Hansard

I thank the Economy, Energy and Tourism Committee for its thorough and collaborative scrutiny of the Land Registration etc (Scotland) Bill. I also thank the Scottish Law Commission for its excellent work in developing most of the policies that appear in the bill, and I thank those who have given oral and written evidence to the committee at stage 1.

The Land Registration (Scotland) Act 1979 introduced a modern map-based land register that provides clear information about land ownership, backed by a state guarantee to title. However, since rights on land began being registered in the land register, only 55 per cent of properties have been so registered. The bill will replace most of the 1979 act with a piece of 21st century legislation that will provide for completion of the land register and will place on a statutory footing the practices of the keeper of the registers of Scotland.

The bill also addresses legal tensions that have caused confusion and uncertainty for property owners since the introduction of the land register, by realigning registration law with general property law in Scotland.

In addition to those primary purposes, the bill has two significant secondary purposes. The first is to introduce a system of advance notices for use in conveyancing transactions, and the second is to amend the Requirements of Writing (Scotland) Act 1995 to allow electronic documents to be legally valid and to enable electronic registration of those documents.

I have followed the committee’s stage 1 deliberations on the bill and commend committee members on their diligent and thorough report. The report requests clarification of a number of matters. The committee asks for clarification of what was meant when I said in my evidence to the committee:

“there will be no keeper-induced registration of large and complex land titles in this parliamentary session”.—[Official Report, Economy, Energy and Tourism Committee, 8 February 2012; c 949.]

I confirm that, if resources allow it, Registers of Scotland may use the power to register titles within research areas, which are predominately urban areas, such as flats and houses.

The committee also asks whether a fee will be payable for keeper-induced registrations. I confirm that no fees will be charged for such registrations during this parliamentary session, although the bill will allow fees to be payable for keeper-induced registration.

The use of time-and-line fees has been raised. At present, fees are charged mainly on an ad valorem basis. I confirm that we are not considering moving to time-and-line charging for the majority of registrations. However, time-and-line charging may be considered for complex registrations of high-value properties. It is under consideration in relation to services such as the keeper’s pre-registration title investigation service. I assure the Parliament and the committee that the Scottish Government will consult stakeholders before introducing a fees order, which would be subject to affirmative procedure.

The committee’s report recommends including in the bill aspirational targets for completion of the land register. I understand the importance of the aim, but do not favour that approach. On top of the extra triggers for registration that are in the bill, completion could be accelerated by keeper-induced registration and by promoting voluntary registration. The keeper and I are doing all that we can to encourage voluntary registrations. On keeper-induced registration, the keeper has shared with the committee her initial thinking on how to take the issue forward, and work to develop that is proceeding.

I will pass the committee’s comments about mapping to the keeper’s mapping working group, and I will ensure that the keeper writes to the committee with an update from that group.

I would like to reaffirm my commitment to lodge at stage 2 an amendment that will remove the requirement to prove that there has been seven years of abandonment of land before a person can become a prescriptive claimant under the bill. The committee recommends that the Scottish Government consider introducing a public process of advertising abandoned land. We feel that there are pros and cons to that suggestion. I will, therefore, consider the proposal further, in advance of stage 2.

I welcome the committee’s view that it is content for the new statutory offence in section 108 to remain in the bill. The committee has heard much evidence in relation to the offence provision. In particular, I note the Law Society of Scotland’s opposition. As part of my on-going consideration of the provision, I have written to the president of the Law Society to request further information on fraud involving solicitors. The aim of the offence provision is to disrupt serious organised crime and to criminalise individuals who knowingly use the land register to facilitate criminal behaviour. It is not the Government’s intention to criminalise honest solicitors who make genuine errors in applications for registration. The keeper and the Solicitor General have told me that they will work with the Law Society of Scotland to help to provide guidance to the legal profession.

In view of the concerns that the committee has expressed in its report, the Government will carefully consider in advance of stage 2 whether amendment to section 108 is appropriate. There has been some debate about whether one or two advance notices are required when a disposition and standard security are being granted. In those circumstances, two advance notices will be required if the lender wishes fully to protect the standard security. That is the scheme that was devised by the Scottish Law Commission and the Government is satisfied that it is simple and that it will work.

On the provisions on shared plot title sheets, it appears that there are differing views in the evidence that the committee received on the policy. The aim of the policy is to clarify who owns land and to assist conveyancing practice so that a deed has to refer to only one title number. This is a complex subject, so I will provide an in-depth answer in my written response to the committee’s report.

The committee specifically asked in its stage 1 report for clarification of certain miscellaneous matters that were raised by stakeholders. I do not propose to address those fully in my opening speech, due to the technical nature of many of those matters, but I am happy to speak about them later, if members wish it.

I move,

That the Parliament agrees to the general principles of the Land Registration etc. (Scotland) Bill.

13:41