• Can I Stop Transfer Of Equity Once The Tr1 Has Been Submitted

    By Guest on 19th Mar 2020

    Tr1 has been sent to remove my name from marital home, but I am wondering can I pull out, I am waiting for an ID1 form, if I dont fill this in will the process collapse?

  • 1 Answers

    By NotaryExpress on 20/03/2020

    Sort of.

    Technically once the TR1 is signed and dated, the transfer has completed. So you no longer have a share in the marital home.

    Failing to supply an ID1 form (which they should have obtained prior to completion if you were self-representing) means they will probably not be able to register the transfer.

    Effectively you will have transferred your beneficial interest (right to income in the property, proceeds of sale, etc) but not your legal interest (so you will still be named on the title and responsible for mortgage payments and so forth). To some extent you will have become a trustee holding the property on trust for the transferee.

    If an ID1 is supplied much later (e.g. after a year) the Land Registry may require an explanation of delay. In the interim it may make it harder for the transferee to sell/re-mortgage the property.

    The transferee's best option would be to take professional legal advice from a dispute resolution solicitor as to whether they could take you to court for an order for specific performance to complete an ID or for the court to make an order for the Land Registry to disregard the ID1 requirement in this instance and complete the registration.

    You cannot, however, cancel a transfer that has been completed. I guess theoretically you could both tear up the TR1 by mutual agreement, cancel the HMLR application and pretend it never happened, but that would not be the right thing to do because it has happened. The right thing would be to execute another TR1 transferring the property back into joint names and lodge that as well. Note that the actions in this paragraph would require you both to cooperate to restore the property to your sole name.

    www.notaryexpress.co.uk

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