Clause 8 - Liability for making good void transfers etc
Land Registration Bill [Lords]
11:45 am
Mr Michael Wills (Parliamentary Secretary, Lord Chancellor's Department; North Swindon, Labour)
We agree with the sentiment behind the amendments, and we understand that between the parties it will often be right to apportion liability for the resulting costs. However, we must resist the amendments.
The Bill imposes an obligation on the responsible estate owner to apply for first registration of title within two months of an event that triggers first registration. If the responsible estate owner does not do so, and the registrar does not make an order allowing him extra time, the document transferring title must be repeated, which would result in further costs. The combined effect of the two amendments would be to transfer that liability to the mortgagee in cases where they have the task of submitting the application for registration. The Bill does not prevent that liability being placed elsewhere by agreement; it merely replicates the long-established default position reflected in subsections 8 and 9 of the Land Registration Act 1925, which places the primary responsibility on the person who should be registered as proprietor of the estate.
I should also emphasise a point made in another place: conveyancing practice will change dramatically over the next few years. Even if there were a strong argument for changing the default position, now is not an appropriate time to make that change. That should be left for when we have a clearer picture of what the future holds. I hope therefore that the hon. Gentleman will feel able to withdraw the amendment.