Explanatory note

These Regulations make provision as to the rate of interest to be applied to payments of compensation made by the Keeper of the Registers of Scotland under the Land Registration etc. (Scotland) Act 2012 (“the Act”).

Section 77 of the Act provides that the Keeper must pay compensation for loss incurred as a result of a breach of the Keeper’s warranty. Section 84 provides that the Keeper must pay compensation for loss incurred in consequence of an inaccuracy in the register and certain expenses incurred in securing rectification of the register. Section 94 provides that the Keeper must pay compensation for loss incurred as a result of the operation of Part 9 of the Act.

Sections 79, 84 and 95 make provision regarding the quantification of that compensation and confer upon the Scottish Ministers the power to set the rate of interest payable on that compensation.

Regulation 2 provides that the rate of interest payable is 1 per cent above the Bank of England base rate.

A business regulatory impact assessment has not been provided for this instrument as no impact on the private or voluntary sectors is foreseen.