Can a Correction to a TP1 be Enforced?

By Nige on November 2, 2024 at 1:57 pm
Type: Post Category: Freehold
Tags: TP1 | TR1 | Transfer of Part of Registered Title | Transfer of Registered Title

If there are errors in your TP1 (Transfer of Part) document, it is possible for the developer to seek a correction, but their ability to enforce changes depends on the nature of the errors, the specifics of the TP1 agreement, and any legal grounds they may have to support a correction.

Generally, once a TP1 has been executed and registered with the Land Registry, it is binding.

However, there are some circumstances where errors can lead to amendments or rectifications, even if you, as the property owner, are opposed to the changes.

Quick Links

• Key Considerations
• Summary
• Why is this Important to Clients of Residents First?

Key Considerations

1. Types of Errors in TP1:
   • Clerical or Administrative Errors: Minor mistakes, such as spelling errors, incorrect addresses, or typographical errors, may be corrected relatively easily through agreement between both parties or, in some cases, unilaterally by the Land Registry.
   • Substantive Errors Affecting Rights or Boundaries: Errors that affect property boundaries, easements, restrictive covenants, or rights of access are more significant and may impact either party’s rights. Correcting these types of errors can be more contentious.
2. Developer’s Options for Enforcing a Correction:
   • Mutual Agreement: The developer may first attempt to seek your agreement to correct the error. This is the simplest route and would involve mutual consent to amend the TP1.
   • Legal Action for Rectification: If the error is significant and impacts the developer’s interests, they may seek a rectification through the courts. A court can order rectification if:
     • The error arose from a mutual mistake (both parties were mistaken about what the TP1 was meant to convey).
     • There was a unilateral mistake where one party was misled, and the other party knew or ought to have known about the error.
   • Land Registry Application: In some cases, the developer may apply to the Land Registry to correct the error. The Land Registry will consider the evidence and may notify you of the application, giving you the opportunity to object.
3. Your Rights as the Property Owner:
   • You are entitled to object to any changes the developer wishes to make, especially if the TP1 accurately reflects what was agreed at the time of transfer.
   • If the developer seeks rectification through the court, you can present evidence and arguments as to why you believe the TP1 should remain unchanged.
   • If the error in question does not materially affect the developer’s rights or interests, or if it would disadvantage you unfairly, you may have grounds to object successfully.
4. Common Scenarios Where Developers Seek Correction:
   • Boundary or Access Issues: If there was an error in the boundary delineation, it might affect the developer’s or other properties’ rights of access. Developers may seek correction in such cases to clarify boundaries or to establish access rights.
   • Easements or Covenants: Errors in easements (like rights of way) or restrictive covenants (like building restrictions) can sometimes prompt a developer to seek correction if it affects their planned development or access to other properties.
5. Mediation or Negotiation:
   • Before escalating to legal action, many disputes over TP1 corrections can be resolved through negotiation or mediation. This approach can be faster and less costly than going to court.
6. Impact of Refusing Corrections:
   • If the developer cannot prove that the error materially affects their rights, they may struggle to enforce a correction without your consent.
   • However, if the developer can demonstrate that the error impacts access, development rights, or legally agreed boundaries, and you refuse a reasonable correction, they may have grounds to seek rectification through the courts.

Summary

If there are errors in your TP1 and you do not wish to make changes, the developer may still have options to pursue a correction, especially if the error impacts their rights or interests.

They could seek rectification through mutual agreement, court action, or an application to the Land Registry.

However, as the property owner, you have the right to object to any changes, particularly if the TP1 reflects what was agreed upon at the time of transfer and if the correction would unfairly disadvantage you.

Why is this Important to Clients of Residents First?

We have been liaising with residents that have discovered errors in the TP1 that they signed as part of the house purchasing process. After all, it’s a legally-binding document, isn’t it?

Their working theory is: if there is no evidence in their TP1 of a direct link between the Management Company and an communal facility that the Management Company is responsible for maintaining, then perhaps the Management Company has no right to impose a Service Charge Fee on them.

That might be the case, but it’s not as cut and dried as that. This argument may provide residents an opportunity to side-step their obligation to pay a Service Charge Fee, but the Developer might have options to correct the situation.