Mar
10
Written by:
FJG
10/03/2011 15:02
A recent seminar by the Land Registry highlighted the need for a property owner to keep the Land Registry updated with a current address for service. The following scenarios show some of the problems that can occur if the Land Registry doesn’t know your contact address.
You buy your first property and eventually you can afford to buy your dream home, whilst keeping the original property, which you let out to generate an income. But you forget to advise the Land Registry of your new address for service for this first property. Now, any correspondence from the Land Registry about the first property will be addressed to you there. Maybe for the first year you are having your post redirected, but eventually it might be that you do not receive post about the property any more.
A company seeks to enforce a debt against you, and applies to the Land Registry to have a notice, restriction or charge registered against the title of the first property. The Land Registry will notify you of the application, but you don’t receive the notice. It may be years later when you come to sell or remortgage the property that you find there is a claim on the title and then you find that you can’t sell or remortgage the property without paying off that debt (it could seriously spoil your plans).
Or, your tenant is less than honest and executes a deed of transfer of the property into his own name, forging your signature. He knows that even if he submits the application himself (without a conveyancer acting for him), any queries that the Land Registry raises will be addressed to the property. You will never see them, and you will not be able to prevent the fraud.
Or, you haven’t inspected the property for many years, so you fail to notice that somebody has occupied the property or part of it without your consent. In due course, they are able to make an application to the Land Registry for ownership of the property on the basis of adverse possession. The Land Registry will notify the registered owner of the property, but in this case, the notice goes straight to the property and you never see it. In due course, the squatter’s application is completed, and you no longer own the property.
In the meantime, you and your spouse split up, and you move out of the matrimonial home. You forget to advise the Land Registry of your new address. Maybe your ex-spouse has been persuaded to forge your signature on a mortgage deed or on a transfer of the property out of your name. Again, you would not receive any notice, and you could find yourself saddled with a new debt or losing the property.
All of these scenarios are possible as are many others. Where fraudulent activity takes place, it may not be possible to undo the damage (especially if the property has subsequently been bought by a third party buying in good faith), although you may be able to claim compensation (a difficult process). The scenario involving adverse possession could leave you without any redress at all.
Do ensure that if you own a property you do not negligently contribute to the risk of suffering loss. Keep your address for service up-to-date and notify the Land Registry if you move.
If you require any information about these issues or about any other aspects of conveyancing please contact Sven Wair, on 01206 835212 or email conveyancing@fjg.co.uk