Critical Land Registry IT Error Surfaces
Incorrectly dated official copies of registers where there were pending applications and the copy was issued as a PDF file by way of Land Registry Direct or NLIS between 9 July and 15 August 2007 (inclusive)
The problem
During the period 9 July to 15 August 2007 (inclusive) official copies of the register issued as a PDF file were not backdated to a date and time immediately before the earliest or only application that was pending at the time the copy was created.
Land Registry sincerely apologises for this error.
The cover sheet to the official copy did inform the customer that applications were pending in Land Registry at the time the official copy was issued.
If a customer was affected, they should see under “Action to be taken by customers” below and consider the action they may need to take because of the error.
Background
All official copies of the register issued as PDF file by way of Land Registry Direct or NLIS between 9 July and 15 August 2007 (inclusive) showed at the top of the page numbered one of the copy of the register the date and time that the official copy was created.
Where there are one or more applications to change the title pending when an official copy of the register (or title plan) is prepared, then—
a. The official copy should be backdated to a date and time immediately before the only or earliest pending application. This was not done because of a programming error when our computer systems were updated on 9 July 2007. The problem was fixed on 15 August 2007.
b. A cover sheet to the official copy informs the customer that there are pending applications. This was done.
Official copies of title plans were backdated, when they should have been.
Backdating of official copies is necessary because a successful pending application to change the register has effect from the time of the making of the application (section 74 of the Land Registration Act 2002 or rule 20 of the Land Registration Rules 2003).
So, for example, say:
- an application to register a legal charge is made on day 1 at 1100 hours,
- an application for an official copy of the register is received on day 2 and the official copy is issued on that day, and
- the legal charge is entered in the register on day 3 (on completion of the application).
If the official copy of the register were to show the date and time it was created on day 2 it could be misleading because after entry of the legal charge in the register on day 3 the register would show the legal charge as registered on day 1. So, the official copy of the register issued on day 2 should be backdated to immediately before 1100 hours on day 1 (assuming that the legal charge application was the only pending application). A pending official search with priority does not result in the entries relating to the protected application being made in the register as of the date and time of the official search, so official copies of the register and of title plans are not backdated to take account of an official search. (Section 73 of the Land Registration Act 2002 sets out the effect of priority protection.)
Although the lack of backdating failed to take account of there being one or more pending applications to change the register (a. above), customers were made aware that there were one or more such applications (b. above).
Official searches and the search from date in the official copy of the register
The date and time shown at the beginning of the page numbered one of the copy of the register is stated to be the search from date. (The second date is the date of issue of the official copy.) The search from date may be used in an official search of the register. If an official search was applied for using the search from date in the incorrect official copy Land Registry issued, then:
− if the pending application was completed, and not cancelled, any resulting change to the register or title plan will not have been revealed in the official search result, unless an official copy of the register was issued with the result because of changes since the search from date
− if the application was still pending, it will have been revealed in the search result. However, there is still the risk that there may have been more than one application pending and that the other pending application(s) has/have been completed – in which case the previous point applies to that/those application(s).
The pending application(s)
Land Registry’s Head Office has sent a letter to each customer who received an incorrect official copy.
Originally, before writing to such customers Land Registry had hoped to investigate the circumstances in which the official copy was issued, including the nature of the pending application(s) and their effect. However, in order to inform customers as soon as possible and in view of the number of affected official copies, Land Registry has decided to write to customers at this stage so that they are aware of the problem. Customers may receive a number of similarly worded letters. These should not be ignored, because they will relate to other title numbers.
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In addition, Land Registry has sent separately a new official copy of the register. There will be no covering letter but the customer’s reference will be quoted. When a customer receives the new official copy and if it has not been backdated to a date and time before the incorrect date, the customer may be able to establish what changes have been made to the register by the application(s) pending when the original official copy was created, by comparing the original and new official copy.
However, in some cases the customer may not be able to establish what the changes were and/or their extent. Examples (and not a comprehensive list) include—
− if the change was only to the title plan, no new entry was made in the register and the customer does not have an earlier official copy of the title plan to compare with the new official copy of that plan
− possibly, if the application was a transfer of part (but this would normally include a “green-out” showing the new title number on the title plan)
− possibly, if the application was to register a lease out of the registered title.
Indemnity under the Land Registration Act 2002
A person is entitled to be indemnified by Land Registry if he or she suffers loss by reason of a mistake in an official copy (paragraph 1(1)(d) of Schedule 8 to the Land Registration Act 2002 – subject to the provisions of that Schedule).
If a person considers that they have suffered such loss then they should in the first instance contact the Customer Service Manager at the Land Registry office that deals with the affected title, who will refer the matter to a Land Registry lawyer.
Action to be taken by customers
Whether any action is required will depend on the particular facts.
1. Customers should disregard the original official copy of the register and not rely on it. Any official search should use the search from date on the new official copy of the register (when received) and not that on the original official copy.
2. If the customer’s client is relying upon an official search already applied for, then when the customer receives the new official copy of the register, the customer should use the search from date on that copy to make a new search. If a customer lets the Customer Service Manager at the Land Registry office that deals with the affected title know that they have made such a fresh search then a refund of the fee will be arranged. A fresh search will not be necessary because of Land Registry’s error if (as discussed above) an official copy of the register was issued with the earlier search because of changes to the register since the search from date in the original official copy.
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3. If a customer has sent the original official copy to a third party, please contact them immediately, inform them of the problem and provide them with a copy of this letter. Land Registry will, of course, refund them any search fee arising in similar circumstances to 2.
4. If a customer consider that a problem has arisen as a result of the error in the original official copy, they should contact the Customer Service Manager at the Land Registry office that deals with the affected title.
5. Land Registry believes that all affected customers have now been contacted. However, if you have not been contacted and are affected then please contact the Customer Service Manager at the Land Registry office that deals with the affected title.
Land Registry
20 August 2007