Reserved instrument activities: Land Registry transfer v wills and powers of attorney (LSA Sch 2)
Gareth Pryce runs Pryce Property Paperwork, a business in England that is not authorised by any approved regulator; neither Gareth nor any of his staff is an authorised or exempt person. For a fee, he offers clients five documents: (1) a lasting power of attorney; (2) a transfer (form TR1) of a registered freehold house from a seller to a buyer; (3) a will; (4) a stock transfer form for shares in a private company, containing no trust or limitation; and (5) a written agreement for decorating services that is not intended to be executed as a deed.
Which document can Gareth's business NOT lawfully prepare for a fee, because preparing it is a reserved legal activity?
Choose one answer to see the reasoning.
Worked answer
Correct answer D: The TR1 transfer of the registered freehold house.
THE RULE TO REMEMBER
Preparing an instrument of transfer or charge for Land Registration Act 2002 purposes is a reserved instrument activity; wills, powers of attorney, simple stock transfers and non-deed agreements are excluded (LSA 2007 Sch 2 para 5).
Reserved instrument activities: Land Registry transfer v wills and powers of attorney (LSA Sch 2)
Reserved instrument activities are one of the reserved legal activities in s.12 Legal Services Act 2007. Schedule 2 para 5(1)(a) defines them to include preparing any instrument of transfer or charge for the purposes of the Land Registration Act 2002. A TR1 transfer of registered land is exactly such an instrument. Gareth's business is neither authorised nor exempt, so preparing it for a fee would be carrying on a reserved legal activity without entitlement, which is an offence under s.14(1). The other documents fall within express carve-outs in para 5(3), which lists what 'instrument' does not include, so preparing them is not a reserved instrument activity.
Why A is wrong: Sch 2 para 5(3)(c) excludes a letter or power of attorney from 'instrument', so preparing it is not reserved.
Why B is wrong: Sch 2 para 5(3)(a) excludes a will or other testamentary instrument, so will-writing is not reserved.
Why C is wrong: Sch 2 para 5(3)(d) excludes a transfer of stock containing no trust or limitation.
Why E is wrong: Sch 2 para 5(3)(b) excludes an agreement not intended to be executed as a deed (other than a land contract).
A little more practice done.
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