Following discussion with the Law Society of Scotland, the keeper has amended her policy in respect of deeds submitted for registration but which do not bear the title number of the registered plot to which they relate.
While a deed should, wherever possible, narrate the title number, the keeper will accept a deed that does not narrate the title number provided:
- the deed contains an otherwise sufficient description of the subjects or the security being discharged; and
- the deed is executed before the title number is known; or
- the deed is executed up to 28 days after the provisional title number is known
This brings the keeper's policy in line with current conveyancing practices, both in terms of lenders retaining discharges for execution until after the date of registration, and in terms of the standard practice of selling solicitors providing a letter of undertaking to the purchaser's solicitor to provide a validly executed discharged within 28 days.
The rejection fee of £30, set by Scottish ministers, came into effect on 9 February. This fee replaced and combined two fees that existed under the 1979 Act legal framework; specifically the £30 fee that was charged in the event that an application did not meet the basic registration requirements necessary for acceptance on to the application record (right form, fee etc), and also the cancellation fee (which ranged between £60 and £400) should an application subsequently be rejected prior to completion of the registration process. Under the 2012 Act, statutory framework only one fee is payable, irrespective of the point in the registration process that an application is rejected.
In order to minimise the number of rejections, we have analysed the most common reasons for rejection since the designated day (highlighted below).
Comprehensive application form guidance is also available.
Company/non-natural person designation
Section 113(1) of the Land Registration etc. (Scotland) Act 2012 requires additional information to be entered in the title sheet for a non-natural person designation. A larger than expected number of applications failed to include this information and had to be rejected. We have reviewed our policy and internal guidance for staff to see whether we could do anything more to help applicants. Application guidance has been updated to provide greater clarity on the information the keeper will accept as sufficient.
The keeper will, in most, cases require information about the place where the non-natural person is incorporated, for example Scotland, or England and Wales, or any foreign jurisdiction.
In some cases, the legal system under which the non-natural person is incorporated may be clear to the keeper without express mention in the deed or on the form. In such cases the Keeper will be able to comply with her statutory duties and the application will not be rejected.
Examples of such cases include:
- Scottish companies where the company number is provided in the deed or the application form and it is prefixed with "SC"
- cases where the designation in the deed or form provides a registered office address from which the legal system may be extrapolated
- cases where the unique company number is included in the deed or form and the keeper is aware of the legal system under which that company is incorporated. This is likely to apply mainly to large UK or Scottish lenders who submit high volumes of deeds
Some examples of suitable designations are set out in the application form guidance available to view on pages 9 and 10, they are not intended to be definitive or prescriptive.
Application form errors
Insufficient company/non-natural person designation information has been the most common rejection reason since 8 December 2014. Please remember to provide all of the information that is required.
Other than that, the most common rejection reasons have been for administrative errors related to forms (eg form not signed or 1979 Act forms submitted). This replicates the most common rejection reasons under the 1979 Act. If you have had applications rejected for these types of errors, our advice is that you review your processes.
When submitting for registration a "deed over an unregistered plot", you should confirm if the plot of land to which the application relates is the benefited subjects in relation to any servitude, even where that is also set out in the deed submitted for registration. Part B of application form contains a question relating to servitudes, and the details of any prior deeds in which servitude rights were constituted must be listed at this part the form.
You should be aware that the RoS eform automatically calculates the fee that is payable for the deed being registered, based on the information entered in the "application details" part of the application form. Where the application requires dual registration in the Land Register to create real burdens or servitudes, only a single application form is required in order to give effect to the deed against both properties. However, you should ensure that the additional title number(s) are provided in the form. The full registration fee should be met by the lead agent, since they will be submitting the application form.
Where dual registration is required in respect of an application to register a "deed over part of a registered plot", the title number of the part being transferred will not yet be known. Applicants using the eform to dual register such deeds should enter the parent title number twice to ensure the additional £60 fee is calculated.
Advance notice over part
The main rejection reason in relation to advance notices over part is that the keeper is not provided with sufficient information to delineate the property on the cadastral map either because: (1) the property cannot be identified on the Ordnance Survey map, and (2) use of a location plan.
If you are intending to submit an advance notice over part, please refer to the advance notice mapping guidance.
The requirements for tenement mapping have been further clarified, in particular the requirement to define the tenement steading when submitting an application to register an individual flat. Where the keeper already holds an acceptable extent for the tenement steading, the application can proceed based on that extent, for example where there is a previous registration of a flat within that tenement, and the extent of the tenement steading is already delineated on the cadastral map.
There are two main reasons why a pre-registration report cannot be completed as requested
- There is no plan or deed uploaded
- Neither the deed nor the plan are specific enough in defining the area the report is required for.