Property (Freehold) - Transfer Deed (9) Flashcards
What is a transfer deed?
Transfer Deed: The transaction formally completes on completion of the transfer deed (s52 LPA). The type of deed will vary.
(1) Registered Whole: Transfer of registered whole is completed on Form TR1.
(2) Registered Part: Transfer of registered part is completed on Form TP1.
(3) Unregistered: Transfer of unregistered estate may be conveyed in a simple deed of conveyance. Freeholds and leases exceeding 7 years will require registration, so Form TR1/TP1 may be more practical.
What are the formalities of a transfer deed?
Formalities: Execution of deeds must abide by a number of formalities.
(1) Statutory Formalities: Deeds must be clear on the face, signed, witnessed, and dated (s1 LPMPA).
(2) Signatories: The transferor must sign the deed. The transferee will also sign the deed if they are entering into a covenant or declaring a trust.
Natural Person: Signed in own name, signed and witnessed by an impartial witness.
Corporate Body: Executed in one of three ways, always by company, acting by signatory:
Company seal, witnessed by authorised director;
Signature of two authorised officers (director + director or secretary);
Signature of director, signed and witnessed by impartial witness.
(3) Witness: Where witnessed, witness must sign, state full name in capitals, occupation and address.
(4) Dated: Deed is formally executed when it is dated (so leave the date blank until completion).
What are the contents of the transfer deed?
Contents: Most transactions will use Form TR1. The contents are as such, mostly copied from the contract. By panel:
(1) Title Number: Property title number (if registered).
(2) Address: Address and postcode.
(3) Date: Date of completion (blank until completed).
(4) Transferor: Name of transferors (may differ to title document if married etc).
Title: Do not include ‘Mr/Mrs’, but do include ‘Dr/Professor’ as appropriate.
Corporate: Include company/LLP number.
Foreign Company: Include territory of incorporation and UK corporation number.
(5) Transferee: As above.
(6) Transferee’s Service Address: The address the transferee nominates for service of documents.
New Home: If the property is intended to be the purchaser’s new home, then the address will be the purchased property.
Other: Otherwise, the address will be another address nominated by the transferee.
(7) Operative Part: Panel 7 is the ‘operative part’, confirming the transfer between parties. It should not be amended in any way.
(8) Consideration: The consideration or lack thereof must be stated. This excludes contents price.
VAT: VAT should be included if applied.
Format: Price is laid out in lowercase in words, and then in figures as well.
(9) Title Guarantee: The title guarantee is set out, as in the contract of sale (see draft contract). There may be multiple if overreaching.
Full Title: Outright owner.
Limited Title: PR or second trustee.
(10) Declaration of Trust: Declaration of trust is entered if property is being purchased jointly.
Unequal TiC: If purchasing as tenants-in-common in unequal shares, should be laid out as: The Transferee is more than one person and they are to hold on trust for themselves alone as tenants in common in the following unequal shares…
Non-Declaration: If co-owners do not tick a box, the transfer is not registered, and the deed is sent back to the buyers as a ‘requisition’.
(11) Additional Provisions: Additional provisions include any covenants entered into by the parties. In a TP1, this is a much longer section, as rights are generally created for the first time.
Indemnity Covenant: It is a condition of standard conditions to observe and indemnify the seller in respect of any positive or restrictive covenants: The Transferee covenants with the Transferor to… observe… indemnify.
Covenants Against Title: On assignment, it is common to covenant against the default provision that an outgoing tenant has complied with repair covenants, to comply with caveat emptor: The Transferee covenants with the Transferor that… covenants in s4 LPMPA do not extend to breach of tenant’s covenants in lease relating to physical state of property.
(12) Execution: The Transferor executes the deed, and the Transferee as well if entering a trust or covenant.
Natural Person: As above.
Corporate Body: As above.
What differences are there between a TR1 and TP1?
TP1 Differences: A deed for a transfer of part is largely the same as a TR1, but has some key distinctions.
(1) Title Number: Refers to title number from which land is transferred.
(2) Other Title Numbers: Include title numbers of other land affected (i.e. reserved easements).
(3) Property: Property is usually identified by an attached plan.
Additional Provisions
Additional Provisions: TP1 includes space for ‘additional provisions’, i.e. the creation of new rights and burdens. These headings can be edited or removed as appropriate.
(1) Definitions: Defined terms in new rights, i.e. ‘the Retained Land’.
Standard: a) Singular includes plural; b) individuals includes bodies.
(2) Rights Granted: Easements for benefit of property.
(3) Rights Reserved: Easements for the benefit of retained land.
(4) RCs by Transferee: Restrictive covenants binding property.
(5) RCs by Transferor: Restrictive covenants binding the retained land.
(6) Other: To be edited with other titles.
PCs: Positive covenants over either land.
Declarations: Declarations to property, i.e. This transfer does not include any easement other than those expressly granted in this transfer.
