Urgent help needed malicious RX1

SDLT_Geek

help_please123 said:

@SDLT_Geek

The application states 

Form A reads: "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."

Do you have any knowledge on this? 
Any help is greatly appreciated.

Thank you 

That is helpful to know.  Form A is the kind of restriction that goes on if title is vested in one person at the Land Registry, but the beneficial interest is held differently.  A key feature of a Form A restriction is that it does not necessarily block a sale.  So long as a second trustee is appointed, which your conveyancer should know how to do, the buyer will get good title and the LR will remove the restriction once the sale goes through.

There could still be an issue though with you accessing the money from the sale.  The conveyancer might be unwilling to release it to you alone, as the claim of the ex partner then attaches to the money.

Your conveyancer can advise you on this.

Land_Registry

help_please123 said:

@Land_Registry could you please advise from your perspective too?

I have replied as follows to your DM 
Good Morning - I am sorry to read of the issues you are facing.
An application to register a restriction will trigger the events you refer to. And you should make your conveyancer aware - they may be able to assist you with the legal nuances re your ex partner's rights and your own also.
It will prevent the purchase completing so it's important that you make sure of the legal position and highlight why the application is groundless as appropriate.

SDLT_Geek

Land_Registry said:

help_please123 said:

@Land_Registry could you please advise from your perspective too?

I have replied as follows to your DM 
Good Morning - I am sorry to read of the issues you are facing.
An application to register a restriction will trigger the events you refer to. And you should make your conveyancer aware - they may be able to assist you with the legal nuances re your ex partner's rights and your own also.
It will prevent the purchase completing so it's important that you make sure of the legal position and highlight why the application is groundless as appropriate.

@Land_Registry have you seen that it is a Form A restriction which has been applied for?  Surely if OP appoints a second trustee in the transfer to the buyer, that would overreach any beneficial interests and give the buyer good title.

How OP then deals with the sale proceeds is another matter, but in terms of the conveyancing, happy days, surely?

help_please123

@SDLT_Geek can you explain this to me please

'So long as a second trustee is appointed,'

Also i do not think it is a form a it is an RX1 but the wording is the same :

"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."

What would happen in this case? Would the conveyancer keep the money until it is resolved?

help_please123

@Land_Registry
 
Thank you, do you know how long i should expect to wait to hear back from land registry regarding my objection if it has already been passed to LR lawyers?

Thank you for your input

SDLT_Geek

help_please123 said:

@SDLT_Geek can you explain this to me please

'So long as a second trustee is appointed,'

Also i do not think it is a form a it is an RX1 but the wording is the same :

"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."

What would happen in this case? Would the conveyancer keep the money until it is resolved?

The restriction, if registered, would mean the buyer could not register the transfer on the buyer's application if the transferor (the seller) is a sole proprietor.  So the common solution is to have two people making the transfer as seller.  This is usually done by adding a clause in the transfer which reads something like "X hereby transfers the property to X and Y for the purpose of appointing Y as an additional trustee so that any beneficial interests can be overreached".

Your conveyancer will be familiar with this.

Your conveyancer might indeed want to keep some all or some of the money until the issue is resolved, but you would need to ask them.

help_please123

@SDLT_Geek thank you so much for this, i have a call scheduled with my conveyancer later today and hopefully this can be resolved albeit if it means my solicitor retaining funds until an agreement is reached.
If he is stating that he claims a 50% beneficial interest does this then mean that they would release 50% to me with the rest being held until an agreement is made with the remainder of the proceeds?

Land_Registry

I shared my response to the DM only as that was the Q raised by the OP.
OP - for clarity a form RX1 is an application form used to apply for a restriction to be added to the register. The 'form A' is a form of restriction and not an actual (paper) form for example
Any application by a third party to try and protect a beneficial interest would be considered on merit. If the ex partner has applied and you have objected then we have to consider whether their beneficial interest can be protected in this way, namely by a form A restriction - see PG 24 for example for guidance 
PG 21 section 6 explains more about the options IF a form A restriction is added to the register and how a sale/purchase can take place and the restriction dealt with 
That would only come into play once the RX1/your objection has been resolved I suspect so a buyer might be reluctant to complete whilst the RX1 application is still 'live'

help_please123

@Land_Registry can a second appointee be enlisted regardless of whether it is an application or not so the sale is not stopped even if that means holding funds?
My son really needs this move for his mental health, he is only 10 and struggles being in the house.

Do you have any idea how long it will take to deal with my objection i am told it has been passed to lawyers at land registry at this point but i dont have a direct contact. Do you know any approximate timescales? Is there a direct contact i could speak to in order to provide further evidence quicker 

SDLT_Geek

help_please123 said:

@SDLT_Geek thank you so much for this, i have a call scheduled with my conveyancer later today and hopefully this can be resolved albeit if it means my solicitor retaining funds until an agreement is reached.
If he is stating that he claims a 50% beneficial interest does this then mean that they would release 50% to me with the rest being held until an agreement is made with the remainder of the proceeds?

You will have to speak to your conveyancer about this.

I see that @Land_Registry helpfully refer to Practice Guide 21 section 6.  It might be worth referring your conveyancer to that.  I see though that @Land_Registry think a buyer might be unwilling to go ahead while an application for the restriction is still "live".  It is possible that your conveyancer will have a view on this, but it is the kind of thing which does not come up often.

Your conveyancer might suggest a simultaneous exchange and completion to eliminate the risk of anything happening between exchange and completion which derails the transaction.