Decree of Reduction of Voidable Deed - Example Deeds

General

A decree of reduction of a voidable deed is registrable by virtue of section 46A of the Conveyancing (Scotland) Act 1924. Such decree is usually obtained from the Court of Session, but an arbitral award under the Arbitration (Scotland) Act 2010 (ordered by an arbitrator under the 2010 Act) reducing a voidable deed is also registrable by virtue of section 46A.

Such a decree is only registrable in the Land Register if the deed being reduced relates to a registered plot of land or a lease registered in the Land Register.

Where a decree of reduction is obtained from the Court of Session, the decree will usually be headed "Decree for Production and Reduction" or "Extract Decree for Production and Reduction".

Referral

An application to register a decree of reduction should, once it has been entered onto the application record, be passed to a senior caseworker prior to registration proceeding.

Useful links

Reduction of a Deed (Topics)

Decree of Rectification of a Defectively Expressed Deed

Insolvency - Personal and Corporate

Authentication of Registrable Deeds

Court Orders that are Registrable Deeds

What is a voidable deed?

Why a particular deed has been reduced is not a matter for the registration officer to consider when examining an application for registration of such a decree. A voidable deed is a deed which is effective at the time the deed is granted, but is liable to later be made ineffective by an order of court or an arbitral award. A deed may be rendered voidable for a number of reasons. Some examples are:

the deed was granted in breach of an inhibition;
a disposition was gratuitous or was granted at an undervalue and the granter is sequestrated within a defined statutory period after granting (a gratuitous alienation or unfair preference);
the transaction might be set aside as an avoidance transaction under the Family Law (Scotland) Act 1985 when there is a claim for aliment or financial provision on divorce;
the granter of the deed lacked legal capacity to enter into the transaction;
the granter was weak and facile and has been taken advantage of (known as "facility and circumvention") in inducing the granting of the deed.

Example

There is no statutory style or form provided.

The example below relates to a decree granted because the deed being reduced had been granted in breach of an inhibition. The reference in the example to "ex capite inhibitionis" is used in such circumstances. There are other types of reduction of a voidable deed which would not use such language. See Reduction of a Deed in Topics. Other examples may be added as appropriate.

Decree of reduction of deed granted in breach of inhibition

Court of Session

Certified Copy Interlocutor

in the Action at the instance of

ABC Scotland Limited (design)

Pursuer

against

(First) CD, residing at ......(Second) EF, residing at ....and (Third) Bank of Alba (design)

Defenders

10 July 2016 Lord (XXXXXXX)

The Lord Ordinary, having resumed consideration of the cause, sustain the First and Second pleas-in-law for the Pursuer; In respect of production by the Pursuer of no 6/13 of process, finds production to be satisfied; Reduces the disposition granted by the First Defender, CD in favour of the second defender EF of the house Mount Albemarle, 2 Ellen's Valley Grove, Edinburgh with solum thereof ground attached and other pertinents all as described in the said disposition registered in the land register under title number MIDxxxxxx on 20 September 2014 and that ex capite inhibitionis namely of the inhibition used by the Pursuer against the First Defender on 7 August 2013 and recorded in the Register of Inhibitions and Adjudications on 29 August 2013; In respect of production by the Pursuers of no 7/15 of process, finds production to be satisfied; Reduces the Standard Security granted by the Second Defender to the Third Defenders, Bank of Alba, and registered in the land register on 20 September 2014 over said house Mount Albemarle, 2 Ellen's Valley Grove, Edinburgh with solum thereof, ground attached and other pertinents all as described in said disposition registered in the land register under title number MIDxxxxxx on 20 September 2014 and that ex capite inhibitionis namely of the inhibition used by the Pursuer against the First Defender on 7 August 2013 and recorded in the Register of Inhibitions and Adjudications on 29 August 2013, and Decerns.

Edinburgh 25 July 2016

Certified a True Copy

Assistant Clerk of Session