Commentary on Sections Part 4: Advance Notices
155.The first sections in Part 4 provide for a system of advance notices that protects the grantee of a deed during the time between taking delivery of the deed (in exchange for the money) and the registration of that deed. This period is known as the "gap risk" as the grantee is vulnerable in this period to the registration of competing deeds or sequestration of the granter of the deed. The entry of an advance notice referring to a registrable deed ensures that during the next 35 days no disposition or competing advance notice can beat that deed in any race to the register.
156.The following examples of the way in which advance notices are intended to operate in the case of registered titles draw on the examples in schedule 3 to the draft Bill in volume 2 of the final SLC Report. They are provided for illustrative purposes and are no substitute for full consideration of the Act:
	Example 1: Circumstances:X, who is the owner of Blackmains, grants an advance notice in favour of Y in respect of a prospective disposition of that property.The advance notice is entered in the application record of the Land Register on 1st May.X delivers a disposition of the property to Y but also a disposition of it to Z.On 8th May, Z’s disposition is registered in the Land Register.On 15th May, Y applies for registration in the Land Register. Consequences:The Keeper accepts Y’s application and on registering Y’s disposition replaces Z’s name by Y’s in the Land Register. Y becomes registered proprietor of the property with effect from 15th May.
	Example 2: Circumstances:The same as in example 1 except that Y does not apply for registration in the Land Register until after the protected period has elapsed. Consequence:Y’s application is rejected.
	Example 3: Circumstances:X, who is the owner of Scarletmains, grants on 1st May an advance notice in favour of Y in respect of a prospective disposition to Y of that property and on 2nd May an advance notice in favour of Z in respect of a prospective disposition to Z of that property.Z’s advance notice is entered in the application record of the Land Register on 8th May.Y’s advance notice is so entered on 9th May.X delivers a disposition of the property to Y but also a disposition of it to Z.On 15th May, Y’s disposition is registered in the Land Register.On 16th May, Z applies for registration in the Land Register. Consequences:The Keeper accepts Z’s application and on registering Z’s disposition replaces Y’s name by Z’s in the Land Register. Z becomes registered proprietor of the property with effect from 16th May.
	Example 4:Circumstances:X, who is the owner of Whitemains, grants an advance notice in favour of Y in respect of a prospective disposition of that property.The advance notice is entered in the application record of the Land Register on 1st May.X delivers a disposition of the property to Y but also a deed of servitude over it to Z.On 8th May, the deed of servitude is registered in the Land Register.On 15th May, the disposition is registered in the Land Register. Consequences:The Keeper removes the servitude from the Land Register.
	Example 5:Circumstances:X, who is the owner of Greymains, grants an advance notice in favour of Y in respect of a prospective standard security over the property.The advance notice is entered in the application record of the Land Register on 1st May.X delivers a standard security over the property to Y but also a standard security over it to Z.On 8th May, Z’s standard security is registered in the Land Register.On 15th May, Y’s standard security is registered in the Land Register.Consequence:From 15th May, Y’s standard security ranks ahead of Z’s standard security.
	Example 6: Circumstances:X, who is the owner of Purplemains, grants an advance notice in favour of Y in respect of a prospective standard security over the property.The advance notice is entered in the application record of the Land Register on 1st May.X delivers a standard security over the property to Y but also a disposition of it to Z.On 8th May, Z’s disposition is registered in the Land Register.On 15th May, Y applies for registration of the standard security in the Land Register.Consequences:The Keeper accepts Y’s application and Z’s land is encumbered with the standard security as from 15th May.
	Example 7:Circumstances:X, who is the owner of Greenmains, grants an advance notice in favour of Y in respect of a prospective servitude over the property.The advance notice is entered in the application record of the Land Register on 1st May.X delivers a deed of servitude over the property to Y but also a disposition of it to Z.On 8th May, the disposition is registered in the Land Register.On 15th May, Y applies for registration of the deed of servitude in the Land Register.Consequences:The Keeper accepts Y’s application and Z’s land is encumbered with the servitude as from 15th May.
	Example 8:Circumstances:X, who holds a registered lease over Yellowmains, grants an advance notice in favour of Y in respect of a prospective assignation of the lease.The advance notice is entered in the application record of the Land Register on 1st May.X delivers an assignation of the lease to Y but also a standard security over the lease to Z.On 8th May, the standard security is registered in the Land Register.On 15th May, the assignation is registered in the Land Register.Consequences:The Keeper removes the standard security from the Land Register.
	Example 9:Circumstances:X, who is the owner of Bluemains, grants an advance notice in favour of Y in respect of a prospective disposition of that property.The advance notice is entered in the application record of the Land Register on 1st May.X delivers a disposition of the property to Y.On 8th May, X grants a short lease over the property to Z who enters immediately into possession.On 15th May, the disposition is registered in the Land Register. Consequence:The lease is not, by virtue of the registration, avoided.
	Example 10: Circumstances:X, who is the owner of Redmains, grants an advance notice in favour of Y in respect of a prospective disposition of that property.The advance notice is entered in the application record of the Land Register on 1st May.On 2nd May, X is inhibited.On 3rd May, missives of sale between X and Y are concluded. Thereafter X delivers a disposition of the property to Y and the disposition is registered in the Land Register. Consequence:The disposition, if so registered while the protected period is running, is not affected by the inhibition.