Practicalities of the new 2012 Act and formsGary Donaldson – Millar & Bryce

Background

• All transfers of property will induce registration• Some deeds will also trigger the registration of the underlying

landlords title• Voluntary registrations• Keeper induced Registration

Other changes

• One shot rule• Act creates duty on applicants

New face of Land Registration

1.The Title Sheet 2. The Cadastral Map 3. The Archive Record 4. The Application Record

• Title• Pending Applications• Information from the register of Inhibitions

Searches

Legal Report

Plans Report

Combined Legal and Plans Report

Legal Report

Are the subjects in this transaction currently registered in the Land Register?

YesNo

Advanced Notices

• Registered in the Land Register• Or recorded in the Sasine Register• 35 day protection• Consent needed to lodge an Advanced Notice

Legal Report

Advanced Notices

Advanced Notice by Andrew Currie and Lesley Norval Currie in favour of James Anderson in respect of Disposition over 21 a Bellevue Road Ayr, recorded 11 August 2014

Legal Report

Advanced Noticesby Andrew Currie and Lesley Norval Currie in favour of James Anderson in respect of Disposition

11/08/2014

Plans Reports

Transitional arrangements and Further Help

• Forms 10 to 13 vs Legal report• Prior to Dec 8th

• Post Dec 8th • Advanced Notices

Further Help and Support Available

Title insurance, legal indemnities and the new 2012 Act

Kirstin Nee – Millar & Bryce

Millar & Bryce and title / legal indemnity insurance?

Millar & Bryce are now providing clients access to title/legal indemnity insurance. We are DUAL Asset Underwritings’ third party distributer in Scotland offering a one stop shop to try and streamline and make the professions life a bit easier.

How?• Online system for standard residential risks• Relaxed/experienced/flexible underwriting for more complex residential and

commercial matters.• Innovating and developing to try and assist with the pressures and anxieties of the

market in which we all work. Topically at the moment this means THE ACT!

What is title / legal indemnity insurance?

A no fault policy, indemnifying the insured against actual loss arising from a legal ownership defect .

Title/Legal indemnity insurance does not replace the requirement for high quality legal advice, but rather compliments the role of the conveyancer by:• Enabling transactions to complete on time and without large unforeseen costs,• Enables transactions that may not have been able to proceed to proceed, • Removing unnecessary risk, either actual or perceived, and• Providing peace of mind to purchasers and lenders.

History of Title Insurance

Legal Origin:• Watson v Muirhead, 1868

– Considered one of the most important court cases in America– Conveyancer not liable for honest mistakes or errors in judgement– Legislature passed an act in 1874 “to provide for the incorporation and

regulation of title insurance companies.”– Due Diligence in America?

European Evolution:• Land Registry Systems• State Guaranteed Titles• Good Title → Known Risk• Lets look at its evolution in a bit more detail from the late 19th century to the present

day

Title Ownership Insurance - Evolution

Started life in US as all encompassing “title

insurance”. Watson vs Muirhead (1868). Followed by

Pennsylvanian Legislature allowing for the corporation

of title insurance companies.

1868/1874

Process became non-intrusive. Insurers employed

real estate lawyers to underwrite. Pricing also fell as competition developed.

Mid 2000s

In UK, still only Specific Risk cover. High premiums. Intrusive process. Limited demand. U/W

process lengthy.

1980/1990s

Scope and application of Title Insurance vastly increased to

cover numerous risks that are not classic title defects rather legal

Indemnities.

Present Day

Examples of Risks – more than just title risks

• Portfolio Cover• Judicial Review• Lack/breach of planning permission• Lack/breach of listed building consent• Lack/breach of building regulation consent• Overhang breach• Executor and Inheritance Protection (Missing beneficiaries/Missing wills) • Developments following case law: RBS vs Wilson PMP Plus/Lundin Homes Ltd Sheriff Baird’s recent decision on POAs

• The Land Registration etc. (Scotland) Act 2012……………………………………………

The Land Registration etc. (Scotland) Act 2012 – where we are.

Perceived Risk Actual Risk

Specific Risk All Risk

Summary

We are here to help

Expertise and

experience

Background research

Develop/ innovate

Millar & Bryce and DUAL Asset Underwriting

Kirstin Nee Gary DonaldsonMillar & Bryce Millar & BryceCustomer Relationship Marketing and Business DevelopmentManager Manager

T: 0131 556 1313 T: 0131 556 1313M: 07887 453 735 M: 07795 832 196E: kirstin.nee@millar-bryce.com E: gary.donaldson@millar-bryce.comMaking your life easier