Q&As

Where a claimant suspects a defendant is selling their property (which is the only substantive asset the defendant has) prior to the claimant obtaining judgment in a claim that is not directly related to the property, what steps can the claimant take to stop any sale of the property? Can the claimant register a restriction against the property?

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Published on LexisPSL on 20/11/2019

The following Property Disputes Q&A provides comprehensive and up to date legal information covering:

  • Where a claimant suspects a defendant is selling their property (which is the only substantive asset the defendant has) prior to the claimant obtaining judgment in a claim that is not directly related to the property, what steps can the claimant take to stop any sale of the property? Can the claimant register a restriction against the property?
  • What steps can be taken to prevent sale of the property?

Where a claimant suspects a defendant is selling their property (which is the only substantive asset the defendant has) prior to the claimant obtaining judgment in a claim that is not directly related to the property, what steps can the claimant take to stop any sale of the property? Can the claimant register a restriction against the property?

What steps can be taken to prevent sale of the property?

A restriction can be entered by application to the registrar by or with the consent of the registered proprietor, or person entitled to be, or where the applicant has sufficient interest in the making of the entry. The Land Registration Rules 2003, SI 2003/1417, r 93 sets out a non-exhaustive list of examples which indicates that a person might have a sufficient interest without having, or even claiming a proprietary interest in land—see paras 93(h) and (i), which refer to a person with the benefit of a freezing order. Accordingly it would appear arguable a restriction could be used in the context of a freezing injunction obtained in order to protect a money claim. See Practice Note: Land registration—restrictions.

A freezing injunction or order (formerly called a Mareva injunction) is an interim order preventing a party from removing assets located within England and Wales, or from dealing with assets wherever they are located. Its purpose is to preserve

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