Investigation of Title

Question 1

What is investigation of title?

Answer 1

Process of establishing who owns property & whether there are any rights or rules which could affect the owner’s use & enjoyment of the property

Question 2

How is title deduced for registered land?

Answer 2

Seller gives the buyer (at their own expense) the official copies, which show entries on the three registers

Question 3

What are the official copies?

Answer 3

Used to deduce title in registered land → show entries on the three registers:

1) Property Register

2) Proprietorship Register

3) Charges Register

Question 4

What information is contained on the Property Register?

Answer 4

A description of the land & whether it is freehold or leasehold

Anything benefiting the property or excluded from the property

Declaration of the ownership & maintenance of any shared facilities

Question 5

What information is contained on the Proprietorship Register?

Answer 5

Identifies the current owners & their class of title

1-Absolute title

2- Possessory title

3-Qualified title

Also shows any restrictions on owner’s ability to sell and if the current owners gave an indemnity covenant when they bought the land

Question 6

What information is on the Charges Register?

Answer 6

Incumbrances ie. anything burdening the property

• Covenants affecting property
• Easements affecting land
• Charges over land (eg. mortgage)
• Leases granted over whole or part of property
• Notices registered by third parties claiming an interest in the property

Question 7

What searches should the buyer’s solicitor carry out as part of investigating title to unregistered land?

Answer 7

Index Map search to check if land already registered

+

Land Charges search against every name in epitome

Question 8

What kind of documents are the title deeds?

Answer 8

Paper deeds used to transfer ownership of the property in the past ie. conveyances, mortgages, assents, deeds of gift, land charges searches

Question 9

What are the 4 requirements for a title deed to be ‘good’ root of title?

Answer 9

s44 LPA - Root of title must:

➢ Deal with or show who owns the entire interest (legal & equitable) being sold

➢ Contain a recognisable description of the relevant land

➢ Do nothing to cast doubt on the seller’s title

➢ Be at least 15 years old

Question 10

What is the best option for a root of title?

Answer 10

A conveyance complying with s44 LPA requirements

(ie. shows who owns entire interest, contains recognisable description, does nothing to cast doubt, is at least 15)

Next best is mortgage

Question 11

What is the buyer’s solicitor looking for when they check each document in the epitome?

Answer 11

Root of title

Links: chain of ownership not broken

Stamp duty paid

Description of land consistent throughout

Incumbrances - are there any legal rights in the epitome? Are there any land charges on the Land Register?

Execution has every document been executed as a valid deed?

Search against every name in epitome for period they owned the land

Robert Louis Stevenson D I E S

Question 12

How is title investigated in unregistered land?

Answer 12

Seller provides their solicitor with copies of the title deeds - solicitor finds good root of title & prepares epitome, which buyer’s solicitor then checks through

Question 13

Where will an easement be found in registered land?

Answer 13

In the charges register

Question 14

Where will an easement be found for unregistered land?

Answer 14

Granted or reserved in the first paragraph of the conveyance

‘EXCEPTING AND RESERVING..’

Question 15

Where are mines & minerals exceptions or reservations found in registered land?

Answer 15

Property register

Question 16

Where are mines & minerals exceptions or reservations found in unregistered land?

Answer 16

Conveyance

Question 17

What further action should the buyer’s solicitor take if there is a mines & minerals reservation or exception?

Answer 17

Establish who owns rights & whether they’ve been exercised

Survey to see if there are any adverse effects to the land from any mining (eg. subsidence)

Question 18

Where will information about co-ownership be found in registered land?

Answer 18

Assume equitable interest is held as a joint tenancy

UNLESS there is a restriction on the Proprietorship registere

Question 19

Where will information about co-ownership be found in unregistered land?

Answer 19

Conveyance to joint buyers states whether they own it as JTs or TICs

Question 20

What further action should be taken by the buyer’s solicitor if the property is co-owned but not all co-owners are party to the sale?

Answer 20

If the other co-owner is alive: ensure they are a party to the sale

If dead: ensure second trustee has been appointed so that beneficial entitlements can be overreached

Question 21

Where is information about covenants found in registered land?

Answer 21

In the Charges register

Question 22

Where is information about covenants found in unregistered land?

Answer 22

In the conveyance ‘SUBJECT TO’

Nb. If it is a post-1925 restrictive covenant, will only be binding if validly registered as D(ii) Land Charge against name of original covenantor

Question 23

What further action should the buyer’s solicitor take if there is a restrictive covenant?

Answer 23

Notify the buyer that they will be bound

Question 24

What further action should the buyer’s solicitor take if there is a positive covenant?

Answer 24

Check whether the current seller gave an indemnity covenant when they purchased the property (states in the Proprietorship reg.)

Question 25

What further action should the buyer’s solicitor take if there is an unknown covenant?

Answer 25

1. Indemnity insurance
2. Go to person with benefit asking to be expressly released
3. Apply to Upper Tribunal Land Chamber to have covenant removed

Question 26

Where is information about mortgages found in registered land?

Answer 26

Two entries on the Charges register + lender may also have put restriction in Proprietorship register

Question 27

Where is information about mortgages found in unregistered land?

Answer 27

Will be one of the title deeds in the epitome

(If discharged, will have a vacating receipt)

Question 28

Where is information about leases found in registered land?

Answer 28

If 7+ years lease, will be registered in own right AND appear as notice in Charges register (binding on purchaser)

Nb. If unregistered 7+ year lease, will not bind but may be overriding if tenant is in actual occupation

Question 29

Where is information about leases found in unregistered land?

Answer 29

Legal lease (other than lease for 3 years or less) will be one of the title deeds in the epitome

Question 30

What further action should the buyer’s solicitor take if there is a notice by a third party on the charges register?

Answer 30

Ask the person who registered it to withdraw

If they refuse, get seller’s solicitor to apply to the Land Reg to cancel the notice

Land Reg will give registerer 15 days to make representations & then will decide if the notice is protecting a valid interest