Land Registry charge scale
Deputies questioned whether Land Registry fees should reflect transaction value and risk to the compensation fund. The Minister agreed to look into the matter.
asked the Minister for Justice if he has satisfied himself that the scale of charges operated by the Land Registry is appropriate, given the recent increase in property values, and given that a transaction involving a value of £40,000 will be charged for at the same rate as a transaction to the value of £4 million; and if he will make a statement on the matter.
Comment on this
I assume that the question relates to fees for transactions involving conveyances of registered land. As the Deputy is no doubt aware, the Land Registry is required by law to be self-supporting. In deciding on the level of fees required to provide for this, regard is had to the work involved in each particular category of transaction and also to the number of transactions in each category.
There are 18 different categories of fees, 17 of which are fixed rates, ranging from 30 pence to £30, relating to specific transactions. One fee depends on the value of the transaction and can range from £50 to £200, which is the maximum fee payable in any one transaction.
The maximum fee was deliberately set at £200 so that a fee which would be out of proportion to the registration work involved would not be charged for any transaction.
I am satisfied that the level of fees in the Land Registry has been generally satisfactory in achieving as reasonable a relationship as possible with the work involved in each category of case as well as conformity with the statutory need to be self-sufficient. I should add that the current fees are substantially lower in real terms than they were 20 years ago.
Comment on this
Would the Minister not consider redrawing the scale of charges or allowing the Land Registry to do so in the light of the fact that there is a compensation fund which is attached to the Land Registry transactions and which, obviously, is related to the risk involved in each transaction? A sum of £200 is the highest fee that can be charged and that allows for the fact that a transaction involving a figure of £40,000 does not hold the same risk as one involving say, £4 million. Surely the charges should reflect the risk involved to the compensation fund.