Overseas entities : Buying or selling – don’t risk not being registered as owner of the property or committing a criminal offence!

The ECTEA introduced an initial ‘grace period’ for OEs within which they could deal with property without requiring an OE ID, but this comes to an end on 31 January 2023. The Land Registry is already adding restrictions to titles of property owned by OEs preventing them from dealing with the property after that date, unless they have an OE ID.

OEs selling and buying UK Property must be aware of several points:

Selling

1. Make sure your house (pun intended) is in order and you have a valid OE ID. It is a criminal offence not to have complied with the registration requirements by 31 January 2023.
2. If you are currently selling and do not have an OE ID, expect that the buyer will either want contractual assurances that you will obtain a valid OE ID before the transaction is completed or will delay the transaction until you produce a valid OE ID.

Buying either as an OE or from an existing OE

1. If you are buying as an OE you must:
   1. have your OE ID before completion of your property purchase. Failure to do will mean you cannot register your purchase at the Land Registry;
   2. If you are funding the purchase by way of a mortgage, ensure that you comply with any additional requirements your lender has.
2. If you are buying from an existing OE your lawyer must ensure that:
   1. The selling OE has a valid OE ID; and
   2. There are contractual provisions for the selling OEID to assist with any requisitions raised by the Land Registry in respect of the OE ID.

If you require further advice or information, please contact Will Thomas or Michael Taylor in our residential property team.