Do It Once And Do It Right: Form RXC – What is it and why does it exist?

What is Form RXC?

In July, H M Land Registry created an optional form, Form RXC, to comply with a standard form of a restriction in the title register requiring consent or a certificate of compliance to be provided. Form RXC is also compatible with the Digital Registration Service.

Form RXC ensures the consent or the certificate of compliance is correctly given the first time, helping to avoid requisitions on applications for registration. The Form helps to explain to third parties what exact consent or certificate must be issued and by who, therefore saving the battle back and forth between conveyancers and the consent/certificate provider.

Why is it required?

HMLR estimates that around 17% (111,000) of its requisitions raised on application for registration in December 2019 – November 2020[1] were due to inadequate compliance with a restriction listed on the register. In many cases the certificate or consent was provided, however it was defective. The requirements of a restriction are precise, and frequently issues arise such as:

  • Whether the person issuing the consent or certificate is authorised to do so.
  • The incorrect wording has been used.
  • The consent or certificate supplied is not clear as to whether it applies to all the dispositions that are being applied to register.
  • Which restriction the consent or certificate relates to.

Obtaining sufficient confirmation of compliance can be a particularly difficult and laborious process, with having to locate the right person who is authorised to give the consent, as well as them being able to provide an adequate certificate. This has been especially emphasised following the recent Stamp Duty Holiday and the huge time delay caused by the influx of requests to management companies for certificates of compliance, with our longest requested certificate taking nine months to be sent to us.

How should Form RXC be used?

Section 1 – Identifies what title number and property the restriction relates too.

Section 2 – Identifies what the restriction is, the date it was entered and in what register it is listed. The guidance on the Form ensures it is clear what restriction the consent/certificate needed is referring to.

Section 3 – Identifies who the consent or certificate must be provided from as either:

  • The person specified in the restriction, or
  • A person entitled to act on their behalf

Including their details.

Section 4 – Identifies which disposition(s) the consent relates to.

Section 5 – Identifies which disposition(s) the certificate relates to.

Form RXC can only be used for one title, if multiple titles are involved, multiple forms are required, helping to alleviate errors and areas of possible confusion. Form RXC is optional, however, it is likely many conveyancers will choose to use it due to the streamlined process it creates. The clear guidance Form RXC gives should alleviate frustration, expenses, time delays and requisitions, as well as aligning the consistency of the accepted forms of consent and certificates, therefore preventing ambiguity. HMLR anticipate the form will begin to evolve as more people use it.

Overall, it is likely that Form RXC will become an increasingly well-used and well-known HMLR Form in the coming years, aiding to simplify the registration process greatly.

Emily Havard

 

[1] HMLR Webinar – Introducing Form RXC https://www.gotostage.com/channel/2c2b67c56c2b4603acac3b460bd42695/recording/382ecf75b50f468e9ce6fca2cb6726c0/watch

 

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