Conveyancers face significant financial burdens due to errors in HM Land Registry applications, costing up to £3.6 million annually, according to recent estimates.
The issue arises from conveyancers failing to correctly enter names and other details in applications to HM Land Registry (HMLR), resulting in costly corrections. Requisitions, which are requests to amend the register when applications are incomplete or incorrect, have been identified as a major factor. These requisitions could be costing the legal profession as much as £19 million overall.
Ilia Bowles, HMLR’s Head of Directorate Planning, indicated that 22% of the over 4.4 million applications received last year required a requisition. Each requisition involved, on average, two points needing correction. Such errors lead to delays, as they add approximately fifteen working days to the registration process.
The main types of errors include variations in names, missing information, issues with plans and descriptions, identity verification failures, and lack of required evidence. Notably, variations in names accounted for 114,000 requisitions in the past year. Addressing these clerical mistakes costs between £5 and £30 per error, accumulating to a potential expenditure of between £3.2 million and £19.1 million annually across the industry.
To tackle this issue, HMLR plans to enhance caseworker capabilities and develop systems to minimize simple errors. They aim to ‘design out’ these errors through improved systems and consistent guidelines, helping conveyancers submit accurate applications the first time. An audit revealed inconsistencies in one out of ten requisitions, prompting further efforts to standardise practices.
Moreover, with the advent of digital application submissions—comprising over 90% of the total—HMLR is focusing on data validation enhancements. This entails replacing extensive manual post-submission checks with automated systems that compare application details against existing registers before submission. This is intended to prevent common errors and streamline the process further.
The financial impact of avoidable errors in land registry applications is considerable, highlighting the need for more robust systems and processes. By undertaking initiatives to enhance accuracy and efficiency, HMLR seeks to mitigate these challenges, ultimately improving service delivery for conveyancers and their clients.
