PART XI PROPERTY AND COSTS RECOVERED FOR ASSISTED PERSONS

96 Postponement of enforcement of charges over money
1 This regulation applies where in proceedings under–
(a) the Married Women’s Property Act 1882,
1882 c. 75.
(b) the Matrimonial Causes Act 1973, or
1973 c. 18.
(c) the Inheritance (Provision for Family and Dependants) Act 1975,
1975 c. 63.
there is recovered or preserved for the assisted person a sum of money which by order of the court or under the terms of any agreement reached is to be used for the purpose of purchasing a home for himself or his dependants.
2 Where the assisted person–
(a) wishes to purchase a home in accordance with the order or agreement; and
(b) agrees in writing on a form approved by the Board to comply with the conditions set out in paragraph (3),
the Board may, if the Area Director is satisfied that the property to be purchased will provide adequate security for the sum referred to in paragraph (3)(b), agree to defer enforcing any charge over that sum.
3 The conditions referred to in paragraph (2) are that–
(a) the property to be purchased shall be subject to a charge executed in favour of the Board and registered in accordance with regulation 95(3); and
(b) from the date on which the charge is first registered, simple interest shall accrue for the benefit of the Board at the rate of 12 per cent per annum (or such other rate as may from time to time be prescribed) on such sum as, but for the provisions of this regulation, the Board would have retained under regulation 92(b) in respect of its charge over the property to which this regulation applies.
4 Where the Board has agreed to defer enforcement under paragraph (2), the assisted person’s solicitor may release any money received by him under regulation 87 and which is the subject of the order or agreement, to the vendor or the vendor’s representative on completion of the purchase of the property purchased in accordance with the order or agreement.
5 Where–
(a) the Area Director has directed (under regulation 90(4)) that this regulation applies; and
(b) no agreement to defer enforcement under paragraph (2) above has been made,
the assisted person’s solicitor may release any money received by him under regulation 87 and which is the subject of the order or agreement to another solicitor or to a person providing conveyancing services to whom section 22(1) of the Solicitors Act 1974 does not apply, who has given an undertaking to, and on a form approved by, the Board that he will fulfil the obligations imposed by this regulation on the assisted person’s solicitor.
1974 c. 47; section 22 was amended by the Administration of Justice Act 1985 (c. 61), section 6.
6 Where the assisted person’s solicitor releases any money under paragraph (4) or (5), he shall so inform the Area Director as soon as practicable and either–
(a) provide the Area Director with sufficient information to enable him to register a charge on the property purchased in accordance with the order or agreement; or
(b) send to the Area Director a copy of any undertaking given under paragraph (5).
7 Where any sum of money retained by the assisted person’s solicitor by virtue of this regulation has not been used for the purchase of a home after a period of one year from the date of the order or agreement under which it was recovered or preserved for the assisted person, the assisted person’s solicitor shall pay that sum to the Board.