Example clauses to cover the Registration Gap issue - Dec 2024

Example Clauses to cover the Registration Gap Issue

The need for the registration gap clauses arises from the consequences of any potential lengthy Land Registry delays in processing applications to register a buyer of property as the legal owner.  Even though the buyer has completed the purchase, it is not the legal owner until registration is complete. During the so-called “registration gap” period between when the transfer of the property to the buyer is dated and when the Land Registry registers the buyer as legal owner, there are certain management matters such as service of contractual and statutory notices that the buyer cannot do because it is not yet the legal owner. The clauses provide examples of two alternative approaches to deal with the problem in a sale and purchase contract relating to registered land. Both examples are reasonably balanced.

The examples and accompanying drafting notes are intended to be thought-provoking, rather than necessarily a reflection of market practice among all law firms. The examples are likely to require amendment for the particular circumstances of the transaction and the contract in which they are used.

The clauses and notes were put together by a working group including representatives from the City of London Law Society’s Land Law Committee, the Law Society’s Conveyancing and Land Law Committee, the Property Litigation Association, the Property Bar Association, law firms and barristers