Miscellaneous and general funds

Land Registration Bill [Lords] – in a Public Bill Committee at 3:15 pm on 13 December 2001.

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Photo of Bill Cash Bill Cash Shadow Attorney General 3:15, 13 December 2001

I beg to move amendment No. 75, in page 66, line 19, leave out paragraph 3.

This important provision relates to the manner in which rules will apply with regard to implied covenants. The amendment is probing. Why does the Minister consider the provision to be necessary? We suggest that it should be omitted, with a view to finding the reasons for its inclusion.

Photo of Michael Wills Michael Wills Parliamentary Secretary, Lord Chancellor's Department, Parliamentary Secretary (Lord Chancellor's Department)

As always, I am delighted to respond to the hon. Gentleman's probing. Paragraph 3 of schedule 10 fulfils an important function in the conveyancing process. As the hon. Gentleman said, it relates to implied covenants. An obligation to deduce title to land in accordance with a contract of sale comes to an end on completion of the sale. The establishment that there has been a breach of implied covenants for title is the only way in which a transferee can attempt to remedy defects in title that emerge after completion.

Rule 77A(2) of the Land Registration Rules 1925 currently provides that a person will not be liable for a breach of most implied covenants in respect of matters set out on the register of title. I hope that the hon. Gentleman is paying attention to this important point.

Photo of Bill Cash Bill Cash Shadow Attorney General

He is paying great attention, and can hear with both ears.

Photo of Michael Wills Michael Wills Parliamentary Secretary, Lord Chancellor's Department, Parliamentary Secretary (Lord Chancellor's Department)

I am anxious to reassure the hon. Gentleman about this important point and he will not be reassured if he is not fully engaged.

Photo of Bill Cash Bill Cash Shadow Attorney General

I was seeking advice from the Clerk with respect to the termination of our proceedings, which is coming. I listen with great and avid interest—as ever—to what the Minister is saying.

Photo of Michael Wills Michael Wills Parliamentary Secretary, Lord Chancellor's Department, Parliamentary Secretary (Lord Chancellor's Department)

That was the only moment during our proceedings when I saw the hon. Gentleman's attention flag for even a second. I thought that I should bring him back to the task that faces us all.

I mentioned the provision in the Land Registration Rules 1925. The Bill addresses that by inserting a new subsection into section 6 of the Law of Property (Miscellaneous Provision) Act 1994. That insertion does not exactly replicate existing law but the differences are not material. As a consequence, the law is made clearer, more coherent and more accessible. The rule-making powers in schedule 10 are fairly limited in scope but are, nonetheless, important. They are designed purely to ensure that everyone knows when implied covenants have been given in relation to a transaction and whether the statutory form of covenant has been modified in any way.

There is no intention—I suspect that the hon. Gentleman may fear that there is—to tinker with the precise wording of implied covenants that have been developed and refined over the centuries. I hope that that reassurance will enable the hon. Gentleman to withdraw the amendment.

Photo of Bill Cash Bill Cash Shadow Attorney General

Having heard the Minister's exposition from beginning to end, I am glad to assure him that I will withdraw the amendment. However, as we are reaching the end of our proceedings, I should tell the Minister that there are further points on which I may correspond with him or table further amendments on Report. However, subject to that, I am grateful to the Minister for his explanations, and I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Schedule 10 agreed to.

Schedules 11 to 13 agreed to.

Question proposed, That the Chairman do report the Bill, as amended, to the House.

Photo of Michael Wills Michael Wills Parliamentary Secretary, Lord Chancellor's Department, Parliamentary Secretary (Lord Chancellor's Department)

It is my happy lot to say thank you, Mr. Illsley, for chairing the Committee. I wish to thank in particular my officials, as well as all other members of staff who have assisted during the Committee's proceedings.

Mr. Cash: I would like to thank the Minister and all other members of the Committee, as well as you, Mr. Illsley.

Photo of Adrian Sanders Adrian Sanders Shadow Spokesperson (Communities and Local Government)

May I echo the comments of the Minister and the hon. Member for Stone, and offer my thanks to all concerned with the Committee?

Question put and agreed to.

Bill, as amended, to be reported.

Committee rose at twenty-one minutes past Three o'clock.