1): Key Elements of a Freehold and/or Leasehold Residential/Commercial Property Transaction Flashcards
What are the stages of a property transaction?
pre-contract stage
Post-contract stage/ pre-completion
completion
post-completion
What is done in the pre-contract phase?
Buyer’s solicitor:
-AML checks, conflict checks, -client care letter
-Raise pre-contract searches/inquiries
-Amend & approve contract
-Prepare mortgage & exchange report
Seller’s solicitor:
-AML checks, client care letter
-Check title, draft contract, answer inquiries
-Draft contract, prepare pre-contract docs
What happens in the post-contract/pre-completion stage?
Buyer: Draft transfer deed, submit report on title
Seller: Approve transfer deed, reply to pre-completion inquiries
What happens in the completion stage?
Agree time, place, method
Buyer pays purchase price
What happens in post-completion stage?
Buyer: SDLT/LTT, register title at HMLR
Seller: Release keys, redeem mortgage
What are the three Land Registry registers?
property register
proprietorship register
charges register
what is included on the property register?
Description of land (address, plan, freehold/leasehold)
What is included on the proprietorship register?
Identifies current owner & title class:
Absolute Title: strongest, full ownership
Possessory Title: possession only, e.g. lost title deeds
Qualified Title: defect prevents absolute title
Good Leasehold Title: lease valid but freehold not guaranteed
What is included on the charges register?
Lists encumbrances:
Covenants
Easements
Charges or Mortgages
Leases
Notices
Where are the official copies of title and plan for the property available?
HMLR
seller should supply Official copies to seller (not less than 6 months old)
+
copy of title plan filed at HMLR
+ official copies of any docs referred to in registers and filed at HMLR where the full details are not set out in register
the official copies will show entries on 3 registers
What is the seller’s solicitor required to do to prove ownership of unregistered land?
Select a document that will be the good root of title.
Prepare an epitome of title – a schedule of all title documents (conveyances, mortgages, plans, etc.).
List, number and identify all supporting documents.
What must the epitome of title establish?
A “root of title” – this is a document that begins the chain of ownership.
There must be an unbroken chain of title from the root to the current owner.
The root must be at least 15 years old (s.44, Law of Property Act 1925).
What are the requirements for a good root of title?
Shows ownership of both legal and equitable interest.
Contains a recognisable description of the property.
Does not cast doubt on the title (e.g. no ambiguity or defects).
Give examples of documents that can be a good root of title.
Conveyance on sale or legal mortgage (at least 15 years old).
Voluntary assent or conveyance made after 1925.
Must be at the start of a continuous chain of ownership up to the present day.
What does the epitome of title include (if available)?
Conveyances (sale/gift)
Leases and surrendered leases
Legal mortgages and their discharges
Grants of representation / assents (devolution on death)
Name changes of estate owners
Documents pre-dating the root with restrictive covenants
Memoranda (e.g. part-sale endorsements)
Powers of attorney used to execute documents
What is the purpose of reviewing attached documents in the epitome?
To confirm that all transfers and transactions are valid and consistent with ownership.
Identify any adverse interests or gaps in the chain.
Which searches will a solicitor conduct after reviewing the docs attached to epitome of title?
Index Map Search (Form SIM)
Central Land Charges registry Search (Form k15)
What is the Index Map Search (Form SIM) used for?
Checks if land is registered at HMLR.
Detects if there’s a pending first registration or a caution against registration.
What is the Central Land Charges Registry Search (Form K15) used for?
Searches against current/previous owners for equitable interests that are registrable as Land Charges.
May reveal the following:
C(iv) – Estate contract
D(ii) – Restrictive covenant
D(iii) – Equitable easement
F – Home right
What should you check in the Property Register?
Property description matches contract.
Title number matches contract.
Freehold or leasehold description is correct.
Check if land has been removed from title & reflected in contract.
What should you check in the Charges Register?
Check for encumbrances (e.g. mortgages, restrictive covenants, leases).
Confirm which (if any) will be removed or discharged on completion.
What should you check in the Proprietorship Register?
Title class corresponds with contract.
Confirm seller is the registered proprietor.
What should you check on the Title Plan?
Contract land must match title plan.
Ensure no unregistered or differently registered parts.
Check for excluded parts on plan.
Look for any hatching or colouring (may indicate easements or rights).
How do you establish Chain of Ownership?
Must be unbroken to present seller.
Supported by full documentation.
What should you check in the Description of Land?
Consistent description of property & plans throughout the epitome.
What should be verified regarding Stamp Duties & Execution?
Correct stamp duty paid on all prior docs.
Proper execution of prior documents (signed/witnessed).
What searches must be done regarding Encumbrances?
Land Charges Search (e.g. D(ii), D(iii), F).
Index Map Search (e.g. to reveal if land is registered or not).
What checks are needed regarding Easements?
Confirm easements benefit the land (e.g. right of way).
Will appear in:
Charges Register (registered land), or Conveyance (unregistered).
Must highlight any cost obligations or use restrictions.
What should be done about Mines & Mineral Reservations?
Check Property Register (registered) or conveyance (unregistered).
Index Map Search reveals separate title & owner of minerals.
If reserved, they’re not sold with land.
What to look for in Declarations of Rights to Light & Air?
Check for any reservations over neighbouring land.
If rights affect enjoyment/use of land, notify buyer.
What are the key issues with Co-Ownership?
Co-owned land may be:
Joint tenants – right of survivorship applies.
Tenants in common – no survivorship; passes under will/intestacy.
What should a solicitor do when purchasing land from co-owners?
Check if any co-owner has died.
Confirm if trust needs to be overreached to allow disposal.
What covenants must be flagged to the buyer?
- Restrictive covenants:
Limit use of land.
Registered land: in Charges Register.
Unregistered land: in conveyance (must be Class D(ii) Land Charge).
- Positive covenants:
Often require financial outlay.
Charges Register (registered) or conveyance (unregistered).
Don’t run with the land but often supported by indemnity covenants forming chain of indemnity.
What checks should a solicitor make regarding existing mortgages during title investigation?
Identify existing mortgages and ensure they will be discharged at completion.
- In registered land:
Found in the Charges Register.
May be accompanied by a restriction in the Proprietorship Register requiring lender consent.
- In unregistered land:
Located in the epitome of title among title documents.
What checks should a solicitor make regarding leases?
Ensure lease is disclosed to buyer.
- In registered land:
Lease >7 years = registered in Charges Register (binds buyer).
Lease ≤7 years = overriding interest if tenant in actual occupation.
- In unregistered land:
Legal lease will be found in a deed and included in the epitome of title.
What is the function of a Notice in title investigation?
Protects an interest in a registered estate/charge (e.g. restrictive covenant).
- Binds future acquirers of the land.
🔹 Can be:
Agreed (with proprietor’s consent)
Unilateral (without consent)
🔹 Maintains priority of interest against subsequent interests.
What are Home Rights under the Family Law Act 1996?
Rights of non-owning spouse/civil partner to occupy.
🔹 Registered land: Registered as a notice of charge.
🔹 Unregistered land: Registered as a Class F Land Charge.
❗ Must be removed before completion — cannot be overreached.
When must title investigation issues be reported to the client?
Title defects or unclear entries.
Matters requiring seller clarification.
Contract changes (e.g. removing encumbrances).
Major concerns affecting use — report immediately to client/lender.
When is first registration of unregistered land compulsory?
✅ Freehold conveyance
✅ Lease >7 yrs granted or assigned
✅ Assent/vesting assent (freehold or lease >7 yrs)
✅ First legal mortgage (freehold or lease >7 yrs)
✅ Reversionary lease (starts >3 months after grant)
✅ Partition or trustee appointment (freehold/lease >7 yrs)
