Answers and explanations
See last month's issue for the full quiz.
1. What should you apply for to protect a charge of the beneficial interest of one of two joint proprietors under s.71 of the Social Services and Well-being (Wales) Act 2014?
A. Form A or Form MM restriction
Explanation: Such a charge cannot be protected by registration of a legal charge nor noted as an equitable charge because it does not charge the legal estate. The only suitable standard restrictions that can be used to protect this interest are standard Form A and Form MM.
2. What is not required for an application where an attorney is acting for a transferor who holds the registered estate on trust?
D. Letters of administration
Explanation: Documents noted in options A, B, and C are all required by HM Land Registry guidelines for completion of such an application. Letters of administration confer authority to manage and administer the estate of someone who has died intestate.
3. Does a transfer for money by a sole proprietor acting by two attorneys to a third party overreach a Form A restriction?
B. No
Explanation: A Form A restriction requires that capital money be paid to at least two trustees (or a trust corporation) for overreaching to occur. Overreaching is dependent on how many trustees receive the capital money – not how many attorneys are acting because attorneys are not automatically trustees of the legal estate.
4. What is a CIO?
D. A non-exempt charity
Explanation: CIOs (Charitable Incorporated Organisations) must register with the Charity Commission on inception, therefore they are non-exempt charities. It follows that an exempt charity cannot be a CIO.
5. When applying to register the Official Custodian for Charities as the proprietor of land under an order of the Charity Commission under s.76 of the Charities Act 2011, you should also apply for:
B. a Form F restriction
Explanation: A Form F restriction reflects the statutory rule in s.91(4) Charities Act 2011, which provides that: No disposition executed by the trustees in the name of the Official Custodian can be registered unless authorised by an order of the court or Charity Commission.
6. Which of the following interests cannot be noted in the register using form AN1?
C. An interest which is capable of being registered in the local authority commons register
Explanation: Section 33d of the Land Registration Act 2002 prevents such an interest from being noted in the register.
7. The transfer of a share for no monetary consideration is from A and B to A. The value of the land is £300,000 and the amount outstanding on the existing charge is £30,000. What fee is payable under the current fee order?
B. £30
Explanation: Fee is payable under scale 2 of the current fee order on the value of the share transferred. Value of share transferred = (300,000 – 30,000)/2 = £135,000 which corresponds to a fee of £30.
8. A Form B restriction is appropriate when:
A. the powers of the trustees are limited
Explanation: Trustees must apply for a Form B restriction under r.94(4) LRR 2003 in respect of a registered estate, when a declaration of trust imposes limitations on the powers of the trustees under s.8 of the Trusts of Land and Appointment of Trustees Act 1996.
9. Which standard form of restriction cannot be withdrawn?
D. Form JJ
Explanation: R. 98(3) of LRR 2003 excludes from being withdrawn any restrictions entered under s. 42(1)(a), LRA 2002 that reflect a limitation on the registered proprietor’s powers of disposition imposed by statute or the general law, such as a Form JJ restriction. Many of these restrictions were formerly entered at the registrar’s discretion (under r.236A, LRR 1925).
10. Does a confidentiality clause in a transfer prevent HM Land Registry from entering the price paid?
B. No
Explanation: Confidentiality clauses do not override the statutory obligation.