552 Property Law

register (as it is at present). This is the goal that all registration systems have so long sought to attain. Its benefits are considerable.

13.77.The absence of any period of time between the transaction and its registration eliminates any risk of the creation of third party interests in the interim. It also means that there is no risk that the transferor may destroy the interest after its transfer but before its registration, as where X plc assigns its lease to Y Ltd and X plc surrenders the lease to its landlord after assigning it but before the assignment is registered (Brown & Root Technology Ltd v. Sun Alliance and London Assurance Co. [2000] 2 WLR 566).

13.78.At present, the priority of an interest in registered land, other than a registrable disposition that has been registered, depends upon the date of its creation, not the date on which it is entered on the register. That will remain so under the Bill [see now section 28 of the Act]. However, the exercise of the power under Clause 93 will mean that a transaction and its registration must coincide. In this way, the register will become conclusive as to the priority of many interests in registered land, because the date of registration and the date of disposition or contract will be one and the same.

13.79.Quite apart from the reasons already given why electronic conveyancing might be made compulsory in relation to at least some transactions there is, therefore, also an important legal goal to be achieved by doing so. It is to make an inextricable link as a matter of law between the making of a transaction and its registration. It is true that network transaction rules can achieve the effect that a transaction and its registration coincide. But if by some mischance in a particular case that did not happen, a transaction might still have some effect between the parties (as it would now) if it were not registered. There is a risk that the mere fact that this could happen might undermine one of the goals of ensuring simultaneity of transaction and registration, namely, that a person could rely on the register as being conclusive as to priority. It is therefore necessary to have statutory provision to ensure the linkage between a transaction and its registration.

The application of the power

13.80.The power in Clause 93 will apply to a disposition of:

(1)a registered estate or charge; or

(2)an interest which is the subject of a notice in the register;

where the disposition is one specified by rules. The scope of the power will, therefore, be determined by rules. This means that the power can (and doubtless will) be exercised progressively. As the use of electronic conveyancing becomes the norm in relation to particular transactions, the power to require them to be made electronically and simultaneously registered could then be exercised. Given the considerable importance of this power, the Lord Chancellor is required to consult before he makes any rules under it. There are two points that should be noted about the power.

13.81. The first is of some general importance. The power conferred by the Bill would mean that it was possible to require a disposition of an interest protected by a notice to be made electronically and registered. This is something new under the Bill. It