Land Registry
Registering the new/continuing Trustees at the Land Registry
You are likely to need professional help.
Scotland:
In Scotland, the Land Register Title does not have to be updated, but you may do so (for a fee) if you wish. It remains valid even though the trustees have changed. In the Scottish title sheets we have seen the description of the proprietors refers to the Settlor and the McClures names acting together as the trustees of the FPT and “successors in office as such Trustees and their assignees and disponees whomsoever”, or something very similar. The continuing and new trustees on the DOAR used to change the trustees are within this description of proprietors as assignees and disponees of the present named trustees, so the register does not need to be changed. Updating could perhaps therefore await a future sale, or the winding up of the trust and transfer of the property back to the Settlor. Note though we have heard of long delays and other problems with property sales caused by the McClures trustees still being named on the title register.
Advice on the ROS website at these links below shows not only that it can be updated for a change of trustees but also that the ROS strongly encourages such applications.
LINK: Register of Scotland
LINK: ROS Updating a Land Register File
If you do not have the Land Register updated, then you must make an entry in the new Register of Controlling Interests in Land (RCI).
For the Scotland Land Register the ROS advice is “You will need to contact a Solicitor and seek advice on how to change ownership”. Essentially, the title has to be transferred from the old to new/continuing Trustees using a document called a ‘Disposition’ which is then registered at the Land Register. Outgoing Trustees must sign the Disposition, so you need their co-operation. It is possible to combine the Disposition and the DOAR in a single document known as a Deed of Assumption, Conveyance and Retirement/Resignation.
Registration in the new Register of Controlling Interests in land (RCI)
The RCI applies only to land and property in Scotland, and only if there are persons who have an otherwise undisclosed controlling interest in how the land is owned, tenanted, or managed. The deadline for registration if required was 1st April 2024. It does not apply to those who own their own home, where there is no one who has significant influence or control over them. In principle it can apply to trusts owning a house but provided that all the current trustees are recorded as proprietors in the Scotland Land Register and there is no one else with significant influence or control over the trustees then an entry on the RCI is not required.
LINK: ROS Updating a Land Register File
Updating the Land Register for the removal and replacement of the McClures trustees will mean no entry on the RCI is required.
If the Land Register is NOT updated for a change in trustees, you MUST register with the RCI, or the new trustees will be liable for fines.
England and Wales
You will definitely run into difficulties on a future sale if the McClures names are left on your title register. Unless you are intending to wind up the trust in the short term you should not delay updating the register.
The transfer of title to the new/continuing Trustees is normally done using HM Land Registry form TR1. Both old and new/continuing Trustees must sign so you will need the co-operation of the McClure’s Trustees.
We have agreement with the HMLR, that those who have been impacted by McClures, their cases will be expedited. Ensure your solicitor involved requests this, or you can request for it to be expedited yourself – otherwise you can be waiting for up to 12 months.
If you have used a DORA (not a DOAR) to change the Trustees of an English Trust using the Settlor’s powers, then it may be possible to register the change without needing a form TR1 signed by the McClures Trustees. However, this will only be possible if there is only one trust holding the entire property. Get advice from your solicitor on this.