PP 2016/0078 REPORT OF THE SELECT COMMITTEE ON THE REGISTRATION OF LAND (PETITION FOR REDRESS) 2015-16 REPORT OF THE SELECT COMMITTEE ON THE REGISTRATION OF LAND (PETITION FOR REDRESS) On Wednesday 21st October 2015 it was resolved – That a committee of three Members be appointed with powers to take written and oral evidence pursuant to sections 3 and 4 of the Tynwald Proceedings Act 1876, as amended, to consider and to report to Tynwald by June 2016 on the Petition for Redress of John Ffynlo Craine and Annie Andrée Jeannine Hommet presented at St John’s on 6th July 2015 in relation to the registration of property. The powers, privileges and immunities relating to the work of a committee of Tynwald are those conferred by sections 3 and 4 of the Tynwald Proceedings Act 1876, sections 1 to 4 of the Privileges of Tynwald (Publications) Act 1973 and sections 2 to 4 of the Tynwald Proceedings Act 1984. Committee Membership Mr M R Coleman MLC (Chair) Mr G G Boot MHK (Glenfaba) Mr A L Cannan MHK (Michael) Copies of this Report may be obtained from the Tynwald Library, Legislative Buildings, Finch Road, Douglas IM1 3PW (Tel 01624 685520, Fax 01624 685522) or may be consulted at www.tynwald.org.im All correspondence with regard to this Report should be addressed to the Clerk of Tynwald, Legislative Buildings, Finch Road, Douglas IM1 3PW. Table of Contents I. THE COMMITTEE AND THE INVESTIGATION ................................................... 1 II. BACKGROUND: THE REGISTRATION OF LAND IN THE ISLE OF MAN ................. 2 III. THE PETITION AND THE PETITIONERS’ PROPOSALS FOR REFORM ................... 3 IV. OBJECTIONS TO THE PROPOSALS ................................................................... 4 V. DISCUSSION AND RECOMMENDATIONS ......................................................... 5 GENERAL COMMENT ON THE OBJECTIONS TO THE PROPOSALS 5 REFINING THE PETITIONERS’ PROPOSAL 5 ADMINISTRATIVE COSTS 6 FURTHER CONSULTATION 7 RECOMMENDATIONS 7 ORAL EVIDENCE .................................................................................................... 9 29TH JANUARY 2016: EVIDENCE OF DR JOHN FFYNLO CRAINE AND MS ANNIE ANDRÉE JEANNINE HOMMET; AND MR GARTH ANDERSON, ASSISTANT CHIEF REGISTRAR AND LEGAL OFFICER (LAND), LAND REGISTRY, MR EDWARD CLAGUE, DEPUTY DIRECTOR, CENTRAL REGISTRY AND MR NIGEL LEWNEY, REGISTRIES SECTION MANAGER 11 WRITTEN EVIDENCE ............................................................................................. 51 TH APPENDIX 1: ADVICE NOTE DATED 19 OCTOBER 2015 FROM THE ATTORNEY GENERAL’S CHAMBERS 53 APPENDIX 2: EMAIL DATED 23RD OCTOBER 2015 FROM MR GARTH ANDERSON, ASSISTANT CHIEF REGISTRAR AND LEGAL OFFICER (LAND) 57 APPENDIX 3: SUBMISSION DATED 11TH NOVEMBER 2015 FROM DR J F CRAINE AND MRS A A J HOMMET 63 ND APPENDIX 4: LETTER DATED 2 DECEMBER 2015 FROM MRS JACQUELINE CANIPA 131 ST APPENDIX 5: EMAIL DATED 31 JANUARY 2016 FROM DR J F CRAINE 135 APPENDIX 6: SUBMISSION DATED 18TH JANUARY 2016 FROM MR GARTH ANDERSON, ASSISTANT CHIEF REGISTRAR AND LEGAL OFFICER (LAND) 143 APPENDIX 7: LETTER DATED 19TH FEBRUARY 2016 FROM MR EDWARD CLAGUE, DEPUTY DIRECTOR CENTRAL REGISTRY 307 APPENDIX 8: EMAIL DATED 22ND APRIL 2016 FROM MR GARTH ANDERSON, ASSISTANT CHIEF REGISTRAR AND LEGAL OFFICER (LAND) 313 To: The Hon Clare M Christian, President of Tynwald, and the Hon Council and Keys in Tynwald assembled REPORT OF THE SELECT COMMITTEE ON THE REGISTRATION OF LAND (PETITION FOR REDRESS) I. THE COMMITTEE AND THE INVESTIGATION 1. This Committee was established by the following resolution of Tynwald on 21st October 2015: That a committee of three Members be appointed with powers to take written and oral evidence pursuant to sections 3 and 4 of the Tynwald Proceedings Act 1876, as amended, to consider and to report to Tynwald by June 2016 on the Petition for Redress of John Ffynlo Craine and Annie Andrée Jeannine Hommet presented at St John’s on 6th July 2015 in relation to the registration of property. 2. The Members elected to the Committee by Tynwald were Mr Boot, Mr Cannan and Mr Coleman. At our first meeting Mr Coleman was elected chair. 3. We have met on three occasions and have taken oral evidence on one occasion. We have obtained written evidence from the petitioners, from the Land Registry, and from Mrs Canipa, a member of the public. The oral and written evidence we have gathered is included in this Report. 1 II. BACKGROUND: THE REGISTRATION OF LAND IN THE ISLE OF MAN 4. It was resolved in Tynwald on 15th February 1966: That His Excellency the Lieutenant-Governor be respectfully requested to set up a Commission to examine existing legislation on conveyancing and the registration of deeds, to investigate whether the practice and procedure adopted under such legislation may be simplified and improved and to determine whether it would be feasible to develop therefrom a system of land registration which would reduce the financial burden on all parties to the sale. purchase or incumbrance of land arising from legal or other charges. Work arising from this resolution led to the enactment of the Land Registration Act 1982. Before the Act was implemented it was amended by the Land Registration (Amendment) Act 1995. It was eventually brought into force in 2002. Since then some 14,000 titles have been registered.1 5. The Land Registry explains on its website: The historic system of examining deeds recorded in the Deeds Registry under the Registration of Deeds Act 1961 in order to deduce the title or ownership of land is being replaced by a modern system requiring the registration of title to the land on a separate electronic title register created and maintained under the Land Registration Act 1982 (as amended) and the Land Registry Rules 2000 as amended by the Land Registry (Amendment) Rules 2002. Land registration was phased in across the Isle of Man as successive parishes were designated as areas subject to compulsory registration:- 1st May 2002: Andreas, Ballaugh, Bride and Jurby 1st May 2003: German, Lezayre, Maughold, Michael and Patrick 1st September 2005: The whole of the Island except for Braddan and Onchan 1st December 2009: Braddan and Onchan Registration of title to a freehold or leasehold estate in land is compulsory on a conveyance on sale, the grant of a lease for more than 21 years or the assignment of a lease where there is more than 21 years left to run. Alternatively, title may be 1 Appendix 6, Tab F, paragraph 8.1 2 voluntarily registered at any time. All applications for first registration must include a certificate by an Advocate practising on the Island in the form included in Form 1 (Application for First Registration). Once registered, the current details of a property will be found in the Land Registry. For records of unregistered property, please refer to the Deeds Registry. The benefits of land registration include:- Registration of title gives finality and certainty by providing an up-to-date official record of land ownership Ease of accessibility to up-to-date official records of ownership and other registerable interests of land Proof of ownership can be readily and speedily obtained, unlike searches of unregistered land where you may need to know the name of the owner Registered titles are guaranteed because, subject to normal insurance principles, indemnity is paid should any person suffer loss through any error in, or omission from, the title register. No such guarantee exists for unregistered property. Each title includes an extract from the survey map called a Filed Plan showing the extent of the land comprised in the registered title, although the boundaries are not conclusive unless a formal application has been made to do so. These plans are based on digital surveys of the Island. In unregistered conveyancing, there is no requirement for any deed to include a plan Dispositions of registered titles are effected by means of simple prescribed forms which are available to the public. In unregistered conveyancing, there are no prescribed forms.2 III. THE PETITION AND THE PETITIONERS’ PROPOSALS FOR REFORM 6. The dispute which led to the petition was decided by her Honour Deemster Roberts sitting as the Land Commissioner in the Land Court, judgment being delivered on 12th August 2014. Deemster Roberts’ judgment is included within the written evidence of the Land Registry and sets out the circumstances of the case in full.3 2 https://www.gov.im/registries/General/Land_Registry/ (accessed 11th April 2016) 3 Appendix 6, tab L. The judgment is also available via the Judgments Online service at www.courts.im 3 7. The petitioners summarised the case in their petition for redress as follows: Some time ago your petitioners discovered by chance that part of their property and of the occupation road leading to it had been registered as part of a neighbour’s property. Upon application under section 65 [the process for rectification of errors under the Land Registration Act 1982], the Land Commissioner ultimately agreed that the registration in question was defective. As they received no notice at the time of registration, your petitioners had no possibility of pointing out at an early stage that the registration was defective, when it could have been corrected without the years of stress and considerable expense that actually ensued. 8. In their written evidence to this Committee, the petitioners estimated the quantifiable cost of the dispute as slightly over £10,000.4 9. This Committee is not called upon to reconsider the merits of the dispute itself but to consider whether the case has any wider implications and in particular to consider the proposals for reform made by the petitioners. Those proposals are: that the Land Registration Act 1982 and/or the Land Registration Rules 2000 be amended so that applications for the first registration of property are advertised in a similar manner to planning applications and that a more efficient and equitable complaint handling procedure be established regarding such first registrations.