Property title entries: A practical guide

Section A: Property Register

Right of Access/Services – You will want to ensure you have the required rights to access the property or run utilities to it.  This will help ensure you are not restricted in how you want to use the property.

Section B: Proprietorship Register

Class of Title – The Land Registry uses it to confirm the quality of the title and how enforceable your ownership right is over third parties.  Title Absolute is the best type of class and the one you want to see; any other class will require further investigation.

Restrictions – Restrictions protect a third party’s interest over the property or require compliance with a condition and prevent transactions being registered at the Land Registry without consent of the beneficiary.  You should check that you can obtain consent or remove the restriction before your transaction is completed.

Section C: Charges Register

Restrictive Covenants – They dictate how you can use the property and are put in place by previous owners or third parties.  You should consider whether they will restrict your intended use of the property, as they can be hard to remove.

Notices/Charges – They may indicate rights that third parties claim to have over the property or that the property is subject to a mortgage.  Investigate these carefully so you understand whether they need to be removed, discharged, released or otherwise dealt with before completion.

Do I need to act?  This will depend on the title entry, the nature of the property, your plans and your risk appetite.  Often perceived title issues can be fixed, e.g. applying to upgrade the class of title or obtaining consent for restrictions.  You may need to compile evidence to establish a right or claim against one, and if you can’t fix it, you can think about structuring your project accordingly (e.g. negotiate a lower price) or look to insure it.

Do title queries keep coming up on your commercial properties, but you think getting a lawyer involved will be slow and expensive?  Take a look at REsource, a dedicated property law subscription service, designed to give you the benefits of in-house legal support without the costs of a full-time employee.  Please do drop us a line if you want to know more.