The Gazette 1980

GAZETTE

DECEMBER 1980

Conveyancing Notes

Recommendations of Law Society /Building Societies Joint Committee BUILDING SOCIETY VACATED MORTGAGES Pending the production of the Building Society Mortgage with receipt under seal, it is recommended that Solicitors acting for Purchasers and Mortgagees shall not defer completion of the sale nor registration of the Purchase Deed nor completion of a Mortgage by the Purchaser provided the said Solicitors are satisfied that all monies due on foot of the Building Society Mortgage have been discharged and that a satisfactory undertaking to forward same with receipt has been furnished. This is having regard to Section 84 of the Building Societies Act 1976 which provides, inter alia, that a receipt under seal of the Building Society for all monies secured by the Mortgage shall: . . (1) In the case of unregistered land operate to vacate the Mortgage and to vest the property comprised in the Mortgage in the person for the time being entitled to the equity of redemption. (2) In the case of registered land for the purposes of Section 65 of the Registration of Title Act 1964 be sufficient proof of the satisfaction of the Mortgage. Two questions relating to requisitions under this Act, have been submitted fo the Committee for a consideration. These are: Is it reasonable or necessary to enquire into the position in relation to the Family Home Protection Act: (1) In respect of a sale by a Company or (2) In respect of the occupation of a premises by non- conveying beneficiaries on a sale by a personal representative. The Committee is unanimously of the opinion that in each of the above cases such investigation is neither reasonably nor necessary. In the first case it points out that a Company cannot have a spouse and accordingly a conveyance by a Company could not be void due to lack of consent of any separate legal person such as a Director who may have lived in the premises the subject of the sale. In the second case the Committee feel that a pur- chase from a personal representative qua personal representative should not be concerned with the Family Home Protection Act in relation to that particular assurance. It would be quite different if an assent had been executed and the sale was by a beneficiary as beneficial owner. FAMILY HOME PROTECTION ACT

HOUSING DEVELOPMENT UNREGISTERED TITLES

The Conveyancing Committee has been receiving an increasing number of representations from practitioners about the presentation of sets of title documents to unregistered land. The Committee recommends that as a matter of good professional practice all such sets of title documents should: (1) Contain an Index or List of Contents. (2) Have all pages numbered. (3) Have all maps properly coloured. (4) Be clearly printed, preferably by the letterpress or litho-method (not stencilled). (5) Contain a full set of searches against the title. The Committee is satisfied that a Vendors solicitor is under an obligation to furnish proper books of title and urges solicitors acting for Purchasers to reject any booklets which do not reach an acceptable standard. In an increasing number of cases no Registry of Deeds Searches are furnished with or in a Booklet of Title. The Builders solicitors apparently claim that they are basing this practice on a recommendation of this committee. No such recommendation was ever made. Any practice notes issued by this Committee regarding searches emphasised that the current practice that Registry of Deeds Searches be furnished by developers solicitors should continue. When Builders or Developments purchase property for a housing development their solicitors pay extra attention to the investigation of title and to searches knowing that it will be vitally important to be able to explain all queries which will arise in the course of the investigations by the many Purchasers and Mortgagees solicitors. The Committee cannot think of any reasonable circumstances where searches are not available and think that it is un- reasonable for Builder's solicitors not to furnish copies with the title with suitable explanations. Solicitors for Builders are reminded that the Land Registry will now give priority to first registrations of development property. There should be no difficulty in any ordinary case in achieving registration in good time and builders solicitors are urged to avail of this facility. BUILDING DEVELOPMENT A member has drawn the attention of the Conveyancing Committee to the fact that solicitors for some Builders selling houses on developments which comprise unregistered land are refusing to furnish Memorials executed by the Vendor as has always been the practice. The Committee feels that a Purchaser is entitled to have a Memorial executed by the Vendor and can see no good reason for a departure from the practice that in building estates a Memorial duly executed by the Vendor is furnished at his expense.

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