The Land Registration Act 2002 brought in the legislative framework to introduce electronic conveyancing.  The Land Registry has carried out much consultation on the subject in the period since then but what substantive developments in this area have there actually been?

The parts of the Act dealing with electronic conveyancing envisaged a time when charges and transfers will be signed and registered electronically, instantly changing the register. Whilst we have not reached this stage yet, there have been a number of changes which mean that post-completion matters can be dealt with more quickly and therefore transactions can be finished sooner.  For example, electronic access to the Land Registry register means that official copies, filed plans and priority searches can be ordered online and results obtained instantly, thus providing easy access to up-to-date information.

Further, in place of using a hard copy Land Registry Form DS1 to discharge an existing charge, an electronic discharge is increasingly common. This can be via Electronic Notices of Discharge (ENDs) which enable the lender to inform the Land Registry of the redemption of a charge but they do not remove it without a paper application too, or ,more recently, Electronic Discharges (EDs) which automatically remove the charge from the register.  The Land Registry intends to develop this service by the introduction of the EDS1 as an alternative to the ED, which will be more suited to very high volume lenders and will enable wider use of electronic discharges. The online EDS1 application will allow the removal of the charge without the need for further paperwork to be submitted by post.

On a related issue, Lupton Fawcett now files Stamp Duty Land Tax (SDLT) forms with HM Revenue & Customs online, enabling immediate receipt of an electronic certificate of receipt.  This certificate is required before the Land Registry will complete the registration of a dealing with property.  If a paper copy of the SDLT return is sent to the Revenue, the certificate can take weeks to come back.  The online filing means that in most cases Land Registry applications are able to be completed much more quickly.

Over the coming years the Land Registry intends to introduce the registration of electronic charges and electronic transfers. This will require the development of an electronic signature system and is therefore probably a number of years away. However, at Lupton Fawcett we are monitoring these developments so that we are ready to ensure that our clients can benefit from these new and innovative procedures.

Posted: March 10th, 2009 under Commercial Property.
Comments: none