Property (Title Investigation) Flashcards
What is deducing title in the context of registered land?
Deducing Title involves the seller’s solicitor gathering title documents to verify the seller’s entitlement to sell the property and sending them to the buyer’s solicitor.
What documents are included in the deducing title process?
- Land Registry Official Copies
- Land Registry title plan
- Copies of documents referred to in the register.
What are the three registers that appear in the official copies of registered land?
- Property Register
- Proprietorship Register
- Charges Register
What does the Property Register show?
It describes the property and rights benefitting the property
For example, benefit of an easement
What does the proprietorship register show?
It gives the registered proprietor’s name and address, class of titles and entries affecting ownership
For example, absolute title.
What does the charges register show?
It lists rights burdening the property
For example, burden of a morgage or covenant
What is the purpose of investigating title?
The buyer’s solicitor investigates the registered title to
* Check the seller’s legal right to sell
* Ensure the property is adequate for its intended use
* Confirm there are no title defects affecting value.
What does the Property Register describe?
- Whether the property is freehold or leasehold
- Describes the property by address and reference to the title plan
- Shows the size and location of the land.
What types of rights can be associated with a property according to the Property Register?
The property register concerns benefitting rights
- Rights of way
- Rights to run services
- Rights to light
- Excluded Rights
What must be checked regarding a property with the benefit of a right of way?
- Registration of the burden (is it registered against land over which the right passes?)
- Adequacy of the right of way (is it legally and physically adequate?)
- Maintenance obligations (Inspect to assess condition)
- Whether the highway is adopted (Is it adopted by the council or will it need private funding?)
What are the classes of title in the Proprietorship Register?
- Title Absolute (best title)
- Possessory Title
- Qualified Title
- Good Leasehold Title.
What is Title Absolute?
(Freehold or Leasehold)
The best title. No issues.
The proprietor has satisfied that it is the true and proper owner of the property.
What is Possessory Title (Freehold or Leasehold)?
Granted when the registered proprietor shows that they have physical possession but has no title deeds, or is claiming through adverse possession
What is Qualified Title?
(Freehold or Leasehold)
Where there is a specific defect in the title.
For example, where a deed known to contain a covenant was missing on first registration.
What is Good Leasehold Title? (Leasehold Only)
Granted where the leaseholder cannot provide evidence of the landlord’s title to the land.
It is often upgraded if the landlord’s title has been registered since the grant of the lease.
What actions are needed if the property has qualified, possessory, or good leasehold title?
The buyer’s solicitor should
* Report to the client
* Check mortgage lender requirements
* Consider obtaining title indemnity insurance
* Explore the possibility of upgrading to title absolute (e.g. try finding the missing document)
Who is usually the registered proprietor of a property?
The seller is usually the registered proprietor, except when the seller is the executor of a deceased person’s estate.
What is required for co-ownership in registered land?
The buyer’s solicitor needs to satisfy the Land Registry that both legal and beneficial title has passed to the buyer
All living co-owners must sign the contract and transfer deed.
What if the Land Registry are notified that owners hold the beneficial interest as tenants in common?
Land Registry will add a restriction to the proprietorship register
“RESTRICTION: no disposition by a sole proprietor of the registered estate under which capital money arises is to be registered unless authorised by an order of the court..”
If you see this, you know it is a tenancy in common!!!!
What doers the following restriction mean?
“RESTRICTION: no disposition by a sole proprietor of the registered estate under which capital money arises is to be registered unless authorised by an order of the court..”
Tenancy in Common