A restriction is an entry on the registered title deeds to a property which prevents a disposition (sale or transfer of an interest in a property or new mortgage). Restrictions can be absolute or conditional on a specified occurrence.

Restrictions can also be a useful tool when two or more buyers have purchased the property in unequal shares and wish to protect their contributions or someone not named on the deeds can have their contribution protected. This is known as ownership as Tenants in Common. Buyer’s can enter into a Declaration of Trust which will set out how the property is truly owned and the title can be restricted accordingly.

A restriction can also be added to a registered property to protect the interests of non owners who have the right to benefit from a sale for example to cover a debt or an IVA (Individual Voluntary Arrangement). The restriction will bring attention to the fact that any proceeds from the sale need to first be used to repay debts.

These days a number of newer properties have restrictions on them to enter into a Deed of Covenant – a legally binding promise to do something. These are common for properties which have managed areas or common parts on either freehold or leasehold estates/buildings. Your property solicitors will be able to assist with understanding the obligations imposed on you by signing such a Deed such as obligations to pay towards maintenance of buildings or communal areas.

Restrictions are entered at the registrar’s discretion and he may enter a restriction if it appears to him that it is necessary or desirable to do so for the purpose of

  1. a) Preventing invalidity or unlawfulness in relation to dispositions of a registered estate,
  2. b) Securing interests which are capable of being overreached on a disposition of a registered estate or charge are overreached, or
  3. c) Protecting a right or claim in relation to a registered estate or charge.

To discuss how restrictions on title may affect the use of your property, or to find out more about our fixed fee conveyancing quotes contact our property teams on:

Kidderminster- 01562 820575

Worcester – 01905 730450

Halesowen- 0121 227 3850

Sedgley- 01902 904060

Stourport- 01299 827517

Solihull – 0121 624 4000

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