Land Registration Act 2002 – paving the way for electronic conveyancing
The Land Registration Bill received Royal Assent on 26th February. The Act implements the recommendations published in the Law Commission's report "Land Registration for the Twenty-First Century: A Consultative Document" which was issued in September 1998
This Act is designed to revise substantially the Land Registration system which is still largely modelled on the 1925 system. In particular, the Act paves the way for electronic conveyancing by putting in place a legal frame work allowing the electronic creation of property contracts, leases and transfers (subject to certain conditions).
The other main features of the Act are as follows:-
- Significant changes to the substantive law on adverse possession where title is registered
- Compulsory registration of all leases if they will run (on grant or assignment for more than seven years)
- A reduction in the categories of overriding interests – interests that affect registered land even though they are not registered against the title
- A change to the rules allowing anyone to inspect leases, mortgages and other documents mentioned on the register.
Many of the changes that will be needed to introduce the system of electronic conveyancing will be introduced by separate Land Registry Rules that are currently being drafted. The Act will change the way conveyancing is carried out and it will be necessary for the new rules to be assessed before any detailed comment can be given on the mechanics.
For further information please contact Mark Heighton on +44 (0)20 7367 2177 or at mark.heighton@cms-cmck.com.
