The Scottish Law Commission (SLC) has said that the introduction of “Advance Notices” as part of the Land Registration (Scotland) Act 2012 will be “attractive for hauliers and the should benefit their clients.' The SLC further goes on to say that notice 'offers something more direct and effective than the protection offered by a letter of undertaking.' The idea behind introducing notice was to minimize the risk period between delivery and registration of a deed in an assignment transaction as a real assignment right occurs only when the registration has been completed The risk period for the buyer consists of a potential situation in where the seller becomes insolvent or the seller has granted a deed of transfer of ownership to a third party who is then registered first believes that the notice system will eliminate the risk of losing legal title to the property between payment and the date of registration. Advance notices do not completely eliminate the risk period, but recording a notice may provide the buyer with protection against a third party's concurrent assignment registration as well as seller insolvency for up to thirty-five days after the notice is deposited in the register. Despite this, the "rush to register" still exists, although the Scottish Law Commission stated that "it would remain the case that the first person to register would prevail, but with the possibility of the outcome being changed if such registration took place during the currency of a notification in favor of another person". This is still an improvement over the previous practice of the commitment letter. It is a guarantee from the seller... ...ler may still be seized and his creditors may still attempt to use diligence against the property before the purchaser's disposition is registered, this may happen if the notice has not been registered or the 'protected period' of thirty-five days. There also remains the possibility that the seller grants a concurrent deed to a third party, who is then registered first or is registered if the original seller's notice has expired after the thirty-five days of protection and he has not requested another. For these reasons, I believe that advance notices improve the conveyancing process and, once the Land Registration Act 2012 comes into full force, should provide significant safeguards for buyers generally, but unfortunately, even with these procedures in place, the risks to buyers have increased has not been completely eradicated.
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