Deduction of title (Procedural steps for the assignment of a lease)-FS Flashcards
(6 cards)
What is ‘deduction of title’ in the context of lease assignment?
It is the process of proving ownership of the leasehold title when transferring (assigning) the lease from the seller (assignor) to the buyer (assignee).
When is deduction of title unnecessary in a lease assignment?
When the lease is already registered with its own title number at the Land Registry, because registration itself is sufficient proof of ownership.
Who is responsible for deducing title in an assignment of a lease?
The assignor’s solicitor (acting for the seller/transferor of the lease).
What does the buyer (assignee) need to check when taking an assigned lease?
That the existing lease is suitable for their purposes—for example, that the lease term is long enough.
Definition: Assignor
The party transferring their leasehold interest to another in an assignment.
Why is deduction of title required in property transactions?
To confirm that the seller has legal authority to transfer the property or leasehold interest—unless already evidenced by registration.