Church – No!
Conveyancers – Yes!
Why?
- Chancel Repair Liability will still affect properties that transact post the 12th October 2013. As only 5% of properties transact in the UK every year, this leaves 95% of properties still vulnerable after year 1. (Please note that this 5% is not all new properties, as many are re-transacted in following years).
- The liability only falls away at the point of first or next registration of a title after 12th October 2013.
- The liability is only removed after a property has transacted for valuable consideration (i.e. not for a nominal amount or by way of inheritance/gift etc.).
Why you still need a ChancelCheck®
- According to 5.4.1 of the CML Lender’s Handbook, you still need to carry out all usual and necessary searches:
“In carrying out your investigation, you must ensure that all usual and necessary searches and enquiries have been carried out. You must report any adverse entry to us but we do not want to be sent the search itself. We must be named as the applicant in the Land Registry search.”
2. A unilateral notice for Chancel Repair Liability can still be lodged against a title whilst the Priority Search (OS1) is in place.
- ChancelCheck® will identify if there will be any risk of Chancel Repair Liability being registered during the transaction, as finding out during the contracted period, means there may huge implications for both parties.
- Identifying potential risk and (where necessary) insuring against Chancel Repair Liability with ChancelSure®, will assist in securing the completion of a registration at Land Registry and protect both your client and your risk of liability. N.B: Insurance needs to be put on risk at the point where the potential risk is identified and not at the end of the transaction.
- Conveyancing protocols (i.e the CQS or SLCQA) require greater transparency within the conveyancing process for both parties.
What is the Church doing?
- The church can register a charge on the property providing the unilateral notice is placed prior to a registration of a title for Valuable Consideration. Failing to ensure adequate insurance prior to the new registration may result in the solicitor failing to properly protect their client.
2. The church is actively registering properties, more so now than ever before. Currently the number of PCC’S looking to register notices against properties has significantly increased and to date 25 out of 43 Dioceses in England & Wales have begun investigating the registration of properties.
