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Land Registry announces new 'early completion' practice
Land Registry, the government department responsible for registering land in England and Wales, will apply a new 'Early Completion' practice from 3 August 2009 to ensure that registration applications are completed as quickly as possible.
The practice will apply to all situations where an application for a discharge of whole has been received with another application or applications but evidence of the discharge has not been provided.
Under the new practice, Land Registry will reject an application
for discharge but complete other applications lodged with it where
it is possible to do so. The entries relating to the existing
charge will be left in the register until proof of satisfaction is
received.
If the application for discharge is the sole
application and evidence of discharge has not been provided, the
application will be rejected as before.
Director of Legal Services, Joe Timothy said:
"Land Registry's practice has previously been to treat applications collectively, so if there was difficulty obtaining evidence of discharge of the existing charge, not only might the application for discharge be cancelled but also the applications to register the transfer and new charge.
"We do not believe this policy can be justified where the transfer and new charge are capable of completion by registration, particularly as cancellation may risk a loss of priority for the interests of the transferee and new chargee.
"We believe that dispositions should be reflected in the register as soon as possible after they have taken place. The interests of buyers and sellers should not be placed at risk by a refusal to register their transfers and charges because of delays in the completion of discharges of prior charges."
ENDS
Notes to editors
1. The proposed implementation has been approved in principle and will be implemented on 3 August 2009.
2. Land Registry is making the changes after consultation with the Law Society, the Council of Mortgage Lenders and the Council for Licensed Conveyancers.
3. Land Registry estimates that in 2006/2007 delayed discharges cost lenders, conveyancers and Land Registry, collectively, a minimum of £7m. Part of this cost is ultimately passed back to customers through fees.
4. Land Registry has published a new Practice Bulletin explaining the background and nature of the change. Information will also be placed on our website and letters and other Land Registry products will carry a temporary message referring readers to the website. Practice Bulletin 16 - Early completion gives full details, and is available to view or download from http://www.landregistry.gov.uk or from any Land Registry office.
5. As a government department established in 1862, executive agency and trading fund responsible to the Secretary of State for Justice and Lord Chancellor, Land Registry keeps and maintains the Land Register for England and Wales. The Land Register has been an open document since 1990.
6. With the largest transactional database of its kind detailing over 22 million titles, Land Registry underpins the economy by safeguarding ownership of many billions of pounds worth of property. Just over two thirds of land in England and Wales is currently registered.
7. For further information about Land Registry visit http://www.landregistry.gov.uk
Contacts
Land Registry
Head Office
Lincoln's Inn
Fields
London WC2A 3PH
Tel (direct) 020 7166 4543
Fax
020 7166 4516
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