Land Registration, Conveyancing and Property Markets: the Edwards Report, June 2001 by Andrew Edwards

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Land Registration, Conveyancing and Property Markets: the Edwards Report, June 2001 by Andrew Edwards Land Registration, Conveyancing and Property Markets: The Edwards Report, June 2001 by Andrew Edwards A Report published by the Lord Chancellor on 26 June makes far-reaching proposals for completing the Land Register, registration of leases, electronic property searches, certificates, deeds, transfers and settlements, re-engineering of the national processes for buying and selling houses, promoting transparent property markets, independent adjudication of property disputes, new specialist advisory services and reform of the national bankruptcy index. The Government's new Land Registration Bill offers a basis for implementing many of the proposals. In this article the Report's author, Andrew Edwards, formerly a Deputy Secretary at HM Treasury (and author of the 1998 Report on Financial Regulation in the Crown Dependencies), discusses some of the main issues. INTRODUCTION should remain in the public sector as a Government agency and trading fund The Lord Chancellor's Office and the Land Registry Department with executive to work in many areas in published, on 26 June 2001, my Report on the status, while continuing private sector. Quinquennial Review of the Land Registry. The Report partnership with the was completed in April 2001 but publication was delayed The Report argued that public confidence in land and as a result of the General Election campaign. property ownership (and mortgaging) is a precious possession, which depends on the Registry's unquestioned ability to guarantee titles and make indemnity payments on a no-fault basis. Similarly, resolution of the many disputes surrounding property depends on the Registry's visible impartiality. No private sector the Report argued, be able The Report formed part of the Government's on-going organisation would realistically, trust and confidence. In addition, programme of Quinquennial Reviews of smaller to command similar whole or parts of the Registry would Government Departments and Agencies. It was, however, privatisation of the be such a demanding and controversial project that the more fundamental and far-reachingo than most such legislation and the Registry's strategic reviews. Although it considered in some depth various Government's new set back by years. options for restructuring and privatising the Land programme could be Registry's services, its principal focus was on what the With regard to the other recommendations, the Lord services themselves should be, how they should be Chancellor noted that while some of them were consistent developed over the present decade and what with programmes of reform already under way, others accompanying changes might be made in national systems, were more radical and wide-ranging. He has therefore especially for property transfers and market transparency. asked officials from the Lord Chancellor's Department, the Land Registry and other interested Government THE GOVERNMENT'S INTERIM RESPONSE Departments to examine the recommendations carefully In publishing the Report, the Lord Chancellor explicitly with a view to publishing a detailed plan in the autumn on endorsed the recommendation that the Land Registry how best to take them forward. 19 Amicus Curiae Issue 36 August 2001 NEW LEGISLATION three and eliminate delays between completion and registration. At about the same time as the Report was published, the o Government introduced a new Land Registration Bill to (5) Promoting transparent property and mortgage markets replace the Land Registration Act 1925. The House of Lords through publication, with the Valuation Office and gave the Bill a second reading on 3 July. others, of much enhanced market information. This important Bill will modernise, improve and clarify (6) An independent Land Registry Adjudicator to deal with issues the law on land registration and ownership. It will also such as boundary and adverse possession disputes. open the way for implementing electronic conveyancing (7) A new self-financing Advisory Service largely staffed by and, if the Government so decides, many of the other part-time former employees and working with the reforms discussed in the Report. private sector, for international consultancy, specialist issues of registration and title, preparation of title plans, STRATEGIC OBJECTIVE advice for lay e-conveyancers, and historical research. The Report congratulates the Land Registry for having developed over many years a robust and trusted national TIMETABLE system for land registration, ownership and transfers. The The proposed programme includes provisional target dates Registry has, it suggests, successfully brought together for delivery of each of the main elements as follows: some of the best traditions of public service, disputes Delivery by 2003 of a fully electronic Register, many resolution and adjudication. elements in e-conveyancing, a Joint Property Market The strategic objective, it suggests, should be to develop, Charter, coverage of all new and assigned leases above promote and maintain world-class systems for three years, enhanced mapping facilities, new property guaranteeing ownership of land, for buying, selling, leasing market publications, an independent adjudication and mortgaging of property in England and Wales, and for service and new advisory services. resolution of disputes, within a framework of transparent Delivery by 2005 of full e-conveyancing accompanied by land and property markets. re-engineering of the national property market In my opinion, the new Bill and the Report, between transaction processes as discussed above. them, provide an exciting opportunity to achieve just this. Deliveries by 2010 oja Register with complete national coverage and title plans mostly digitised. A PROGRAMME FOR THE DECADE With the delay in publication of the Report, some of the The Report proposes a challenging strategic programme target dates for the earlier part of the programme may now for the Registry with other Departments over the present need to be revisited. decade, built around seven main strategic objectives or 'pillars' (see figure 1 at end of article): RESOURCES (1) A new Bill, in place of the Land Registration Act 1925, to The Report estimates that on present projections the Registry should be able to deliver the suggested prepare the way for ownership and transfers by o J oo programme within existing levels of around 7,800 registration and to strengthen the legal framework in r o o ' o o o permanent full-time-equivalent staff excluding overtime. various areas. (2) Completion by 2010 of the Register's geographical MAIN ELEMENTS OF THE PROGRAMME coverage, registration from 2003 of new and assigned The following paragraphs discuss the main elements of leases above three years, enhanced information on the programme and some related proposals. I hope this ownership, mortgages and financial transactions, and may facilitate public discussion of these important matters. enhanced mapping. (3) A fully electronic Register, enabling instant electronic NEW LAND REGISTRATION BILL (PILLAR 1) access to up to date property information, including As discussed above, the Government has already now one-stop comprehensive searches through the introduced a new Land Registration Bill to replace the National Land Information System, NLIS. present Birkenhead Statute, dating from 1925. (4) E-conveyancing, including electronic lodgement of The new Bill seems substantially to fulfil the hope expressed applications, electronic certificates and deeds, in the Report that the Government should introduce new electronic settlement (if possible) of payments due on world-class legislation, with increased rule-making powers, completion, and re-engineering by Government and covering the important points on registration, adverse practitioner bodies in a new Joint Property Market possession, overriding interests and notices discussed in the Charter Forum of the national processes for buying 1998 Consultative Paper, Land Registration Jor the Twenty First and selling houses, designed to reduce delays between Century, and to the extent possible the other statutory 20 handshake and contract from eight weeks to around requirements identified in the Review. Amicus Curiae Issue 36 August 2001 COMPLETING AND EXTENDING THE stating what the legal owners have declared about true or REGISTER (PILLAR 2) beneficial ownership where this differs from legal ownership. enforcement or other relevant authorities The Report proposes for the first time a timetable for Where the law are compelling reasons for confidentiality, completing the geographical coverage of the Land advise that there would normally hold such information in Register. It sets out the reasons why this should receive the Registry it on the Register. considerable priority. confidence instead of placing that the form of the notices and The target of achieving complete geographical coverage The Report emphasises of the change would require careful by spring 2010 is likely to require deployment of around the handling and consultation. The Registry would not, it 600 extra staff on average over a period of eight years in consideration truth of such declarations. addition to those who already work on first registrations. suggests, guarantee the decides to pursue mis course, Some 17 million titles are now registered. Those If the Government would be needed. The Report sees a unregistered may be five million or more (that is, some 20 statutory provisions the issue alongside any international to 25 per cent of the total). These are believed to consist case for considering
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