Currently, the Property Registration Authority finds that, on average, 15% of applications involving a Deed of Charge are rejected each year, often for routine errors. This short video will cover the main reasons why an application to register a charge is either rejected or queried. A printable checklist, covering the steps you should take in preparing your applications, is available below.
- The Charge must:
- Be dated.
- Be in the correct format based on the date of the deed. See Forms.
- Identify the lender. The identity of the lender must be specified in the deed and the name of the lender must be in the correct form and entity as of the date of said deed.
- Contain a charging clause i.e. “…hereby charges”.
- Contain the assent of the Applicant/Mortgagor to the registration of the charge as a burden on their Folio.
- Be fully executed and properly attested by all the requisite parties.
- Capacity of Mortgagor:
- If the Applicant/Mortgagor is the current registered owner of a Folio(s) being charged, they must have been registered as owner and therefore entitled to charge the property as of the date of the Deed of Charge.
- If the Applicant/Mortgagor is charging as a person entitled to become a registered owner, the reason for their entitlement must be clearly stated within the Deed of Charge e.g. reference to a preceding transfer (including the pending application number if it has already been lodged) and the Applicant/Mortgagor must have been entitled to charge the property as of the date of the Deed of Charge.
- Identifying the property:
- The property to be charged must be clearly identified in the Deed of Charge by reference to a Folio number.
- If the charge affects part of a Folio, a map acceptable for registration purposes must be lodged and referred to in the property description in the Deed of Charge, which should reflect the application map exactly, e.g. “outlined in red and labelled “A” on the map attached”.
Note: An exception to a requirement for a map is where the Deed of Charge states that it affects all of an existing plan or property number on a Folio.
- An application map (where required) that complies with the requirements as set out in the PRA Mapping Guidelines.
- Documentation required where the lender is a foreign company, including an address in the state.
- Where an Applicant/Mortgagor has signed under Power of Attorney, you will need to furnish the Original or Certified copy of the Power of Attorney in addition to the required Legal Statement from the solicitor for the donee. See Legal Office Notice 3 of 2010.
- Where the Folio contains a note regarding Section 90 of the Housing Act, 1966, the relevant consent by the Local Authority to the registration of the charge is required.
Please note the following:
Any ambiguity throughout the documentation will have to be queried. The effect of the deed should be clear and unambiguous. Please also ensure consistency across the documentation in such things as the spelling of names and addresses, Folio numbers and property descriptions. You may wish to pre-empt a query by explaining any discrepancies (e.g. maiden names/married names, etc.).
You may avail of our eRegistration service. This allows practitioners to draft Deeds of Transfer using information from the Land Register; securely circulate documents to other parties; pay fees, and correspond electronically with the Property Registration Authority. For more information please log on to www.eregistration.ie.