Back to Basics: The best-laid plans

Sophie Crompton outlines the HM Land Registry requirements for property transaction plans. All plans used in conjunction with property transactions must be compliant with the requirements of HM Land Registry. Primarily, this ensures that there is a standardised system in place to assist with recording land ownership.  HMLR-compliant plans also provide the wider public with a visual reference to land ownership, which should assist in reducing boundary-related disputes, verifying the accuracy of land details and streamlining property transactions by providing reliance to the parties involved. HMLR requirements HM Land Registry requests that: The location of the land is clearly and sufficiently identified, so that it can be pinpointed on the Ordnance Survey map (in the case of a title plan). Clarity is provided for the general location of the land by showing roads, junctions and other landmarks (where possible). Accurate extent of the land is shown by clear boundary markers and features. This includes (but is not limited to) the identification of buildings in their accurate or intended position and clarity as to which floor levels (if any) are included, in addition to access drives and pathways (if they form part of the land). References are included (for both colours and markings) if different coloured boundary lines, shading, hatching and markings are used. Orientation is shown (for example, sight of a “north point”). The plan is drawn based on a scale of metric measurement and the scale of the plan is stated (for example, through a bar scale). The plan is not marked “for identification only” and no other wording is used that would call into question its accuracy. In respect of a disposition of land (specifically a sale, transfer or lease), the disponee (the proprietor disposing of the interest in the land) should also sign the plan. Detail is critical The leading case in this area – Alan Wibberley Building Ltd v Insley [1999] 2 EGLR 89 – highlights that, where a boundary dispute arises, the first element that should be assessed to reach a resolution is the title deeds to the land in question. Unfortunately – as in many cases – the title deeds cannot be relied on as they do not contain plans that precisely evidence the boundaries in question. This is because they do not always provide sufficient detail of the land and supplemental features.  That is why it is so important to reproduce any physical features of the land and surrounding land in any plan, which will provide supporting evidence to a case. Ultimately, it is always wise to provide as much detail as possible on plans – something HMLR is trying to encourage. Land boundaries Conventionally, the boundary of the land in question is reflected on a plan and usually shown edged red. The boundary line should be continuous, with no breaks.  If the land cannot be clearly determined by a boundary line, it may be shaded (usually pink). Boundaries (boundary line(s) or shading) will usually run inside the actual boundary of the land in question. Only in rare circumstances should it follow the outside of the actual boundary line – for example, if the area of land is extremely small. HMLR will reject the plan submitted if the above criteria are not satisfied. This often happens if the location of the land cannot be identified or sufficient detail of the surrounding roads and other features to enable the position of the land to be identified is not provided within the plan.  When a plan does not fit the bill, HMLR will either issue a requisition in respect of the application submitted or – in the worst-case scenario – cancel the application to register. So not only does a failure in registration place the applicant at risk, it also presents risk to their lender (if any) and the acting legal professionals’ obligations pursuant to the transaction. Title plans Pursuant to Rule 5(a) of the Land Registration Rules 2003, a property register must contain a description of the land and refer to a plan based on the Ordnance Survey map. This is known as an official title plan. In respect of an official title plan, explanatory notes will be added to an official register to offer support with understanding the land in question. For example, if the plan relates to part of the first floor within a building in addition to the whole of the second floor, you are likely to see the whole of the second floor edged red and the area of the first floor shaded pink. The corresponding property register would include an explanatory note to state “the title is comprised of the first floor and the second floor only […] as to the land shaded pink, only part of the first floor is included”. Lease plans Where a lease is granted in respect of part of a building, it would be expected for there to be numerous plans annexed to the lease itself. The lease should contain (but not necessarily be limited to): A plan of the landlord’s retained land (the building itself and land as a whole) – showing common parts over which rights are granted to the tenant (if any). Examples of common areas include shared access, internal halls and staircases, in addition to bin stores. Referencing is an important tool, especially where the plan will form part of a lease. For example, colours should be used to identify the land over which a right of way is granted (usually shaded brown). Markers (such as symbols and lettering) should also be used to identify specific features. A plan of the demise (the lease plan of the land subject to the grant). This should clearly state on which level the demise is situated – especially if the demise is situated across multiple floors in a building. Referencing is also a useful tool for demise plans. For example, the use of lettering could be used to specify which rights are granted for the benefit of specific areas of the demise. Faster registrations, fewer requisitions If HMLR-compliant plans are lodged with applications from the outset, this will generally ensure efficient processing and result in fewer requisitions as well as quicker registrations. Not only are HMLR-compliant plans an integral component of the registration process, they also provide clarity and comfort to an individual and/or entity that is acquiring an interest in the land in question. Providing buyers with a clear understanding of the land that they are acquiring will assist in the future – especially in the event that any boundary disputes arise. Legal advisers — practical steps to take Where a new plan is required (for example, on the grant of a new lease), warn your client at the earliest possible opportunity of HM Land Registry’s strict guidance and – if required – discuss the requirements with them. This will save time and avoid any problems arising down the line. You should also emphasise the importance of a compliant plan. If your client is acquiring an interest in land, ensure that they have sight of a plan (preferably the title plan) showing where the clear boundary of the land is and request that they sign a copy. Keep a record of the signed plan – this will evidence that they have had the opportunity to review the boundary and have confirmed its accuracy to you.  If you are in doubt as to whether a plan is HMLR-compliant, lodge a search of the index map. If HMLR rejects the plan supplied, then they will reject it at the application stage.  Sophie Crompton is a solicitor in the property team at Brabners Photo © iStock