What is the HM Land Registry Safe Harbour?

The Safe Harbour is the protection a conveyancer gets from HM Land Registry when they verify identity to its digital identity standard. Practice guide 81 says that if a conveyancer completes the steps of the standard, HM Land Registry will not pursue a recourse claim against them over a fraudulent registration on the grounds that the identity checks were inadequate.

What are the four requirements?

1. The evidence. The person must hold a document with a chip containing a photo that can be used for facial recognition. Practice guide 81 accepts biometric passports meeting the ICAO e-passport specification, biometric EU or EEA identity cards, and UK biometric residence permits.
2. Verifying the document. The conveyancer should use an identity check provider whose system reads the chip by NFC, checks the issuer’s digital signature and confirms the signing key is valid and not revoked. A photograph of the document or of its machine readable zone does not meet the requirement.
3. Matching the person. The provider runs an enhanced liveness test with anti-spoofing to make sure a real, present person is matched to the chip photo, within accuracy limits set in the guide.
4. Linking the person to the property. The conveyancer for the transferor, borrower or lessor must also check that the person is linked to the property. For an individual, that means two items from HM Land Registry’s list, such as recent utility bills or a current photocard driving licence, showing a name and address that match. For a UK company, it means checking company details against the register and that each signatory is authorised, with requirements 1 to 3 done for each signatory.

Does the Safe Harbour cover AML checks?

No. Practice guide 81 deals only with identity evidence for land registration. It says it does not cover checks required by law under the money laundering legislation or by regulatory bodies. A conveyancer still carries out full client due diligence under the Money Laundering Regulations, including source of funds. See What are AML checks for law firms?

What if the client has no chip-based ID?

Then the standard cannot be met for that person, so the Safe Harbour is not available. The conveyancer uses the routes in practice guide 67 instead, such as confirming identity on the application or using form ID1 for an individual or ID2 for a company. Those forms must be signed and dated no more than three months before the application is lodged.

What firms typically do

1. Ask at instruction whether each client holds a chip-based passport or identity card, so the right route is chosen early.
2. Ask the seller for the two property-linked documents at instruction, not near completion, when delays cost most.
3. Keep evidence that each requirement was met, so the firm can rely on the Safe Harbour later if a registration is challenged.
4. Keep watching the transaction after the identity check. If doubts arise, make further enquiries and record how they were resolved.
5. Run the AML checks alongside, not instead of, the digital identity standard.

Common mistakes

• Accepting a photo of a passport and treating it as meeting the standard.
• Assuming the buyer’s conveyancer must do requirement 4. It applies to the conveyancer for the transferor, borrower or lessor.
• Treating the Safe Harbour as the end of vigilance. Practice guide 81 says the standard is not achieved if a reasonable doubt is not resolved.
• Assuming a Safe Harbour check also satisfies money laundering due diligence.

Kord’s app reads the passport chip by NFC and runs liveness and face match checks, which a firm can use towards the standard. Whether the standard is met for each person remains the conveyancer’s judgement. See AML checks for law firms and What is electronic identity verification (eIDV)?

Questions firms ask

What does Safe Harbour mean in conveyancing?

It means HM Land Registry will not pursue a recourse claim against a conveyancer over a fraudulent registration on identity grounds, where the conveyancer met the digital identity standard in practice guide 81.

Is the HM Land Registry digital identity standard compulsory?

Practice guide 81 presents it as an alternative, higher standard. Conveyancers who do not use it follow the identity evidence rules in practice guide 67.

Can a photo of a passport meet the standard?

No. The chip must be read by NFC and its digital signature checked. A photograph of the document or its machine readable zone does not meet the requirement.

Which conveyancer must link the person to the property?

The conveyancer acting for the transferor, borrower or lessor. Requirements 1 to 3 apply to every conveyancer using the standard.

Does meeting the standard end the conveyancer’s duty?

No. The conveyancer should stay alert for the rest of the transaction, make further enquiries if doubts arise and record the results. If a doubt is not resolved, the standard is not achieved.

Does the Safe Harbour replace AML checks?

No. It covers identity evidence for land registration only. Client due diligence under the Money Laundering Regulations is a separate duty.

Sources

• HM Land Registry practice guide 81, encouraging the use of digital technology in identity verification
• HM Land Registry practice guide 67, evidence of identity