Notes created using BPP materials and statute for the purpose of assisting existing BPP LPC students in BPP LPC exams only. They are
intended to be used as a supplemental tool to aid revision in conjunction with BPP materials, not as a replacement for them.
NB Revision tip – use the flowcharts provided by BPP in SGSs (not replicated for copyright reasons)
FREEHOLD
INVESTIGATING TITLE
PRACTICAL APPROACH TO ANALYSING OFFICIAL COPIES
1. IDENTIFY the issue: Which register + entry?
What does the entry say?
2. EXPLAIN to client: Why is the entry a problem for them?
• Are they a certain type of business?
• Do they want to undertake a certain action eg building works?
3. What is the appropriate ACTION in the circumstances?
a) Initially: Make enquiries of the seller/LR
Inform the client
b) Does further action need to be undertaken?
4. Which SOLUTION is best?
Issues questions – check = 40 mins
1. PCR
2. Quality of title eg absolute/limited
3. Current use
4. Any developments made to the land in the past or proposed to be made?
5. Only 1 Seller? Any co-owner Sellers? Death of a co-owner?
6. Access – if no RoW look at roads on Title Plan – do Highways Search to see if Property abuts road
7. Mortgages: Will B fund the purchase via a mortgage?
Does S already have a mortgage that needs to be released?
8. Time limit for PP, Building Regs etc
9. PP/BR in the CON29 showing development not mentioned in the fact pattern – ask for copies
10. Early access? If no contract to draft later in exam, mention now
11. Date covenants are registered – if registered in 1980 and potential breach done in 1997, there is no breach
Types of title
ABSOLUTE Shows that LR is satisfied that the Seller is the true and proper owner
QUALIFIED Ownership has only been established for a short period of time, or there are
reservations or missing docs – can be upgraded to absolute if rectified
POSSESSORY TITLE Where Seller is in AO without doc evidence re how the property was acquired
GOOD LEASEHOLD Where the tenant cannot provide evidence of the landlord’s title
,CHECK ALL DOCS TO SPOT THE ISSUES
OFFICIAL COPIES
Header Date Ideally 2 months old – must be less than 1 year old
Used as “Search from Date” in pre-completion OS1 search
Title number Must correspond to Title Number in contract and TR1
Property Describes property – freehold/leasehold, date first registered, location/address
Register Indicates rights benefitting property and excluded rights (mines/minerals)
Check:
Extent of property – freehold/leasehold
What type of RoW → restricted by mode of transport, time, person etc?
Other rights
Proprietorship Quality of the title eg absolute or limited title
Register Property owner – name and address
Indemnity covenants
Lender restrictions (re mortgage) – to prevent the register being changed without its
consent – see entry 3
TiC restrictions – if there is 1, the sellers held the property as TiC
Price of Property when last bought
Check:
Quality of title
Registered proprietor – whether names match, whether Co solvent, whether JT/TiC
Charges Indicates rights burdening the property
Register
Check:
• Restrictive covenants burdening the property– eg covenant not to erect a fence
• Positive covenants burdening the property – eg covenant to maintain a fence
• Leases
• Easements burdening the property
• Mortgages – always appears in 2 entries – Proprietorship register too
Eg REGISTERED CHARGE dated XXX to secure the monies inc the further advances
theremin mentioned AND Proprietor: XX BANK PLC of 123 Park Lane
Also review the title plan and check
1. If boundaries correspond with what Buyer is expecting
2. Any churches nearby – maintenance of local parish church payable by Buyer?
OTHER DOCS TO CHECK
Inspect copies of conveyances referred to in OCs – may reveal unregistered 3rd party interests
2
,IDENTIFY THE ISSUES
Inspect copies of conveyances referred to in OCs if the extracts of those docs have not already been included
in the OCs – this may reveal unreg 3rd party interests
Property Register – Common issues
Issue Why an issue Poss solutions
Property Unclear what B is buying Check Title Plan
description Confirm with client
Exclusion S does not own mines/minerals under property CON29M/Mining Search – discovers mining
and 3PT has right to enter land and mine them Pre-contract enquiries re works/damage
Risk of subsidence – damage to property Physical inspection
Property’s value might decrease Negotiate price
RoW = If property does not abut a public highway = Check CON29 replies
most unable to access w/o RoW
common
Adequacy Ask S what times it has used/whether it has
Any restrictions eg foot only/use hours encountered issues with using the RoW
(reasonable times) – manufacturing = 24/7 CON29 to check adjoining road is public
Connects property to public highway? Highways Search to check directly abuts
Physically adequate? Size, location – wide Check Title Plan
enough for vehicles client wants to use? If inadequate → negotiate deed of
V important if only means of access variation before exchange with owner of
burdened land – at cost of B – otherwise
cancel purchase
Maintenance Ask surveyor to check if in disrepair – if so,
Who maintains/repairs? Costs – express in OCs ask S to repair
or implied? Ask S if they have paid for maintenance
Buyer may have an automatic obligation to Ask S for 3 years’ history of payments
contribute Warn B of potential costs
Adoption CON29 to discover plans eg ‘to be made up
If private road, may be future costs if LA by a LA who will reclaim the cost from the
chooses to adopt frontagers’
Council will become responsible for Road not mentioned = no current plans
maintenance, but Buyer will initially have to Warn B that adoption is subject to change
bring road up to standard required by council → one-off fee to repair, but no more
maintenance fees
Registration If SIMR shows burdened land is:
If not registered, RoW not binding o Registered – obtain OCS + check
burden reg on CR of burdened land
3
, Benefit of right in Property Reg o Unreg – check there is a caution against
1st reg over the burdened land
If burden not reg, include special condition
in contract requiring S to register it
If no SIMR, carry out SIM and check result
Easement AMAR as above AMAR as above
of drainage
Adoption
Water Industry Regs 2011:
Cannot be adopted by LA if:
1. Drain located within the property’s
boundary; and
2. Drain only serves that property
Can be adopted if:
1. Sewers serve more than 1 property; and
2. Lateral drains connected to public sewers
Proprietorship Register – Common issues
Issue Why an issue Poss solutions
Class of Title Must be Title Absolute – if Report to client if not Title Absolute
not, cannot ascertain S62 LRA 202 – if prev missing doc is provided then
whether S is entitled to sell LR can upgrade title to Title Absolute
Indemnity covenant Shows S gave IC Report to client and explain breach consequences
‘Note: the Transfer to If B will have to enter into If unclear what chain of indemnity relates to, obtain
the Proprietor contains chain of indemnity, B will be Transfer Doc in which chain commenced
a covenant to bound by Cs – SCPC 7.6.5 Ensure S has complied with covenants, and if not,
observe and perform If B breaches, predecessor ensure to comply prior to completion so B not liable
the covenants referred can be sued by PWB who Negotiate purchase price
to in the CR and of can claim indemnity from B
indemnity in respect
thereof.’
Restriction: lender See mortgages below S’s solicitor to undertake to discharge mortgage
See mortgages below
Lender’s consent needed
for sale of PART (not whole)
of the property
4
intended to be used as a supplemental tool to aid revision in conjunction with BPP materials, not as a replacement for them.
NB Revision tip – use the flowcharts provided by BPP in SGSs (not replicated for copyright reasons)
FREEHOLD
INVESTIGATING TITLE
PRACTICAL APPROACH TO ANALYSING OFFICIAL COPIES
1. IDENTIFY the issue: Which register + entry?
What does the entry say?
2. EXPLAIN to client: Why is the entry a problem for them?
• Are they a certain type of business?
• Do they want to undertake a certain action eg building works?
3. What is the appropriate ACTION in the circumstances?
a) Initially: Make enquiries of the seller/LR
Inform the client
b) Does further action need to be undertaken?
4. Which SOLUTION is best?
Issues questions – check = 40 mins
1. PCR
2. Quality of title eg absolute/limited
3. Current use
4. Any developments made to the land in the past or proposed to be made?
5. Only 1 Seller? Any co-owner Sellers? Death of a co-owner?
6. Access – if no RoW look at roads on Title Plan – do Highways Search to see if Property abuts road
7. Mortgages: Will B fund the purchase via a mortgage?
Does S already have a mortgage that needs to be released?
8. Time limit for PP, Building Regs etc
9. PP/BR in the CON29 showing development not mentioned in the fact pattern – ask for copies
10. Early access? If no contract to draft later in exam, mention now
11. Date covenants are registered – if registered in 1980 and potential breach done in 1997, there is no breach
Types of title
ABSOLUTE Shows that LR is satisfied that the Seller is the true and proper owner
QUALIFIED Ownership has only been established for a short period of time, or there are
reservations or missing docs – can be upgraded to absolute if rectified
POSSESSORY TITLE Where Seller is in AO without doc evidence re how the property was acquired
GOOD LEASEHOLD Where the tenant cannot provide evidence of the landlord’s title
,CHECK ALL DOCS TO SPOT THE ISSUES
OFFICIAL COPIES
Header Date Ideally 2 months old – must be less than 1 year old
Used as “Search from Date” in pre-completion OS1 search
Title number Must correspond to Title Number in contract and TR1
Property Describes property – freehold/leasehold, date first registered, location/address
Register Indicates rights benefitting property and excluded rights (mines/minerals)
Check:
Extent of property – freehold/leasehold
What type of RoW → restricted by mode of transport, time, person etc?
Other rights
Proprietorship Quality of the title eg absolute or limited title
Register Property owner – name and address
Indemnity covenants
Lender restrictions (re mortgage) – to prevent the register being changed without its
consent – see entry 3
TiC restrictions – if there is 1, the sellers held the property as TiC
Price of Property when last bought
Check:
Quality of title
Registered proprietor – whether names match, whether Co solvent, whether JT/TiC
Charges Indicates rights burdening the property
Register
Check:
• Restrictive covenants burdening the property– eg covenant not to erect a fence
• Positive covenants burdening the property – eg covenant to maintain a fence
• Leases
• Easements burdening the property
• Mortgages – always appears in 2 entries – Proprietorship register too
Eg REGISTERED CHARGE dated XXX to secure the monies inc the further advances
theremin mentioned AND Proprietor: XX BANK PLC of 123 Park Lane
Also review the title plan and check
1. If boundaries correspond with what Buyer is expecting
2. Any churches nearby – maintenance of local parish church payable by Buyer?
OTHER DOCS TO CHECK
Inspect copies of conveyances referred to in OCs – may reveal unregistered 3rd party interests
2
,IDENTIFY THE ISSUES
Inspect copies of conveyances referred to in OCs if the extracts of those docs have not already been included
in the OCs – this may reveal unreg 3rd party interests
Property Register – Common issues
Issue Why an issue Poss solutions
Property Unclear what B is buying Check Title Plan
description Confirm with client
Exclusion S does not own mines/minerals under property CON29M/Mining Search – discovers mining
and 3PT has right to enter land and mine them Pre-contract enquiries re works/damage
Risk of subsidence – damage to property Physical inspection
Property’s value might decrease Negotiate price
RoW = If property does not abut a public highway = Check CON29 replies
most unable to access w/o RoW
common
Adequacy Ask S what times it has used/whether it has
Any restrictions eg foot only/use hours encountered issues with using the RoW
(reasonable times) – manufacturing = 24/7 CON29 to check adjoining road is public
Connects property to public highway? Highways Search to check directly abuts
Physically adequate? Size, location – wide Check Title Plan
enough for vehicles client wants to use? If inadequate → negotiate deed of
V important if only means of access variation before exchange with owner of
burdened land – at cost of B – otherwise
cancel purchase
Maintenance Ask surveyor to check if in disrepair – if so,
Who maintains/repairs? Costs – express in OCs ask S to repair
or implied? Ask S if they have paid for maintenance
Buyer may have an automatic obligation to Ask S for 3 years’ history of payments
contribute Warn B of potential costs
Adoption CON29 to discover plans eg ‘to be made up
If private road, may be future costs if LA by a LA who will reclaim the cost from the
chooses to adopt frontagers’
Council will become responsible for Road not mentioned = no current plans
maintenance, but Buyer will initially have to Warn B that adoption is subject to change
bring road up to standard required by council → one-off fee to repair, but no more
maintenance fees
Registration If SIMR shows burdened land is:
If not registered, RoW not binding o Registered – obtain OCS + check
burden reg on CR of burdened land
3
, Benefit of right in Property Reg o Unreg – check there is a caution against
1st reg over the burdened land
If burden not reg, include special condition
in contract requiring S to register it
If no SIMR, carry out SIM and check result
Easement AMAR as above AMAR as above
of drainage
Adoption
Water Industry Regs 2011:
Cannot be adopted by LA if:
1. Drain located within the property’s
boundary; and
2. Drain only serves that property
Can be adopted if:
1. Sewers serve more than 1 property; and
2. Lateral drains connected to public sewers
Proprietorship Register – Common issues
Issue Why an issue Poss solutions
Class of Title Must be Title Absolute – if Report to client if not Title Absolute
not, cannot ascertain S62 LRA 202 – if prev missing doc is provided then
whether S is entitled to sell LR can upgrade title to Title Absolute
Indemnity covenant Shows S gave IC Report to client and explain breach consequences
‘Note: the Transfer to If B will have to enter into If unclear what chain of indemnity relates to, obtain
the Proprietor contains chain of indemnity, B will be Transfer Doc in which chain commenced
a covenant to bound by Cs – SCPC 7.6.5 Ensure S has complied with covenants, and if not,
observe and perform If B breaches, predecessor ensure to comply prior to completion so B not liable
the covenants referred can be sued by PWB who Negotiate purchase price
to in the CR and of can claim indemnity from B
indemnity in respect
thereof.’
Restriction: lender See mortgages below S’s solicitor to undertake to discharge mortgage
See mortgages below
Lender’s consent needed
for sale of PART (not whole)
of the property
4
