Land Registry Question

MrsPorridge

I've just looked at our land registry paperwork and under B Proprietorship register it says

RESTRICTION: No disposition by a sole proprietor of the registered estate (except a trust corporation) under which capital money arises is to be registered unless authorised by an order of the court.

Can someone please advise me in plain language what that actually means? 

Many thanks.

Tiglet2

If there are two registered proprietors (owners) on the title, then they must decide whether to 'hold' the property as Joint Tenants or Tenants in Common.

If the owners are Tenants in Common this means that they each own a specific share of the property, this could be 50% each or any other shares adding up to 100% for example 40% / 60%.  If held as Tenants in Common, there will be a restriction registered in Section B with the wording that you have quoted.

If one owner dies, their share does not automatically pass to the other owner.  Instead, it will pass to whoever they have gifted their share to in their Will. If there is no Will, the share will pass according to the Rules of Intestacy.

This restriction alerts a Solicitor or Conveyancer to the fact that the owners are Tenants in Common and one of them alone cannot sell the property.

MrsPorridge

Thank you so much Tiglet - yes it is tenants in common.

getmore4less

No that simple.

The legal ownership passes to the survivor.

The sole remaining legal owner can appoint anyone they want as a second trustee.

Land_Registry

MrsPorridge said:

I've just looked at our land registry paperwork and under B Proprietorship register it says

RESTRICTION: No disposition by a sole proprietor of the registered estate (except a trust corporation) under which capital money arises is to be registered unless authorised by an order of the court.

Can someone please advise me in plain language what that actually means? 

Many thanks.

It means that if the registered legal owners are reduced to one, so if two and one dies, then the sole surviving owner can’t sell/mortgage the property on their own. 

The form A restriction, as it’s known, does not define you as TIC as it can be applied for, added by default or for other reasons. 

Many do apply for it for the reasons Tiglet2 explains but the reality is the background/defining information re TIC or joint tenants will be elsewhere such as wills, deeds/declarations of trust or more.

MrsPorridge

Thanks all for the responses.  The house is jointly held by DH and MIL.  MIL has made a will leaving her share to someone else.  This makes sense to me now, so thanks for the clarity.