Society provides advice over advance notice difficulties

The Law Society of Scotland's Professional Practice team has acted to address difficulties being experienced by solicitors over the new advance notice system for protecting applications to register property titles on the Land Register.

Since 8 December, the day when the legislation permitting advance notices came into effect, some problems have arisen either due to delay in the granting of an advance notice, or in applications for advance notices being rejected.

As a result, questions have arisen regarding the continued use of letters of obligation to settle transactions. In the view of the Professional Practice team it is still appropriate to grant a letter of obligation for the present time (although the preferred route is an advance notice), and Marsh, the Master Policy professional indemnity insurance brokers, have advised that as the Master Policy certificate has not changed, it would still be competent for a letter of obligation to be granted. 

Click here for the full statement, and for suggested forms of wording for the letter of obligation.

The same link can be used to access style draft forms for preparation of advance notices.