HL Deb 27 July 1967 vol 285 cc1146-7

[No. 19]

After Clause 2, insert the following new clause—

Contract for sale of house affected by registered charge to include term requiring cancellation of registration before completion.

(".—(1) Where one spouse is entitled by virtue of section 2 above to a charge on an estate or interest in a dwelling-house and the charge is registered in accordance with subsection (6) or (7) of that section, it shall be a term of any contract for the sale of that estate or interest whereby the vendor agrees to give vacant possession of the dwelling-house on completion of the contract that the vendor will before such completion procure the cancellation of the registration of the charge at his expense:

Provided that the foregoing provision shall not apply to any such contract made by a vendor who is entitled to sell the estate or interest in the dwelling-house freed from any such charge.

(2) If, on the completion of such a contract as is referred to in subsection (1) above, there is delivered to the purchaser or his solicitor an application by the spouse entitled to the charge for the cancellation of the registration of that charge, the term of the contract for which subsection (1) above provides shall be deemed to have been performed.

(3) This section applies only if and so far as a contrary intention is not expressed in the contract.

(4) This section shall apply to a contract for exchange as it applies to a contract for sale.

(5) This section shall, with the necessary modifications, apply to a contract for the grant of a lease or underlease of a dwelling-house as it applies to a contract for the sale of an estate or interest in a dwelling-house.")

12.54 p.m.

BARONESS SUMMERSKILL

My Lords, the object of this clause, which was inserted at the suggestion of the Law Society, is to give protection to a person who has agreed to buy with vacant possession a dwelling-house against which a charge is registered under Clause 2 of the Bill. Subsection (1) of the new clause accordingly provides that it is to be a term of any contract for sale with vacant possession that the vendor will, before completion of the contract, procure at his own expense the cancellation of the registration of any charge under Clause 2. I beg to move.

Moved, That this House doth agree with the Commons in the said Amendment.—(Baroness Summerskill.)

On Question, Motion agreed to.