2. Title Investigation (registered Land)

Question 1

Deducing Title

Answer 1

Process of proving ownership to a buyer (cover all legal issues to be investigate)

Question 2

Seller’s Sol

Answer 2

Compiles title docs to check seller is entitled to sell and sends them to buyer’s sol

Question 3

Title Documents

Answer 3

• Land Reg Official Copies
• Land Reg Title Plan
• Copies of any documents referred to in Official Copies

Question 4

Official Copies - 3 Registers

Answer 4

• Property
• Proprietorship
• Charges

Question 5

Property Reg

Answer 5

Describes Property & any rights BENEFITTING (cov/ease)

Question 6

Proprietorship Reg

Answer 6

• Owner’s name and address,
• Class of Title
• Entries affecting Ownership

Question 7

Charges Reg

Answer 7

• Rights BURDENING (Mortgage, covs, ease, leases)

Question 8

Seller’s Sol

Answer 8

DEDUCES

Question 9

Content Property Reg

Answer 9

• Description (Free/Lease)
• Address & ref to title plan - redline
• Rights benefitting - Cov/ease - Can be extracted or refer to bundle

Question 10

Rights in Property Reg example

Answer 10

• None
• Right of Way
• Right to run services
• Right of light
• Excluded rights - minerals under land eg

Question 11

If Property has Right of Way - What must ne considered?

Answer 11

• Registration of burden - must be regged against the servient land
• Adequacy - Legal or physical constraints
• Maintenance - anyone using is required to contribute to maintenance
• Adoption - Private road frontagers are required to pay the costs of bringing road up to adoptable standards

Question 12

Proprietorship Register - Class of Title

Answer 12

• Title Absolute - GOAT
• Qualified Title - specific defect in title eg. missing deed with covs or ease
• Possessory Title - physical possession only
• Good Leasehold Title - Leasehold only - when cannot prove evidence of landlord’s title to land. Can be upgraded if landlord title has been registered since the grant of the lease

Question 13

Follow-up needed to Class of Title Issues

Answer 13

• Title Abso - no need
• Quali, Possess, Good Lease - Buyer’s Sol should:
• Report to client & explain
• check lender requirements
• advise on obtaining title indemnity insurance
• upgrade to title Abso by locating docs eg

Question 14

Other matters appearing on Proprietorship Register

Answer 14

• Price paid or stated value of land if acquired after 1 April 2000
• If registered proprietor gave an indemnity covenant to the transferor on acquiring the property
• Any restrictions on the registered proprietor’s right to sell the property

Question 15

Proprietorship Register - Co-ownership

Answer 15

Trust of Land exists by making declaration on TR1

Question 16

Legal Title held as…

Answer 16

Joint tenants - always

Question 17

Beneficial Title held as…

Answer 17

Joint tenants or tenants in common

Question 18

If Co-owners notify Land Reg they hold property as beneficial tenants in common

Answer 18

Land Reg will add a restriction to the proprietorship register

Question 19

Restriction

Answer 19

Entry preventing Land Reg from registering certain dealings against the title without the terms of the restriction being complied with.

Question 20

Co-Owners are?

Answer 20

• Always legal Joint Tenants
• Can hold as beneficial joint tenants or beneficial tenants in common

Question 21

Co-Owners are required to

Answer 21

sign the contract and execute transfer deed

Question 22

Buyer’s Sol can rely upon the register to assume that the co-owners hold as beneficial joint tenants if?

Answer 22

• There is no tenancy in common restriction

Question 23

Buyer’s Sol can rely upon the register to assume that the co-owners hold as beneficial tenants in common if?

Answer 23

• There is a tenancy in common restriction

Question 24

If dealing with surviving beneficial joint tenant - Buyer’s Sol needs to see?

Answer 24

Certified copy of deceased joint tenant’s death certificate

Question 25

If dealing with a surviving beneficial joint tenant - Buyer’s Sol needs to see

Answer 25

Certified copy of the deceased tenant in common’s death certificate and require a second trustee to be appointed.

Question 26

Charges Register and Interests Burdening Property

Answer 26

• Mortgage in favour of Lender
• Covenants (restrictive or positive)
• Easements
• Leases

Question 27

What will Lender want

Answer 27

• Lender will want mortgage cleared before transfer of property.
• Restriction on Proprietorship Register to prevent transfer without consent

Question 28

Dealing with Mortgage

Answer 28

• Check that seller will have enough funds to clear mortgage
• Ensuring that redemption of mortgage on completion is a contract term
• obtaining undertaking from seller’s Sol to redeem mortgage on completion.

Question 29

Charges Reg and Covenants

Answer 29

BURDEN because it appears in Charges Reg. BENEFIT appears in Property Reg.

Question 30

Typical Problems caused by Covenants

Answer 30

• Existing use of land is in Breach of Cov
• Buyer’s proposed use of Land will be in breach of the Cov

Question 31

Restrictive Covenant

Answer 31

Assume they are BINDING

Restriction is dependent on its effect. ‘use property ONLY as …’

Question 32

Positive Covenant

Answer 32

Positive Cov only Binding unless there is a chain of indeminity.
eg. ‘Not to allow fence to fall into disrepair’ - Requires action to be taken

Question 33

Indemnity Covenant

Answer 33

Covenant given by buyer to seller to observe the Positive Covenants.

Question 34

Unknown Covenants

Answer 34

Always an Issue and should be reported and insurance obtained

Question 35

Options for dealing with Covenants

Answer 35

• Indemnity Insurance
• consent from Person with Benefit
• Application to Upper Tribunal