point to remember is that District Land Registries will only deal with applications relating to their designated area. If you have the title number it is important to check which District Land Registry will deal with the property. Your conveyancing department will provide this information, or you may check with the Land Registry before you send your application. If sent to the incorrect place it will be returned to you and this will cause delay.

Points to note
If the application is urgent and there is insufficient time to complete the full application, it is possible to use the outline application. This can be done online, over the telephone, or by attending a Land Registry office in person.

When sending documentary evidence to the Land Registry, keep certified copies as originals will not be returned.

If you have a query/issue then it is possible to telephone the relevant District Land Registry office. These are listed on the website, www.landregistry.gov.uk. Although practical advice and guidance is sometimes better received over a telephone call it has been suggested by Land Registry staff that practitioners with problems should write to the Land Registry rather than telephone; this enables the correct person/department to deal with and respond to the query. This will also provide a clear file note.

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