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I am writing this post as the subject crops up regularly, so that I can point posters to this post rather than repeat it time and again.
IMPORTANT: This only applies to charging orders registered as an equitable charge over the interest of one of two or more joint owners of property.
In such a case, the restriction entered on the Land Registry title document will almost certainly be a Land Registry form K restriction. The wording is as follows.
So, if you are selling your house, and there is a form K restriction registered, you do not need to pay the charging order creditor. Your buyer('s solicitor) needs to give written notice of the sale to the named judgement creditor at the address given. Read the words of the restriction again:
Too many conveyancers seem not to understand this, and it seems that sometimes this point needs to be hammered into them.
In truth, a charging order with a Form K restriction affords little protection to a judgement creditor.
IMPORTANT: This only applies to charging orders registered as an equitable charge over the interest of one of two or more joint owners of property.
In such a case, the restriction entered on the Land Registry title document will almost certainly be a Land Registry form K restriction. The wording is as follows.
No disposition of the
{choose whichever bulleted clause is appropriate}
is to be registered without a certificate signed by the applicant for registration or their conveyancer that written notice of the disposition was given to [name of person with the benefit of the charging order] at [address for service], being the person with the benefit of [an interim or a final] charging order on the beneficial interest of {name of judgment debtor} made by the {name of court} on [date] (Court reference {insert reference}).
{choose whichever bulleted clause is appropriate}
- registered estate, other than a disposition by the proprietor of any registered charge registered before the entry of this restriction
- registered charge dated {date} referred to above, other than a disposition by the proprietor of any registered sub-charge of that charge registered before the entry of this restriction
is to be registered without a certificate signed by the applicant for registration or their conveyancer that written notice of the disposition was given to [name of person with the benefit of the charging order] at [address for service], being the person with the benefit of [an interim or a final] charging order on the beneficial interest of {name of judgment debtor} made by the {name of court} on [date] (Court reference {insert reference}).
No disposition of the ... registered estate ... is to be registered without a certificate signed by the applicant for registration or their conveyancer that written notice of the disposition was given to [name of person with the benefit of the charging order] at [address for service]...
In truth, a charging order with a Form K restriction affords little protection to a judgement creditor.
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