How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • Go back-and-forth until satisfied
    Rate the answer you receive.
Ask Joshua Your Own Question
Joshua
Joshua, Lawyer
Category: Law
Satisfied Customers: 30014
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
35043042
Type Your Law Question Here...
Joshua is online now

I need to fill out section 9 of a RX1 land registry form.

This answer was rated:

hi i need to fill out section 9 of a RX1 land registry form. the wording seem complex. i need to add a restriction as i have a significant financial interest in the property
JA: Where are you? It matters because laws vary by location.
Customer: uk
JA: What steps have you taken so far?
Customer: just researched it
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: dont think so

Hello and thank you for your question. My name is ***** ***** I will be very pleased to assist you. I'm a practising lawyer in England with over 15 years’ experience. Please be aware that although I will endeavour to reply to you promptly, I am also in full time private practice and so I may not be available to respond immediately and it may also take me a few minutes to prepare a reply. The site will notify you as soon as I respond. I look forward to working with you to answer your question fully.

  1. May I confirm that you are acting with the consent of the owner or without their permission please?
  2. how did your interest in the property arise?
Customer: replied 16 days ago.
hi Joshua, basically i bought the property and have all evidence including original bill of sale from auction company. i bought it with the registered owner on a 50/50 basis for 90k. however after mortgage survey (mortgage was my name only as she is ex-pat) they pulled the offer as they said it was unmortgageable. due to auction conditions we had 56 days to complete and therefore needed to finance the mortgage shortfall of 67,500k. we had paid the solicitor 50% each for the deposit 22,500 (11,250 each) and then looked at bridging loans for the mortgage shortfall. due to the time constraints the registered owner agreed to fund the 67,500 k until refurbished and we could remortgage to release the funds back. the agreement was we put it in her name as she said had a larger initial investment and it would also save us stamp duty as she was a First time buyer. I agreed and asked our solicitor to register a charge or trust deed. she did not do this despite my instruction and we were also purchasing a business at the same time. The solicitor suggested on the phone we do a deed of trust once wed purchased the business also (not explaining the risk to me in the meantime). the business purchace took nearly a yer and in the mean time we had the pandemic. i also contributed 50%, a further £5000 to the refurbishment costs. I also had other out of pocket expenses fuel (£3000 worth) as it was a distance away and i completed the refurbishment alone so there is £12k of labour costs as we couldnt get contractors due to covid. over the time our personal relationship broke down and to cut long story short she put the property up for sale without my knowledge or consent and abused my trust. obviously as said i have proof of financial contributions etc and i need to add a restriction that states she can't sell it without paying back my financial contributions and as agreed and the monies owed from refurbishment, fuel etc. I need the wording to fill out the RX1 properly, thanks
Customer: replied 16 days ago.
Hi any update?
I do apologise for the delay in reverting to you - I have been out of the office this afternoon.In these circumstances you would need to consider enterrijg a form A restriction. This is not as good as a charge as you say but it is a holding position.The restriction would read 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.You will need to provide full details of your your interest arose and evidence in this regard. There is a fee if £40 to pay to make the application

I hope the above is of some assistance but if you have any further questions, please revert to me.

Customer: replied 15 days ago.
Hi would this allow them to sell it but have to pay me before they received their funds? That’s what I need , also is there anything else I would need to add to the RX 1 , the guidance also mentioned formatting brackets , etc thanks

The restriction is a notice to third parties looking at the title including buyers that someone else has an interest in the property so the restriction would need to be explained. It is not as good as a charge so this is not a substitute for what your solicitor advised they were going to do for you - there are way around the restriction - e.g. appointing a second person to act alongside the seller as a second trustee to effect a sale. But you would then have two people to sue for breach of trust as the second trustee would be jointly liable. It would be a reckless thing to do for a second person to join in the sale without asking appropriate questions for this reason but it could happen. Barring issuing court proceedings though or agreement from the owner, it is your only interim measure.

Customer: replied 14 days ago.
basically what your saying is I can’t put a charge against the property for the money I invested? I have to used this method? Thanks

You can but you would either need the owners agreement or a court order. You cannot do so unilaterally unfortunately. However I do not wish to undersell the effectiveness of the above restriction approach. It is relatively effective but should be seen as a stopgap with a view to mediation and ultimately litigation rather than an "application and then sit back an relax".

Customer: replied 14 days ago.
Thanks - so I copy it word for word and then specify it on the form as form A restriction?
Is there anything else on the Rx 1 that I need to look out for or specifically need to fill in ?

The evidence you include with the form is key to your application as without the consent of the owner, this will be key to convincing the Registrar as regards ***** ***** enter a restriction - it is not an automatic right. Accordingly you would need to clearly show how your beneficial interest arose.

Customer: replied 14 days ago.
I have bank statements showing my payment from my own account to the solicitor for the deposit, also the auction receipt is in my name when we bought it. Also plenty of emails from the solicitor stating my interest in the property.

Also as important as the financials is evidence of the common intention that these payments would give you an interest in the property as opposed to for example being a loan. A beneficial interest in a property doesn't arise as a conseqeunce of simply lending someone who owns a property or paying for some form of improvement at a property. Rather there must have been an intention or agreement between the parties that a particular payment would result in a beneficial interest. This does not have to be documented in an agreement or trust deed (though this would be ideal) but there must be some persuasive evidence that this was a the common intention of the parties. I am sure you will have this evidence based on what you say above and it is important you present this clearly along with the financials.

I trust the above was of assistance and that you do not have any follow up questions for now. If there is anything else I can help with please reply back to me though.

Thank you again for visiting JustAnswer and see you again in the future I hope.

Customer: replied 12 days ago.
Hi Joshua, sorry for late response, I’m away atm so respond properly tomorrow thanks, Jason

Many thanks for the update.

Joshua and 3 other Law Specialists are ready to help you