On the 29th June 2015 the Land Registry is due to introduce a new form ST5 to be used to as a statement of truth in support of an application to cancel a form A restriction.
A form A restriction states that “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 restriction is entered onto the register where there is a trust of land and is always registered on titles registered as a Tenancy in Common. The restriction specifies that there can be no disposition by a sole co-owner under which capital money arises. Essentially, one co-owner will not be able to give a valid receipt for capital money because one co-owner cannot sell without the other co-owner.
The Land Registry will not simply cancel the restriction upon receipt of a Form ST5. The Land Registry must be satisfied that the trust has come to an end and that the restriction is no longer required. A new edition of Land Registry practice guide 73: statements of truth will be released shortly to assist individuals seeking cancelation of a form A restriction.
Tenancy in Common: Is the joint ownership of property where each owner owns a separate share in the property.
For further information please visit www.gov.uk
