Title investigation - registered land

Question 1

Which of the following documents are required to deduce title to registered land?

(a) 
Official copies of the register, title plan and copies of documents referred to in the official copies where the relevant rights have not been fully extracted.

(b) 
Title plan, official copies of the register and copies of all documents referred to in the official copies.

(c) 
Estate agent’s particulars, official copies of the register, a survey report, title plan and copies of all documents referred to in the official copies.

(d) 
Survey report, official copies of the register and title plan.

(e) 
Official copies of the register.


Answer 1

(a) 
Official copies of the register, title plan and copies of documents referred to in the official copies where the relevant rights have not been fully extracted.


Question 2

Which one of the following entries, appearing on the official copies, is not fully extracted, so that the buyer’s solicitor would need to see a copy of the underlying document?

(a) 
The Transfer to the proprietor contains a covenant to observe and perform the covenants referred to in the Charges Register and of indemnity in respect thereof.

(b) 
Restriction: Except under an order of the Registrar no disposition by the proprietor of the land is to be registered without the consent of the proprietor of the charge dated 2 June 2003 in favour of the City and County Bank Public Limited Company referred to in the Charges Register.

(c) 
The land has the benefit of the following right contained in a conveyance dated 15 August 2000: a right of way on foot and with vehicles over the roadway shown hatched black on the plan.

(d) 
A conveyance of the land in this title dated 17 February 1900 contains restrictive covenants details of which are set out in the schedule of restrictive covenants hereto.

(e) The land has the benefit of a right of way contained in a conveyance dated 27 March 1970.

Answer 2

(e) The land has the benefit of a right of way contained in a conveyance dated 27 March 1970.

The buyer’s solicitor would need to see a copy of this conveyance to establish the details of the right of way eg which piece of land the right of way is over and any restrictions on its use.

Question 3

Which is the correct order of the three registers in the Official Copies?

(a) 
1) Charges Register, 2) Property Register, 3) Proprietorship Register.

(b) 
1) Proprietorship Register, 2) Property Register, 3) Charges Register.

(c) 
1) Charges Register, 2) Proprietorship Register, 3) Property Register.

(d) 
1) Property Register, 2) Charges Register, 3) Proprietorship Register.

(e) 
1) Property Register, 2) Proprietorship Register, 3) Charges Register.

Answer 3

(e) 
1) Property Register, 2) Proprietorship Register, 3) Charges Register.

Question 4

Which solicitor deduces title and which one investigates it?

Answer 4

The seller’s solicitor deduces title and the buyer’s solicitor investigates it.

Question 5

What are the three registers and what is included in each?

Answer 5

1. Property register: describes property and any rights benefitting property eg covenants/easements
2. Proprietorship register: gives registered proprietor’s (owner’s) name and address, class of title and entries affecting ownership
3. Charges register: lists rights burdening property eg mortgage, covenants, easements, leases

Question 6

The property your client is considering buying has the benefit of a right of way in the Property Register and the right of way extracted on the register does not refer to maintenance obligations.
Which ONE of the following is the most accurate list of the issues you need to consider and advise on in relation to this right?

(a) 
Maintenance, Adoption, Registration of the burden and Adequacy.

(b) 
Adequacy, Adoption and Registration of the burden.

(c) Adequacy, Adoption, Registration of the benefit and Registration of the burden.

(d) 
Registration of the benefit and Registration of the burden.

(e) 
Maintenance, Adequacy, Adoption and Registration of the benefit.

Answer 6

(a) 
Maintenance, Adoption, Registration of the burden and Adequacy.


Question 7

The following entry appears in the property register of the official copies of a property your client is purchasing:
“A right of way to pass and repass day or night on foot only over the land coloured blue. Note: the land coloured blue is shown hatched black on the filed plan.”
Which ONE of the following statements in respect of this right is CORRECT?

(a) 
If the right of way is not adequate for your client the solutions are either to seek insurance to cover breach, or approach the person with the benefit or go to the Upper Tribunal (Lands Chamber) to have the right modified.

(b) The burden of the right of way should be registered in the charges register of the servient land.
(c) 
The right of way is not extracted and so you will need to see a copy of the deed granting the right.

(d) 
The purchaser will not have to contribute towards maintenance of the right of way as there is no obligation to do so mentioned in the right.

(e) 
As the right of way is on foot only, the local authority cannot adopt the private road to make it into a public highway.

Answer 7

(b) The burden of the right of way should be registered in the charges register of the servient land.

If the servient land is unregistered you would put a caution against first registration over the land so that you can ensure the burden of the right of way is registered in the charges register once the servient land is registered.


Question 8

Which ONE of the following statements about the Property Register and its possible contents is CORRECT?

(a) 
The Property Register contains the name of the registered proprietor.

(b) 
An extracted right is the same thing as an excluded right.

(c) 
The Property Register must always contain the benefit of a right of way.

(d) 
The Property Register describes the property using the postal address and also by referring to the Title Plan.

Answer 8

(d) 
The Property Register describes the property using the postal address and also by referring to the Title Plan.

Question 9

What is a right of way?

Answer 9

A public right of way exists when the general public have the right to access a footpath, bridlepath, and so on, including with vehicles. A private right of way is an access right given to a specific person or group of people over a piece of private land.

Question 10

What is a right to run services?

Answer 10

Where gas or water pipes, drains, cables or optic file cables need to go across neighbouring land, this right may be needed.

Question 11

What is a right to light?

Answer 11

Right to enjoy natural light which passes over someone else’s land and into eg a window. This right can be granted expressly by deed or acquired by prescription (enjoyed without interruption for 20 years).

Question 12

Which is the best class of title?

(a) 
Title Absolute

(b) 
Qualified Title

(c) 
Good Leasehold Title

(d) 
Possessory Title

Answer 12

(a) 
Title Absolute


Question 13

The seller is usually the registered proprietor. Which of the following situations would be an exception to this?

(a) 
Where there is more than one individual legal owner

(b) 
Where the seller is the executor of a deceased person’s estate

(c) 
Where the seller is a limited liability partnership

(d) 
Where the seller is a company

Question 14

What are the characteristics of each class of land?

Answer 14

1. Title absolute (freehold or leasehold): Best and most common class. Indicates no issues - proprietor has satisfied LR that it is true and proper owner of property.
2. Qualified title (freehold and leasehold): Where there is specific defect in title. Example: where deed known to contain covenants or easements was missing on first registration.
3. Possessory title (freehold or leasehold): Granted when registered proprietor has shown that they have physical possession of property, but has no title deeds or is claiming through adverse possession (squatter’s rights).
4. Good leasehold title (leasehold only): Granted when leaseholder cannot provide evidence of landlord’s title to land. Can often be upgraded easily if leasehold title has been registered since grant of issue.

Question 15

What are the four categories of registered proprietor?

Answer 15

1. Individual
2. Company
3. LLP
4. Co-owners (combination of the above up to maximum 4 proprietors)

Question 16

When is a Companies’ House search needed in relation to a registered proprietor?

Answer 16

When the registered proprietor is either a company or an LLP, the buyer’s solicitor should verify their identification information with a Companies’ House search.

Question 17

Which one of these entries in the Proprietorship Register relates to co-owners of the property?

(a) 
RESTRICTION: no disposition of the registered estate by the proprietor of the registered estate is to be registered without the consent signed by the proprietor for the time being of the charge dated the 17 June 2005 in favour of Redminister Building Society referred to in the charges register.

(b) 
The Transfer to the Proprietors contains a covenant to observe and perform the covenants referred to in the Charges Register and of indemnity in respect thereof.

(c) 
RESTRICTION: No disposition by a sole proprietor of the registered estate (except a trust corporation) under which capital money arises is to be registered unless authorised by an order of the court.

Answer 17

(c) 
RESTRICTION: No disposition by a sole proprietor of the registered estate (except a trust corporation) under which capital money arises is to be registered unless authorised by an order of the court.

Question 18

If a buyer pays the purchase money to two trustees, why does the buyer not need to worry about the beneficial interests of any other deceased co-owners?

(a) 
Because only two people can hold the legal estate.

(b) 
Because the buyer only needs to worry about the legal estate, not any beneficial interests.

(c) 
Because the rule of survivorship applies.

(d) 
Because any such interests will be overreached.


Answer 18

(d) 
Because any such interests will be overreached.


Question 19

The following extract from official copies for a freehold property in London contains the entire Proprietorship Register for that property. Please read the extract and the information that follows and then answer the question below.
Proprietorship Register
Title Absolute
Proprietor(s): LUCY WATSON AND OWAIN HUTCHISON: of 1 Greenslade Avenue, London (W12 7JH).
The value as at 7 October 2001 was £375,000.
RESTRICTION: Except under an order of the Registrar no disposition by a proprietor of the land is to be registered without the consent of the proprietor of the charge dated 7 October 2001 in favour of Rydale Bank referred to in the Charges Register.
The heads of terms for the sale of the above property state that Lucy Watson is the seller. Owain Hutchison has died.
Which ONE of the following statements is the most accurate advice to a buyer client on the issue of who will sell the property?

(a) 
Lucy Watson can sell on her own as she and Owain Hutchison held the property as beneficial joint tenants and on Owain’s death his beneficial interest passed to Lucy under the doctrine of survivorship so the buyer just needs to see an official copy of Owain’s death certificate.

(b) 
The Restriction on the Proprietorship Register indicates that the buyer must purchase the property from Rydale Bank.

(c) 
Lucy Watson and Owain Hutchison held the property as tenants in common so the buyer would need to see an official copy of Owain Hutchison’s death certificate and a second trustee should be appointed to receive the purchase monies with Lucy Watson thereby overreaching any beneficial interests in the property. Both Lucy and the second trustee will be the sellers.

(d) 
Lucy Watson and Rydale Bank will sell the property together as Owain’s interest in the property passed to the Bank, who have a mortgage over the property, on his death.


Answer 19

(a) 
Lucy Watson can sell on her own as she and Owain Hutchison held the property as beneficial joint tenants and on Owain’s death his beneficial interest passed to Lucy under the doctrine of survivorship so the buyer just needs to see an official copy of Owain’s death certificate.


Lucy and Owain were beneficial joint tenants (because there was no tenant in common restriction in the Proprietorship Register) so on Owain’s death, Lucy could sell on her own because Owain’s beneficial interest had passed to Lucy under the doctrine of survivorship. The buyer just needs to see an official copy of Owain’s death certificate.

Question 20

What is overreaching?

Answer 20

Overreaching is the process of transferring beneficial interests in land to the money that the buyer has paid. This means that the land is freed from beneficial interests, and the buyer does not need to worry.

Question 21

What are the implications for the buyer’s solicitor if the co-owner of the property in question is alive/in existence?

Answer 21

Co-owner should be asked to sign the contract and execute the transfer deed.

Question 22

What are the implications for the buyer’s solicitor if the surviving beneficial joint tenant is selling the property in question?

Answer 22

Joint tenant should be asked to sign the contract and execute the transfer deed and the buyer’s solicitor should also provide a certified copy of the deceased joint tenant’s death certificate.

Question 23

What are the implications for the buyer’s solicitor if the surviving tenant in common is selling the property in question?

Answer 23

Tenant in common should appoint a second trustee (usually solicitor) to sign the contract and execute the transfer deed and the buyer’s solicitor should also provide a certified copy of the deceased joint tenant’s death certificate.

Question 24

Which one of the following could appear in the Charges Register?

(a) 
An indemnity covenant given by the seller when it bought the property.

(b) 
A lease granted out of the property.

(c) 
The benefit of an easement.

(d) 
A lender’s Restriction.

(e) 
A tenant in common Restriction.

Answer 24

(b) 
A lease granted out of the property.


Question 25

Which of the following statements about the entries on the official copies relating to a mortgage / charge is correct? (a) 
If there is a mortgage / charge over the property, there will be one entry in the Charges Register and one entry in the Proprietorship Register regarding it.
 (b) 
If there is a mortgage / charge over the property, there will be three entries in the Charges Register regarding it.
 (c) 
If there is a mortgage / charge over the property, there will be two entries in the Charges Register and no entries in the Proprietorship Register regarding it.
 (d) 
If there is a mortgage / charge over the property, there will be two entries in the Charges Register and one entry in the Proprietorship Register regarding it.

Answer 25

(d) 
If there is a mortgage / charge over the property, there will be two entries in the Charges Register and one entry in the Proprietorship Register regarding it.

Question 26

The buyer will need to be certain it acquires the land free of any mortgage a seller has. Which of the following options is NOT something the buyer's solicitor should be doing to ensure this happens? (a) 
Ensuring that it is a term of the contract that the mortgage will be redeemed on completion
 (b) 
Checking in enquiries that the seller will have sufficient funds to clear the mortgage 
 (c) 
Ensuring it transfers the buyer's purchase monies to the lender on completion so that the lender can redeem its mortgage loan before then transferring the balance to the seller (d) 
Obtaining an appropriate undertaking from the seller’s solicitor to redeem the mortgage from the proceeds of sale on completion


Answer 26

(c) 
Ensuring it transfers the buyer's purchase monies to the lender on completion so that the lender can redeem its mortgage loan before then transferring the balance to the seller The buyer's solicitor will not transfer the purchase monies to the seller's lender, it will sell them to the seller's solicitor. The other options are all something the buyer's solicitor should ensure it does to make sure the buyer takes the land free of the seller's mortgage.


Question 27

DKT Ltd (DKT) is buying a property and is concerned about covenants that burden the land. In particular DKT is concerned that its use as a textiles dyeing factory would breach a covenant which prohibits use as a factory. It has heard from the seller that they have spoken to the person owning the land with the benefit of the covenant who has indicated that they might consent to a breach of the covenant, for a price. What is the next step you would recommend, in order to deal with this future breach? (a) 
Contact the person owning the land with the benefit of the covenant to request an easement to use the property as a textile dyeing factory.
 (b) 
Contact the person owning the land with the benefit of the covenant to request their written consent for the proposed breach. (c) 
Contact the Upper Tribunal (Lands Chamber) to get the covenant waived or removed.
 (d) Contact an insurance company for a quote for insurance in respect of the proposed breach.

Answer 27

(b) 
Contact the person owning the land with the benefit of the covenant to request their written consent for the proposed breach. As the person owning the land with the benefit of the covenant has already been approached insurance is no longer available as an option (otherwise getting an insurance quote would have been the first solution to attempt). We are requesting permission to breach a covenant here so easements are not relevant. The Upper Tribunal (Lands Chamber) is a last resort as it is time consuming and expensive.


Question 28

The Charges Register of a property contains a restrictive covenant stating that external alterations may not be made except with the consent of the Vendor, his heirs or assigns. The seller of the property added a front porch onto the property eleven years ago without obtaining consent. The buyer of the property thinks the front porch is not in keeping with the building and is removing it on completion. Which one of the following is the most correct on these facts? (a) 
The buyer’s solicitor should arrange an insurance policy covering the past breach of the covenant.
 (b) 
The past breach is not continuing and so no solution is needed unless the person owning the land with the benefit of the covenant has claimed they suffered loss.
 (c) 
No solution is needed as, since the restrictive covenant breach occurred more than ten years ago, the person owning the land with the benefit of the covenant is unable to claim for any loss. (d) The seller’s solicitor should arrange an insurance policy covering the past breach of the covenant.

Answer 28

(b) 
The past breach is not continuing and so no solution is needed unless the person owning the land with the benefit of the covenant has claimed they suffered loss.
 As the buyer is removing the porch (the alteration which breached the restrictive covenant), the past breach will not be continuing and so a solution is not needed unless the person owning the land with the benefit of the covenant has complained about the breach or claimed for loss.


Question 29

Which of the following best describes whether a positive covenant registered in the charges register will bind the buyer of a registered freehold property? (a) 
The buyer will not be bound by the positive covenant unless there is also a charge restriction in the proprietorship register.
 (b) The buyer will be bound by the positive covenant as it is registered in the charges register of the property.
 (c) The buyer will not be bound by the positive covenant despite it appearing in the charges register as positive covenants do not run with the land and so cannot bind buyers of the property.
 (d) 
The buyer will be contractually bound by the positive covenant if an indemnity covenant note appears in the proprietorship register as the seller will require an indemnity covenant from the buyer.

Answer 29

(d) 
The buyer will be contractually bound by the positive covenant if an indemnity covenant note appears in the proprietorship register as the seller will require an indemnity covenant from the buyer. Positive covenants do not run with the land but can be made contractually binding if there is a chain of indemnity covenants. An indemnity covenant note on the proprietorship register shows whether the seller gave an indemnity covenant and the standard conditions in the contract require the buyer to give an indemnity covenant if the seller did.

Question 30

Which one of the following statements about insurance for breach of a restrictive covenant is correct? (a) 
The seller will pay the initial premium for the insurance policy and thereafter the buyer will pay the annual insurance premiums for the policy.
 (b) 
Insurance must be tried before approaching the person owning the land with the benefit of the covenant. (c) 
The buyer would have to arrange any insurance policy so that it was covered (ie protected) by the policy.
 (d) 
Insurance for a future breach of a restrictive covenant is expensive because it is difficult for the insurer to assess the risk of the breach occurring.
 (e) 
S.19(1) FSMA 2000 prevents a solicitor from arranging an insurance policy for breach of a restrictive covenant.

Answer 30

(b) 
Insurance must be tried before approaching the person owning the land with the benefit of the covenant. Once the person owning the land with the benefit of the covenant (PWB) is approached insurance will be unavailable since the PWB has been alerted to the breach and is now much more likely to be aware they can make a claim for loss.


Question 31

Which of the following best sets out the remedies, in the order they should be attempted, for a future breach by the buyer of a binding positive covenant? (a) 
1) Seller to remedy the breach / reduce the purchase price, 2) Insurance against the PWB claiming loss caused by the breach, 3) Approaching the PWB for consent to breach the covenant, 4) Going to the Upper Tribunal (Lands Chamber) to have the covenant modified or discharged.
 (b) 
1) Seller to remedy the breach / reduce the purchase price, 2) Insurance against the PWB claiming loss caused by the breach, 3) Approaching the PWB for consent to breach the covenant.
 (c) 
1) Insurance against the PWB claiming loss caused by the breach, 2) Approaching the PWB for consent to breach the covenant, 3) Going to the Upper Tribunal (Lands Chamber) to have the covenant modified or discharged.
 (d) 
1) Approaching the PWB for consent to breach the covenant, 2) Insurance against the PWB claiming loss caused by the breach.
 (e) 
1) Insurance against the PWB claiming loss caused by the breach, 2) Approaching the PWB for consent to breach the covenant.

Answer 31

(e) 
1) Insurance against the PWB claiming loss caused by the breach, 2) Approaching the PWB for consent to breach the covenant. As the breach is a future one to be carried out by the buyer, the seller will not remedy it. The PWB should not be approached prior to an insurance quote being obtained as once the PWB is approached insurance will not be available (it will be a condition of the insurance that the PWB has not been and will not be approached). The Upper Tribunal (Lands Chamber) is not available for positive covenants (s.84 LPA 1925).