Reasons to choose Wilson Browne
The Land Registry has updated Practice Guide 24: Private Trusts of Land (PG24) regarding Form B restrictions.
A Form B restriction is used where property is held by trustees and limitations have been placed on the trustees’ powers. It aims to protect the beneficiaries’ rights, by prohibiting registration of any disposition without a statutory declaration, statement of truth, or conveyancer’s certificate confirming that the trustees are acting within their powers. If there is no Form B restriction, a buyer is not required to investigate the trustees’ powers further.
Section 2.2.5 of PG24 sets out the Land Registry’s guidance on the correct use of Form B restrictions, including that, ordinarily, only one Form B restriction can be entered on an individual register at any one time.
The Land Registry has further updated section 2.2.5 to clarify that a Form B restriction is appropriate where the disposition creating the trust of land limits the trustees’ powers (under section 8 of the Trusts of Land and Appointment of Trustees Act 1996), not for simply giving notice of a trust. A Form B restriction is not justified where a declaration of Trust merely acknowledges or quantifies the beneficial shares in the equity of a property.
The guide can be found here – https://www.gov.uk/government/publications/private-trusts-of-land