Q&As

Can a liquidator or administrator able to sell a property which is subject to a restriction on the proprietorship register at HM Land Registry without complying with the restriction?

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Published on LexisPSL on 22/12/2017

The following Restructuring & Insolvency Q&A provides comprehensive and up to date legal information covering:

  • Can a liquidator or administrator able to sell a property which is subject to a restriction on the proprietorship register at HM Land Registry without complying with the restriction? 

Can a liquidator or administrator able to sell a property which is subject to a restriction on the proprietorship register at HM Land Registry without complying with the restriction? 

The liquidator or administrator has the powers set out in Schedules 4 and 1 to the Insolvency Act 1986 (IA 1986) respectively and these extend to disposing of the company’s property. IA 1986 is silent on whether these powers extend to disposing of the company’s property free of any restrictions which bind the property and ordinarily the HM Land Registry would expect to see evidence that the restriction had been complied with before they will register the transfer.

We note that you do not give details of what the restriction seeks to protect.

If you are unable to comply with the restriction or obtain its release, there are potentially two options available to you:

  1. for administration only—if the restriction protects a legal charge, the administrator could use IA 1986,

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