Land Registry Compliance Drawing

tigermark119

Hi everyone. Would welcome some advice please. I am the Executor of my late Father’s Estate. He has a bungalow with a piece of land at the rear. Half of that land has been sold (STC), to a neighbour ( he wants a bigger garden!). The remaining half, belonging to the Estate, has also been sold with the  Bungalow, STC. My Solicitor tells me I need a Land Compliance Drawing to reflect the new ownership of the two sections of land. My question is:
Am I responsible for the drawings for both properties, or just for the section behind my Father’s Bungalow? Would it be the responsibility of the neighbour to get a drawing for his new piece of land, showing that it belongs to his property?
Many Thanks.

ciderboy2009

What did it say in the contract when you sold the land?

user1977

I would expect whichever transaction is completing first to require the plan showing what is being sold. The other sale just gets the balance of the original title, so doesn't need another plan.

But in general, if you don't understand what your solicitor is telling you, ask them to explain!

tigermark119

Thank you for the comments above. Nothing is actually sold yet- all subject to contract, exchange, completion etc. These are two separate and distinct transactions (as I understand it, either can complete first, they are not dependent on one another at all). But Land Registry need to know the new boundaries with regard to my Father’s bungalow and the neighbour’s property. 

user1977

tigermark119 said:

Nothing is actually sold yet- all subject to contract, exchange, completion etc. These are two separate and distinct transactions (as I understand it, either can complete first, they are not dependent on one another at all). But Land Registry need to know the new boundaries with regard to my Father’s bungalow and the neighbour’s property. 

The LR don't need to know it until after completion, but I presume the other parties will want to agree it before exchange.

loubel

It would be usual for the seller to prepare the plans in these circumstances. There are companies who specialise in drafting them. It would make most sense for the plan to be prepared for the sale of part of the garden as this may require covenants or easements to be granted or reserved in the Transfer Deed (TP1). The buyer of the bungalow will want to see the  TP1 with plan for the garden land in order to know how its sale impacts them.

daveyjp

Seller prepares, buyer checks accuracy.

SDLT_Geek

tigermark119 said:

Thank you for the comments above. Nothing is actually sold yet- all subject to contract, exchange, completion etc. These are two separate and distinct transactions (as I understand it, either can complete first, they are not dependent on one another at all). But Land Registry need to know the new boundaries with regard to my Father’s bungalow and the neighbour’s property. 

Really?  If you exchange contracts for the sale of the bungalow first then you are left in a weak negotiating position for selling the rump of the garden.

I would want to exchange on the two at the same time and set completion dates then.

tigermark119

Yes- two separate, distinct transactions. If completion of the bungalow happens first, it makes no difference whatsoever to the other transaction. A separate price as been agreed ( different buyer), for that piece of land. It just so happens that the “piece of land “ is part of the bungalow’s land . So there is no re- negotiation involved.

RAS

Do check out the CGT situation. We had to sell the garden first in order to avoid CGT. If you sell property you no longer own, that can become an issue.

Do you yet have a clear dividing line on the ground between the two parts of the garden? If not install a fence pronto. It's much easier to sell the house if the potential purchaser can see what they will get, rather than trying to imagine what they are buying and getting disappointed. 

And have you got an uplift clause in the garden sale contract, in case what they are actually doing is assembling a future building plot?

tigermark119

Thank you. Indeed I have checked out the CGT position- it has occupied much of my time of late!! As the section that will be sold to the neighbour is part of what was my late Father’s Estate, the sale of that, together with the sale of the rest, will result in a CGT liability. I’ve even worked out what it will be - hoping the Accountant I will use to do the return maybe able to reduce it a bit. There is indeed a dividing line- it was in place for when the property went on the market. As regards an uplift clause, that will be for my solicitor to address. However, I know for certain that a future building plot  
will not happen in this case.