S11.12 Deed of Restriction
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A Deed of Restriction is used to release part of property from a Standard Security. The situation often occurs where a builder has bought a large area of ground and has obtained a Loan over it by granting a Standard Security in favour of a Creditor. They then start to build houses on the ground. When the builder wishes to sell one of these, it is important that the house buyer is not responsible for any part of the builder’s loan, so the builder asks their creditor to grant a Deed of Restriction, which restricts the loan to the land the builder has left. The house plot is DISBURDENED from the Standard Security and the proprietor is free from any liability to repay the loan.
Example:
(No. 73) 16 Jun. 2003
DEED OF RESTRICTION by ?p?nSCOTTISH DEVELOPMENT AGENCY?z – DISBURDENING of Standard Security (recorded 19 Aug. 1987) by ?p?nORCHARDFIELD DEVELOPMENT LIMITED?z, - southeastmost house ?q7/4?nNEW ORCHARDFIELD?z, LEITH WALK, EDINBURGH, referred to in Disp. to Neil Walker and another, recorded 16 Jun. 1989. Dated 29 Mar. 2003.
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