Property 4 Flashcards
How does the buyer’s solicitor investigate title of registered land?
Checking the register of title (header section, property register, proprietorship register and charges register) for several technical points, such as * whether the title number matches that in the contract* encumbrances or * the class of the seller’s title.If there any any discrepancies, the byuer’s solicitor should raise these with the seller’s solicitor as an ‘additional enquiry’ to be resolved.
The seller’s solicitor mentions the property uses a driveway that passes over a neighbour’s property. When examining the Land Registry official copy of the title to the property, what would the buyer’s solicitor look for?
An entry of an easement in the Property Register to confirm the right of way for the driveway is properly registered.
The seller has an existing mortgage on the property. What would the buyer’s solicitor do when investigating title?
- Look for entry of the seller’s existing mortgage on the Charges Register. * Seek an undertaking from the seller’s solicitor to redeem the mortgage from the sale proceeds on completion.
If the buyer’s solicitor finds a restriction against dispositions by a sole proprietor on the proprietorship register, what does this indicate?
The presence of a co-owner who holds the beneficial interest in the property.
When investigating title of unregistered land, what will a buyer’s solicitor look for?
- Whether the land should have been registered with the Land Registry (i.e. if there was a triggering event after 1 December 1990)* Whether there is a good root of title and an unbroken chain of ownership from the root to the current seller* Whether the documents have been stamped correctly (indicating any relevant stamp duty was paid), * Whether the seller has the ability to sell the property* Whether any third parties might have rights in relation to the land.
What type of root of title is likely to have been investigated at the time of the transaction?
Conveyance on sale
What type of root of title is unlikely to have been investigated at the time of the transaction?
Deed of gift
What does the buyer’s solicitor do with the epitome of title?
Inspect each individual document to ensure the seller has entitlement to sell the land
If there has been a triggering event since the root of title, what must the buyer’s solicitor do?
Inform the seller’s solicitor who would have to make an application to HMLR to register the title (should really be done before drafting the contract)
A root of title indicates a buyer called Fred Jones. The next conveyance in the chain shows the sale from Fred Jones to Mary Smith. Then you’re told the seller in the present transaction is Robert Green. This would be a break in the chain of ownership i.e. how did the title pass from Mary Smith to Robert Green? What should the buyer solicitor do?
Raise an inquiry of the seller’s solicitor. In response, the seller’s solicitor should produce documentary evidence to fix the break in the chain of ownership. For instance, perhaps Mary Smith has died and Robert Green is the executor administering her estate. To ensure there’s no break in the chain of ownership, the seller’s solicitor could produce a grant of probate, showing the appointment of Robert Green as Mary Smith’s executor.
The buyer’s solicitor notes that there was a transfer of ownership of the property 10 years ago. This event should have triggered first registration of title to the property with HMLR. What should the buyer’s solicitor do?
Insist that the seller’s solictor registers the title without delay. Once the registration is complete, the seller’s solicitor should send an amended contract showing the registered title accompanied by the new title register and title plan.
The contract shows the seller’s name as ‘Jane Smith’. But on investigating the title, the buyer’s solicitor notices that the conveyance to the seller showed her name as ‘Jane Brown’. What should the buyer’s solicitor do?
Ask for evidence of the change in the seller’s name (e.g. a marriage certificate) as this represents a break in the chain of ownership.
The investigation of title reveals that one co-owner has died. It is clear that the co-owners held the beneficial interest as joint tenants. What should the buyer’s solicitor do?
Ask for a copy of the deceased’s death certificate to confirm that the surviving co-owner has taken the interest of the deceased by survivorship. (The Law of Property (Joint Tenants) Act 1964 provides that a buyer can safely take a conveyance from a surviving co-owner in these circumstances.)
A question might suggest that a conveyance in the epitome does not have the appropriate stamp duty affixed to it. What should the buyer’s solicitor do?
Raise an additional inquiry, requiring the seller’s solicitor to arrange for any stamp duty, penalties, and interest to be paid, and for evidence of the same to be produced to the buyer’s solicitor. This is an important point because a document, which is not appropriately stamped does not form a good link in the chain of title and is not acceptable to the land registry on first registration.
The buyer’s solicitor is told the seller’s solicitor has provided a root of title dated the 4th of December, 1972, but it refers to covenants contained in a previous document dated the 5th of June 1965, which has not been produced. What should the buyer’s solicitor do?
Raise an additional enquiry, asking for the document dated the 5th of June 1965, so the solicitor can see the content of the covenants.
