Clause 8 - Liability for making good void transfers etc
Land Registration Bill [Lords]
11:45 am
Mr William Cash (Stone, Conservative)
The amendments relate to liability for making good void transfers under clause 8. The amendments' purpose is to provide that where there is the grant of a mortgage with or without a transfer to the mortgagor, and where that leads to compulsory registration, the practice is for the mortgagee to apply for registration because they have the title deeds to protect their security. A late application for registration would be a serious matter for a mortgagor, and it would also be beyond their control.
It seems unlikely that failure to affect first registration would cause difficulty, so we are proposing that the consequences should fall on those who are responsible. When a person buys a property with a mortgage, the mortgagee immediately takes the deeds as security. In practice, it is the mortgagee who must deal with registration, although the responsibility may appear to rest with the mortgagor. If the mortgagee overlooks the matter, they are responsible for any loss.