Part 1: Leasehold houses Section 12: Restriction on title
Section 12 requires HM Land Registry, if the relevant prescribed clauses confirming the property is compliant with the ban are missing, to enter a restriction on the title. This restriction prevents the property being sold on to other home buyers, until the compliance of the property with the ban is resolved.
	Subsection (1) sets out the circumstances, where the relevant prescribed statements confirming the property is compliant with the ban are missing, to which Subsection (3) applies. Subsection (3) requires HM Land Registry to enter a restriction on the registered title of the house.
	This restriction prevents the property being sold on to other home buyers, until the correct statement has been included in the lease and the compliance of the lease with the ban has been ascertained.
	Subsection (2) details what constitutes an application for registering a lease.
	Subsection (4) states that the restriction may be removed under Subsection (3) if the lease is varied to include the appropriate prescribed statement.
	Subsection (5) sets out the circumstances (where a deemed surrender and regrant has taken place and the prescribed statements are missing) to which Subsection (6) applies. As under Subsection (3), Subsection (6) requires HM Land Registry to enter a restriction on the title.
	In the event of a restriction being placed on a ‘deemed surrender and regrant’, Subsection (7) allows HM Land Registry to lift this restriction if they are satisfied it is either a permitted lease, or is not a long residential lease of a house.
	Subsection (8) clarifies that an expression used in this Section has the same meaning as an expression used in the Land Registration Act 2002.