Standard securities and the sasine register

From 1 April 2016 the recording of a standard security in the General Register of Sasines will have no effect. This includes any standard security signed prior to this date but not submitted for recording at that time.

As a result, any person owning property in the Register of Sasines over which a new standard security is granted must submit a voluntary registration application for that property in the land register to allow the creditor to obtain a real right.

Background

Section 48 of the 2012 Act gave Scottish Ministers power to make an order to close the Register of Sasines to standard securities and, in exercise of that power, the Registers of Scotland (Voluntary Registration, Amendment of Fees, etc.) Order 2015 was made.

For the avoidance of doubt, discharges of security, assignations, restrictions, variations and the like are not affected and may be submitted for recording in the sasine register as normal.

Conditions

In all cases the application for voluntary registration of the underlying land must satisfy the general application conditions and the conditions of registration and contain a plan or description of the plot sufficient to enable the keeper to delineate the plot on the cadastral map. It is acceptable to define the extent of the property to be registered in an application for voluntary registration using digital data.

The Order affects standard securities only. Both securities over unregistered plots and securities over unregistered subordinate real rights, such as securities over unregistered long leases, are affected, as are securities granted over an unregistered plot by a person entitled to do so by virtue of unrecorded links in title.

Applications to register standard securities over subordinate real rights

The application process is slightly different for standard securities over a subordinate real right such as a security over a lease.

Where the plot of land affected by the lease or the existing security is unregistered, an application to register such a deed will induce first registration of the owner's plot. A single application form can be used, in which case the application type is 'automatic plot registration' and the deed type is 'standard security'.

The applicant must supply sufficient information to permit the keeper to comply with her duties under Part 1 of the Act, including any rights affecting the plot and any encumbrances such as real burdens that affect the plot. Further information is available on Leases and automatic plot registration.

Fees

Fees are waived for registration of the underlying title when submitted on the same day as a standard security over the same extent. The fee to register the standard security itself remains payable.
Where the subjects do not cover the same extent registration of the underlying title will attract a 25% reduction against the normal registration fee.

Rejection and withdrawal of applications

On occasion, defects in a submitted application require the rejection or withdrawal of an application from the registration process. The existence of a defect may only become apparent at certain stages of the registration process. Due to the fee being waived for voluntary registration of the underlying title when submitting a standard security for registration in the land register one of the following scenarios may arise:

  • Where there is a defect in the application to register the standard security, and this is identified as part of the intake examination, both the standard security and the voluntary registration applications will be rejected. This allows the applicant to retain the benefit of the waived fee, which is dependent on both applications being accepted for registration on the same day.
  • Where there is a defect in the application to register the standard security, and this is identified after the application has been accepted for registration, only the standard security application will be rejected as the requirements to satisfy the application of the waived fee have been met. The application for voluntary registration will continue to be processed.
  • If at any stage of the registration process the application for voluntary registration of the underlying title is rejected the standard security application will also be rejected.

Fees for rejection

There is no fee payable for the rejection of an application for voluntary registration, whether that application contains a defect or not.

Where an application to register a standard security is rejected as a result of the rejection of an application for voluntary registration no rejection fee will be charged on the standard security application.

A rejection fee is charged in the normal manner on an application to register a standard security where rejection is required due to a defect in that application.

Fees for withdrawal

If either the standard security application, or both the standard security application and voluntary registration applications are withdrawn, the standard fee for withdrawal will be charged.