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The Law Reform Commission submits for public review and comment the proposed Registered Land (Amendment) Bill, 2020. This Bill was informed by submissions received from several stakeholders and the general public with respect to the Commission’s Discussion Paper entitled “The Enforcement Of Mortgage-type Security Over Real Estate: Is Reform Of The Law Necessary?”.

The Discussion Paper sought to consider whether reform of the law relating to the enforcement of charges over residential properties was necessary in light of concerns regarding the number of foreclosure proceedings initiated and the level of hardship experienced by the owners of residential property who have been affected by such proceedings.

A number of questions were raised in the Discussion Paper and corresponding responses were received. The proposed legislation has accordingly benefited from those responses and is the product of a detailed examination of the manner in which charges over land are regulated under the Registered Land Law (2018 Revision). In particular, focus was placed on the provisions dealing with the form of charges over land; the remedies of the chargee when the chargor defaults in payment; the manner in which the chargee’s power of sale is exercised; and the variation of the powers under the legislation.

The legislation critically provides for a “Lending and Pre-action Protocol” supported by a “Financial Circumstances Assessment Questionnaire” both of which are intended to facilitate fairness and reasonableness between lender and borrower when seeking to resolve any matter of default in relation to a charge over land. The Protocol and Questionnaire seek to encourage greater pre-action engagement between lender and borrower before arriving at a decision to commence foreclosure proceedings or any other relevant action.

Stakeholders and members of the general public are invited to comment on the proposed Registered Land (Amendment) Bill, 2020.

The legislation may be viewed on the following website: www.lrc.gov.ky or www.gov.ky or a copy may be collected from the Offices of the Commission.

Submissions should be forwarded no later than 16th October, 2020 to the Director of the Law Reform Commission, 4th Floor Government Administration Building, Portfolio of Legal Affairs, 133 Elgin Avenue, George Town, Grand Cayman, P.O. Box 136, Grand Cayman KY1-9000 either (a) electronically to jose.griffith@gov.ky or (b) in writing, by post or hand delivered.