RE2/3
Investigation of title
Certificate of title
What is a Certificate of title is a report about a property.
certificate of It is prepared by a solicitor and given to a company which is buying a property or lending money to finance
title? the purchase.
Certificate provides a summary of all the important information that the buyer and lender need to
know about the property to decide whether to buy/lend money for it.
Most firms use the City of London Law Society’s (CLLS) Certificate of Title
Can be used whenever there are dealings with a property
Who prepares → When prepared by the seller’s solicitor it is usually addressed to buyer and lenders
it? o Avoids need for every party to carry out their own investigation
o Seller’s solicitor may prepare in cases such as where there is a development being sold and purchasers
bidding
each of the purchasers’ solicitors can examine the draft certificate when advising client
saves a lot of time and expense
seller’s solicitor will already be familiar with property so can produce certificate relatively
quickly
→ When prepared by buyer’s solicitor it will be addressed to both the lender and the buyer
o avoids need for the lender’s solicitor to carry out his own investigation of title e.g. when the
property is smaller
o will create certificate based on the information which he ascertained in pre-contract searches and
investigation of title
Why use it? Avoids duplication of investigation, as each party’s solicitor would otherwise carry out own investigation
Does it provide Where buyer’s solicitor is preparing certificate, much of the information will have been obtained from the
sufficient seller’s solicitor so qualifications will be needed with regards to fullness/accuracy of information supplied
security alone?
Key stages of There are certain tasks which need to be completed whenever you prepare a certificate of title:
preparation review title documents
raise searches and enquiries and review results
prepare first draft of the certificate
raise enquiries of your client
review the valuation of the property
submit the draft certificate to the addressee’s solicitors for approval and negotiate their amendments
revise the draft certificate
agree the form of certificate with the addressee’s solicitors
send the final draft to client for confirmation
agree the addressees
engross and date the agreed form of certificate
1
Investigation of title
Certificate of title
What is a Certificate of title is a report about a property.
certificate of It is prepared by a solicitor and given to a company which is buying a property or lending money to finance
title? the purchase.
Certificate provides a summary of all the important information that the buyer and lender need to
know about the property to decide whether to buy/lend money for it.
Most firms use the City of London Law Society’s (CLLS) Certificate of Title
Can be used whenever there are dealings with a property
Who prepares → When prepared by the seller’s solicitor it is usually addressed to buyer and lenders
it? o Avoids need for every party to carry out their own investigation
o Seller’s solicitor may prepare in cases such as where there is a development being sold and purchasers
bidding
each of the purchasers’ solicitors can examine the draft certificate when advising client
saves a lot of time and expense
seller’s solicitor will already be familiar with property so can produce certificate relatively
quickly
→ When prepared by buyer’s solicitor it will be addressed to both the lender and the buyer
o avoids need for the lender’s solicitor to carry out his own investigation of title e.g. when the
property is smaller
o will create certificate based on the information which he ascertained in pre-contract searches and
investigation of title
Why use it? Avoids duplication of investigation, as each party’s solicitor would otherwise carry out own investigation
Does it provide Where buyer’s solicitor is preparing certificate, much of the information will have been obtained from the
sufficient seller’s solicitor so qualifications will be needed with regards to fullness/accuracy of information supplied
security alone?
Key stages of There are certain tasks which need to be completed whenever you prepare a certificate of title:
preparation review title documents
raise searches and enquiries and review results
prepare first draft of the certificate
raise enquiries of your client
review the valuation of the property
submit the draft certificate to the addressee’s solicitors for approval and negotiate their amendments
revise the draft certificate
agree the form of certificate with the addressee’s solicitors
send the final draft to client for confirmation
agree the addressees
engross and date the agreed form of certificate
1
