Analysing Official Copies

Question 1

What information is found in the Property Register?

Answer 1

Describes the property and any rights benefitting the property
- Property description
- Freehold / leasehold
- Rights benefitting (e.g., right of way)

Question 2

What information is found in Proprietorship Register and what should you look out for?

Answer 2

1. Class of title (check it is title absolute, if not need to advise buyer accordingly)
   - Check lender’s requirements
   - Consider and advise on title indemnity insurance
2. Co-ownership
   - If hold as beneficial tenants in common, there will be a restriction in the Proprietorship Register
   - This means there can be no sale by a sole owner
   - At least two trustees must receive the purchase money

Issue if surviving tenant in common is selling Property:
- The right of survivorship does not apply
- The surviving tenant in common only takes their share of the property (does not automatically take the deceased’s share)
- Advise client: they need to appoint a second trustee to sign the contract, execute transfer deed and provide evidence of death certificate

Question 3

Checking how beneficial title is held

Answer 3

Check the proprietorship register
- If no restriction: assume co-owners hold jointly

• If there is a restriction: assume held as tenants in common. Check with clients that this has not changed

Question 4

Where are mortgages found?

Answer 4

1. Lender usually requires a restriction in Proprietorship register to prevent the owner selling it without the lender’s consent
2. Legal mortgages must be entered in the Charges register

Question 5

Charges Register

Answer 5

Interests burdening the property
1. Mortgage in favour of lender
2. Easement
3. Leases
4. Covenants

Question 6

Where are covenants found?

Answer 6

Charges Register:
- If covenants appear in charges register, it means the Property has the burden of those covenants
- The burden of restrictive covenants binds successors in title if they are correctly entered (in Charges Register)

Proprietorship Register:
- Positive covenants only bind successors in tittle if there is an indemnity covenant (chain of indemnity)
- This is found in proprietorship register - for the positive covenant to be binding
- The buyer will be contractually bound by a positive covenant if an indemnity covenant appears in Proprietorship Register (seller will require an indemnity covenant, buyer needs to give under SCS)