Declaration of trust

Guidance Restrictions

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A Form A restriction is the most basic type of restriction that should be placed on the register to protect interests under a deed of trust. However, there are other types of restrictions available, each with its own relevance and application. Below are some types of restrictions explained in detail:

  1. Form A Restriction: This restriction is the minimum requirement for protecting interests. It prohibits the making of certain entries in the register without specific authorization. We do not charge for assisting with the completion of applications to register a Form A restriction, but the Land Registry charges a fee of £40 for this.
  2. Further Restrictions: If you need additional protection for your interests, you may consider other types of restrictions. These can be conditional or unconditional and may specify certain conditions that must be met before a disposition can be registered. The Land Registry charges fees for applications to register these further restrictions, and the costs vary depending on the type of restriction.

Once entered, a restriction will remain in the register until it is cancelled or withdrawn. The Land Registry may cancel restrictions that have become unnecessary. It’s important to note that while we don’t charge for assisting with the completion of applications, there are fees charged by the Land Registry for most types of restrictions. You can find further details of Land Registry fees on their website.

Who can apply for a Restriction?

To apply for the entry of a restriction, you must meet one of the following criteria:

  1. You are the relevant proprietor: This means you are the owner of the property or have the legal authority to act on behalf of the owner.
  2. You are entitled to be registered as the relevant proprietor: This implies that you have a legal claim or entitlement to become the owner of the property.
  3. You have obtained the consent of the relevant proprietor or someone entitled to be registered as such: If you’re not the owner but have obtained consent from the owner or someone legally entitled to act on their behalf, you can apply for the entry of a restriction.
  4. You otherwise have a sufficient interest in the making of the entry: This means you have a legitimate interest in ensuring that the restriction is entered in the property register. This could include situations where you have a vested interest in protecting your rights or interests related to the property.
Compulsory Applications

Rule 94 of the Land Registration Rules 2003 prescribe certain situations where a person must apply for a restriction. In particular, where a new trust is set up or there is a change in a trust of land and as a result a sole proprietor will not be able to give a valid receipt for capital money, a proprietor must apply for a restriction in Form A (Schedule 4, LRR 2003).

Restrictions relevant to trusts

In summary, when it comes to protecting interests under a trust of land, a Form A restriction is often the appropriate choice. Here’s a breakdown of the key points:

  1. Purpose of Form A Restriction: It ensures that any capital money from the property must be paid to two trustees or a trust corporation. This helps safeguard the interests of beneficiaries under the trust.
  2. Limitation of Form A Restriction: Only one Form A restriction can be entered, as its purpose is to overreach interests behind the trust, rather than giving notice of individual interests.
  3. Examples of Interests Under a Trust of Land: These include situations where the registered proprietors hold the property on trust for themselves, for others for a specified period, or for specific beneficiaries.
  4. Additional Forms of Restriction: If a Form A restriction is deemed insufficient, beneficiaries may apply for other forms of restriction, such as Form II or Form B, depending on the circumstances.
  5. Evidence and Application: The applicant must demonstrate a sufficient interest in the entry of the restriction. In some cases, evidence may need to be provided to support the application.
  6. Consideration of Consent Restrictions: The Land Registry assesses whether a consent restriction, such as Form N, is necessary or desirable. This ensures that beneficiaries do not gain rights beyond what they are entitled to under the trust.

Overall, the choice of restriction depends on the specific circumstances and the level of protection required for the beneficiaries’ interests under the trust of land.

Form A

94.—(1) A proprietor of a registered estate must apply for a restriction in Form A where—

(a)the estate becomes subject to a trust of land, other than on a registrable disposition, and the proprietor or the survivor of joint proprietors will not be able to give a valid receipt for capital money, or

(b)the estate is held on a trust of land and, as a result of a change in the trusts, the proprietor or the survivor of joint proprietors will not be able to give a valid receipt for capital money.

(2) A sole or last surviving trustee of land held on a trust of land must, when applying to register a disposition of a registered estate in his favour or to be registered as proprietor of an unregistered estate, at the same time apply for a restriction in Form A.
(3) Subject to paragraph (6), a personal representative of a deceased person who holds a registered estate on a trust of land created by the deceased’s will, or on a trust of land arising under the laws of intestacy which is subsequently varied, and whose powers have been limited by section 8 of the Trusts of Land and Appointment of Trustees Act 1996(1), must apply for a restriction in Form C.
(4) Subject to paragraphs (6) and (7), a proprietor of a registered estate must apply for a restriction in Form B where—
(a)a declaration of trust of that estate imposes limitations on the powers of the trustees under section 8 of the Trusts of Land and Appointment of Trustees Act 1996, or
(b)a change in the trusts on which that estate is held imposes limitations or changes the limitations on the powers of the trustees under section 8 of the Trusts of Land and Appointment of Trustees Act 1996.
(5) Subject to paragraphs (6) and (7), an applicant for first registration of a legal estate held on a trust of land where the powers of the trustees are limited by section 8 of the Trusts of Land and Appointment of Trustees Act 1996 must at the same time apply for a restriction in Form B.
(6) Paragraphs (3), (4) and (5) do not apply to legal estates held on charitable, ecclesiastical or public trusts.
(7) Paragraphs (4) and (5) apply not only where the legal estate is held by the trustees, but also where it is vested in the personal representatives of a sole or last surviving trustee.
(8) An application for a restriction must be made where required by paragraphs (2) or (3) of rule 176 or paragraph (2) of rule 178.

Form B

Form B (Dispositions by trustees—certificate required)
No disposition [or specify details] by the proprietors of the registered estate is to be registered unless they make a statutory declaration, or their conveyancer gives a certificate, that the disposition [or specify details] is in accordance with [specify the disposition creating the trust] or some variation thereof referred to in the declaration or certificate.
This type of restriction is more onerous than a standard Form A restriction and may be appropriate where you wish to stipulate that a transaction involving the property (it can be specific, e.g. a disposition or a charge) made by the registered proprietors cannot be successfully registered without a statutory declaration from them or their conveyance that the terms of a deed of trust have been complied with.
You may wish to limit the ability of the registered proprietor to mortgage the property or indeed sell it without the consent of all parties to the deed of trust and this type of restriction may be appropriate in such circumstances. The deed itself may contain a provision that any new mortgage or charge to be secured on the property requires the consent of all parties to the deed, therefore in order to make the statutory declaration or for the conveyance to provide a certificate such consent will need to obtained.

Form N

No disposition [or specify details] of the registered estate [(other than a charge)] by the proprietor of the registered estate [or by the proprietor of any registered charge] is to be registered without a written consent
[signed by [name] of [address] (or [his conveyancer] or specify appropriate details)]
or
[signed on behalf of [name] of [address] by [its secretary or conveyancer or specify appropriate details]].
This type of restriction is different to a Form B restriction in that there is no requirement for a statutory declaration or a certificate of compliance with the deed of trust. The restriction merely imposes a demand to obtain the written consent of a specified person (or their conveyancer) before the mentioned change can be made to the register (this may limit the ability to sell, lease or just mortgage the property).

Form NN

No [disposition or specify type of disposition] of the registered estate [(other than a charge)] by the proprietor of the registered estate [, or by the proprietor of any registered charge, not being a charge registered before the entry of this restriction,] is to be registered without a written consent signed by
[choose one of the bulleted clauses]

  • [name] of [address] [or their personal representatives] [or [their conveyancer or specify appropriate details]],
  • [name] of [address] [or their personal representatives] and [name] of [address] [or their personal representatives] [or [their conveyancer or specify appropriate details]],
  • [name] of [address] and [name] of [address] or the survivor of them [or by the personal representatives of the survivor] [or [their conveyancer or specify appropriate details]],
  • [name] of [address] or [after that person’s death] by [name] of [address] [or [their conveyancer or specify appropriate details]],

or a certificate signed by
[choose one of the bulleted clauses]

  • a conveyancer
  • the applicant for registration [or their conveyancer]
  • [name] of [address] [or [their conveyancer or specify appropriate details]]

that the provisions of [specify clause, paragraph or other particulars] of [specify details] have been complied with [or that they do not apply to the disposition]

This restriction is becoming a more popular option when registering deeds of trust. It allows the wording of the restriction to make specific reference to the deed of trust and requires that either written consent is required or a certificate is needed to confirm that the provisions of the deed have been complied with.

[choose one of the bulleted clauses]

  • [name] of [address] [or their personal representatives] [or [their conveyancer or specify appropriate details]],
  • [name] of [address] [or their personal representatives] and [name] of [address] [or their personal representatives] [or [their conveyancer or specify appropriate details]],
  • [name] of [address] and [name] of [address] or the survivor of them [or by the personal representatives of the survivor] [or [their conveyancer or specify appropriate details]],
  • [name] of [address] or [after that person’s death] by [name] of [address] [or [their conveyancer or specify appropriate details]],

or a certificate signed by
[choose one of the bulleted clauses]

  • a conveyancer
  • the applicant for registration [or their conveyancer]
  • [name] of [address] [or [their conveyancer or specify appropriate details]]

that the provisions of [specify clause, paragraph or other particulars] of [specify details] have been complied with [or that they do not apply to the disposition]

This restriction is becoming a more popular option when registering deeds of trust. It allows the wording of the restriction to make specific reference to the deed of trust and requires that either written consent is required or a certificate is needed to confirm that the provisions of the deed have been complied with.

Form II

Form II (Beneficial interest that is a right or claim in relation to a registered estate)
No disposition of the registered estate, other than a disposition by the proprietor of any registered charge registered before the entry of this restriction, is to be registered without a certificate signed by the applicant for registration or their conveyancer that written notice of the disposition was given to [name] at [address].
This restriction is a notice restriction. Its entry on the register places an obligation on the applicant for any new disposition to have served notice on the specified person at the specified address. This type of restriction is commonly used when someone with an interest in the property would like to be notified of a sale in order that they can then pursue any proceeds of the said sale.