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17 March 2026

Contractual Control Rights: How To Prepare For The New Disclosure Regime

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Herbert Smith Freehills Kramer LLP

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Draft regulations introduce a new public register of contractual control rights over land in England and Wales, imposing major new disclosure duties on developers - making early preparation essential.
United Kingdom Real Estate and Construction
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On 9 March 2026, the Government published draft regulations - The Provision of Information (Contractual Control) (Registered Land) Regulations 2026 (the "Regulations"), which will introduce a new transparency regime for agreements in England and Wales containing "contractual control rights", requiring certain information about these rights to be disclosed to HM Land Registry and made publicly available through a new database.

The Government has confirmed the Regulations will come into force on 6 April 2027. However, the disclosure obligations will also apply to relevant agreements entered into between the date the Regulations are made (expected in the first half of 2026) and commencement.

In this article, we highlight the key elements of the new regime and outline what landowners and developers should be doing now to prepare.

Why is the Government introducing these Regulations?

The proposed contractual control register has been some years in the making. It first emerged as part of the Government's Planning for the Future consultation and was subsequently taken forward in Part 11 of the Levelling Up and Regeneration Act 2023 ("LURA").

At its core, the initiative reflects the Government's wider policy focus on transparency in land ownership and control. The Government considers that contractual control rights — which can give developers or promoters influence over land without owning it — are currently opaque to communities, planning authorities and other market participants.

The new regime is intended to address this by shining a light on who controls land and on what terms. Once operational, HM Land Registry will maintain a public database showing who holds contractual control rights, the nature of those rights and their duration. This has potential implications for negotiations, due diligence and development strategy.

What is a "contractual control right"?

Government guidance accompanying the Regulations explains that contractual control rights are rights that give a person the power to control how registered land is developed or disposed of without transferring ownership.

The guidance identifies the following as examples of agreements that may contain such rights:

  • options;
  • conditional contracts;
  • pre‑emption rights; and
  • certain promotion agreements.

What is excluded from the regime?

Not all contractual control rights will be caught. The Regulations exclude:

  • Security arrangements: including rights granted purely as loan security or to secure overage payments.
  • Rights affecting short leases: defined as leases with less than 15 years remaining at the time the right is granted. This will hopefully bring some leasehold options outside the scope of the regime.
  • Non-development rights: rights granted exclusively for purposes that do not relate to future development resulting in the provision of one or more dwellings or a building with floor space of 100 square metres or more. The guidance explains that this category includes rights granted solely for utilities or agricultural purposes. However, the exemption may also extend to other rights, including a conditional contract or option to acquire property held purely as a standing investment, provided that the right does not facilitate or anticipate future development. Additional guidance would assist in confirming the scope of this exemption, particularly where rights are commercial in nature but not obviously connected to development.
  • Short term rights: where the total period of control is less than 18 months.
  • Section 106 agreement related rights: where these relate exclusively to the provision of infrastructure, amenities or services.
  • National security or defence purposes: rights contained in agreements made for such purposes.

In practice, this means that short‑form exclusivity arrangements may fall outside the scope of the Regulations, but most development‑focused land control structures will be subject to the disclosure requirements.

What information must be disclosed?

The following details must be provided to HM Land Registry:

  • Parties: name and any public registration number of the grantee and grantor. If the grantor is an individual, date and place of birth of the grantor.
  • Type of right: for example, option, pre-emption, or conditional contract.
  • Agreement details: the date, parties and title or description of the underlying agreement.
  • Exercise mechanics: when the right can be exercised, and a summary of any relevant conditions.
  • Duration: the initial period of control, including extension, termination and any renewal provisions.
  • Title number(s): of the affected registered estate(s) and sufficient information to identify any part‑title arrangements.
  • Location: address and postcode, with additional information for sub‑surface or airspace rights.

Who is responsible for disclosure?

The obligation to provide information to HM Land Registry rests with the grantee i.e. the person with the benefit of the contractual control right, such as a developer. However, submissions must be made digitally by a regulated conveyancer, acting in their individual capacity.

This is a departure from standard HM Land Registry practice, which allows submissions to be made directly by applicants as well as by a wider cohort of employees within conveyancing firms. This requirement will have cost and timing implications, and the parties will need to factor this into their transaction planning.

Key dates and transitional provisions

Commencement

The Regulations are expected to be made in the first half of 2026 but come into force on 6 April 2027.

Disclosure deadlines

  • A contractual control right granted between making of the Regulations and 6 April 2027: must be submitted by 6 October 2027.
  • A contractual control right granted on or after 6 April 2027: submission required within 60 days.
  • Variations or assignments of a contractual control right on or after 6 April 2027: submission required within 60 days.
  • Termination or expiry of a contractual control right on or after 6 April 2027: submission required within 60 days.

This means from 6 April 2027, any assignment or variation of an agreement that includes contractual control rights will require registration, even where the agreement was not registrable when first entered into. A variation will trigger registration only to the extent that it changes information that would have been required to be registered if the agreement had been entered into after the Regulations were in force.

The Government has confirmed that, except as outlined above, the regime will not otherwise be retrospectively applied to contractual control rights granted before the Regulations are made (something we raised as a concern in our response to a prior consultation), which is a welcome change from earlier proposals.

Publication of the information

Although the Regulations come into force on 6 April 2027, the Government has advised that HM Land Registry will not begin publishing the contractual control information until "as soon as possible after 6 April 2028".

The public database will include:

  • location and extent of land affected;
  • identity of the grantee;
  • type and duration of the contractual control right; and
  • date the contractual control right was granted or exercised.

Under the current draft Regulations, pricing and payment terms are not required to be disclosed.

Publication is expected to take place at least monthly and in a standardised, downloadable format.

Consequences of noncompliance

Failure to comply with the disclosure requirements is a criminal offence under LURA and knowingly or recklessly providing false information carries a penalty of up to two years' imprisonment and an unlimited fine.

In addition, HM Land Registry may refuse to enter associated notices or restrictions relating to contractual control rights on the affected titles until the required information has been provided.

From a commercial perspective, non‑compliance may:

  • delay development programmes;
  • affect funding and lender confidence;
  • complicate negotiations with landowners; and
  • create reputational risks around transparency.

What should you be doing now?

1.Review template documents

Review and update template option agreements, conditional contracts, promotion agreements and other documents that may contain contractual control rights. Consider including express obligations on the parties regarding registration, particularly given the criminal liability that attaches to non-compliance.

2.Update internal governance

Put in place internal processes, in close co-ordination with your lawyers (as they will be submitting the filings), to identify agreements containing contractual control rights and to monitor the 60-day registration deadlines for new rights, variations, assignments and terminations. The deadlines are tight, so we recommend building compliance checks into your existing transaction workflows.

3.Consider lender expectations

Lenders may require evidence of registration as a condition precedent to drawdown or as an ongoing compliance covenant, and non-compliance could trigger events of default under facility agreements. Existing and new funding documents should be reviewed with this in mind.

4. Monitor HM Land Registry guidance

Operational guidance from HM Land Registry is expected ahead of April 2027. This is likely to cover the digital submission process and practical requirements for conveyancers.

We responded to the original Government consultation and have remained engaged in ongoing dialogue with HM Land Registry as these proposals have developed. We will continue to monitor developments closely and keep you updated as the new regime takes shape.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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