Land Charges

Real Estate and Property

Prepared by: Constantinople

A land charge is a special right in rem obliging the property owner to perform a particular obligation. It is not assessed in the same way as an ordinary debt or mortgage entry.

The Nature of the Obligation

Under a land charge, the owner may be obliged to give or do something, generally with liability limited to the property concerned. The scope of performance, the beneficiary and the connection with the property are established from the instrument creating it. The brief land register entry may not, by itself, explain the amount or conditions of performance.

What Happens If the Owner Changes?

Transfer raises the question of the obligation's effect on the new owner. A land charge and a personal contractual debt differ at this point. The buyer should learn not only the purchase price but also any such continuing or periodic burdens on the acquired property. Conditions for termination, redemption or cancellation are assessed under separate provisions.

Formulating the Claim

The beneficiary may seek performance, while the owner may seek determination of scope or termination. The route is selected according to the source of the charge and the nature of the breach. Enforcement of a debt and removal of an entry in rem are different claims. Accounts and period information must be connected to the registry entry.

Documents to Prepare for an Initial Review

Send each document in its entirety as held by you, rather than only its first page or a screenshot. We determine, according to the file, what authority is needed to obtain missing official records. The following records are helpful at the outset:

• Land charge entry
• Instrument creating the charge
• Performance and period account
• Changes of owner
• Documents of performance or termination

Why Do the Particular Circumstances Matter?

For example, if property to be purchased carries a land charge, one should not assume that the debt belongs to the previous owner. Its effect on the new owner and the actual scope of the obligation are examined before the transaction.