Land Registration (Network Access) Rules 2008

rose to move, That the Grand Committee do report to the House that it has considered the Land Registration (Network Access) Rules 2008. The noble Lord said: These draft rules are an important building block in creating a system of electronic conveyancing in England and Wales, as envisaged by the Land Registration Act 2002. The creation of a legal framework for electronic conveyancing was perhaps the most important single purpose of the Land Registration Act 2002. In a joint consultation by the Law Commission and the Land Registry, which preceded the drafting of that Act, the concept was supported in principle by almost 80 per cent of respondents. The Act enables the Land Registry to set up a land registry network to be used for electronic conveyancing. It provides that a person who is not a member of the Land Registry staff may have access to the network only if authorised by a network access agreement entered into with the Chief Land Registrar. These draft rules make provision about those network access agreements. The Information Commissioner’s Office has been consulted on the rules and is comfortable with the measures that are being made at this stage of design and development to minimise the data protection risks. The office is pleased that the Land Registry has attached importance to data protection compliance in the development of this work, and it will continue to provide advice and guidance as it progresses. A draft of these rules was the subject of a public consultation in the first half of last year. Amendments have been made to the rules to take account of concerns expressed by respondents. Further details are given in the report on the responses to the consultation paper. Copies of this report have been placed in the Library, and an electronic copy is available on the Land Registry’s website. The most common concern expressed by respondents related to the proposed provisions for the limitation and exclusion of liability which the rules required to be included in network access agreements. As well as making some modifications to the draft rules to meet many of these concerns, the Land Registry proposes to set up a scheme under which ex gratia payments would be made to people, other than professional conveyancers, who suffer loss in the event of problems with the network caused by an error or fault on the Land Registry’s part. It will therefore benefit the conveyancers’ clients—the actual sellers or buyers, mortgagers and so forth. Once these rules are in force and the network is in place, electronic conveyancing by way of the network will be introduced in stages and will be piloted on a voluntary basis. These rules need to be in place before the first of these stages, so that professional conveyancers can enter into network access agreements in readiness for undertaking transactions on the network. If this draft is approved by Parliament, it is planned that, from later this summer, certain applications will be able to be made by way of the network. The first stage of electronic conveyancing, which is currently planned to start by the end of this year, will involve electronic charges for use in remortgages and second mortgages of registered land. Rules, subject to the negative procedure, will make provision that allows these charges to be created in electronic form using the network. They will also make provision as to how to go about transactions carried on by means of the network. Further rules, subject to the negative procedure, will deal with the procedure for appealing against a decision by the registrar on entry into, or termination of, a network access agreement. Both these sets of rules were the subject of a public consultation in the latter part of last year. In the second stage, which is due to begin in 2009-10, the intention is to introduce transfers of registered land. Again, secondary legislation, under the negative procedure, will be required to allow for these dispositions to be effected electronically. These draft rules are essential first steps in establishing a Land Registry network to enable electronic conveyancing to move forward and I commend them to the Committee. I beg to move. Moved, That the Grand Committee has considered the Land Registration (Network Access) Rules 2008. 13th report from the Joint Committee on Statutory Instruments.—(Lord Hunt of Kings Heath.)