Contract for sale of house affected by registered charge to include term requiring cancellation of registration before completionE+W
3(1)Where one spouse [F1or civil partner] is entitled by virtue of section 31 to a charge on an estate in a dwelling-house and the charge is registered under section 31(10) or section 2 of the Land Charges Act 1972, it shall be a term of any contract for the sale of that estate whereby the vendor agrees to give vacant possession of the dwelling-house on completion of the contract that the vendor will before such completion procure the cancellation of the registration of the charge at his expense.E+W
(2)Sub-paragraph (1) shall not apply to any such contract made by a vendor who is entitled to sell the estate in the dwelling-house freed from any such charge.
(3)If, on the completion of such a contract as is referred to in sub-paragraph (1), there is delivered to the purchaser or his [F2legal representative] an application by the spouse [F3or civil partner] entitled to the charge for the cancellation of the registration of that charge, the term of the contract for which sub-paragraph (1) provides shall be deemed to have been performed.
(4)This paragraph applies only if and so far as a contrary intention is not expressed in the contract.
(5)This paragraph shall apply to a contract for exchange as it applies to a contract for sale.
(6)This paragraph shall, with the necessary modifications, apply to a contract for the grant of a lease or underlease of a dwelling-house as it applies to a contract for the sale of an estate in a dwelling-house.
Textual Amendments
F1Words in Sch. 4 para. 3(1) inserted (5.12.2005) by Civil Partnership Act 2004 (c. 33), ss. 82, 263, Sch. 9 para. 15(3); S.I. 2005/3175, art. 2(1), Sch. 1
F2Words in Sch. 4 para. 3(3) substituted (1.1.2010) by Legal Services Act 2007 (c. 29), ss. 208, 211, Sch. 21 para. 121(b) (with ss. 29, 192, 193); S.I. 2009/3250, art. 2(h) (subject to arts. 6, 9)
F3Words in Sch. 4 para. 3(3) inserted (5.12.2005) by Civil Partnership Act 2004 (c. 33), ss. 82, 263, Sch. 9 para. 15(3); S.I. 2005/3175, art. 2(1), Sch. 1