What Is the Effect of Section 10(4) Land Charges Act

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The Answer is Section 10(4) of the Land Charges Act 1972 plays a significant role in the conveyancing process in England and Wales, particularly in relation to the protection of third-party interests in unregistered land. The Land Charges Act 1972 is designed to provide a system for the registration of certain types of interests affecting land that is not registered under the Land Registration Act.

Specifically, Section 10(4) of the Land Charges Act 1972 states:

"Where a purchaser pays money to the seller on the faith of a statement made by the seller in any such certificate of search as is mentioned in subsection (3) above, the payment shall, in favour of the purchaser, be as effective as it would have been if the facts were as stated in the certificate."

This provision has the following effects:

1. Protection for Purchasers: Section 10(4) provides protection to purchasers who rely on a certificate of search issued by the seller. A certificate of search is a document that details the results of a search in the Land Charges Registry for any registered charges or burdens affecting the land in question.

2. Reliance on Certificates: If a purchaser relies on the information provided in the certificate of search and pays money to the seller based on the belief that the facts stated in the certificate are accurate, the payment is protected. This means that the purchaser's position is safeguarded even if the certificate contains errors or omissions.

3. Good Faith Transactions: The provision encourages good faith in transactions by ensuring that purchasers who act based on the seller's representations are not penalized for inaccuracies in the land charges search certificate provided by the seller.

4. Limitation on Seller's Representations: While Section 10(4) protects the purchaser, it also implies that sellers must be careful in providing accurate certificates of search. Any misrepresentation or error in the certificate could potentially lead to legal disputes or claims for compensation.

5. Encouragement of Due Diligence: The existence of this provision underscores the importance of conducting thorough due diligence and obtaining a certificate of search when dealing with unregistered land. It ensures that the conveyancing process takes into account the need to verify any interests or charges that may affect the land.

In summary, Section 10(4) of the Land Charges Act 1972 provides a safeguard for purchasers who rely on a certificate of search when buying unregistered land. It ensures that payments made on the basis of the information in the certificate are effective, even if the certificate turns out to be incorrect, thus promoting confidence in the conveyancing process.

What Is the Effect of Section 10(4) Land Charges Act

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What Is the Effect of Section 10(4) Land Charges Act

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