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Manchester Conveyancing Solicitors | Ford Banks Irwin Solicitors - The Property Lawyers in Manchester on Transfer of a House / Flat / Apartment.

Please note: Not to be used or relied upon without legal advice. These notes are for illustration purposes ONLY

. . . continued from page 11

Transfer of a House / Flat / Apartment

What interests should not be disclosed?

Conveyancing Solicitors and Property Lawyers do not need to disclose interests of the kinds mentioned in section 33 and 90(4) LRA 2002 and rules 28(2) and 57(2) LRR 2003. These are:
- an interest under a trust of Land / Property;
- an interest under a settlement under the Settled Land Act 1925;
- a Lease granted for a term of three years or less, unless it is of a kind that has to be registered
- a Public - Private Partnership (PPP) Lease
- an interest capable of being registered under the Commons Registration Act 1965
- an interest in any coal or coal mine
- a local land charge
- a public right
- a Lease with less than one year to run
- a restrictive covenant between Lessor and Lessee so far as relating to the demised Property;
- any interest apparent from the Deeds and documents accompanying an application for first registration.

Registrable dispositions are not overriding interests and should not be disclosed by Conveyancing Solicitors and Property Lawyers.

How to disclose an interest to Land Registry
Disclosable overriding interests are referred to in panel 12 of form AP1. Conveyancing Solicitors and Property Lawyers should complete this panel on any application to register a registrable disposition.

If there are interests to disclose, Conveyancing Solicitors and Property Lawyers should lodge an additional form, form DI. They should also lodge documentary evidence of the interest where such evidence exists. A certified copy of the document will usually be sufficient.

First Registrations
Conveyancing Solicitors and Property Lawyers should complete panel 12 of form FR1. However, they only need to disclose interests on form DI if they are not apparent from an examination of the Property Deeds and documents.

For example, Conveyancing Solicitors and Property Lawyers will not need to complete a form DI for a Lease having overriding status if a certified copy of the Lease is enclosed with the Property Deeds. However, they will need to disclose on form DI interests for which no documentary evidence exists, such as a right acquired by prescription or a customary right.

Overriding interests in more detail

Short Leases
Leases of Property that do not have to be registered are overriding interests. This means most, but not all, Leases granted for a term of seven years or less. The registration requirements are slightly different for Leases out of registered and unregistered Property.

Under the Land Registration Act 1925, any Lease granted for a term of 21 years or less was an overriding interest. Any such Lease existing on 13 October 2003 will continue to have overriding status, until it is noted on the Property Deeds.

Interests of persons in actual occupation
This item is more narrowly defined than its equivalent in the Land Registration Act 1925, and there are different provisions for first registration and for dispositions of registered Property:
- the basic provision protects 'an interest belonging to a person in actual occupation, so far as relating to land of which he is in actual occupation'
- note that, if a person only occupies part of the Property, the interest only has overriding status for that part. This is a new provision.
- in the case of dispositions only, an interest is not protected if inquiry was made of the person claiming it before the disposition took place, and he failed to disclose it when he could reasonably have been expected to do so. Unlike the present law, this exceptions does not apply on first registration;
- in the case of dispositions only, an interests is not protected if it is not obvious, on a reasonably careful inspection of the Property, that the person claiming it is occupying the Property. This is a new provision. It does not apply on first registration, and it does not apply if the person taking the disposition actually knows about the claimant's interest
- interests belonging to persons receiving rents and profits, but no actually occupying the Property, are no longer protected. There is a transitional provision which gives limited protection against dispositions, but not against first registration, to any such interests that exist when LRA 2002 comes into force.

(All italics in this page are Crown Copyright and reproduced here for your information with permission from HM Land Registry)

. . . continued on page 13 (Manchester Conveyancing Solicitors Property Lawyers on Transfer of House / Flat / Apartment 13)

Please telephone Paul on 0161 866 8999 if you require any further information.

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