Relying on liens registered as a burden on registered lands

Important decision on relying on liens registered as a burden on registered lands

The registration of deeds and title Act 2006 abolished land certificates. It also required that “liens by deposit (which involved depositing the land certificate with the lender) had to be registered as burdens prior to the 31st of December 2009 in order to be valid”. The Act extinguished any such liens that were not registered by the deadline of the 31st of December 2009 and also prevented the future creation of such liens.

In a recent case involving Promontoria (Oyster) DAC v John Fox [2020], the Applicant creditor brought an application in relying on a lien registered as a burden on registered lands and security for certain loan agreements which were entered into after the said deadline of December 2009.

The Court rejected the proposition that the registered lien covered the post-registration borrowings. It went on to explain that the registration in 2009 caused the equitable nature of the lien to cease and the only method now of securing a debt against the ownership of registered land was by way of a charge.

 

For any queries on any property/mortgage-related matter, please do not hesitate to contact Pauline Horkan or Sally-Ann McCoy on 01 296 0666.