A new system for the electronic discharge of charges against registered property will be introduced in the early part of 2009 on a pilot basis.
The new system will provide for the online application to the Property Registration Authority (PRAI) by a lending institution for the discharge of a charge. The details will be verified by the PRAI and the charge will be cancelled from the folio. An option is contained in the system for electronic notification to third parties on completion of the discharge (eg solicitors acting for borrowers).
The legislative provisions allowing for the introduction of electronic discharges are contained in the Land Registration Rules 2008 which came into effect on 1 September 2008.
As part of the move towards electronic conveyancing and to assist the introduction of electronic discharges, the PRAI ceased to issue certificates of charge with effect from 1 January 2007. The following is a summary of the position regarding certificates of charge and Land Certificates
- The PRAI ceased to issue Land Certificates and Certificates of Charge from 1 January 2007.
- All Certificates still existing will cease to have effect on 1 January 2010.
- During the intervening period of 3 years a person who holds a lien through deposit or possession of such Certificate may apply to the Registrar to have a lien registered as a burden on the Folio. This provision also applies in the case of a person holding an undertaking to produce a land or charge certificate, where money has actually been advanced, the certificate had been applied for and had not issued prior to 1 January 2007.
- Under Section 105 of the Registration of Title Act 1964 , lodgement of the Land Certificate or Certificate of Charge is still required in respect of “dealings by the registered owner” until 1 January 2010.