From Monday, when applying to register transfers, leases, surrenders, charges and discharges on forms AP1, FR1 or DS2, to avoid an application rejection, you will have to do one of three things:
- provide the name, address and reference of the conveyancers acting for all key parties to the transaction (i.e. buyers, sellers, landlords, tenants, borrowers and lenders); or
- confirm that you are satisfied that sufficient steps have been taken to verify the identity of any unrepresented party; or
- enclose a Form ID1 or ID2 in relation to an unrepresented party (i.e. a form upon which that person’s identity has been independently verified).
What should you do in the following cases?
I am acting for a buyer. The seller is unrepresented.
This will be uncommon. However, if it arises, you should address the issue of identity evidence at a very early stage – before exchange. You will need the seller to supply a Form ID1 (or ID2, if a company). Ideally, you would want the form to current (e.g. signed within the 14 days before the transaction?), and you should check that the name of the conveyancer who signed the form is genuine. Consider whether, to protect your own client, you want to be the conveyancer who verifies the seller’s identity.
But we have already exchanged contracts?
See Land Registry Practice Guide 67. An informal transitional rule applies. LRPG 67 says that in such circumstances, while you must still use the new form, you should “enclose a covering letter with your application explaining why you are not able to either confirm that you are satisfied that sufficient steps have been taken to verify the unrepresented person’s identity or lodge evidence of their identity”
But (a) we completed this matter a month ago, and/or (b) this is a first registration application.
As for (a), see above. As for (b) LRPG 67 states that the new ID procedure does not apply to applications for compulsory first registration where the deed inducing registration is dated before 10 November 2008.
I act for a landlord. The tenant is unrepresented. The tenant has quit the premises.
In these circumstances, the tenant has possibly impliedly surrendered its lease. If the lease is registered at the Land Registry, you will need to satisfy the new ID procedure in relation to the tenant to get the registration of the lease cancelled. LRPG 67 deals with cases where the tenant has “‘walked away” from its lease. It says that in such circumstances, while you must still use the new form, you should “enclose a covering letter with your application explaining why you are not able to either confirm that you are satisfied that sufficient steps have been taken to verify the unrepresented person’s identity or lodge evidence of their identity”
I am acting for a client who has discharged her mortgage. She has given me a form DS1 from the Halifax, and wants me to register it at the Land Registry.
As no conveyancer has acted for the Halifax, and no ID form is available, you will need to confirm that you are satisfied that sufficient steps have been taken to verify the identity of the Halifax – who purportedly executed the DS1. With an entity such as the Halifax, you should satisfy yourself that the DS1 came from them. If you contacted them, quoted your client’s old roll number, and asked for confirmation that the client had paid off her mortgage, and that she had been sent a form DS1, the correspondence itself should leave you satisfied that sufficient steps had been taken to verify the ID of the entity that executed the DS1. With lesser known entities, greater care is needed. LRPG 67 is a useful read here as to how to verify the ID of a company e.g, a bank.
I act for a purchaser. A firm of solicitors acts for the seller, and will be discharging the seller’s mortgage at completion. The outgoing mortgage lender (M) is unrepresented.
You will need either (a) to obtain the name etc. of a conveyancer acting for M (but there isn’t one); (b) obtain a signed Form ID2 relating to M (but this is probably most unlikely in the circumstances); or (c) you need to stick your neck out and state that you are “satisfied that sufficient steps have been taken” to verify M’s identity (but this is not something a buyer’s solicitor is likely to want to do). Hence, the buyer’s solicitor will need the seller’s solicitor either: (a) expressly to confirm that it has verified the identity of the seller’s lender (a confirmation that the buyer’s solicitor may then feel comfortable to rely upon when itself certifying, on form AP1, that he/she is satisfied that sufficient steps have been taken to verify the seller’s lender’s identity) or (b) to supply a fully completed Form DS2 at completion. Ascertain which course of action to follow before exchanging contracts.
As above, but the seller’s mortgage will be discharged electronically.
On a discharge of a mortgage, the new ID rules only apply to discharges in paper form.
I act for a mortgage lender (M) on a remortgage; the borrower (B) is unrepresented.
Again, you will need either (a) to obtain a signed Form ID1 in relation to B (but this will involve additional cost on a remortgage, which is usually considered to be undesirable); or (b) stick your neck out and state that you are “satisfied that sufficient steps have been taken” to verify B’s identity. This you might be prepared to do if M expressly certifies to you that it has verified B’s identity.