The title in a registered land should be investigated thoroughly. This article explains the different aspects involved in the investigation process including checking the property register, the proprietorship register, the charges register, etc.
There are two ways by which a buyer deduces a title to the property. Firstly, he examines official copies of entries in theRegistry along with the title plan. Secondly, he investigates if there are overriding interests in the property that may bind the buyer even though there is no mention of such an interest in the Registry. Such an investigation can be done through several sources.
Once the investigation on the title is made, the buyer will have to make certain checks and update the information. He has also to ensure that no changes have been made since the investigation was last made. It also involves investigating the Land Registry documents and confirming that no changes have been made since the last time when the official copies were sought. Since the Land Registry does not make searches on official copies that are more than 12 months old, a buyer should not accept titles that are outside or close to this limit.
Points to look out for on the Official Copies and Title Plan
Following are the particular issues that the conveyancing solicitors should look for when examining the official copies of entries and the title plan.
The Property Register:
a) Does the description of the land in the property register and the one mentioned in the contract match
b) Does the title number match with the one provided in the contract
c) Is the land freehold or leasehold? Does this information match with the one provided in the contract
d) What are the easements enjoyed by the property, and do they match with the ones provided in the contract?
The Proprietorship Register:
a) Is the title registered in the correct class?
b) Does the Register specify the seller as the registered proprietor? If not, who has the ability to transfer the land?
c) Are there any other entries? If so, what is their effect on the title.
The Charges Register:
a) Does it reveal any incumbrances?
b) How do they affect the buyer?
c) Which of these incumbrances shall be removed or discharged on completion
d) Do you agree to buy the property subject to the incumbrances that remain on the property.
The Title Plan:
a) Is the land being purchased included within the title?
b) Is the title plan marked with colourings and hatchings that indicate a right of way, or the extent of covenants of land that have been removed from the title?
Adverse entries
When adverse entries are revealed after investigating the official copy entries, the effect of these should be studied carefully and a report of this should be made available to the buyer and the lender clients. Problems occurring at this stage should be rectified before the exchange of contracts. Even when the property is registered, there are a wide variety of ways by which the rights can be protected. It is up to the conveyancing solicitor to be familiar with issues and devise ways to tackle these issues.
Documents referred to on the register
Sometimes, it is common for the documents and plans to be filed along with the title at the Land Registry & will be referred to as such in the official copies. Hence, a copy of this should be obtained and examined in the same manner as the official copies themselves.
Overriding interests
Most overriding interests can be discovered through:
a) A disclosure of the same by the seller
b) Pre-contract enquiries made by the seller, under which the seller would be asked to reveal details of any adverse interests and occupier’s rights
c) Local land charge search
d) Physical inspection of the property which may reveal issues such as non-owning occupiers, easements, adverse possessions etc.
Photo courtesy: B4bees
