Part 1: Registration of Overseas Entities Schedule 3: Land ownership and transactions: England and Wales Part 2: Transition: qualifying estates registered pre-commencement Registrar’s duty to enter restriction in relation to qualifying estate
Paragraph 6 of Schedule 3 applies where the Chief Land Registrar is satisfied that an overseas entity is registered as the proprietor of a qualifying estate and became so registered in pursuance of an application made before the commencement date. Under paragraph 6(2), the Chief Land Registrar must comply with the duty to enter a restriction under paragraph 3 of Schedule 4A to the LRA 2002 (which is inserted by this Act) in relation to the estate as soon as reasonably practicable, and the restriction must be entered before the end of the transitional period. The restriction will not take effect until the end of the period of 6 months beginning with the commencement date.
	The effect of paragraph 6(3) of Schedule 3 is that overseas entities that are existing registered proprietors of qualifying estate (and became so on or after 1 January 1999 but before the commencement date) will have a period of 6 months from the commencement date to either register in the overseas entities register or dispose of the qualifying estate. As soon as reasonably practicable HMLR will insert a restriction into the relevant title registers. But the restriction will not take effect until the expiry of 6 months beginning with the commencement date. These transitional provisions will also ensure that any third party who inspects the title register for a qualifying estate whose proprietor is an overseas entity will see a restriction on the title register and be able to take the restriction into account when considering whether to enter into a contract (for a disposal of or charge over the qualifying estate) with the overseas entity.