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Matrimonial – conveyancing |
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We all know that cautions against dealings and inhibitions have been abolished, and that matrimonial interests should now be protected by notices (agreed or unilateral) or restrictions.
Notices: you use a notice (whether agreed or unilateral) if the interest to be protected affects the legal estate and is intended to bind third parties. An agreed notice can be entered with the consent of the registered proprietor or alternatively if the registrar is satisfied with the validity of the applicant’s claim (eg if one spouse has a right of occupation of the matrimonial home under FLA 1996, or if a court order has been lodged in support of the application). Use form AN1 to apply for an agreed notice (unless it is a Matrimonial Home’s application, in which case use MH1).
Application for a unilateral notice can be made without the consent of the registered proprietor; use form UN1. Bear in mind that an application for an unilateral notice does not have to be accompanied by the document itself (unlike an application for an agreed notice). Because of the new rules about disclosure, it may be best for reasons of confidentiality to apply for an unilateral notice, rather than an agreed notice, even if the other side do consent.
Restriction: you use a restriction if the rights affect an equitable interest and would be overreached on the sale. A typical family use would be where someone has contributed to a property but is not a proprietor. Use form RX1 to apply for a restriction.
A wife or spouse applying for a transfer of the legal and equitable interest in the matrimonial home can protect that interest by a notice. This need not fall foul of s33 LRA 2002 which says that an interest under a trust of land cannot be protected by a notice; provided the applicant can show that he or she has an interest in the registered estate that is not simply an interest under a trust (eg that there is a right to become a legal co-owner under a pending land action) then the interest can be protected by a notice. However, if the action is merely a claim for a beneficial interest only in the property which is held under a trust of land, then that will not be a pending land action and thus cannot be protected by a notice. Accordingly, if it is being argued the property is held under a constructive or resulting trust because of contributions to the purchase then that will be an interest arising under a trust only, and will have to be protected by a restriction. For more on this see excellent article in [2004] SJ 283.
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April 2004 |