• Land Registry Restriction

    By Guest on 11th Sep 2014

    I made a deed of trust to share a flat I own with my wife. I was advised to enter a restriction with the Land Registry which now seems to be a mistake. We want to sell the flat and, in fact, sold the flat three months ago stc. However, the buyer's solicitor ( a trainee solicitor) refuses to allow exchange of contracts until the restriction is lifted. We have been told that this is not necessary by the company that drafted the deed of trust. They even explained how this was to be effected. However, the trainee solicitor is uncomfortable with this. Is she wrong. How can we get her to understand?

  • 1 Answers

    By Guest on 21/09/2014

    It depends on the wording of the particular restriction. If it is a "Form A" restriction, which reads "No disposition by a sole proprietor not being a trust corporation under which capital money arises is to be registered except by order of the court" (or something very similar) then provided you are both signing the contract and transfer deed your sale will not be caught by the restriction (because it is not a disposition by a sole proprietor) and it will automatically fall. There is a very useful Land Registry Practice Guide on the issue (19 I think) and also if the solicitors speak to the Land Registry they should hopefully confirm.

    If it is any other type of restriction then you can either (if you re both happy to do so, i.e. you are not in dispute over the sale proceeds) remove it now by submitting form RX4 to Land Registry (there is no fee) or supply the buyer's solicitor with the signed RX4 so that they can remove it following completion.

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