Property Title Investigation Flashcards
chapter 2
What is the difference between registered and unregistered land?
○ Historically, all land was unregistered, with title proven by paper deeds.
○ The Land Registration Act 1925 introduced a system to register land ownership in a central database (the Land Registry).
○ Since December 1, 1990, it has been compulsory to register unregistered land upon a change of ownership.
○ Around 85% of land in England and Wales is now registered.
○ Some land remains unregistered, often that which has not been sold for long periods.
What is “deduction of title”?
○ Deduction of title is the process by which a seller proves their ownership of a property to the buyer.
○ This is done by providing documentary evidence.
○ In registered land, this involves providing official copies of the register.
○ In unregistered land, this involves providing an epitome of title (a summary of title deeds).
○ Title is usually deduced before the exchange of contracts.
What are “official copies” in the context of registered land?
○ Official copies are copies of the register of title for a property, obtained from the Land Registry.
○ They show the title number, edition date, and search from date.
○ The official copies include three registers: the Property register, the Proprietorship register, and the Charges register.
○ The Property register describes the land.
○ The Proprietorship register identifies the owners and class of title.
○ The Charges register identifies incumbrances affecting the land
What is the significance of the “class of title” in registered land?
○ The class of title is determined by the Land Registry when the property is first registered.
○ Absolute title is the best class, giving the owner the legal estate subject only to entries on the register, overriding interests and some minor interests.
○ Possessory title is granted when the proprietor is in possession but has lost the deeds, and is subject to adverse interests at first registration.
○ Qualified title is granted where there is a specific identified defect.
○ A buyer will be concerned if the class of title is not absolute as this may affect their ability to obtain a loan or sell the property in the future
What is an “epitome of title”?
○ An epitome of title is a schedule of all the documents that prove ownership of unregistered land.
○ It includes copies of the title deeds in chronological order, from the root of title to the present day.
○ It is used in the sale of unregistered land.
○ Before epitomes became common, “abstracts of title” were used.
What is a “good root of title” in unregistered land?
○ A good root of title is the document from which the title investigation begins.
○ It must:
■ deal with the entire interest being sold.
■ contain a recognisable description of the land.
■ not cast doubt on the seller’s title.
■ be at least 15 years old.
○ A conveyance on sale or legal mortgage that satisfies these requirements is most acceptable.
What are some common incumbrances that might affect a property?
○ Incumbrances are third-party rights that bind the property and may be a problem for a buyer.
○ Examples include:
■ Easements: rights of way, rights of drainage, rights of support.
■ Covenants: restrictive or positive obligations on the use of land.
■ Charges: mortgages.
■ Leases: granted over the whole or part of the property.
■ Notices: registered by third parties claiming an interest.
■ Home Rights: statutory rights of a non-owning spouse or civil partner.
What is the difference between restrictive and positive covenants?
○ Restrictive covenants prevent land being used in particular ways and are usually binding on successors in title.
○ Positive covenants oblige the covenantor to carry out works or incur expenditure, and the burden does not usually pass to a successor, although indemnity covenants may be in place
What is an indemnity covenant?
○ An indemnity covenant is a promise by a buyer to compensate a seller for any losses if a positive covenant is breached.
○ A chain of indemnity covenants may exist where each successive buyer agrees to indemnify the previous owner.
○ This is often used to make positive covenants indirectly binding on future owners.
What are “overriding interests”?
○ Overriding interests are interests that bind a buyer of registered land even though they may not be registered on the title.
○ They are discovered through searches and enquiries, and include things like certain leases or rights of those in actual occupation of the property
