02 October 2013
Last updated at 13:53
News
Chancel Repair and Overriding Interests After October 12th 2013
Liability and Risk Remains
Midnight October 12th marks the end of the 10 year Transitional Provisions Order for the registration of certain Overriding Interests at Land Registry as laid down in the Land Registration Act 2002.
Anyone who believes they hold an overriding interest must therefore have registered a notice of interest against the land by 13th October 2013, or risk losing the benefit. As an added incentive, there have been no charges for such notices registered up until 12 October 2013, after which time a fee will be likely to be payable.
The Overriding Interests Affected are:
- A Franchise
- Manorial Rights
- Crown Rents
- Non-statutory rights in respect of an embankment or river or sea wall
- A right to payment in lieu of a tithe
- Chancel Repair Liability
What does this mean for Chancel Repair Liability?
It is important to note that the end of the Transitional Period on the 12th October does NOT extinguish the potential liability in respect of Chancel Repair.
The liability will only be extinguished following the first Transaction For Valuable Consideration of land after October 12th, although it should be noted that a notice can be registered at any time after 12 October 2013, until the first transaction, which could be decades from now and as such there is no deadline.
Dispelling the Myths...
Myth |
Truth |
Chancel Repair Liability Ends on October 13th |
NO - If the liability has already been registered it is an obligation that lasts in perpetuity |
An Interest cannot be registered after the 12th October 2013 |
NO – The beneficiary of an Interest can register that interest at any time except where there has been a transaction for valuable consideration after the 12th October 2013 |
In respect of Chancel Repair the Church is not looking to register their interests |
NO - The Church of England has advised PCC’s to register all liable properties by October 12th. However, they can continue to register there interests at any time |
The Charities Commission has indicated that PCC’s will be free from their duties as trustees in relation to Chancel Repair |
NO – PCC’s must continue to act as trustees, unless specific circumstance dictate otherwise |
Conveyancers no longer need to consider Chancel Repair Liability as part of the transaction |
NO – the potential for Chancel Repair Liability remains and should be considered. A screening report, search or Insurance continue to provide solutions that address the risk |
What should you do?
To identify and avoid any potential liability, you should continue to guarantee the security of your client. PSG helps you manage the risk and provides:
- ChancelCheck®- a unique, instant, low cost screening report designed to identify parishes where there is a continuing potential to charge for repairs to the parish church chancel.
AND
- ChancelSure® - the market leading Chancel Repair indemnity product, providing comprehensive protection and the highest rated insurance security available for the homeowner.
Further Guidance is available in the Land Registry Practice Guide 66 – click here And in the Land registry Practice Guide 15 click here
Visit our Chancel Product page here
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