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Posted Wed, 19 Mar 2025 14:05:44 GMT by Darrell Bilton
If a freehold property has been correctly conveyed from seller to buyer, and all conditions except for a restriction in favour of the Legal Aid Agency (LAA) have been met, would HM Land Registry proceed with registering the buyer as the new owner upon application, provided that the seller has given the required notice to the LAA? Would the registration be completed pending resolution of any outstanding debt between the seller and the LAA?
Posted Wed, 19 Mar 2025 16:15:31 GMT by Adam Hookway
Darrell - it all hinges on the wording of the restriction and whether it 'bites' (catches) the sale or not.
You haven't stated the title number or the restriction wording but if it's a form K restriction linked to a charging order/debt against one of the joint owners then compliance can overreach the restriction and cause it to be automatically cancelled - see PG 76 section 4 - Practice guide 76: charging orders - GOV.UK
Posted Wed, 19 Mar 2025 17:43:42 GMT by Darrell Bilton
The title number is AGL61592 and it's actually a form JJ restriction with the wording "No disposition of the registered estate...is to be registered without a certificate signed by the applicant for registration or their conveyancer that written notice of the disposition was given to the [Legal Aid Agency]".
Posted Thu, 20 Mar 2025 07:40:07 GMT by Adam Hookway
Darrell - many thanks and appreciate it's not the type of restriction I thought
Hopefully you are already aware that there is a pending application against that title and which involves compliance with that specific restriction. We are currently waiting on the conveyancer to resolve the outstanding issues re compliance 
If your Qs are related to the pending application and ongoing correspondence then I would suggest asking the conveyancer to raise them with our lawyer as appropriate, if not already done so
AGL61592 
Posted Thu, 20 Mar 2025 08:01:12 GMT by Darrell Bilton

Heavens you’re up early! 
 

I guess the my question is more of a general one to understand how the Form JJ restriction works in practice where the wording does not appear to require anything from the LAA at all in order to allow the disposition of the property (I think there may be other issues in this particular case). Assuming there were no other issues with the title,  I am thinking that Land Registry will allow the property to be transferred into the name of the buyer but will leave the restriction on title until the seller deals with the statutory charge. The restriction would then be removed once the buyer is able to provide a confirmation that the LAA is happy that there is no debt owed to them by the seller. 

Posted Thu, 20 Mar 2025 08:16:49 GMT by Adam Hookway
Darrell - as a general point you are correct as the wording explains what's required. But compliance isn't a standalone thing re such matters as the need to comply is linked to an actual transaction and how that has come about, been ordered or otherwise will also come into play
As a general rule of thumb specific restrictions that have been applied for separately (not linked to a legal charge for example) will also need to be cancelled/withdrawn as they don't fall away automatically 
Posted Thu, 20 Mar 2025 08:45:12 GMT by Darrell Bilton

Thank you Adam that is very helpful.

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