THE ACT of depositing a Contract of Sale at the Land Registry creates an ‘encumbrance’ against the title that gives a buyer a legal claim to his/her property, which can be pursued by a simple procedure though the courts should this become necessary.
Failing to deposit a Contract at the Land Registry can result in serious complications for a buyer. For example: a buyer would have no legal claim to the property and would only be able to make a legal claim against the vendor for the value of the Contract, the vendor could also renege on deal and sell the property in question to someone else.
Designed to provide those buying property with added legal protection, a ‘new’ Sale of Immovable Property (Specific Performance) Law, N81(I)/2011, which replaced the Sale of Land (Specific Performance) Law, was introduced earlier this year’ (see New specific performance law increases safeguards).
We are aware that there are many Contracts of Sale which, for various reasons, have not been deposited at the Land Registries and therefore those buyers are not adequately protected under the law. However, under the provisions of the ‘new’ law those buyers have been given the opportunity to deposit their contracts regardless of how long ago they were signed.
If you have signed a Contract of Sale that has not been deposited at the Land Registry, now is the time to act!
You have until the 29th January 2012 to deposit your Contract of Sale at the Land Registry and avoid the potential serious consequences that may arise.
If you are unable to deposit your Contract of Sale personally, your lawyer, the vendor (developer) or a registered estate agent can carry out this task on your behalf – and will be able to provide you with a copy of the receipt issued by the Land Registry.