Land Registry Practice Direction 1/2024 - Change of registered ownership by virtue of statute
This note was issued on 10 October 2024.
Background
As practitioners are aware, applications for a change in registered ownership are dealt with primarily by the submission of Forms and/or Solicitor’s Certificates as appropriate.
There are limited circumstances where registered ownership is changed by virtue of a statutory provision, without the need for conveyance, assignment or other deed of assurance.Such defeasance of registered ownership is permitted under Section 36 of the Land Registration (Northern Ireland) Act 1970 (as amended).
Whilst Land Registry’s preference is that a transfer deed should be submitted in applications for a change of ownership under Section 36, this Practice Direction sets out the requirements for registration of such applications pursuant to Section 36 where a transfer deed is not being lodged.
A. Defeasance of registered ownership by virtue of statute
Solicitors are advised to lodge the certified copy document upon which the application relies, which should include how the defeasance has occurred and the statutory provisions within the relevant Act or Order (the “Defeasance Statute”) upon which the applicant is relying.This should be accompanied by a Solicitor’s Certificate, as per Annex 1.
Practitioners should also consider whether any consents are required or any exceptions are set out in the Defeasance Statute that would apply to the application being lodged, as a certification to this effect will also be required to be incorporated in the Solicitor’s Certificate.
B. Vesting lands in new trustees
By virtue of Section 54 of the 1970 Act, the Registry is obliged to keep trusts off the title and Trustees of land are registered as full owners.
Solicitors are advised to lodge a certified copy of the executed Deed of Appointment and Retirement of Trustees and this should be accompanied by a Solicitor’s Certificate, as per Annex 2.
If there were any intervening deeds which dealt with the retirement and appointment of trustees, which were not formerly presented for registration, the Solicitor’s Certificate should be amended to reflect the chain of title in respect of the legal ownership by intervening trustees and those certified copy deeds should also be lodged with any application.
Certain exceptions apply to the vesting of lands under the Section 39 of Trustee Act, together with requirement for consent in certain circumstances.Practitioners will be required to provide a certification in respect of these exceptions and consents within the Solicitor’s Certificate.
Should any of the registered owners have died prior to the execution of the Appointment Deed, the Solicitor’s Certificate should be adapted to incorporate the death of a joint tenant and a certified copy of a Death Certificate should be lodged.
C. Vesting lands on merger of charities
The Registry will accept a certified copy of the executed General Vesting Declaration, given by the current Charity Trustees in accordance with Section 163 of the Charities Act (Northern Ireland) 2008 (the “Declaration”), to vest the legal title.The Charities Act provides that the Declaration must be made by deed by the current charity trustees, made in connection with a relevant charity merger and to the effect that all of the property is to vest in the Transferee on the date specified in the Declaration.
Solicitors are advised to lodge the certified copy Declaration, together with a Solicitor’s Certificate, as per Annex 4.
Certain exceptions apply to the vesting of lands under Section 163 of the Charities Act, together with requirement for consent in certain circumstances.Practitioners will be required to provide a certification in respect of these exceptions and consents within the Solicitor’s Certificate.
D. Registration of ownership under The Trustee Appointment Act 1850 or The Trustee Appointment Act 1890
Pursuant to Section 56 of the 1970 Act, there are special provisions relating to dealings with lands subject to certain charitable trusts.Paragraph 1 of Part II of Schedule 8 sets out that lands subject to such a trust can be vested in trustees without the requirement of a transfer deed if the Trustee Appointment Act 1850 or the Trustee Appointment Act 1890 (“Trustee Appointment Acts”) apply.The Trustee Appointment Acts apply to land held on trust for purposes such as a place for religious worship or a burial ground, etc.
Solicitors are advised to lodge a certified copy of the executed Memorandum of the Choice and Appointment of New Trustees together with a Solicitor’s Certificate, as per Annex 4.
If there were any intervening memoranda which dealt with the choice and appointment of new trustees, which were not formerly presented for registration, the Certificate should be amended to reflect the chain of title in respect of the legal ownership by intervening trustees and those certified copy deeds should also be lodged with the application.
E. Vesting lands on foot of a transfer of engagements relating to Credit Unions or Housing Associations
a. A credit union can, by special resolution, transfer its engagements to another credit union pursuant to Article 66 of The Credit Unions (Northern Ireland) Order 1985 (as amended) (the “Credit Union Order”).The special resolution must be passed in accordance with the Credit Union Order and lodged with the Financial Conduct Authority for the transfer of engagements to take effect.
Solicitors are advised to lodge a certified copy of the special resolution, together with a certified copy of the completed FCA Transfer of engagements form and a certified copy of the FCA certificate in respect of the Transfer, together with a Solicitor’s Certificate as per Annex 5.
b. A housing association may, by special resolution, transfer its engagements to another housing association pursuant to Section 60 of the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969 (as amended) (the “Societies Act”).The special resolution must be passed in accordance with the Societies Act and lodged with the FCA for the transfer of engagements to take effect.
Solicitors are advised to lodge a certified copy of the special resolution, together with a certified copy of the completed FCA ‘Transfer of engagements’ form and a certified copy of the FCA certificate in respect of the Transfer, together with a Solicitor’s Certificate which sets out how the application falls within Section 36 of the 1970 Act, as per Annex 6.