Backlog at land registry body causes delays for home buyers

Delays in processing land registration applications can slow owners' ability to resell or re-mortgage. 

A huge backlog at the newly-formed land registry body is causing delays for home buyers. 

Newly-established State agency Tailte Éireann has a backlog of 119,970 applications for land registry services, a Freedom of Information request has revealed.

Tailte Éireann took over the duties of the Property Registration Authority (PRA), the Land Valuation Office, and Ordnance Survey Ireland in March 2023 to streamline Ireland’s land registry, valuation, and mapping system.

It inherited a backlog of just under 120,000 stalled applications from the PRA, according to a response to a Freedom of Information request by the Irish Examiner, and an additional backlog of 2,398 applications has been added in 2023 so far.

Delays in processing land registration applications can slow down the ability of property owners to resell or re-mortgage homes.

A representative of a large developer who did not wish to be named told the Irish Examiner  that delays in the system were “crazy and frustrating,” and they had experienced the sale of new houses falling through due to delays.

We’ve had situations where the sale of properties has been delayed or lost due to the land registry being very, very slow in turning your registry of deed document into a folio.

“Some solicitors advise clients not to close the sale until the folio is issued," they said. "I’ve lost buyers on houses over it.

“I just got a first registration of a property back that has taken 14 months to go through the process.” 

A representative of a large developer said delays  were 'crazy and frustrating' and they had experienced new house sales falling through. Picture: Denis Minihane

The developer said that while there had been much emphasis on inefficiencies and delays at An Bord Pleanála at a time where there was a lot of pressure to provide more housing, land registry was another link in the chain that needed examining.

“It’s a part of the process and another area that is backed up and inefficient,” they said. “I think there should be some political involvement to say lads, we should be getting this as streamlined and efficient as possible. 

"The figures speak for themselves: They’re nearly a year behind. They have 120,000 applications sitting in front of them.” 

A total of 219,814 land registry applications were made to the former authority, the PRA, in 2022, with 199,585 applications in 2021.

However, the backlog in processed applications grew by 6,484 in 2022 with a further 2,398 to date in 2023, the FOI returns reveal.

The registration of houses in new developments, which do not have pre-existing maps, can take longer to process and there are many other reasons, including incorrectly-lodged applications and boundary disputes, that can cause delays.

Of the current backlog of applications, 7% relate to “first registrations where a full examination of title is required".

Pat Davitt, who is CEO of the Institute of Professional Auctioneers and Valuers (IPAV), said he was aware of delays with land registration being raised by the organisation's members.

“Some of our members certainly tell us that the timespan is long,” Mr Davitt said. “But I would like to see the figures on the number of applications that are incorrect when sent in, because I know that this is a serious problem.” 

IPAV chief executive Pat Davitt said incorrect applications pose a serious problem.

Of 290,749 land registry applications made since the start of 2022 until the present, 35,715 cases, or 12% of applications, were rejected because they were incomplete or incorrect. These rejected applications are not included in the backlog.

The average time for processing a land registry application is currently four to five months and covid-19 saw the service experience significant delays, a spokesperson for Tailte Éireann said.

“As with many organisations, we are still dealing with the impact that covid-19 had on our ability to maintain business levels. 

"The property registration process is heavily paper-dependent and despite us implementing new ways to deliver our registration services, throughout the restrictions, a delay in registrations did build,” they said in an emailed statement.

We have experienced a significant uptake in applications received. We are actively recruiting and training staff to improve our processing times.

“It is important to note that legal rights are protected on the register from the date of lodgment of the application, rather than the date of completion. We can fast-track the processing of cases where a delay in registration will cause undue hardship to an applicant.” 

Applications lodged through an online e-registration system were completed in an average of 10 working days, they said.

A spokesperson for Housing Minister Darragh O’Brien said the recruitment of new staff would speed up the process and clear the backlog of applications.

“The minister has asked that Tailte Éireann work proactively with all their stakeholders to provide guidance in this area and ensure this guidance is widely known,” they said.

When a buyer purchases a property, a folio is opened, registering the owner.

Land registration: How does it work?

• The sale of land must be registered with Tailte Éireann in order for a new owner to come into possession of the deeds of a property.
• landdirect.ie is the official land registry site for Ireland and this is now the responsibility of Tailte Éireann, under the Tailte Éireann Act 2022 which came into effect in March this year.
• When a buyer purchases a property, a “folio” is opened, registering the owner of the land and mapping it. The folio also notes any “dealings” on the property, including boundary changes or charges against the property. It will also show if there are any planning applications lodged or approved for that land.
• Anyone can view the details of a land parcel’s folio on the land direct.ie website for a fee of €5.
• Not all applications to Tailte Éireann for land registry services are because new owners have purchased a house or inherited a house. All “dealings” require a fresh application.
• A conveyancing solicitor will make an application to the land registry office on a buyer’s behalf.
• There are fees to be paid to the land registry service for opening the folio and registering any mortgage on the property, as well as for processing the land registry application. These can be up to €1,090 for a property valued at over €400,000.
• If there is a mortgage on the property, the bank takes possession of the deeds as collateral against the loan, but if a property changes hands with no mortgage, the owners of the property can hold the deeds, or leave them with their solicitor for safekeeping.
• Sometimes delays are caused when the solicitor does not complete a land registry application fully or correctly: 12% of land registry applications are rejected. But other times, delays can be caused for reasons the solicitor is not even aware of.  There may be an issue with the placement of water or sewage services, or roads, in a new estate, for example. These issues are between the developer and the land registry service and a solicitor may not even be aware of the cause of the delay.
• Planning applications on a property are not impacted by delays in land registry, because you do not need to own land to make a planning application as long as you have a written letter of permission from the owner.