If your firm is working on transactions involving UK land and overseas entities on either side or have done previously, you should be considering your risk in this area and creating a standardised approach.
The Register of Overseas Entities came into force in the UK on 1 August 2022 through the new Economic Crime (Transparency and Enforcement) Act 2022. The register is now live with a transitional period to 1st February 2023 for registration of land already owned. Overseas entities buying property in the UK must register the beneficial owners on the ROE before they can apply to HM Land Registry to become the registered owners. The land registration elements of the act will come into force on 5 September 2022.
Why is it important?
If an overseas entity doesn’t apply to have its details on the register, it may impact the entities ability to sell or register leases of more than 7 years or charge the land it owns. There could also be title restrictions and delays in legal title passing.
Failure to comply with the new legislation is potentially a criminal offence and there are associated financial penalties. Firms should be cautious when agreeing to verify any overseas entities as a ‘relevant person’ for the purposes of their registration.This is different and should not be confused with normal ID verification.
What we’ll cover in the session:
- An overview of the new legislation
- The risks involved when ‘verifying’ an overseas entity
- What conveyancing firms should be doing now to protect themselves
