I move: "That the Bill be now read a Second Time."
I regret that the Minister for Justice, Equality and Law Reform, Deputy McDowell, is unable to be here owing to another commitment but I welcome this opportunity to bring the Registration of Deeds and Title Bill 2004 before the House. The debate and discussions that have already taken place in the Seanad were constructive and helpful and the Minister tabled a number of amendments in response to concerns raised there. He also took the opportunity to insert a new Part in the Bill, Part 2, which provides for establishment of the property registration authority. This new authority will be responsible for the control and management both of the Registry of Deeds and the Land Registry and for promoting registration of title to land. The explanatory memorandum has been updated to take account of the amendments made during the Bill's passage through the Seanad.
On the substance of the Bill, it is beyond doubt that effective and efficient property registration structures and systems are essential requirements for a successful economy. There are several reasons for this. Registration of ownership of land confirms and underpins the owner's rights to use and enjoy that land. For example, it is necessary to be able to demonstrate good title to sell or transfer the land, whether the owner is trading up or down. This is important whether the owner is a private individual or a business enterprise.
Having good title to land allows the owner to make use of the asset to borrow funds which, in the case of a company, may be needed to launch or expand a business enterprise or to diversify into another area of commercial activity. In the case of private individuals, remortgaging a property may be undertaken to extend a family home or to assist a family member to gain a foothold on the property ladder. Looked at from this perspective, it is clear that effective land registration systems have the capacity to contribute in a meaningful way to entrepreneurial and economic activity in the country.
Efficient registration systems, by which I mean systems in which registration procedures are straightforward, delays are avoided and costs are kept to a minimum, also have the capacity to enhance national competitiveness by making the country a more attractive investment location within the international community. In this context, it is interesting that the World Bank has recently drawn attention to the importance of sound property registration systems as a means of improving the climate for business and enhancing business activity.
The main aims of the Bill are to restructure and modernise land registration structures in the State, update and streamline the law relating to registration of deeds and reform the law relating to the registration of title to land. The new property registration authority will be a statutory body with a representative board on the lines of the existing Courts Service. The Minister's intention is that the composition of the new authority will bring stakeholder expertise to bear in the discharge of its functions. This new structure is intended to facilitate stakeholder involvement in the strategic management and modernisation of registry services, provide channels of knowledge of and feedback from the conveyancing and property sectors leading to increased responsiveness to customer needs and ensuring quality customer service, make commercial and business expertise available to the new authority to ensure cost-effectiveness in the provision of services, facilitate staff representation to ensure staff participation in the management of change within the new organisation and increase the visibility and profile of the property registration services.
Part 2 contains provisions relating to establishment of the property registration authority, including its membership, functions and staffing. One of its main functions, apart from managing and controlling the Registry of Deeds and the Land Registry, will be to promote and extend the registration of ownership of land. When the Registration of Title Act 1964 was enacted more than 40 years ago, hopes were high that registration of title in the Land Registry would gradually replace the Registry of Deeds system. Specific provision was made in section 24 of that Act for extending the compulsory registration system on a geographical basis. Subsequently, a 1969 ministerial order extended compulsory registration to counties Carlow, Laois and Meath.
For whatever reason, no further extension of compulsory registration took place until the Minister made an order last September which has the effect of extending compulsory registration to counties Longford, Roscommon and Westmeath with effect from 1 April 2006. The result of inaction over several decades is that the new authority will face a considerable challenge in its task of achieving a decisive shift toward the registration of title system within a reasonable timeframe. This task is urgent for another reason, namely, that the Law Reform Commission has concluded that the comprehensive system of e-conveyancing to which we aspire can only operate in respect of registered land.
The Minister believes the active involvement of all stakeholders, especially conveyancing and business interests, will be crucial to creating a climate which supports progress in this area. He intends in due course to request the new authority to address this particular challenge in its first strategic plan.
Section 9 provides for establishment of the new authority, while section 10 deals with its functions. These include the management and control of the Registry of Deeds and the Land Registry, the promotion and extension of the registration of ownership of land, the processing of applications under Part III of the Landlord and Tenant (Ground Rents)(No. 2) Act 1978 and the undertaking of research projects relating to the registration of land. The authority will also keep the Minister informed of progress on the registration of land and perform any additional functions conferred on it.
Provisions relating to membership of the authority are contained in section 11. The authority will have 11 members, including a chairperson to be appointed by the Minister. Membership will include representatives of the Law Society, Bar Council and the staff of the authority. The section also deals with the resignation or removal of a member from the authority. Section 12 deals with the filling of vacancies, while section 16 deals with meetings of the authority.
Sections 13 to 15, inclusive, are standard provisions for this type of authority. Section 13 deals with membership of the Oireachtas or European Parliament. Section 15 deals with the disclosure of interests by members of the authority under section 14 and non-disclosure of confidential information.
The appointment of specialist advisory committees, advisers or consultants is provided for in section 17. Such appointments can only be made with the approval of the Minister. This section also provides that the authority may engage contractors to provide such services as it considers necessary with the approval of the Minister and the consent of the Minister for Finance.
Section 18 provides for the preparation and submission to the Minister of strategic plans by the authority, while section 19 deals with the making of other reports to the Minister. It is intended that such plans and reports shall be laid before each House of the Oireachtas.
Section 20 provides that the Minister may issue general policy directives to the authority on the registration of deeds or the registration of ownership of land or any other function of the authority. However, nothing in the Act can be construed as enabling the Minister to exercise control or power in specific cases being dealt with by the authority.
The fees to be charged by the authority for its services are provided for in section 21. It provides that the Minister, with the consent of the Minister for Finance, may by order fix the fees to be charged by the authority for its services. It provides that they shall not be fixed at a level which would produce an annual amount less than that required to meet the salaries, remuneration and other expenses of the authority. Fee income shall be paid into the Exchequer.
Section 22 provides for appointment of a chief executive, the delegation of functions and the carrying out of the functions of chief executive in his or her absence. It is intended that the current Registrar of Deeds and Titles will become the first chief executive of the new authority and this is provided for in subsection (9). Section 23 provides that the chief executive shall be the Accounting Officer for the purposes of the Comptroller and Auditor General Acts, while section 24 makes provision for attendance of the chief executive before Oireachtas committees.
The appointment of staff to the authority is dealt with in section 25. Section 26 provides that every person who immediately before the establishment day was a member of the staff of the Land Registry or Registry of Deeds shall become a member of the staff of the authority on that day. Staff shall remain civil servants in the service of the Government.
Section 27 provides for the transfer of land and other property to the authority on establishment day. It also provides that all records and documents held by the Land Registry or Registry of Deeds before establishment day will stand vested in the authority on that day. Sections 28 and 29 are transitional provisions relating to contracts and proceedings pending at establishment day.
Section 30 is also a transitional provision relating to the validity of acts done prior to establishment day on behalf of the Registrar of Deeds and Titles.
Part 3 of the Bill contains new provisions relating to the registration of deeds. The registration of deeds system, operated by the Registry of Deeds, provides for the registration of documents relating to land with a view to establishing priorities between documents dealing with the same piece of land. The act of registering a document does not in itself guarantee title to the land covered by that document. In this important respect, registration of deeds differs fundamentally from the registration of a title which, in effect, registers ownership of the land.
The Registry of Deeds was established under the Registration of Deeds Act (Ireland) 1707 and many of the registry's current practices and procedures are still governed by that Act, and by other antiquated statutes dating from the 18th and 19th centuries. The result is that the registry simply does not have the required margin of operational flexibility to respond adequately to the changed conditions of today. In short, there is now an urgent need to replace the current system with provisions more suited to modern conditions. This requires the outright repeal of the eight old statutes under which the Registry of Deeds still operates and their replacement with appropriate provisions geared to the changed conditions of today.
At this point, it should be acknowledged that the Registry of Deeds has served this country well since its establishment in 1707. I also want to take this opportunity to thank the current Registrar of Deeds and the registry's staff for their work and commitment. Rather than replace the repealed statutes with equally detailed provisions, it is intended that the detailed registration and other formalities will be set out in general rules to be made under section 47. Where possible, the detailed provisions regarding deeds will correspond with those relating to the registration of title under the Registration of Title Act 1964. This will help the authority to ensure a coherent approach to the registration of both deeds and title.
Section 31 is a standard provision that contains definitions of terms used in this Part. It should be noted that the definition of deed includes a reference to information in electronic or non-legible form which is capable of conversion to legible form. This is included in order to permit the computerisation of records and other data.
Section 32 makes provision for a registry of deeds under the management and control of the property registration authority. Section 34 provides that a register of deeds, which may be in an electronic or other form capable of conversion into a permanent legible form, shall be maintained and that the form of this register shall be prescribed in general rules. Section 33 contains transitional provisions.
Section 35 provides that the application procedure, and the procedure by which registration is to be given effect, shall be prescribed in general rules. Section 36 changes the way in which applications for registration are to be recorded. In future, applications for registration will be allocated a serial number. Section 37 provides generally that the priority accorded to registered documents will be based on the serial number allocated under section 36. A deed which is not registered will continue to be void against a registered deed affecting the land concerned.
Section 38 is a technical provision which relates to memorials of deeds in cases where execution by grantees only is proved. The rectification of errors is provided for in section 39. The section is based on the corresponding section 32 of the 1964 Act. Section 40 deals with registration, or attempted registration, by means of a false deed.
While section 34 provides for the keeping of a register of deeds, section 41 relates to the retention of other records by the Registry of Deeds. It provides for the keeping of records such as indexes in a prescribed form, including by electronic means. Section 42 provides for searches of records kept by the Registry of Deeds, while section 43 deals with the inspection, search and examination of such records. Section 44 provides for judicial notice to be taken of certified copies of entries in the register etc., including reproductions of documents and records kept in electronic format.
Under existing legislation, the Registry of Deeds was required to maintain an index of lands. For whatever reason, this has not been done for almost 60 years. Section 45 deems the index to have closed on 31 December 1946. Section 46 deals with the closing of certain other records. The Registry of Deeds Act 1832 required that certain books be kept in parchment form. However, these books were not maintained during certain periods. The purpose of this provision is to deem the books to have been closed during the periods when they were not properly maintained.
Section 47 is a key section of the Bill. It provides for the making of general rules by the registration of deeds and title rules committee established under section 63. As I mentioned earlier, the keeping of registers, forms of application etc., is governed by the old statutes. It is necessary to replace this detailed legislation with a mechanism which will allow the Registry of Deeds to operate in a flexible and efficient manner. It is proposed, therefore, to give the registration of deeds and title rule committee the task of making general rules which will take the form of regulations under the Act. Section 48 is a transitional provision relating to the priority and registration of deeds registered prior to commencement of Part 3 or to deeds lodged for registration before such commencement.
Part 4 of the Bill contains a series of amendments of the Registration of Title Act 1964. These amendments are intended to clarify certain aspects of the law relating to the registration of title, to improve efficiencies within the Land Registry and to extend the registration of title system. In particular, they will provide the Land Registry with the means to develop and operate an e-conveyancing system.
Section 49 amends certain definitions in section 3 of the 1964 Act. In particular, it substitutes an amended definition of register and inserts a new definition of index in order to facilitate computerisation of records. Both definitions will contain references to material "kept in electronic or other non-legible form which is capable of being converted into a permanent form". It also provides for deletion of the definitions of "local office" and "local registrar" since the computerisation of registers will obviate the need to keep and maintain duplicates in local offices for inspection locally. In future, access to the registers will be available by electronic means.
Section 50 substitutes a new section 7 in the 1964 Act and provides that the Land Registry will be under the control and management of the property registration authority. Section 51 amends section 23 of the 1964 Act. It responds to a recommendation by the Law Reform Commission to exempt lands covered by the Irish Church Act 1869 from the compulsory registration provisions of the 1964 Act. Following its consideration of practical problems arising in this area, the commission concluded that what was required was a provision that would absolve non-compliant owners from the obligation to register. This is the purpose of paragraphs (a) and (b). These changes are in turn linked with the amendment in section 49 which deletes the reference to the Irish Church Act 1869 from the definition of the Land Purchase Acts.
Section 52 amends section 24 of the 1964 Act. It will permit extensions of compulsory registration, not only to specified geographical areas as at present, but also to specific categories of buildings or land. In addition, the Minister will be empowered to extend, by order, compulsory registration to dispositions other than sales or assignments of land. In short, the section provides the means of extending compulsory registration by means other than the geographical route set out in the 1964 Act.
Section 53 substitutes a new section for section 25 of the 1964 Act. It provides that in cases where compulsory registration applies, the person acquiring the interest in land must register the change of ownership within six months of such acquisition. Section 32 of the 1964 Act is amended by section 54. It will enable the authority to amend errors originating in the Land Registry where it is satisfied the error can be rectified without injustice to any party.
Increased use of digital maps will be important in the context of e-conveyancing and the Land Registry is undertaking a major project in this area. Section 55 substitutes a new section 84 in the 1964 Act which will allow the authority to use electronic or digitalised maps. Section 56 deals with the description and identification of registered lands and substitutes a new section for section 85 of the 1964 Act.
Section 90 of the 1964 Act is amended by section 57, which widens the powers conferred by it to include the granting of a lease, easement or profit à prendre in respect of property. The amendment also provides that the Minister for Agriculture and Food shall have powers previously conferred on the Land Commission.
The computerisation of registers, maps and indexes will of necessity require changes to the inspection and searches of registers and maps. Section 58 amends section 107 of the 1964 Act to allow for inspection of material in the form in which it is stored or in a legible reproduction of it.
Section 120 of the 1964 Act deals with compensation for error, fraud or forgery related to the Land Registry. Section 59 removes a reference in section 120 to the determination of a claim by the registrar, a matter that has been the subject of adverse comment by the courts.
The Law Reform Commission has stated section 123 of the 1964 Act does not appear to apply to the granting of appurtenant rights such as an easement or profit à prendre. The absence of these words of limitation would probably mean the easement or profit would last for the lifetime of the grantee only, which is obviously not the intention. This is remedied in section 60 which inserts three new subsections in section 123 of the 1964 Act.
Section 61 is a new provision which will permit judicial notice to be taken of certified copies of entries in registers etc., including reproductions of documents and records kept in electronic format. Section 62 amends section 126 of the 1964 Act to take account of the new registration of deeds and title rules committee. The intention is that this new committee, which will replace the registration of title rules committee established under section 73 of the Courts of Justice Act 1936, will make general rules relating to both for the Registry of Deeds and the Land Registry.
Part 5 deals with the new registration of deeds and title rules committee. Section 63 establishes the new committee to perform the functions assigned to it under sections 47 and 126 of the 1964 Act, while section 64 provides that it shall meet at least yearly and report to the Minister for Justice, Equality and Law Reform.
Part 1 of the Schedule lists the enactments relating to the registration of deeds repealed by section 4. Part 2 contains a listing of provisions relating to registration of title also being repealed as a consequence of establishment of the property registration authority.
While it addresses a range of structural and technical issues, the Bill is enormously important in the overall context of the registration of ownership of land. I commend it to the House.