Uncertain rights

In light of the Lands Tribunal’s decision in the case of PMP Plus Ltd v Keeper of the Registers of Scotland we have been reconsidering our policy and practice in respect of conveyances of pro indiviso shares in common areas in developments where the description of the common area is dependent on a future uncertain event, such as completion of the development or alienation of all dwellinghouses within the development.

The PMP Plus Ltd case centred on the legal effect of a purported conveyance of rights in common areas where the identification of those areas was dependent on a future uncertain event. The split-off dispositions of individual units within the development purported to convey “a pro indiviso share with all the proprietors of all other dwellinghouses and flatted dwellinghouses erected or to be erected on the development…

in and to those parts of the development which on completion thereof shall not have been exclusively alienated to purchasers of dwellinghouses or flatted dwellinghouses, which said parts comprise or shall comprise inter alia… other areas of open space”.

The Tribunal’s opinion makes clear their view that it is not possible either in terms of property law or registration law to create rights in common areas where the identification of those areas is dependent on a future uncertain event, and that where a disposition or title sheet contains such wording, the wording is meaningless and ineffective and no rights are created.

In registering development titles, it has been the Keeper’s policy to reflect in title sheets the terms of the conveyancing in relation to common areas even where the identification of the common areas is dependent on a future uncertain event, such as completion of the development or alienation of all houses by the developer. In relation to existing developments that policy will continue. Existing developments include those developments that are part completed. This will ensure consistency and equality of treatment of titles within existing developments. (The policy also acknowledges the possibility that once the future uncertain event has occurred, a subsequent transfer of a house or flat within a development may have the effect of creating the rights referred to in the original split-off from the developer.)

In relation to new developments the Keeper’s policy will change. In those circumstances the Keeper will only reflect in Land Register title sheets the terms of the conveyancing in relation to common areas where the identification of common areas does not depend on a future uncertain event.

Our new policy is effective from 3 August 2009. Further information on the Keeper’s new policy is set out in Registers Update 27. You can view this at ros.gov.uk/updates/index.html If you require additional advice on the implications of the PMP Plus Ltd decision on a specific transaction, please contact our Pre-registration enquiries section on 0845 607 0163 or email pre-reg@ros.gov.uk .

Weekly house price info now available

RoS has launched a new weekly house price information service. We are now providing data on average price, volume and percentage change for the latest four week and 52 week periods for each of the 32 local authority areas in Scotland. The information is being broadcast every Thursday on local radio stations throughout Scotland during the popular breakfast show and drive-time slots. The broadcasts also provide information about the free house price search facility on our website.

This local radio campaign will soon be supplemented by similar information in national newspapers, again promoting headline figures and the fact that RoS provides the best house price information as we record every property transaction in Scotland, including the 45% that currently do not involve a lender.

The weekly property statistics can be found on our website and are updated every Monday. Go to ros.gov.uk and click on the “public” tab.

ARTL UPDATE – as at 13 July 2009

• 17,653 ARTL transactions have taken place.

Live on ARTL

• 214 solicitors’ firms.
• 16 lenders.
• 10 local authorities.
• 12 full sign-up meetings scheduled over the next four weeks.

For up-to-date information and a full list of participating practices and companies go to: ros.gov.uk/artl/