Does a deed of trust need to be registered?
(Last Updated: 05/11/2024)
15/06/2023
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8 min read
When you jointly own a property and have drafted a deed of trust to confirm your beneficial interest we often get asked: "Does a deed of trust need to be registered at the Land Registry". The Land Registry don't store deeds, so you don't actually register your deed at the Land Registry, but what you can do is register a Form A, Form B, Form N or even a Form LL restriction over the title, which prevents the property from being sold unless a certain process is followed.
This is the same for a deed of assignment and a declaration of trust: you don't register them at the Land Registry so they can be downloaded in the future. What you do is apply a restriction, to confirm there is a deed in existence. You do, however, have to provide a copy of the deed to the Land Registry in order to apply the restriction, but they don't hold onto them and will return the original once the restriction has been registered.
The main reason you want a deed of trust is to protect money in property, but it could also be for tax purposes for HMRC on a buy to let.
What is a Land Registry restriction?
A restriction is an entry on the Title of the property, that prevents you from selling, transferring, or gifting the property or registering a new mortgage on it (all these terms are collectively called a “disposition”). It can also stop that transaction from being registered at HM Land Registry, unless and until the conditions contained in the Restriction are met.
Here are some restrictions that can be applied, so any future solicitor knows there is a deed of trust registered:
- Form A (Restriction on dispositions by sole proprietor) A form A restriction confirms the property is held as tenants in common and the wording of the restriction is: "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". This means not one person can sell the property so if you have a deed of trust and you jointly own the property then you'll have this restriction registered at the Land Registry.
- Form B (Dispositions by trustees—certificate required) A Form B can be applied even if you aren't a legal owner of a property and it states: "No disposition [or specify details] by the proprietors of the registered estate is to be registered unless they make a statutory declaration, or their conveyancer gives a certificate, that the disposition [or specify details] is in accordance with [specify the disposition creating the trust] or some variation thereof referred to in the declaration or certificate.". This means the property cannot be sold (disposed of) without a certificate from a solicitor to confirm the terms of the deed have been actioned correctly.
- Form N A Form N can be applied even if you aren't a legal owner of a property and it states: "No disposition of the registered estate by the proprietor of the registered estate is to be registered without a certificate signed by [PARTY 1] of [ADDRESS] that the provisions of Clause X and Schedule X Clause X of Declaration of Trust dated [DATE] and made between [PARTY 1] and [PARTY 2] have been complied with.". This means the property cannot be sold (disposed of) without party 1 confirming that the clauses in the deed have be adhered to.
- Form LL A Form LL is an anti-fraud clause for joint owners of property and it states: "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". This means the property cannot be sold (disposed of) without a solicitor certifying that the parties named on the title are the same as those the solicitor has ID checked. Read more - What is the Land Registry Anti Fraud Restriction?
Why does a deed of trust need to be registered at the Land Registry?
Most of the time, it is to record that there is a deed of trust in place and that you can download it in the future, when you come to sell/transfer or remortgage. As the Land Registry doesn't store deed of trusts, then the restriction will confirm there is a deed, and any future transaction requires the details within it to be actioned accordingly.
What happens if I don't register the deed?
Where you don't register a Form B restriction at the Land Registry you risk the property being sold without the deed being used to distribute the proceeds of sale. If a Form B is on the title then the seller's solicitor can't complete the sale without fulfilling the terms of the restriction.
How do you register a deed of trust at the Land Registry?
You normally instruct a solicitor to register the restriction for you and the process for each is as follows:
Restriction to Register | How to Register at the Land Registry | Order |
Form A Restriction | If you are applying a Form A restriction, it means the property is currently held as joint tenants. The process to sever the joint tenancy and apply a Form a Restriction is detailed here: How to change from Joint Tenants to Tenants in Common | |
Form B Restriction | To apply a Form B restriction you need to have a deed drafted that includes the wording of the Form B restriction and then apply to the Land Registry. If you don't have the Form B restriction noted in your deed then you'll need further evidence in order for the Land Registry to accept registering the restriction. |
So...Does a deed of trust need to be registered at the Land Registry?
You don't register your deed of trust at the Land Registry, but you do apply a Land Registry restriction on the legal title of the property, to stop the property being sold/transferred without the deed being reviewed (to confirm the terms have been adhered to). Make sure you store your deed safely and take a scan of it - just in case!
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Written by:
Andrew Boast
Andrew started his career in 2000 working within conveyancing solicitor firms and grew hands-on knowledge of a wide variety of conveyancing challenges and solutions. After helping in excess of 50,000 clients in his career, he uses all this experience within his article writing for SAM, mainstream media and his self published book How to Buy a House Without Killing Anyone.
Reviewed by:
Caragh Bailey
Caragh is an excellent writer and copy editor of books, news articles and editorials. She has written extensively for SAM for a variety of conveyancing, survey, property law and mortgage-related articles.
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