Voluntary land registration

The Land Registration Act 1925 set in motion the process of registration of all land throughout England and Wales. It was a gradual roll out as different areas of the country became subject to compulsory registration on sale. The Land Registration Act 2002 finally made registration mandatory throughout the country although that obligation is still only triggered on a disposal. Consequently, about 13% remains unregistered; much of it large agricultural estates or those belonging to the Church or Crown.

Upon registration of a property, all pertinent information relating to a particular title is noted in a central register thereby nullifying the need for bundles of title deeds to be stored somewhere safe. The deeds were initially replaced by a large and serious looking document called a Land Certificate (or Charge Certificate if there was a mortgage), but 100 years on from the 1925 Act, even the Land Certificate has gone and what remains is information held in an electronic register only.

Without discounting the benefits of land registration set out later, the loss of the bundle of title deeds hits a nostalgic note. Land ownership is a serious business worthy of a substantial document, and unregistered title deeds in a big dusty bundle held a level of gravitas. With a bundle of deeds, a conveyancer knew that the truth was in there. The conveyancer had to understand what to look for and about devolution of title, and they needed to be confident that they had produced a proper Epitome including all relevant deeds and documents and land charges searches where necessary. In short, they were immersed in the history of it all.

However, nostalgia had to give way to progress and, more importantly, to security. There are various reasons why property registration is preferred. First and foremost, it affords a higher level of protection against property fraud. The Land Registry keeps details in electronic format and therefore it adds a layer of protection to the property owner. Secondly, registered land limits potential boundary disputes. If an owner of unregistered property came to sell it, it might only be then that they found out the surrounding registered land had been wrongly recorded - an unwelcome problem at the time of sale. Thirdly, there is a level of jeopardy with a bundle of unregistered deeds. They could become lost or damaged and that could lead to proof of ownership issues, possibly only discovered at the very time the owner was looking to sell their house. Fourthly, registered land allows the conveyancing process to be efficient with all the relevant title information in one place and readily available. Finally, on a practical note, Land Registration eliminates the worry of where to store deeds after a mortgage is paid off.

An owner of unregistered property should consider instructing a solicitor to apply to the Land Registry for voluntary registration of their title, rather than wait until the property was due to be sold. The Land Registry offers reduced fees for voluntary applications and once registered, the owner would have the peace of mind knowing that their asset had now been recorded in a central register and any worries surrounding the whereabouts of "the deeds" had been alleviated.

Furthermore, through registration, the risk of fraud has been reduced, and an owner could sign up for the free Land Registry "Property Alert" service where every six months the Land Registry would review the owner's title register and email the registered proprietor to advise whether there had been any activity in connection with it. This service is particularly useful where a property owner doesn't live in the property in question or perhaps owns a portfolio of properties. The important thing here would be to ensure that the Land Registry is kept up to date with the registered proprietor's current address.

In conclusion, it would be a pragmatic move for an owner of unregistered property to seek its voluntary registration at the Land Registry.

For more information or advice, please contact Caroline Rukin in our Commercial Property team.