Pre-Registration Enquiries Frequently Asked Questions

GRATUITOUS ALIENATION

Q. I am buying a property from someone who had the property transferred to him by a relative for no consideration. Does the keeper exclude indemnity on the grounds that the transfer could be challenged at some later stage as a gratuitous alienation? 

A. The Keeper will not exclude indemnity on the grounds that there could be a future challenge unless he is alerted in the application for registration to the insolvency or possible insolvency of the party granting the deed. Should a deed be challenged as a gratuitous alienation or unfair preference, protection is afforded to the Keeper under section 12(3)(b) of the Land Registration Scotland Act 1979. He is entitled to rely on the answers given in the application for registration. The current proprietor in possession is protected under section 12(1) of the said Act provided that answers in the Form 2 do not mislead the Keeper. Therefore, it may be prudent to obtain searches against or make enquiries against the granter in the last deed when you are aware of his/her identity.