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.
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