Investigation of Title Flashcards
What is the difference between registered and unregistered land?
Registered land is land whose ownership is recorded in a central database maintained by the Land Registry. Unregistered land is land whose ownership is evidenced by physical title deeds.
When did the system of registered land in England and Wales begin?
The Land Registration Act of 1925 introduced a system of registered land in England and Wales.
How does a seller deduce title to the buyer in registered land?
In registered land, the seller provides the buyer with official copies of the register of title, which are less than six months old, at the seller’s own expense. The buyer’s solicitor will also need to investigate overriding interests.
What information is shown on the official copies of the register of title for a property?
Official copies show:
● The title number
● An edition date (the date the Land Registry last updated the title)
● A search from date (the date of the official copies, showing entries on the register at a certain time).
What are the three registers shown on official copies in registered land?
The three registers are:
● The Property Register: Contains a description of the land, including the postal address and title plan, and indicates whether the title is freehold or leasehold.
● The Proprietorship Register: Identifies the current owners, their address, and the class of title.
● The Charges Register: Identifies any encumbrances that affect the land, such as covenants, easements, charges, leases, and notices.
How does a seller deduce title to a buyer in unregistered land?
The seller provides the buyer with an epitome of title, a schedule of documents starting with the root of title, including copies of each.
What are the requirements of a good root of title for unregistered land?
Section 44 of the Law of Property Act (LPA) 1925 states that a root of title must:
● Deal with or show the owner of the whole interest being sold
● Contain a recognizable description of the land
● Contain nothing that casts doubt on the seller’s title
● Be at least 15 years old.
What is considered the most acceptable root of title and why?
A conveyance on sale or a legal mortgage is generally the most acceptable because it offers a ‘double guarantee’ since the buyer in both transactions should have investigated the title for at least 15 years prior to their purchase.
What should a solicitor consider when checking the title deeds in an epitome of title?
The solicitor should focus on:
● The chain of ownership: ensuring an unbroken chain from the root of title to the present seller.
● The description of the land: ensuring consistency throughout the title deeds.
● Stamp duties: ensuring the correct amount was paid according to the law at the time of the transaction.
● Incumbrances: such as easements and covenants, checking for their presence and impact on the buyer.
● Execution: making sure each document was properly executed as a deed.
● Land charges searches: ensuring valid searches against all estate owners revealed in the epitome of title.
What are some issues that might be revealed in an investigation of title and what actions should be taken?
● Easements: The buyer should be advised if the easements are sufficient for their intended use of the property and whether a contribution to upkeep is required.
● Mines and Minerals Exceptions and Reservations: Inquiries should be made about ground stability, subsidence, and who can exercise the right to extract minerals.
● Declarations as to Rights of Light and Air: The buyer should be informed of any limitations on their rights to light and air and whether it affects their intended use.
● Co-ownership: Determine what happened to any missing co-owners. Ensure they are a party to the contract and transfer if alive, and that overreaching occurs if deceased.
● Restrictive Covenants: Advise the buyer on the restrictions, explore options for dealing with the covenant, like obtaining consent from the beneficiary or insurance.
● Positive Covenants: Determine if the covenant binds the buyer through a chain of indemnity, inform the buyer of the obligation, and have a surveyor inspect any related structures.
● Unknown Covenants: Assume they are restrictive and binding, consider options for dealing with restrictive covenants, like obtaining indemnity insurance.
● Mortgages: The buyer should be satisfied that the seller’s mortgage will be discharged on completion.
● Leases: The buyer should be informed of the existence of any leases and ensure compatibility with their intended use.
