Title Investigation Flashcards
What should a buyer get if a seller cannot show good title
Defective titled indemnity insurance
How long to raise requisitions regarding good title
6 working days and cannot do it after exchange of contracts
What can be registered?
Freehold
Leasehold with more than 7 years left
Leasehold of any length where right to possession is discontinuous
Leasehold of any length granted to take effect in possession more than 3 months after date of grant
Franchise
Profit a prendre (a right)
Rentcharge either perpetual or more then 7 years left
When is unregistered land registered
Transfer of freehold
Transfer of lease with more than 7 years left
Grant of new lease of more than 7 years or for any length to take effect in possession 3 months after date of grant
First legal mortgage of freehold or lease of more than 7 years left
What are the 4 classes of title
Absolute title
Qualified title
Possessory title
Good leasehold title
What is absolute title subject to
Entries on register
A trustee who has notice of minor interests
Unregistered interests in sch1 and sch3 LRA 2002
Obligations in lease
When would you have possessory title
When you are in possession but don’t have deeds or adverse possession
What is possessory title subject to
Same as absolute title but also subject to all adverse interests existing at time of first registration
When is qualified title granted
When there is a defect in the title that cannot be overlooked
What is the consequence of having qualified title
The states guarantee of title doesn’t apply to the defect
When is good leasehold title granted
When freehold is unregistered or registered with less than absolute title and applicant doesn’t submit evidence of title of freehold but leasehold interest is sound
Consequence of having good leasehold title
Doesn’t guarantee lease against defects in freehold title or guarantee the freeholder has the right to grant the lease
Can a title be upgraded to absolute
Yes if registrar is satisfied or if possessory title for at least 12 years
Requirements for deeds before 1990
Signed sealed and delivered
Requirements for deeds after 1990s
Signed and attested by witness
Clearly intended to be a deed
Delivered ( signed and intended to be bound ) it’s okay for receivers to assume solicitor has authority to deliver
Can you sign a deed on behalf of someone else
Only in their presence and with two attesting witnesses
What are the three parts of the register
Charges - any incumberabces
Property - describes land
Proprietary - class of land any third party rights
Types of third party rights in registered land
- Registered charges noted on charges register
- Unregistered overriding interests (sch1 for first registration and sch3 which overrides registered disposition)
- Covenants (positive and negative)
What are the two types of overriding interests which override registered dispositions and what is included in them
Sch 1 LRA2002- override first registration
Sch 3 LRA2002- overriding registered dispositions
Legal lease of 7 years or less
An interest of a person in actual occupation
Easement or profit (not equitable and not after 13.10.03)
What is a covenant
A contract between parties to do something or not do something regarding use of land
What is a positive covenant
Obligation to do something
Doesn’t run with the land unless benefit is connected to burden (the thing you must do) (Halsall)
What to do regarding a positive covenant when selling
Get an indemnity covenant or a compulsory renewed covenant supported by a restriction
When is an indemnity covenant
When the seller gets a covenant from the buyer to recover any money if buyer breaches covenant and seller is sued
What is a compulsory renewed covenant supported by a restriction
Seller gives binding obligation to compel the buyer to enter into covenant with the owner of the other land using same terms as original covenant
And
To ensure successor or buyer does the same
Put restriction on servient land owners title to ensure they don’t sell without obtaining further covenant
How many trustees are needed to overreach
At least two but if there is more than two it must be done by all of them
How many PRs are you required to deal with when purchasing land from them
They can act alone if there is only one but if there is more than one then all of them must assent to conveyance ohhhhh
How many tenants in common are you required to deal with them purchasing land from them
There must be at least two unless they can show they are entitled to act alone because they are solely entitled to the whole estate
How many joint tenants must to deal with them purchasing land from them
May deal with survivor alone but need proof of death of the other
How to discharge a mortgage
Use form DS1 and raise requisitions requesting it is removed on or before completion
Are restrictive covenants enforceable if they are not registered
No must be registered to be enforceable
How can you change or remove a covenant
Ask the person who benefits from it
What should you consider if your searches show the land is subject to a covenant
Consider insurance against future breaches
Can trustees make a conveyance to themselves
Normally a breach of trust and voidable by Bs unless:
Trust instrument allows it
Order of court
They are B under will or intestate
Consent of all competent Bs is obtained
Proof of a pre existing contact in favour of T
Effect of death on transfer of property owned by joint tenants
Survivorship operates so can deal with survivor alone who are legally and beneficially entitled to whole property. Trust comes to an end on death
How to tell is property is owned by joint tenants or tenants in common
Check proprietorship register
Effect of death on transfer of property owned by tenants in common
Legal interest vests in other TinC but beneficial interest vests in PR.
Overreach this trust situation by dealing with at least 2 but definitely all.
If beneficial interest vests in surviving T in C because they are also the PR then trust situation comes to an end
What acts as a mortgage offer in residential and simple commercial cases
A document issued by the lender which sets out the terms on which it will lend
What acts as the mortgage offer in complex commercial cases
Lender issues commitment letter with a terms sheet attached followed by a facility agreement setting out the detailed terms of the loan
