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Following commencement of the Land and Conveyancing Law Reform Act 2009, all Land Registry charges must be in the form prescribed or approved by the PRA, and there will be a new formula for a mortgage over unregistered land. The PRA has drafted a new form of charge for Land Registry title, which will shortly be available on the PRA website as part of the new Land Registration (No 2) Rules 2009. It should be noted that the old Form 67 (charge for a principal sum) is to remain.

The members of the Irish Banking Federation (IBF) and the Irish Mortgage Council (IMC), which include the majority of the lending institutions involved in residential mortgage lending in Ireland, have agreed the text of a standard, combined mortgage deed/charge. A dual version, which will be issued initially, is suitable for use for residential mortgages executed and dated either before or after 1 December 2009. We are advised that most of these mortgage lenders hope to start distributing the new IBF mortgage deed with solicitor’s packages in November, so that practitioners will have them available for use straight away. The remaining members will distribute their own form of revised mortgage deed documentation in November and will move to the IBF format over the coming months.

The PRA has indicated to the Society and to the IBF that either its own new statutory form of charge, or the new approved IBF forms of mortgage deed/charge, or any forms approved by the PRA with respect to individual lending institutions, are acceptable for registration purposes.

Practitioners dealing with the execution of mortgage documentation by clients on or after 1 December should ensure that the correct form of mortgage deed/charge is used.

1. If you have already received a solicitor’s package with the old form of charge or mortgage in respect of a loan already approved, but where the mortgage may not complete before 1 December 2009, you should either expect to receive a replacement package before 1 December or apply to the relevant lender for a replacement package.
   
2. A replacement package, once provided, can be used straight away, as it will contain a dual version of the mortgage deed/charge, which is suitable for use whether the mortgage is executed before or after 1 December. If your loan transaction completes before 1 December 2009 and no replacement package has been made available, you should ensure that the old form of charge/mortgage is executed and dated before 1 December 2009.
   
3. If you are dealing with a lender that is not a member of the IBF/IMC (the members of the IBF/IMC that are signed up to the new 2009 certificate of title system are listed in the Guidelines and Agreement 2009 Edition) and your client is entering into a mortgage on or after 1 December 2009, you should ensure that you use the relevant new PRA form of charge or updated mortgage as appropriate.
   
4. Solicitors drafting mortgage documentation for clients, including mortgage deeds in commercial conveyancing matters, should familiarise themselves with the PRA’s requirements for approving forms for registration purposes.