Clause 26 - Protection of disponees

Part of Land Registration Bill [Lords] – in a Public Bill Committee at 12:15 pm on 11 December 2001.

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Photo of Michael Wills Michael Wills Parliamentary Secretary, Lord Chancellor's Department, Parliamentary Secretary (Lord Chancellor's Department) 12:15, 11 December 2001

I am afraid that again I must resist this amendment. One of the overriding principles on which confidence in the land register is currently based is that the register is conclusive about an owner's powers. This contributes substantially to the ease with which the conveyancing process operates and benefits the economy as a whole. This will become even more important as the fundamental objective of the Bill is achieved. It must be possible to investigate title to land online, with the absolute minimum additional inquiries and inspections. Any limitations on the power of the owner to deal with the land or a charge must be the subject either of entries on the register or of limitations imposed by the Bill itself. That should be the case whether those limitations arise by agreement with third parties or by the imposition of statute.

If this amendment were made, however, people dealing with any title would need to consider what statutes might impose a limitation on the owner's powers, and then investigate to see if that is the case. That would in turn detract from the completeness and clarity of the register of title in a way that we find unacceptable. That is why the Government prefer the simplification of the existing law effected by the Bill.

Under the Bill, any limitation on the owner's powers can be recorded by restriction. This is often done in practice by the Registry automatically where it is apparent that statutory limitations apply. The purpose of these provisions is simply to protect the buyer of the land. They reflect the current law, we believe that they strike the right balance between the competing interests that can arise in such situations. They do not prevent the selling owner from being held to account for exceeding his or her authority, nor do they prevent an interested party from applying for a restriction to be entered as a precautionary measure. I hope that that explanation provides some comfort to the hon. Gentleman and that he can now withdraw the amendment.