Professional practice updates - February 2015

Following the introduction of the Registers of Scotland rejection fee on 9 February, the Society met with Registers of Scotland to gain a better understanding of the type and volume of issues being raised.

The rejection team has reported a steady decline in the number of applications that need to be returned since the land registration changes were introduced in December. The rejection rate dropped to 6% by the end of last week, which highlights the efforts made to understand and implement the extensive changes.

A snapshot from one day of rejections last week shows that the reasons for rejection were not based on issues caused by the Land Registration etc (Scotland) Act 2012 and instead follow the more typical rejection issues that existed before the introduction of the 2012 Act.

Reasons for rejection:

• Application form not signed/completed (31)
• Error in deed or no deed provided (20)
• Incorrect fee (where payment is by cheque) (5)
• No SDLT certificate (4)
• No or wrong plan (4)

The predominant issue with the plans at present appears to be the plotting of the subjects onto the cadastral map. Either the subjects conflict with a title that is already on the cadastral map or it has not been possible to plot the subjects on to the map based on the current deed plan and/or conveyancing description – the ‘floating shape’ scenario. Obtaining an appropriate plans report should help to establish whether the plan to be provided is acceptable.

The Society will continue to work with Registers of Scotland to reduce rejection rates and we will keep members informed of any trends in reasons for rejection.

For advice on the completion of applications, as well as general guidance on how to avoid rejections, Registers of Scotland can be contacted on 0800 028 9311.

If you have any queries about the registration process, please contact the Society’s Professional Practice team for a confidential discussion on 0131 226 8896.

The Scottish Standard Clauses have been launched nationwide to assist property lawyers with residential conveyancing transactions. The Standard Clauses practitioner’s guide and client guide is now available.

As practitioners will know, the implementation of the 2012 Act saw the Property Law Committee bring in new guidance to assist practitioners with the changes and to update the letters of obligation guidance.

Following from that, the Property Law Committee has updated its Guidance, which can be found at Section F Division C of the Society’s Rules and Guidance. We would encourage all solicitors engaged in property law to review it as the updates are extensive.

In addition to reviewing the existing Guidance, Guidance where the lender wishes to remit funds directly to the seller's solicitor has been introduced. An advice note to assist practitioners when a lender wishes a Repairs Grant to be discharged is available, and links to the new CML Compliance Checklist and Scottish Standard Clauses have been provided.