Part 1: Registration of Overseas Entities Schedule 4: Land ownership and transactions: Scotland Part 1: Amendments Cases where Keeper must reject application under section 21 LRSA 2012
Paragraph 1 of the new schedule 1A provides that where a person applies under section 21 of the LRSA 2012 to register a qualifying registrable deed, the Keeper must reject the application unless the overseas entity is a registered overseas entity, an exempt overseas entity or certain conditions are met. "Qualifying registrable deed" is for purposes of schedule 1A defined as a registrable deed which is a disposition, a long lease or an assignation of a lease. The registrable deeds in relation to land that are in scope of the registration requirements in Scotland therefore are: a transfer of ownership (i.e. by a disposition), a lease where its duration is at least 20 years and a day, an assignation of any such lease, an extract of a decree of foreclosure, a discharge of an ex facie absolute conveyance and an order for rectification of defectively expressed document.
	The effect of the provisions in paragraph 1 is that in Scotland, an overseas entity will not be able to acquire a real right to land that is registrable in the land register by virtue of application under section 21 of the LRSA 2012 without having complied with the registration and updating requirements under the Act at the time the application is made under section 21.
	Paragraph 2 of the new schedule 1A applies where an overseas entity whose interest in land was registered on or after 8 December 2014 grants a qualifying registrable deed or a registrable deed which is a standard security and an application is made to register such deed under section 21 of the LRSA 2012. The overseas entity who grants the aforementioned deed must be, at the date of delivery of the deed, a registered overseas entity or an exempt entity to ensure that the Keeper does not reject the application (or one of the conditions set out in paragraph 2(2) of the new Schedule. 1A must be met).
	The conditions set out in paragraph 2(2) are: (i) the application is made in pursuance of a statutory obligation, court order, or occurs by the operation of law; (ii) the application is made in pursuance of a contract entered into before the later of the dates mentioned in sub-paragraph (3);(iii) the application is made in pursuance of the exercise of a power of sale or lease by the creditor in a standard security that was registered on or after 8 December 2014; or (iv) the application is made in pursuance of the exercise of a right conferred on a body by relevant legislation to buy land or the interest of a tenant under a lease; or (v) the Scottish Ministers give consent under paragraph 7(2) of schedule 1A to the registration of the deed; or (f) the disposition is made by a specified insolvency practitioner in specified circumstances
	The dates mentioned in paragraph 2(2) are: (i) the date on which the granter’s interest was registered in the Land Register; (ii) the commencement date (paragraph 2(3)). For a grantee to be able to rely on the condition set out in paragraph 2(2)(b), the contract in pursuance of which the application is made to register the grantee’s interest must have been entered into before the overseas entity’s interest was registered in the Land Register, or the commencement date, whichever date is later.