A restriction on title is a common but often misunderstood entry on a property title register.
Whether you are buying, selling or transferring property, understanding what a restriction means and how it can affect your transaction is essential.
In this guide, we explain what a restriction on title is, why it is used, the different types of restrictions, and how they can impact property ownership in England and Wales.
What Is a Restriction on Title?
A restriction prevents a disposition (sale, transfer, gift or new mortgage) of the property being registered unless certain conditions are fulfilled. The Land Registry will not register the disposition if the restriction is not complied with.
There are many Land Registry Standard Form restrictions and Non-Standard Restrictions available and the wording of the restriction will indicate the steps required to be taken to comply with the restriction.
Restrictions are generally used for two reasons:
· To protect the interests of a third party such as a beneficiary.
· To ensure that the owner of the property complies with certain conditions before title to the property is registered in their name.
A restriction is different to a Notice or Charge which can also be registered against a Title. A Notice is an entry appearing in the Charges Register and protects the priority of a third party’s interest in the property against the effect of a purchase charge or grant of a lease.
A Charge can be protected by a restriction with the Charge itself having an independent entry in the Charges Register. The Charge is registered and protected by a restriction and will not be removed without full payment of the secured monies being made to the beneficiary of the charge.
Why Are Restrictions Placed on a Property Title?
A restriction is registered mainly to protect financial or legal interests with a common restriction being that registered in favour of a mortgage lender with a mortgage secured on the property. This prevents any sale or remortgage without the lender’s consent or repayment of the Charge taking place.
Other common restrictions when selling a property may require the consent of third parties like a Management Company. This type of restriction is common with properties built within the last 15 years and leasehold properties. A restriction in favour of a Management Company relates to the payment of a service charge for the upkeep of common or amenity land.
For an incoming owner to comply with this sort of restriction the written consent of the Management Company is required and will likely include payment of additional fees to them and the supply of specified documents such as a Deed of Covenant and application for the new owner to become a member of the Management Company.
Any restriction in favour of a Management Company will remain on the title and will need to be complied with each time the property is sold, transferred or mortgaged.
Other less common restrictions can be entered in the Proprietorship Register to prevent fraud or unauthorised sale, to ensure compliance with agreements, overage provisions, co-ownership arrangements, divorce or separation settlements and Trusts.
Common Types of Restrictions on Title
There are many Land Registry restrictions and these are set out in detail in Land Registry Practice Guide 19: Notices, Restrictions and the protection of third-party interests in the register.
The most commonly seen restrictions are Form A, Form B and Form LL:
Form A Restriction
"No disposition by a sole proprietor of the registered estate (except a trust corporation) under which capital money arises is to be registered unless authorised by an order of the court.”
The wording of a Form A restriction often causes issues with a client since it does not specifically say that the property is held as tenants in common nor mention the trust it is protecting. The Form A restriction is automatically registered by the Land Registry when title to a property is held as tenants in common or held under a Trust such as a life interest Will trust. Compliance with this sort of restriction requires at least two trustees to sign the transfer in relation to a sale.
Form B Restriction
This is less common than a Form A and contains identifiable and specific conditions :
“No disposition by the proprietors of the registered estate is to be registered unless one or more of them makes a statutory declaration or statement of truth, or their Conveyancer gives a certificate, that the disposition is in accordance with {a specified Trust Will or other Deed which created the trust} or some variation thereof referred to in the declaration, statement or certificate”
A property held in trust limits the trustee's power meaning they cannot do whatever they like with the property without the agreement of the beneficiaries to the trust. A Form B restriction brings this to the attention of those involved in a disposition.
Form LL Restriction
A Form LL is used to protect a property against fraud. If a property is empty for a while, you are a landlord, do not live at the property or it is currently mortgage free fraudsters can impersonate the registered owner and sell or mortgage the property without your knowledge.
A Form LL restriction makes a property a less tempting target for fraud :
"No disposition of the registered estate by the proprietor of the registered estate is to be registered without a certificate signed by a Conveyancer that the Conveyancer is satisfied that the person who executed the document submitted for registration as disponor is the same person as the proprietor."
Bespoke Restrictions
It is possible to customise restrictions for specific legal agreements and this should in the main be based upon the standard versions stipulated by the Land Registry. A higher fee is charged by the Land Registry for registering a non-standard restriction.
How Does a Restriction Affect Buying or Selling Property?
A seller and their solicitor should check the title early in the sale process to ascertain the nature of any restrictions in the title. Contact with third parties such as management companies will then be required to find out their requirements to allow the certificate of compliance to be issued. Delay is caused if this approach is not made early on in the process with a fee mostly charged by the beneficiary of the restriction before they will release any information.
Any correspondence from the beneficiary of a restriction must be dealt with promptly and details provided to the buyer’s solicitor where necessary.
A buyer’s solicitor will need to be certain that the seller’s solicitor can provide the documents sufficient to allow the beneficiary of the restriction to provide a certificate of compliance.
Any issues on the buyer’s application for registration which relate to the restriction result in a requisition being raised by the Land Registry. To prevent this happening it is important that parties involved in dealing with a restriction consider carefully the requirements being made of them.
How to Remove or Comply with a Restriction on Title
If a restriction has been fully satisfied or is no longer required then application to the Land Registry can be made on form RX3 or RX4.
Otherwise the restriction has to be complied with and this typically involves providing a Consent or Certificate of Compliance from a third party.
How to Check if there is a Restriction on a Property
To find out if a property is affected by a restriction firstly obtain official copies of the title from the Land Registry and check the Proprietorship Register.
Do You Need a Solicitor to Deal with a Restriction on Title?
Depending on the type of restriction involved it is advisable to seek the assistance and advice of a solicitor who will have expertise and knowledge on how a specific restriction needs to be complied with and ensure the legal requirements are dealt with efficiently and correctly.
A disposition cannot be registered without compliance with the restriction and if not done correctly can mean months of going back and forth with the Land Registry and other third parties in an effort to obtain the correct documentation.
If a restriction specifically asks for the certificate of a Conveyancer then this means a solicitor or licensed Conveyancer must give the certificate and you will need to obtain legal advice and assistance in these circumstances.
In Summary
A restriction on title is a legal safeguard that helps protect the interests of individuals or organisations with a connection to a property. While seeing a restriction on a title register may seem concerning, it does not necessarily prevent a property from being bought, sold or transferred. Instead, it ensures that certain legal requirements are met before a transaction can proceed. Understanding what a restriction means and addressing it early can help avoid unnecessary delays and keep your property transaction on track.
If you have questions about a restriction on your property's title or need assistance with a sale, purchase or transfer of ownership, our experienced conveyancing team are here to help. We provide clear, practical advice tailored to your circumstances, helping you navigate the legal process with confidence.
Contact us today on freephone 0800 011 6666 via email at legal@timms-law.com to speak to a member of our friendly team and find out how we can support you.
Below are answers to some of the most frequently asked questions about restrictions on title and how they can affect property transactions.
Frequently Asked Questions
What does a restriction on title mean?
A restriction on title is an entry on a property’s Land Registry title that places conditions on how the property can be sold, transferred or otherwise dealt with. It is designed to protect the interests of individuals or organisations and ensure certain legal requirements are met before a transaction can proceed.
Can I sell my property if there is a restriction on the title?
Yes, in most cases you can still sell your property. However, you must comply with the conditions set out in the restriction before the sale can be completed. Your conveyancing solicitor will help ensure these requirements are satisfied to avoid unnecessary delays.
What is the difference between a restriction and a charge on a property?
A restriction controls how a property can be dealt with, whereas a charge is a financial interest in the property, such as a mortgage. While both appear on the title register, they serve different legal purposes and have different implications for property owners.
How do I know if my property has a restriction on the title?
You can check your property’s title register by obtaining an official copy from HM Land Registry. Any restrictions will be listed in the Proprietorship Register, where the wording explains the conditions that must be met.
Can a restriction on title be removed?
Yes, some restrictions can be removed if the reason for them no longer exists or the person benefiting from the restriction agrees to its removal. An application usually needs to be made to HM Land Registry, supported by the appropriate legal documentation.
Will a restriction on title delay my property transaction?
A restriction can delay a transaction if its requirements are not addressed early in the conveyancing process. Seeking legal advice as soon as a restriction is identified can help ensure the necessary documentation is obtained and your transaction progresses as smoothly as possible.
