Part 1: Registration of Overseas Entities Schedule 5: Land ownership and transactions: Northern Ireland Restrictions on disposal
Paragraph 3(1) of the new Schedule 8A sets out that an inhibition ("an overseas entity inhibition") must be entered against the title of the registered owner of a qualifying estate if the Registrar is satisfied that (a) the registered owner is an overseas entity and (b) the application for the entity to be registered as the owner was made on or after the date on which paragraph 2 came into operation. Paragraph 3(1) therefore applies to overseas entities that become registered owners of a qualifying estate if the application to register was made on or after the commencement date. Unlike in England and Wales and in Scotland, no restrictions on disposals will apply to overseas entities that are registered owners of a qualifying estate and became so before paragraph 3 came into operation.
	Paragraph 3(2) of the new Schedule 8A provides that no fee will be charged for the entry of an overseas entity inhibition.
	Paragraph 3(3) of the new Schedule 8A sets out the effect of the overseas entity inhibition: from and after the entry of an overseas entity inhibition, none of the dispositions mentioned in paragraph 3(4) affecting the land in question are to be entered on the title register, unless one of the conditions in paragraph 3(5) is met. The relevant dispositions which entry on the title register is prohibited are:
A transfer of the owner’s estate (i.e. transfer of a freehold estate or assignment of a leasehold estate where the term granted exceeds 21 years),
A grant of a leasehold estate where the term exceeds 21, and
The creation of a charge on the land. (paragraph 3(4))
	The conditions mentioned in paragraph 3(3) are set out in paragraph 3(5):
The entity is a registered overseas entity, or is an exempt overseas entity, at the time of the disposition;
The disposition is made in pursuance of a statutory obligation, a court order, or by the operation of law;
In pursuance of a contract made before the inhibition is entered in the register;
In exercise of a power of sale or leasing conferred on the owner of a registered charge or a receiver appointed by such an owner (i.e. owner of the registered charge); or
The disposition is made by a specified insolvency practitioner in specified circumstances.
	The duty to enter an overseas entity inhibition against each relevant title applies regardless of whether the overseas entity is exempt or not. The inhibition will however not "bite" if an overseas entity makes a disposition at the time it is an exempt overseas entity.
	Sub-paragraph (6) explains that, in sub-paragraph (5), "specified circumstances" means circumstances set out in regulations made by the Department of Finance for the purposes of this paragraph, and "specified insolvency practitioner" means an insolvency practitioner of a description specified in regulations made by the Department of Finance for the purposes of that paragraph. Such regulations are subject to negative resolution (sub-paragraph (7)).