BUYER - INVESTIGATION OF TITLE

Question 1

WHAT STAGE OF THE LSCP IS USED IN THIS STAGE OF THE TRANSACTION?

Answer 1

Stage B (pre-exchange)

Question 2

WHAT DOES SCS 4.1.2 STATE ABOUT PROOF OF TITLE?

Answer 2

Proof of title must include:

• Official copies of the register for the property
• Official copy of the title plan
• Copies of documents referred to on the register

Question 3

WHAT MATTERS MUST BE CHECKED IN RESPECT OF THE PROPERTY REGISTER?

Answer 3

a. Are there any discrepancies in the property description?
b. Is the title number the same?
c. Is the estate consistent with what is stated in the contract and other documentation?
d. Does the property have the benefit of any easements?
e. Do the boundaries on the title plan match those on the ground?
f. Are there any other entries in this part

Question 4

WHAT MATTERS MUST BE CHECKED IN RESPECT OF THE PROPRIETORSHIP REGISTER?

Answer 4

a. Does the class of title match that in the contract and that expected by the buyer?
b. Do the names of the proprietors match those in the contract?
c. Are there any restrictions on the register?
d. Are there any pre–LRA 2002 entries?

Question 5

WHAT MATTERS MUST BE CHECKED IN RESPECT OF THE CHARGES REGISTER?

Answer 5

Any incumbrances must be checked to ensure that they will not be a problem for the buyer

Question 6

WHAT ARE THREE WAYS OF DEALING WITH RESTRICTIVE COVENANTS?

Answer 6

• Discharge or alter the covenant by agreement of the person holding the benefit
• Apply to the Upper Tribunal (Lands Chamber) for discharge or modification
• Obtain an indemnity policy to cover the risk of being sued for breach

Question 7

WHAT MUST BE DONE IF THERE ARE ANY PROBLEMS WITH THE TITLE?

Answer 7

Buyer’s solicitor must raise requisitions on title with the seller’s solicitor to ensure that problems are dealt with

Question 8

WHAT IS A TITLE REPORT?

Answer 8

This is sent out once the buyer’s solicitor has all the search results, investigated the title and has satisfactory answers to any queries

Question 9

WHAT MATTERS ARE COMMONLY COVERED IN A TITLE REPORT?

Answer 9

• A summary of the solicitor’s overall views
• A summary of the property
• A summary of the title and matters burdening and benefitting the land
• A summary of the source of funding for the purchase
• A summary of the main points arising from pre-contract searches and enquiries
• Information about the draft contract
• Information about the conveyancing transaction generally