LAND REGISTRY PUBLISHES RESPONSES TO LAND REGISTRATION RULES CONSULTATION

Followingan extensive public consultation exercise, Land Registry has published detailsof the responses to Land RegistrationRules 2003 A Land Registry Consultation, in which views were sought onthe draft Land Registration Rules 2003. A full report on the responses can beviewed online at www.landregistry.gov.uk.

Asa result of these responses, a number of changes have been made to the proposedrules as they appeared in the consultation paper. Key areas addressed following the consultation exercise were:

Prescribedforms for registrable leases and variations of registered leases. Followingadverse comments on the principle of a mandatory form of registrable lease andthe content of the proposed form, rules prescribing such forms were notincluded in the draft of the Rules brought before the Rule Committee. LandRegistry proposes to work with customers with a view to bringing forwardrevised proposals in due course, and will consult on any new proposals forprescribed forms of lease and variation.

A transitionalperiod for the use of existing forms. Although the draft rules did notprovide any transitional period, comments were invited. A number of respondentsto the consultation paper thought that the lack of a transitional period wouldcause difficulties, particularly where contractual negotiations have alreadybeen concluded on the basis of an existing transfer or lease. Consequently,Land Registry propose to seek Ministerial permission to permit the use of oldforms for a transitional period of 3 months after the rules come into force andwherever the terms of a contract entered into before the Rules come into forceexpressly require their use.

The provisionof title information on the completion of an application. Theconsultation paper proposed that land or charge certificates no longer beissued. Instead, a certificate of information as to ownership would be issuedwhenever there was a change.

Although 62% of respondents agreed withthe proposal, the majority thought that some form of title information shouldbe issued on completion of an application. It is therefore proposed, as amatter of practice, to issue a title information document whenever the registeris changed. This will include an official copy of the register and, where thetitle plan has been changed, an official copy of the title plan.

Therequirement that any application for a restriction should be in prescribed formRX1.Lenders were concerned that they would no longer be able to apply forrestrictions to be entered in the register in a standard form of charge. Thedraft rules were therefore changed to allow a restriction to be applied for inthe prescribed form of charge, transfer or assent, or in a charge that theregistrar has first approved.

Inspection andobtaining official copies of documents. Consultation responses indicated twoparticular areas of concern. The first was the grounds on which it would bepossible to apply for a document to be exempted from the general right ofinspection provided for in the Land Registration Act 2002. The original draftRules only permitted an application on the ground that the document containedcommercially sensitive information. Following consultation, a new ground wasadded, that the document contains information the disclosure of which wouldcause substantial unwarranted damage or substantial unwarranted distress to theapplicant or another.

The second was the transitional periodafter the Rules come into force during which certain documents already kept bythe registrar at commencement, and which were not subject to a right ofinspection under the old Rules, would be exempt from the general right ofinspection. The draft Rules provided for a period of one year, to allowinterested parties to apply for the designation of such documents (leases,charges, and documents kept by the registrar but not referred to on theregister) as exempt from the right of inspection. As a result of consultationresponses received, the Rules now provide a transitional period of two yearsduring which these documents are exempt from the right of inspection.

ALand Registry Actionline on 0870 9088 061 is available for enquirers with any questions they may have about theRules. Practitioners interested in receiving Action Packs describing the keychanges arising from the new legislation can register for them by contactingthe Actionline or by visiting www.landregistry.gov.uk/lract2002.

ENDS

NOTES TO EDITORS

1. Land Registration Rules 2003 A Land Registry Consultation published on27 August 2002, (see press notice 17/02 issued on 27.8.02) gave lawyers,conveyancing professionals, mortgage lenders, interested organisations, andmembers of the public the opportunity to comment on the draft proposals and toshape the content of the Rules. The consultation period ended on 19 November2002.

2. The Land Registration Rules 2003 were madeon 19 May 2003 and laid before Parliament on 5 June 2003. The rules are subjectto a negative resolution procedure and will come into effect unless revoked bya resolution of either House of Parliament within 40 days of laying. The LandRegistration Act 2002 received Royal Assent on 26 February 2002 andprovides

for the repeal of the LandRegistration Act 1925. Both the rules and the Act are expected to come intoforce on 13 October 2003.

3. With the largest property database inEurope, todays Land Registryunderpins the economy by guaranteeing ownership of many billions of poundsworth of property. Over 1million worth of property is processed every minute.

4. As a Government Department establishedin 1862, Executive Agency and Trading Fund responsible to the Secretary ofState for Constitutional Affairs, Land Registry keeps and maintains the Land Register for England and Wales. Employing over 8,000 staff, it has anadministrative Head Office in London and 24 regional offices each providingland registration services for different counties and unitary authorities. Formore information about Land Registry, please visit its website at www.landregistry.gov.uk.

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