How good deeds can avoid rejection
On 22 April, the Land Registry will change its policy on requisitions and the rejection of applications.
The registry's Joe Timothy explains how these moves will increase the chances of an application being successful
Land Registry customers provide us with much feedback about inconsistencies when we reject applications as defective or cancel them because the applicant has not replied to requisitions.
They often tell us that we should take a firmer line when applications are poorly or carelessly presented.
We have thought about these points and the result is a new policy that we will start to put into practice on 22 April.
Around half the applications in the Land Registry are awaiting replies to requisitions.
Some of these are so fundamental to the application that we are unable even to begin work until the outstanding matters are resolved.
Sometimes the defects in applications adversely affect the quality of the service that we can provide.
For example, we cannot give a proper result of an official search if we hold a pending application to register a deed but have not yet received the original or a copy of the deed.
Currently, Land Registry staff spend much time in sending requisitions and reminders which relate, in the main, to straightforward and basic errors, such as non-payment of fees and failure to have documents properly stamped.
Apart from the impact this has on our service to customers, there are substantial costs in operating these procedures.
Ultimately all applicants, both careful and careless, pay these costs through their fees.
Perhaps one way of dealing with this problem would be some form of penalty fee for defective applications.
However, we take the view that this is not the right approach and that a better way is to encourage applicants to lodge applications in good order and to reply promptly to any requisitions that we need to send.
In reviewing our procedures, we have taken on board feedback from consultations and talks with representative customers.
Also, we are conscious of the difficulties for practitioners when they are waiting for action by a third party, for example, when lenders are slow to deliver DS1s or ENDs.
Our new rejection, requisition and cancellation procedures will come into effect from 22 April.
They are necessary to improve the service that we can give to all our customers.
We have prepared two public information leaflets (nos.
34 and 35) to help customers with the procedures.
The leaflets include advice on how to avoid having applications rejected or requisitions raised.
The information will also be available from any of our offices and can be viewed on our Web site at: www.landreg.gov.uk
Requisition procedures
When we send the initial requisition we will:
l Explain what we need;
l State when the application will be cancelled if we do not receive a full reply (the date will normally be one month from the date of the requisition), and;
l Explain what you need to do if you cannot reply by the cancellation date.
If there is no reply to our initial requisition we will send a reminder at least one week before the application is scheduled to be cancelled.
The majority of requisitions that we send are dealt with in weeks.
We would like a full reply as soon as possible, but we recognise that an extension of time may sometimes be necessary.
We will agree to extend time where the cause of the delay is reasonable, particularly where the point is outside the control of the applicant.
Our leaflets give examples of situations where we will normally allow or refuse requests for extensions.
However, these are only examples not fixed rules.
We will treat each application on its own merits.
If you need an extension, we need to know:
l The reason for the delay;
l What you are doing to resolve the problem, and;
l When you expect to be able to reply in full to the requisition.
We will not normally agree to an extension for longer than two weeks but we may do so in exceptional circumstances.
Where we extend the time, we will always confirm this in writing and confirm the revised date of cancellation should no reply be received.
Where the only outstanding requisition is for a DS1 or an END, we will agree to further extensions if the applicant lets us have details of the action taken to comply with the requisition.
The details should include sufficient information - for example, copies of correspondence with the lender - to enable us to take up the matter direct with the lender where appropriate.
So long as we are kept informed in this way before the time or extended time for reply expires, we will not cancel an application where there seems to be a realistic prospect of the applicant securing production of the DS1 or END.
Rejection policy
Our guidance on the new rejection policy gives examples of omissions that we consider make an application 'substantially defective' - rule 317 of the Land Registration Rules 1925 allows the registrar to reject such an application.
Our guidance will help Land Registry staff to take a consistent and fair approach to rejection.
We hope that it will also help practitioners and their staff to avoid having their applications sent back to them.
From 22 April any of the following basic errors will result in rejection of the application:
l Leases and transfers which are unstamped, although clearly they should have been stamped.
We will continue to accept applications based on documents that have been sent for adjudication so long as a copy of the unstamped document accompanies the application;
l Transfers on sale and leases that are not stamped 'produced' unless, in the case of transfers, they include a 60,000 certificate of value and are accompanied by form L(A)451 or in the case of leases, they are accompanied by an agreement for lease which is so stamped;
l Applications where the original transfer, lease, charge or other primary document is not lodged and no reasonable explanation for its absence is supplied;
l Transfers and leases of parts of registered titles that do not contain a plan or other sufficient description, so as to allow identification on the Ordnance Survey map of the part transferred or demised.
This will only apply where the transfer or lease includes the whole of the vertical extent of the plot, that is to say, subsoil, surface, buildings (if any) and airspace.
Therefore, it will not apply to transfers or leases of flats or parts of buildings;
l Dispositions for which a compulsory form is prescribed (for example, TR1 for a transfer of whole) where that form has not been used;
l Applications to note a deed of variation of lease that purports to extend the term of the lease or to include additional land in the extent demised.
As a matter of law, such a deed takes effect as the surrender and re-grant of the lease, and;
l Applications that we have previously rejected or cancelled if the outstanding points remain unresolved.
The public information leaflet expands on these points to give a fuller picture than is possible here.
Contact: Steve Fallon, HM Land Registry, Lincoln's Inn Fields, London WC2A 3PH.
E-mail: steve.fallon@landreg.gsi.gov.uk
Joe Timothy is director of practice at HM Land Registry
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