Understanding the differences between the Registry of Deeds and the Land Registry titles in Ireland is crucial, for those involved in conveyancing especially for rural property buyers and sellers.
These two systems represent distinct approaches to recording property ownership and have significant implications for legal processes related to buying, selling, and mortgaging property.
This guide explores these two systems, highlighting their key differences and the implications for conveyancing.
Introduction to Property Registration in Ireland
Ireland has two systems of property registration, being the Registry of Deeds and the Land Registry. Both serve to record and verify interests in land but differ fundamentally in their approach and legal implications.
Registry of Deeds: An Overview
The Registry of Deeds, established by the Registration of Deeds Act of 1707, is one of the oldest systems of recording property transactions in Ireland. It operates on a deeds registration system, where the main focus is on the registration of documents (deeds) affecting land ownership rather than the land itself.
It is important to note that
- Deeds Registration System: Under this system, the registration of a deed provides evidence of the existence of a transaction but does not guarantee the title.
- Priority: Priority of interests is determined by the date and time of registration, not by the date of the transaction itself. Therefore, it is esstential that the deed is registered as soon as possible after the purcase is complete.
Land Registry: An Overview
The Land Registry, established under the Local Registration of Title (Ireland) Act 1891, is a more modern system that focuses on registering the title to land rather than the documents affecting it..
In the case of the Land Registry it is important to note that:
- Title Registration System: The Land Registry provides a state-guaranteed title to property. This means that the details of property ownership, boundaries, and other rights are clearly recorded and guaranteed by the State. However, it is important to note that the Land Registry does not guarantee the boundaries as recorded in the Land Registry are correct. Your solicitor will furnish you with a copy of the land Registry map so that you can have your surveyor confirm that the boundaries on the map reflect the actual boundaries on the ground.
- Compulsory Registration: In many cases, particularly after the purchase of unregistered land, registration in the Land Registry is compulsory. Compulsory registration only applies where the transaction is for value eg it does not apply where the transaction is a re-mortgage or voluntary transfer.
Key Differences Between Registry of Deeds and Land Registry
Understanding the differences between these two systems is essential for professionals involved in conveyancing, as it affects the process, costs, and nature of property transactions.
Nature of Registration
- Registry of Deeds:
- Records the deed itself, not the title.
- Does not guarantee ownership; it simply notes the existence of a deed.
- Land Registry:
- Records the title to the land, providing a state guarantee of ownership.
- Details such as ownership, charges, easements, and boundaries are recorded. However, boundaries are not guaranteed by the Land Registry
Legal Security and State Guarantee
- Registry of Deeds:
- Provides no guarantee of title. A buyer must ensure that the chain of title (ie the history of deeds showing changes in ownership of the property) is good and marketable. This is the role of your solicitor
- Potential for hidden interests that might not be recorded.
- Land Registry:
- Offers a state-backed guarantee, making the registered title generally certain.
- The Property Registration Authority (PRAcompensates for losses caused by errors in the register.
Priority of Interests
- Registry of Deeds:
- Priority is determined by the date and time of registration. Earlier registered deeds have priority over later ones.
- Land Registry:
- The Register records all relevant interests, ensuring clarity and reducing the risk of conflicting claims. For example where the property is subject to a mortgage, that mortgage will be recorded as a burden on the title deed.
Compulsory vs. Voluntary Registration
- Registry of Deeds:
- Registration is generally voluntary, though it provides important protections in terms of priority.
- Land Registry:
- Registration is compulsory in many instances, particularly with new or previously unregistered property.
Practical Implications for Conveyancing
The differences between the Registry of Deeds and the Land Registry have significant practical implications for the conveyancing process.
Due Diligence and Title Investigation
- Registry of Deeds:
- Extensive investigation is required to ensure the title is good. This includes reviewing the history of transactions and checking for any encumbrances or hidden interests.
- Solicitors often need to investigate the chain of title going back several decades. For example where the title to the property is leasehold title which can date back to the 1800’s it is necessary to review the original lease and thereafter trace the title to the current owner/seller to ensure that they have the correct title to sell the property.
- Land Registry:
- The title is considered conclusive evidence of ownership, simplifying the investigation process. When selling a property your solicitor can simply order an up-to-date title deed from Tailte Eireann at a cost of €40.00
- The register provides a comprehensive and authoritative statement of the title, reducing the need for extensive historical checks. The statement will list any burdens on the property eg if there are any rights of way or mortgages affecting the title then they are registered on the title and a copy of such burdens can be ordered from the Tailte Eireann
Costs and Time
- Registry of Deeds:
- Generally more time-consuming and costly due to the need for detailed investigation and the potential complexity of the deed chain.
- Searches can be labor-intensive, requiring physical or digital inspection of documents. Any documents registered prior to 1963 have to be searched manually in the Registry of Deeds. This requires obtaining an appointment with the Registry of Deeds to inspect the Register (actual Books of Registration) and manually searching for the name of the vendor.
- Land Registry:
- Typically more cost-effective and quicker, as the register provides clear and definitive information.
- The online system facilitates easy access to property details, reducing the need for manual searches.
Certainty and Risk
- Registry of Deeds:
- Higher risk of undiscovered interests or claims, which can affect the marketability of the property as some deeds may not have been registered
- Buyers and lenders may require additional assurances or insurance. For example, it is not unusual for title deeds to be mislaid or lost over time. Where deeds have been lost a purchaser will require an insurance bond to be taken out in favour of the purchaser but at the cost of the vendor. This is to ensure that lost deeds have not been pledged as security by way of mortgage which could affect the property in sale.
- Land Registry:
- Provides greater certainty and lower risk, given the state guarantee of the title.
- Facilitates smoother transactions and offers greater confidence to buyers and lenders.
The Future of Property Registration in Ireland
Ireland is gradually moving towards a single registration system, with the aim of converting all properties to the Land Registry system over time. This transition will simplify the conveyancing process, enhance legal certainty, and reduce the risks associated with property transactions.
In summary, while both the Registry of Deeds and the Land Registry play crucial roles in property registration in Ireland, the Land Registry’s comprehensive and state-guaranteed system offers significant advantages for both professionals and clients in the conveyancing process. As the nation progresses towards a unified system, understanding these differences remains essential for anyone involved in property transactions.
Choosing the Best Property Law Expert
For legal practitioners and clients in Ireland, understanding whether a property is registered in the Registry of Deeds or the Land Registry is a fundamental aspect of conveyancing. . Familiarity with both systems is essential for solicitors. Solicitors must be adept at navigating the complexities of the Registry of Deeds while also leveraging the efficiencies of the Land Registry.
Key Considerations:
- For Buyers and Sellers:
- The Land Registry offers more certainty and less risk, making it generally preferable, especially for high-value transactions.
- However, properties in the Registry of Deeds require more careful scrutiny and due diligence.
- For Legal Professionals:
- Familiarity with both systems is essential. Solicitors must be adept at navigating the complexities of the Registry of Deeds while also leveraging the efficiencies of the Land Registry.
For clear legal advice and competitive, efficient conveyancing fees and services contact MB Solicitors call +353-567 7343 or use the enquiry form below.
