Cautions and inhibitions
This section contains precedents and guidelines to help you to prepare applications for registration in the Land Registry.
Introduction
A person claiming an equitable interest in registered land may protect that interest by way of a caution or an inhibition. The facts of a particular case and the requirements of the interested parties will normally determine which of these devices is more appropriate. The main practical distinctions are briefly illustrated in the table below:
| Caution | Inhibition |
|---|---|
| 1. It can only restrict dealings by the registered owner. | 1. It can restrict dealings by any person (i) for a specified time (ii) until the occurrence of a specified event or (iii) until notice is given to, or consent obtained from, a specified person. |
| 2. It will be registered before notice of its registration is given to the registered owner. The Registry will not, in the normal course, assess the merit of the alleged interest in land before registration however applicants should note Section 66 (5) of Land Registration Act (NI) 1970. | 2. Unless the registered owner consents to the inhibition, the Registry must, before registering an inhibition, give notice to the registered owner, who then has an opportunity to object to the proposed registration. |
| 3. Where a subsequent dealing is lodged, notice will be sent to the cautioner and the onus will then be on him to object to the dealing. If he fails to object, the caution will automatically lapse. | 3. An inhibition which specifies that some person's consent is required may only be cancelled (i) with the consent of all interested parties, (ii) by order of the Registrar or (iii) by court order. |
Cautions
A caution may be lodged in accordance with Rule 98, by the filing of an affidavit using LR form 46 (Precedent 5.A). The affidavit should clearly set out the prima facie equitable interest in land. It should be noted that a debt, whether or not connected to the land, is not normally considered to be an interest in land.
Applicants should pay particular attention to Section 66 (5) of Land Registration Act (NI) 1970 where any person lodging a caution without reasonable cause is liable to pay compensation to any person damaged thereby.
Special considerations apply to cautions against first registration and cautions against re-classification of title.
Cancellation of cautions
A cautioner may apply to withdraw a caution, in accordance with Rule 102, by lodging an application using LR form 50 (Precedent 5.B).
An application to discharge a caution, in the absence of the cautioner's consent, should be made in writing signed by the registered owner or his solicitor and should set out the grounds of the application and all relevant facts (Rule 99). No form is prescribed, and it is sufficient for the application to be contained in a letter.
A timed notice of the application to withdraw or cancel the caution will then be served on the cautioner.
If the cautioner objects the Registry will, where appropriate, request that a formal objection is lodged within 10 working days. The objection must be by sworn affidavit setting out the grounds for objection to the withdrawal.
This affidavit must be lodged with a hearing fee of £200.
If required, the applicant will be afforded the opportunity to respond by affidavit within 10 working days before the matter is referred for determination to the Deputy Registrar/ Registrar.
Please note the Deputy Registrar/ Registrar will only determine whether a caution should be cancelled or remain on the folio, not the substantive issue between the parties.
Inhibitions
An application for an inhibition may be made in accordance with Rule 107 by lodging an affidavit using LR form 53 (Precedent 5.C) sworn by the applicant and exhibiting any documentary evidence relating to the interest claimed.
Anyone wishing to object under Rule 109, to the entry of an inhibition should write to the Registrar, within the relevant period, stating the grounds for such objection.
Inhibitions to protect trusts may be registered under Rule 105 (see Acquisition of land by trustees) and inhibitions with the consent of the registered owner may be registered under Rule 106. No particular form is prescribed by Rule 106 and it may be convenient to adapt the application form for an inhibition LR form 53 (Precedent 5.C) and exhibit the written consent of the registered owner.
Cancellation of inhibitions
An application to withdraw an inhibition on consent, under Rule 110, may be made by the inhibitor or his solicitor by using an application to withdraw an inhibition on consent LR form 55 (Precedent 5.D).
An application to cancel or modify an inhibition, without consent, may be made under Rule 111 using an application to discharge or modify an inhibition without consent LR form 56 (Precedent 5.E).
Inhibitions under the Criminal Justice (Confiscation) (NI) Order 1990 or the Proceeds of Crime Act 2002
An application for registration of an inhibition under Article 13 (13) of the above Order or under Section 195 of the above Act should be made using LR form 59 (Precedent 5.F). The application should exhibit a certified copy of any restraint order or any application for such an order which may have been made (Rule 114).
Applications for the withdrawal or modification of such inhibitions should be made using LR form 55 (Precedent 5.D) by an official authorised by the Director of Public Prosecutions or by the prosecution, as defined in the Order.