Never filled in an RX1 form

[Sensible77]

I'm 3 months into my IVA and so far I have not signed and returned the RX1 form to my IP. I was sent an RX1 form to complete but I was reluctant to sign it as it was not completed by their solicitor so essentially I would have been signing a blank document. It was then agreed that their solicitor would complete and sign the form and then it would be sent to me for signing. So far I have not received a completed form despite chasing it up and being told that it would be sent. I have no problem with signing the RX1 and I understand what it is for, but as it is a generic form and not just for people in an IVA I do not feel confident about signing it without knowing what would be entered on the form. For example, who would sign an uncompleted loan application form and return it? I have received an e-mail today from my IP asking me to sign an uncompleted RX1 and that they will go through with me over the phone what the solicitor will complete after I’ve signed and returned it. I may be being over cautious, but since starting the process of applying for an IVA and being in one I can’t think differently.

[catullus]

I don't understand why a solicitor would be involved. The IP should be able to do it themselves. The RX1 should refer to your equitable interest and should be filed at the Land Registry with acopy of your IVA proposal.

[Sensible77]

Hi, catullus. Whether a solicitor or the IP fills the RX1 in, my question is the same. As the form contains several options, how am I to know that the correct ones have been completed before we sign it?

[catullus]

Well, Melanie or I could probably give you some comfort but, if you want to be absolutely sure, you should get your own legal advice.

[Sensible77]

Do you ask your clients to sign and return the RX1 uncompleted? If it's standard practice, fine, but it just doesn’t sit well with me.

[catullus]

No we don't, and you are quite correct in insisting that it should be completed before you sign it.

[Sensible77]

Thanks, catullus. I shall reply to the e-mail from my IP telling them that we will only sign the RX1 once it has been completed by their solicitor or themselves. This is the only outstanding item in my IVA which has been running well. I am keen to get this sorted and can’t believe that their other clients would sign the form without knowing exactly what they are signing for. I will post back with any progress!

[mikebdomain]

I would agree with you. Do not sign a BLANK RX1. This would allow them to add whatever they liked to your ‘restriction’...

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[Sensible77]

Thanks, Mike. This is what I am afraid of. The form could be completed incorrectly by them and as we’ve signed it.....

So far I’ve not had a reply to my e-mail. I’ll probably just get the standard letter again asking it to be signed and returned.

Has anyone else who had to sign an RX1 come across this?

[Adam Davies]

Hi
Good for you,stick by your guns........how unprofessional of your IVA company.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[MelanieGiles]

I cannot believe that members of my profession are sending out blank forms for clients to sign! These should be properly filled out for you, clearly explained (althoug the form is quite simple and obvious) and lodged with HM Land Registry immediately. You will be in default if this form does not get submitted shortly, so let common sense prevail and have your IP e-mail you a completed form which, if you feel it is necessary, you ought to run by a local solicitor.

Don't forget the form does not give the IP any form of security or interest in your property, it merely notifies him if a sale is due to complete.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[lizziej]

I am being a bit thick no doubt - but what is an RX1 and can I expect to receive one now I have had my IVA approved?

[Adam Davies]

Hi
An RX1 form is used when there is an equity release clause in an IVA agreement.It alerts the IP to an impending sale.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[mikebdomain]

An RX1 is an application to enter a restriction on your property. And if clauses are worded incorrectly, can stop the remortgage or sale of your property by solicitors until corrected. You can see an RX1 here:

http://www.landreg.gov.uk/assets/librar ... ts/rx1.pdf

Most loans companies will use an RX1 to add a restriction to ensure you can not dispose of your property until you have been issued with a 'certificate of release'. IPs use an RX1 to ensure they are informed if you try to dispose, remortgage or otherwise try to release equity from your property. Problems occur when the wording is incorrect or not clear enough to be understood by solicitors. We have been involved with 'restrictions' whereas the person could not be found or contacted and the sale of properties have been held up to the point where the sale was lost.

The moral of the above; Do not dismiss this form as unimportant, always check the wording and you must never sign an empty RX1...


FREE ADVICE IS THE BEST ADVICE

LEYBRIDGE LIMITED
Mortgage Broker
Specialising in adverse credit.

see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
http://www.leybridge.com/Leybridge-IDD.pdf

[Sensible77]

Thanks for the responses. This is what is so good about this website – invaluable advice and help from professionals as well as people in BR or an IVA.

Melanie – you mentioned about being in default if the form is not submitted shortly. This is what I thought might happen. Is there a time limit for when an RX1 must be registered from when an IVA is approved? What irks me even more is that I have constantly chased this up, not just forgotten about it as if it’s their problem.