Proprietorship Register

by Readers Question

9:43 AM, 8th January 2019
About A week ago

Proprietorship Register

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Proprietorship Register

I’ve recently came across a a land registry title with something I’ve never seen before:

It states under Section B
RESTRICTION:No disposition of the registered estate, other than a disposition by the proprietor of any registered charged registered before the entry of this restriction,is to be registered without a certificate signed by the applicant for the registration of their conveyancer that written notice of the disposition was given to XXX of Charter Accountant at XXX Address being the person with the benefit of an interim charging order on the beneficial interest of MR YY made by county court on XXXDate (Court Reference OOO).

It was brought by 2 people under shared names for the property if you could shed some details of this as it mentions only MR Y and no Mr Z.

Thanks

Jun



Comments

Neil Patterson

10:11 AM, 8th January 2019
About A week ago

Just to start and from Land Registry >> http://www.land-registry-documents.co.uk/information/proprietorship-register/

"The Land Registry’s register of land is made up of three sections, or registers, called the Property Register, Proprietorship Register and Charges Register. These three registers contain information as to the ownership of a particular piece of land, its extent, and any third party interests which affect it, such as mortgages, rights or covenants.

The proprietorship register tells us the legal owner(s) of the land and various other important pieces of information.
Proprietorship Register & Class of Title

Firstly, the proprietorship register tells us the “class of title” which the land is registered with. There are six classes of title, three relating to freehold land and three to leasehold land. The freehold classes are absolute, qualified or possessory and the leasehold classes are absolute, good leasehold and qualified. The best class of title to have is absolute. This means that the proprietor’s right to the land is absolute and cannot be challenged. Possessory title is at the other end of the scale. This usually happens where the person who originally applied to register the land could not prove his ownership, either because he had lost the title deeds or he was claiming ownership through adverse possession (often termed “squatters’ rights”). Possessory title can be challenged by someone with a better claim to the land.

Next we have the name(s) of the Registered Proprietor(s). These are the legal owners of the land and except in exceptional circumstances (such as if a sole owner is bankrupt, the property has been repossessed or all owners are deceased) these are the people with power to transfer the property to a new owner. There can be a maximum of four registered proprietors and a minimum of one. The date in brackets is the date on which the property was registered in the name of the current owners. This will generally be several weeks after the date on which they actually completed their purchase.

The Proprietorship Register may state the price paid by the current proprietors when they acquired the property.

Any personal covenants; they are covenants which are only binding on the current proprietor, will be detailed here. The most common personal covenant found here is an indemnity covenant.

The Proprietorship Register goes on to list any restrictions (entries which limit the way in which the proprietors can deal with the title) and bankruptcy notices."

trevor white

12:07 PM, 8th January 2019
About A week ago

A charging order can be sought over a property owned in joint names, where one co-owner is the debtor. In that instance, the amount will be charged over the debtor’s proportion of the property only.
Once a charging order has been registered against a property, it will be clearly displayed in the ‘charges’ section of the title deeds. That will prevent the owner from selling or disposing of the property without paying what is owed under the charge to the creditor.
The creditor will then need to apply for that interim charging order to be made final.

A charging order has the effect of changing a joint tenancy into a tenancy at common (distinct shares held by owners).

Colin McNulty

8:07 AM, 13th January 2019
About 4 days ago

Hi Jun, it looks like the owners of the property have had a CCJ against them but were unable to pay, so the creditor (Mr YY) applied to the court for a Charging Order, which secured the outstanding debt against their home.

It looks like Mr YY's accountant had the restriction applied, so that he'd be notified when the owner came to sell their property. The accountant then can hold the seller to ransom, demanding payment of the CCJ debt, by withholding permission to release the restriction and thus allow the sale, unless the debt is paid.

This is basically what we landlords would do to a tenants' home owning guarantor, if there's a rent default and the guarantor doesn't pay up.

If you're looking to buy this property, I wouldn't worry too much about this, it's not your issue and the restriction should go when the property is registered to you. Except, I would allow some extra time for the conveyancing process as at the minimum there's an extra step and extra party involved, but at worst I'd anticipate there may be some aggro when the seller realises (because they may not even know about the restriction yet!) and he may get the hump when forced to pay for a debt he may well have forgotten about.

https://www.citizensadvice.org.uk/debt-and-money/action-your-creditor-can-take/charging-orders/

Disclaimer: I am not a lawyer. I am not giving legal advice. My comments are worth what you paid for them: nothing! If you are not 100% sure you know what you're doing, pay for written, insured, professional advice.


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