Workshop 2 - Pre-contract

Question 1

How much does it cost to download a plan or register for a property from HMLR?

Answer 1

EX2 Official copy of an exempt information document £7 per copy £7 per copy £3 per copy
HC1 Copy of an historical edition of a registered title (only when held electronically) £7 per register, title plan or both Not available £3 per register for the register only
£7 per title plan or for a single application for both the register and title plan
OC1 Official copy of a register or title plan (other than a commonhold common parts register and title plan). Where title number is not known, the fee for the provision of the copy will cover the cost of the provision of the title number, no additional fee will be payable £7 per copy £7 per copy £3 each per copy
OC1 Form CI certificate of inspection of title plan £7 per certificate not available £7 per certificate
OC1 Official copy of a commonhold common parts register and title plan £7 per set (one register and one title plan) £7 per set (one register and one title plan) £3 per set (one register and one title plan)
OC2 Official copy of a document £7 per document £7 per document £3 per document

Question 2

Difference between registered and unregistered land?

Answer 2

Registered land has many advantages over its unregistered counterpart, including:

Ownership, and matters affecting the title, are clearer and more certain. The Land Registry provides a state guarantee of title and may pay compensation if there is a mistake in the register
Conveyancing registered land is usually quicker and more straightforward
Increasingly, buyers expect land to be registered before proceeding with a transaction. Registering your land helps to make it ready for sale and more marketable
Deeds can easily become lost or destroyed. In contrast, there is a central, permanent, record of all registered land which anyone can access online or by making a postal application
Registered land offers more protection against property fraud. The Land Registry requires confirmation of identity before registering a transfer of property. It may notify you of certain applications against your title to check that they are genuine

Question 3

What is possessory title?

Answer 3

A Possessory Title refers to the ownership of land to someone who does not hold the deeds to document his ownership, specifically because those documents do not exist due to them being lost or destroyed.

When buying a property that is registered as Possessory Title there is a risk to the value, due to people being vary about buying properties with one, ownership as people can at any point come along and claim that they in fact own the land and the ability for lenders to lend.

Question 4

Practice Guide 31

Answer 4

This guide deals with:

discharges of registered legal charges
the release of part of a registered estate in a registered title from a registered charge
the discharge of charges noted under the Land Registration Act 1925 and Land Registration Act 2002
the withdrawal of notices of deposit of land and charge certificates
early completion of applications where no evidence of discharge is lodged

Question 5

Benefits of registering land according to HMLR

Answer 5

Land or property must be registered for the first time if it’s unregistered when you take ownership of it or mortgage it.

Even if you do not have to register, registering voluntarily:

gives you proof of ownership
helps protect your land from fraud
makes it easier to change, sell or give your property away in the future

Question 6

What are the implied covenants when a property is sold with full title guarantee?

Answer 6

Practice Guide 48
that the seller has the right (with the concurrence of any other person making the disposition) to dispose of the property as they purport to
that the seller will at their own cost do all that they reasonably can to give the buyer the title that they purport to give, which includes doing what they reasonably can to ensure that the buyer is entitled to be registered with at least the class of title registered before the disposition (or, if the disposition gives rise to compulsory first registration, giving all reasonable assistance fully to establish to the satisfaction of the registrar the right of the buyer to registration as proprietor)
where the disposition is expressed to be made with full title guarantee, that the property is free from all charges and incumbrances (whether monetary or not) and from all other rights exercisable by third parties, other than any charges or rights that the seller does not and could not reasonably be expected to know about

Question 7

What are the implied covenants when a property is sold with limited title guarantee?

Answer 7

that the seller has the right (with the concurrence of any other person making the disposition) to dispose of the property as they purport to
that the seller will at their own cost do all that they reasonably can to give the buyer the title that they purport to give, which includes doing what they reasonably can to ensure that the buyer is entitled to be registered with at least the class of title registered before the disposition (or, if the disposition gives rise to compulsory first registration, giving all reasonable assistance fully to establish to the satisfaction of the registrar the right of the buyer to registration as proprietor)
where the disposition is expressed to be made with limited title guarantee, that the seller has not since the last disposition for value
created a charge or incumbrance that is still subsisting at the time of the disposition
suffered the property to be so charged or encumbered or subjected to any such rights, and that they are not aware that anyone else has done so

Question 8

Who needs to produce an EPC and when?

Answer 8

The seller at pre-contractual stage

Question 9

Why should the seller investigate title?

Answer 9

 Seller’s solicitor need to carry out investigation of title to embody the detail of the property accurately in the contract.
 Investigation allows to deal/anticipate any problems.

Question 10

Why should the buyer investigate title?

Answer 10

 To ensure that the seller is able to transfer what he has contracted to sell.
 To identify whether there are any defects in, or problems raised by, the title which could adversely affect the interests of the buyer.
 Usual for contract to contain a provision preventing the buyer raising requisitions on some or all aspects of the title once exchange has taken place (SC 4.2.1 and SCPC 6.2.1).
 If title is deduced after exchange, the contract will usually contain a timetable for the raising of, and responding to, requisitions (SC 4.3 and SCPC 6.3).

Question 11

The buyer’s 2 main elements for investigating title

Answer 11

 examination of official copies of the entries on the register and the title plan.
 to discover if there are any overriding interests affecting the property.

Question 12

Points to look out for on the official copies and title plan:
The property register

Answer 12

 (a) Does the description of the land agree with the contract description?
 (b) Does the title number match the one given in the contract?
 (c) Is the estate freehold or leasehold? Does this accord with expectations from the contract?
 (d) Which easements are enjoyed by the property? Do these match the needs of the client?

Question 13

Points to look out for on the official copies and title plan:
The proprietorship register

Answer 13

	(a) Is the class of title correct?
	(b) Is the seller the registered proprietor? If not, who has the ability to transfer the land?
	(c) Are there any other entries? What is their effect?

Question 14

Points to look out for on the official copies and title plan:
The charges register

Answer 14

 (a) Are there any incumbrances?
 (b) How do these affect the buyer?
 (c) Which of them will be removed or discharged on completion?
 (d) Have you agreed in the contract to buy subject to the incumbrances which remain?

Question 15

Points to look out for on the official copies and title plan:
The title plan

Answer 15

 (a) Is the land being bought included within the title?
 (b) Are there any colourings/hatchings which may indicate rights of way, the extent of covenants or land which has been removed from the title?

Question 16

Points to look out for on the official copies and title plan:
Discovery of overriding interests

Answer 16

 (a) disclosure by the seller in the contract;
 (b) pre-contract enquiries of the seller, under which the seller will normally be asked to reveal details of adverse interests and occupiers’ rights;
 (c) a local land charges search (local land charges are overriding interests);
 (d) inspection of the property before exchange, which may reveal evidence of such matters as non-owning occupiers, easements and adverse possession.

Question 17

The standard searches to be made

Answer 17

(a) search of the local land charges register; LLC1
(b) enquiries of the local authority and, if appropriate, additional enquiries; CON29
(c) pre-contract enquiries of the seller; TA6 - from seller
(d) water and drainage enquiries; CON29 DW
(e) environmental search;
(f ) chancel repair search;
(g) personal inspection.

Question 18

Additional searches to be made

Answer 18

 (a) mining search;
 (b) Index Map search, if dealing with unregistered land; SIM
 (c) Land Charges Department search for seller’s name (for insolvency) - unregistered land also against other previous owners of the land (to discover incumbrances);
 (d) company search;
 (e) any of the less usual searches which may be applicable in the circumstances;
 (f ) survey reports.

Question 19

Local Land charges search (LLC1) reveals:

Answer 19

 (a) financial charges (eg, for adoption of estate roads);
 (b) tree preservation orders;
 (c) smoke control orders (restrict the use of non-smokeless fuels in domestic fireplaces);
 (d) compulsory purchase orders (make it lawful for acquiring authority to acquire land without the owner’s consent);
 (e) planning permissions granted;
 (f ) any restrictions on permitted development (eg, ‘Article 4 Direction’);
 (g) orders revoking or modifying planning permissions.

Question 20

Enquiries of Local Authority (CON29) reveal:

Answer 20

 (a) Enquiry 1 – whether any planning consents or building regulations approvals have been granted, or are pending, or have been refused;
 (b) Enquiry 2 – whether the roads serving the property are maintained at the public expense;
 (c) Enquiries 3.4 and 3.5 – whether there are any new roads and railways proposed within 200 metres of the property;
 (d) Enquiry 3.6 – whether there are any proposals for permanently stopping up roads or footpaths, or putting any other traffic schemes into operation;
 (e) Enquiry 3.9 – if planning enforcement and stop notices have been served in respect of a breach of planning control and, if so, whether they have been complied with;
 (f ) Enquiry 3.11 – whether there are any proposed compulsory purchase orders; and
 (g) Enquiry 3.12 – whether any notices have been served in relation to remediation of contaminated land.
 The CON29O enquiries include the following:
 (a) Enquiry 5 – whether the property is crossed by a public path or bridleway (public cannot be denied access across the property and not be able to build over the path;
 (b) Enquiry 19 – if any environmental and pollution notices have been served; and
 (c) Enquiry 22 – whether the property, or land abutting it, is registered as common land or village green under the Commons Registration Act 1965.

Question 21

Additional enquiries to the seller (seller to complete PIF - TA6)

Answer 21

 Summary of information to be obtained from search
 The following enquiries should be made as a minimum in every case:
 (a) whether there are any disputes with neighbouring owners/occupiers;
 (b) who is in occupation of the property;
 (c) whether there have been any alterations or other building work carried out on the property and, if so, whether planning permission/building regulation consent was obtained;
 (d) whether there has been any change in the use of the property;
 (e) whether services (eg, water) to the property pass through adjoining land;
 (f ) whether services to other properties pass through the land to be sold.

Question 22

Water and Drainage Enquiries - CON29 DW

Answer 22

 The enquiry will reveal (amongst other things) the following:
 (a) whether the property has foul water drainage to the public sewer;
 (b) whether the property has surface water drainage to the public sewer;
 (c) whether there is a water main, public sewer, disposal main or lateral drain within the boundaries of the property; and
 (d) whether the property is connected to the public water supply.
 If there is a public sewer on the property, the water company’s consent will be needed to any development over or within the vicinity of the sewer.