What is a Form A Restriction? (SEV Form Land Registry)
Tenants in common restriction
If you've opted for joint ownership as tenants in common, the Land Registry places a 'Form A restriction' on the property title. This will be visible on your title register, but the term 'tenants in common' won't appear.
If you have a restriction you no longer need or want, read our article on how to remove restriction on property.
The Land Registry Form A Restriction is a legal tool that prevents the sale or transfer of property unless the conditions outlined in a connected Deed of Trust are met. For compliance, reference the Deed of Trust through a Declaration of Trust in the Land Registry's records.
Form A (no disposition by a sole proprietor of the registered estate)
No disposition by a sole proprietor of the registered estate (except a trust corporation) under which capital money arises shall be registered without the court's authorisation.
Form A restriction wording
The purpose of a Land Registry Form A restriction (Form SEV)
The purpose of the restriction is to ensure that the conditions of section 27(2) of the Law of Property Act 1925 are complied with. As amended by the Trusts of Land and Appointment of Trustees Act 1996 (section 25(1) and Schedule 3, paragraph 4).
This means that a Form A restriction should be entered whenever two or more persons are registered as joint proprietors of an estate, except where either:
- They are beneficial joint tenants (because when only one is left, the trust will end).
- They are personal representatives of a deceased sole proprietor unless that proprietor was a trustee.
A Form A restriction should also be entered whenever a sole proprietor is, or becomes a trustee of land. If a Form A restriction is registered, it will generally be necessary to appoint a new trustee or trustees before land held by a single trustee on a trust of land can be dealt with in a way that generates capital funds.
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When will the Land Registry enter a Form A restriction automatically?
Entered Automatically | Not Entered Automatically |
---|---|
Entered Automatically If it registers two or more people as owners of a registered estate unless informed that they hold the legal ownership on trust for themselves as joint tenants or registering them as personal representatives. If there is an existing Form A restriction, it will remain in the register. When registering the personal representatives of a deceased proprietor who was a sole trustee or the last surviving trustee (unless the survivor of beneficial joint tenants), the Land Registry will enter a Form A restriction on first registration. When applying to register joint owners of an estate, it's important to specify the capacity in which they hold it. See the Declaration of Trust for guidance. Failure to do so will result in the Land Registration entering a Form A restriction by default. A restriction in Form 62* is treated as if it were one in Form A. Before 1 January 1997 (when the Trusts of Land and Appointment of Trustees Act 1996 came into force), section 27(2) of the Law of Property Act 1925 only applied to estates subject to a trust for sale. | Not Entered Automatically When registering personal representatives (or a sole personal representative) as proprietors of land. The Land Registry will not enter a Form A restriction for a registered charge. Even though a charge can be held on trust, the survivor of the registered charge can always provide a valid receipt for the money secured by it (Section 56 of the Land Registration Act 2002). |
Sources: Land Registration Act 2002, Land Registration Rules 2003, Law of Property Act 1925.
* A restriction in Form 62 was originally entered similarly to a Form A restriction (under sections 58(3) of the Land Registration Act 1925 and rule 213(1) of the Land Registration Rules 1925).
When trustees must apply for a Form A restriction
A proprietor of a registered estate must apply for a restriction in Form A in the following circumstances (rule 94(1) of the Land Registration Rules 2003):
When a property is placed in trust
- When a property is placed in a trust, other than through a registered transfer, and the owner or surviving co-owner cannot provide a valid receipt for money received.
- Where a registered estate is held on a land trust, and a sole proprietor or survivor of joint proprietors (not a trust corporation) cannot provide a valid receipt for capital money, any person with an interest in the estate can apply for a Form A restriction.
- This can happen if the owner signs a declaration of trust or if a constructive trust is established due to a change in the trust arrangement.
- Another scenario is when one of two joint tenants gives notice to terminate the joint tenancy.
When a joint owner applies to sever
- An application by one of two or more trustees meets the requirement to apply (rule 94(9) of the Land Registration Rules 2003).
- However, the application should be made by a person with sufficient interest in making the entry (rule 92 of the Land Registration Rules 2003) and accompanied by evidence of that interest.
- When two or more people are registered as owners of a rent-charge, manor, franchise, or profit a prendre in gross, certain rules do not apply.
- However, if the surviving owner cannot provide a valid receipt for capital money, a Form A restriction will be required, and an application should be made.
- These types of ownership are not considered 'estates in land'. Refer to section 2 of the Land Registration Act 2002 and compare it with sections 1(1) and 1(2)(a) of the Law of Property Act 1925.
- Although new registrations of manors are not allowed, existing registrations remain and can still be dealt with.
When the sole trustee applies for first registration
- When the sole trustee of the land applies for first registration or to register a transfer of a registered estate in their name, they must also apply for a Form A restriction (rule 94(2) of the Land Registration Rules 2003).
- This requirement exists because section 44(1) of the Land Registration Act 2002 only applies to joint proprietors, and the registrar is not automatically required to enter a Form A restriction upon registering a sole or last surviving trustee.
- It's important to note that section 44(1) of the Land Registration Act 2002 applies only to registered estates in land.
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When a trust beneficiary may apply for a Form A restriction
- If the consent of the registered proprietors isn't sent with the application, the registrar will need to serve notice of the application on them.
- This application will be considered notifiable under section 45 of the Land Registration Act 2002.
- The notice provides 15 working days to object (as per rule 92(9) of the Land Registration Rules 2003).
We can help enter your Form A Restriction at the Land Registry
There might still be properties registered before 1997 that were held in trusts without a trust for sale (e.g. a constructive or bare trust) where no Form A or Form 62 restriction has been recorded.
The trustees or beneficiaries of these trusts can apply to have a Form A restriction entered and it is recommended that they do so.
SAM's expert solicitors are experienced in all Land Registry property forms; get in touch with us to see how we can help.
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.