Reforms to the home buying and selling process in England and Wales: legal and practical perspectives:

In the future a buyer of registered land should be able, early in the transaction, to obtain from the Land Registry a clearer picture of the land he is interested in buying. The boundaries may be determined, easements and other third party rights noted on the register and documents referred to in the register open to view. This should result in a more streamlined transaction avoiding problems at a later stage when replies to enquiries reveal unexpected matters causing the buyer to reduce his offer or withdraw.

The LRA 2002 has been formulated to make conveyancing easier and to shed some of the archaic bonds and restrictions of the common law system. This act included the allowance of electronic conveyancing rather relying on the reams of paperwork, i.e. it took an act of parliament to consider electronic forms of communication as satisfying the requirements of Section 53 of the LPA 1925. This act has also reformed adverse possession therefore making it easier to identify when a person in occupation of the proposed land of purchase is under adverse possession or there is a legal right of this person in occupation. In the same vein overriding interests have been redefined, modernized and narrowed in character, so that the possibility of these can be identified more efficiently. In making conveyancing easier and more efficient this creates a better system for practitioners, the ability to increase the number of conveyances through a cheaper and more efficient method.

Therefore the de-mystification and modernization of land law will create a better system therefore it is necessary for conveyancing practiotioners.

Critical Assessment of New and Proposed Legislative Provisions:

Land Registration Act 2002 (LRA 2002):

The introduction of e-conveyancing has opened up interests in land, such as leases and charges for viewing. It has also meant that there is no need to lodge applications of land charges and transfers of title as this will be done automatically in the e-conveyancing; therefore creating a more efficient system for conveyancing practitioners. As with every change there will be apprehension that the title and charges have really been completed without the sending of applications and receipts of notification; however this is belied by the fact the changes can be viewed openly to make sure they are correct. However, it will be important for practitioners to remember that any documents sent to the Land Registry without a certified copy will be retained and possibly destroyed. To counteract the loss of valuable information the LRA 2002 has given a grace period of 5 years in which documents will be retained and application can be made for their return. Also it has introduced a change in the registration of legal leases from 21 years to 7 years because the sale of property is a lot more prevalent after a few years and this has been made compulsory, as well as any legal easement. This will make the process of land sales and transfers a lot more efficient. In addition to further this easier system of conveyancing the practive of entering a caution against first registration is being phased out; whereby after 2 years no applications will be taken and those in the previous 2 years cancelled meaning that upon sale the property must be registered. The categories of adverse possession and overriding interests have been narrowed. In the circumstance of possible adverse possession it clearly delineates between who is an adverse possessor and those that have a legal right in the property. It also makes compulsory application for title by the adverse possessor after 10 years which will be rejected, the court will notify the paper owner and if after 2 years the adverse possession is not ended the title will be given to the adverse possessor. Overriding interests have been narrowed and certain categories, such as legal easements have been made compulsory to register therefore confirming the easy access to conveyancing.
Housing Bill 2004 (HB 2004):

The most important change in conveyancing that the HB 2004 contains is in the legislation to ensure better competition in the estate agency market along with the better enforcement of consumer protection legislation. This act forwards this though self-regulation, which will reduce future problems in conveyancing such as the failure of agents to pass on offers, the lack of declaring personal interest and the promotion of the estate agent’s financial services under the pretext of better success. Therefore if such inconsistencies and unfairness is taken out of the market of property sales it reduces the complexity and problems for conveyancing practitioner as the sale goes on, which increases the efficiency and customer satisfaction and reduces the costs incurred.

Evaluation of Potential Impact of Reform:

Home Buyers:

The new reform makes the system a lot more streamlined and speeds up the conveyancing procedure. Also after the sale, the new regulations that deal with interests in land and adverse possession means that it is less likely that legal actions and the affording of beneficial interests will be applied, except for those accepted at the time of sale. Also the exploitation of home buyers by estate agents has been reduced with introduction of the HB 2004.

Home Sellers:

For home sellers the system has been sped up, as well as creating a lot less problems as the sale go on. The HB 2004 also ensures that there are fair prices for house sales without the interference and personal interest distortions from estate agents.
Land Law Practitioners:
As identified throughout this proposal law practitioners will experience the highest benefits, because it will be speedier more efficient process with problems easily identified through the electronically viewable register; as well as less problems in respect to distortions on the basis of estate agents unfair techniques.

Conclusion:

In short the HB 2004 and LRA 2002 creates a more simplified and efficient system for practitioners, which will increase the volume of cases able to be undertaken; reducing costs; the elimination of barriers; and the increase of customer satisfaction.
Bibliography:
Bray, Turner & Martin, 2004, Unlocking Land Law, Hodder and Arnold H&S

Burn, 2004, Maudsley and Burns: Land Law Case and Materials 8th Edition, LexisNexis UK

Finance and Credit Law, 2003, Land Registration Act 2002, F & CL 5.8(3)

HM Stationary Office, Land Registration Act 2002, Chapter 9 of Explanatory Notes, at 118 & 119 can be found at: http://www.hmso.gov.uk/acts/en2002/02en09-c.htm

Housing Law Monitor, 2003, Housing Policy, HLM 11(3)
Jackson, 2003, Title by registration and concealed overriding interests: the cause and effect of antipathy to documentary proof, 119 LQR 660

Law Commission Report 271

The Lawyer, Real Estate: Land Registration Act 2002 – the main changes, The Lawyer November 17th 2003, 31

L. Small & R. Pain, 2003, Land Registration Act 2002, JJ 78(1)

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