The Draft Contracts

Question 1

Should you obtain the deeds aswell as the official copies when drawing up draft contracts ?

Answer 1

Yes

Question 2

Where will the title deeds of a mortgages unregistered property be held

Answer 2

With the mortgagee (the bank)

Question 3

If there are two mortgagees on a unregistered mortgaged property where will the title deeds be held ?

Answer 3

With the first mortgagee

Question 4

If you have an unregistered mortgage free property, where will the title deeds be held ?

Answer 4

Often by the vendor, or they would have deposited them for safe keeping, I.e a bank or solicitor - this will be ascertained while taking instructions

Question 5

Obtaining deeds- unregistered land :
When the bank instruct you to act in redeeming the Morgage what should you do be careful of when providing an undertaking ?

Answer 5

Be sure not to give an unqualified undertaking that the mortgage will be repaid, as this is something you cannot guarantee

The deeds are sent to you held to order pending redemption of the mortgage and can be returned by demand if the mortgage cannot be repaid.

Question 6

Unregistered land - obtaining deeds:
If the mortgagee is separately represented what undertaking will they most likely ask you to provide

Answer 6

They will insist on an undertaking to be responsible for their costs in relation to the mortgage redemption whether or not the redemption actually proceeds.

Try to agree an upper limit of £100 + VAT maximum and ask your client to put you in funds for the appropriate amount

Question 7

Why is it important to request in a redemption figure from the lender and not rely on your clients information

Answer 7

You must be sure that there are sufficient proceeds from the sale of the property to redeem the mortgage.

Question 8

If you do not know the title number what land registry search should you conduct?

Answer 8

An index map search, the registry will usually require a plan, you can then send off both applications together and providing the land is registered they will send you back the relevant office copies

Question 9

What is an incumbrance ?

Answer 9

Any burden, interest, right, or claim that adversely affects a real estates use and value but does not necessarily prohibit the ability to transfer title

Question 10

What are you investigating the title for before drafting contracts ?

Answer 10

Any incumbrances, as the seller has a duty of disclosure. These jncumbrances must be noted in the contract.

To check the seller actually owns the legal estate and/or otherwise is entitled to sell it.

Lastly an investigation will enable you to identify any defects in the title and to anticipate the questions the buyers solicitor is likely to raise

If there is an error in the title, such as a name change that hasn’t been recorded on the register, the protocol requires that the seller’s solicitor should rectify this rather than wait for the buyers solictors to raise it.