(2) how many complaints were received by the Land Registry regarding errors in or omissions from register entries in respect of indemnity claims in each of the last four years; and if he will make a statement;
(3) with reference to the table on page 44 of the Land Registry Annual Report 2007-08, what criteria apply to the calculation of substantive loss in respect of Land Registry indemnity claims; and if he will make a statement;
(4) with reference to the Land Registry Annual Report 2007-08, if he will publish an updated version of the table on page 44 providing the same information in respect of indemnity claims for 2008-09.
The Land Registration Act 2002 makes provision for the payment of statutory compensation or ‘indemnity’ where a mistake arises, which includes not only mistakes in the register itself but also, for example, mistakes in official copies of documents referred to in the register or mistakes in official searches of the register. The Land Registration Act 2002 sets out the circumstances in which the register can be altered so as to put right a mistake and also the circumstances when this is not possible. Mistakes in the register can result in losses to those affected by them whether or not the register is subsequently altered and Land Registry will where appropriate pay indemnity to compensate anyone who suffers loss as a result of the rectification of the register (where the register is altered to correct the mistake and this prejudicially affects a registered title), or as a result of a mistake in the register that could have been rectified but for some reason (for example because land is in the possession of an innocent registered proprietor) was not.
The following tables show details of the number and nature of claims over the last four years. The number of claims received, paid and monetary value of such claims has been recorded from 2006-07. Prior to that date, it was not Land Registry practice to record either the number of claims received or the amount claimed. When the number of claims received is fewer in number than the total this is because a claim is not necessarily paid in the year in which it is received.
The tables include information on indemnity claims as a result of errors and omissions in register entries. The question of the number of complaints about this type of error is a different issue. It does not necessarily follow that a complaint will be received when a mistake resulting in a payment has been made or, conversely, that a payment will be made when a complaint is received. Land Registry has specific complaint category records from 2008-09. During this period 182 complaints were received about this type of mistake.
Land Registry does not itself calculate the value of an indemnity claim, so there are no criteria as such to apply to the calculation of substantive loss in this respect. Instead, the claimant or their legal representative submits a claim based on the value of the loss (including any legal or other costs) caused by the mistake in the register and Land Registry considers the claim in the light of the individual facts and in accordance with the provisions of the Land Registration Act 2002. It may follow that a claim is reduced through negotiation or because, for example, there has been negligence or ‘lack of proper care’ on the part of the claimant. In some cases a professional valuation is obtained in order to quantify the value of a claim. In the absence of agreement, the Land Registration Act 2002 entitles a claimant to seek a determination from the court as to any question of entitlement and the amount of any such indemnity.
Land Registry may also pay indemnity in respect of legal and other costs, where appropriate.
Land Registry’s Annual Report always contains an Indemnity Report. The table for the year 2008-09 is within the recently published report and a copy is also set out as follows:
Nature of claim Number of claims paid Substantive loss paid (£) Legal costs paid (£) Percentage of total Extent of registered titles 487 1,696,162.58 1,272,091.06 21.03 Errors in/omissions from register entries 181 533,582.82 328,818.11 6.11 Sundry plans errors 52 15,617.81 117,589.04 0.94 Fraud and forgery 31 8,632,656.95 1,201,960.78 69.67 Official inspections of Title Plans 18 26,065.14 28,276.03 0.38 Bankruptcy Errors 3 34,379.30 0 0.24 Official Searches 9 16,503.55 4,580.50 0.15 Office Copies 5 700 1,359.70 0.01 Errors in SIMS 36 73,441.06 24,368.48 0.69 Errors in filed extracts 3 195 160 0.003 Lost documents/administrative errors 169 43,796.61 63,650.53 0.76 Land Charges Errors 3 46 41.12 0.0006 Total 997 11,073,146.82 3,042,895.35 — Gross Payment made (£) 14,116,042.17 — Less sums recovered under the Land Registry’s statutory right of recourse (£) — — 178,809.97 — Net Indemnity Paid (£) — — 13,937,232.20 —
Nature of claim Number of claims paid Number of claims received Amount claimed (£) Substantive loss paid (£) Legal costs paid (£) Percentage of total Extent of registered titles 331 197 7,250,189 1,207,312.23 652,088.67 35.39 Errors in/omissions from register entries 152 104 881,952 530,203.50 143,185.43 12.82 Sundry plans errors 45 39 82,553 172,246.99 58,758.08 4.40 Fraud and forgery 24 31 3,282,104 2,001,137.11 122,359.23 40.42 Official inspections of Title Plans 16 14 74,313 52,454.99 62,653.89 2.19 Bankruptcy Errors 0 0 0 0 0 0 Official Searches 8 8 19,303 4,280.36 5,033.89 0.18 Office Copies 9 9 1,041 110 1,230.72 0.03 Errors in SIMS 19 20 241,227 3,392.42 15,152.53 0.35 Errors in filed extracts 18 23 5,795 1,062.00 8,125.95 0.17 Lost documents/administrative errors 249 220 349,468 113,781.73 98,040.29 4.03 Land Charges Errors 2 0 0 806.50 0 0.02 Total 873 665 12,187,947 4,086,787.83 1,166,628.68 100 Gross Payment made (£) — — — — 5,253,416.51 — Less sums recovered under the Land Registry’s statutory right of recourse (£) — — — — 654,715.36 — Net Indemnity Paid (£) — — — — 4,598,701.15 —
Nature of claim Number of claims paid Number of claims received Amount claimed (£) Substantive loss paid (£) Legal costs paid (£) Percentage of total Extent of registered titles 360 242 1,216,972 750,244.31 879,272.43 17.89 Errors in/omissions from register entries 148 119 3,392,744 1,795,681.27 326,818.24 23.30 Sundry plans errors 39 34 30,705 13,611.23 22,747.87 0.40 Fraud and forgery 60 53 6,335,864 3,429,131.38 524,246.64 43.39 Official inspections of Title Plans 11 10 36,312 20,000 8,579.83 0.31 Bankruptcy Errors 1 1 18,629 0 18,628.94 0.20 Official Searches 15 10 895,421 421,557.93 31,597.14 4.97 Office Copies 22 26 41,006 875.35 3,859.20 0.05 Errors in SIMS 33 21 39,620 1,084.30 30,029.54 0.34 Errors in filed extracts 51 38 14,852 89,651.52 29,294.07 1.31 Lost documents/administrative errors 331 308 723,486 40,805.41 157,113.50 2.17 Land Charges Errors 1 0 0 450,000 65,388.75 5.66 Total 1072 862 12,745,611 7,012,642.70 2,097,576.15 100 Gross Payment made (£) — — — — 9,110,218.85 — Less sums recovered under the Land Registry’s statutory right of recourse (£) — — — 72,535.89 — Net Indemnity Paid (£) — — — — 9,037,682.96 —
Nature of claim Number of claims paid Number of claims received Amount claimed (£) Substantive loss paid (£) Legal costs paid (£) Percentage of total Extent of registered titles 431 316 3,240,957 1,018,056.69 713,363.13 17.21 Errors in/omissions from register entries 175 144 3,999,026 1,994,887.52 433,617.33 24.14 Sundry plans errors 45 36 116,142 340,128.92 46,290.67 3.84 Fraud and forgery 62 82 9,237,179 4,257,074.48 815,038.95 50.42 Official inspections of Title Plans 18 14 88,400 13,358.00 19,851.29 0.33 Bankruptcy Errors 0 0 0 0 0 0.00 Official Searches 14 10 9,718 431.94 4,218.95 0.05 Office Copies 22 18 7,531 707.85 15,785.28 0.16 Errors in SIMS 40 30 150,877 74,399.53 38,376.27 1.12 Errors in filed extracts 62 51 30,289 12,380.83 19,250.39 0.31 Lost documents/administrative errors 495 473 634,677 125,434.63 116,292.74 2.40 Land Charges Errors 0 2 1,559 0 0 0 Total 1364 1176 17,516,353 7,836,860.39 2,222,085.00 100 Gross Payment made (£) — — — — 10,058,945.39 — Less sums recovered under the Land Registry’s statutory right of recourse (£) — — — — 89,235.00 — Net Indemnity Paid (£) — — — — 9,969,710.39 —