Proprietorship Register and Charges reg PDF

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Information on the proprietorship register...

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Proprietorship Register: If the seller is registered proprietor and an individual they must sign both the contract and the transfer. If the seller is registered proprietor and a company the buyer must check that the company has been registered and still exists, is not subject to any fixed/floating charges and is not being wound-up. If the sellers are registered proprietor and tenants in common there will be 2 names listed in the proprietorship register and the Land Registry will have placed a RESTRICTION on the “B: Proprietorship Register”.  If both TIC’s are alive they must both sign the transfer & contract.  If only one is still alive the other TIC’s interest must be overridden by appointing a trustee (the second trustee is effectively acting as trustee on behalf of the interest of the deceased’s equitable interest in the property). It will be necessary to see an Official Copy of the death certificate and the deed appointing the trustee. If the sellers are registered proprietor and joint tenants there will be 2 names listed in the proprietorship register but the Land Registry will not have placed a RESTRICTION on the “B: Proprietorship Register”.  If both JT’s are alive they must both sign the transfer & contract.  If only one is still alive it will be necessary to see an Official Copy of the death certificate and the Grant of representation / probate. Where the seller is NOT the registered proprietor: (Usually because they have died) If the sellers are personal representatives (PR’s) NB all the PR’s must execute the contract & transfer In order to get good title the buyer must see an official copy of the register and an official copy of the grant of representation. (It is also good practice to ask for the death certificate).  If the PR’s are transferring title to a beneficiary under a will, the assent must be in writing, signed by all PR’s and name the beneficiary to whom the property is being assigned. s36(7) Administration of Estates Act 1925. If the sellers are acting under a Power of Attorney It is necessary to also check: 1. That the power is granted by deed s.1(1) Powers of Attorney Act 1971 2. That the attorney is acting within the ambit of his power and that power has not been revoked (NB personal bankruptcy revokes a power of attorney). The maximum period that a buyer may assume a power of attorney is valid for is 12 months s. 5(4)(a) Powers of Attorney Act 1971 If completion is more than or exactly 12 months after the Power was granted the buyer must make a statutory declaration that they aren’t aware of a revocation of the power. NB that the Donor gives the power of attorney therefore the ‘attorney’ is the donee.

C: Charges Register: Identify the extent of other people’s rights over the property A Buyer will be bound by some third party rights over freehold land (s29(2) LRA 2002):  Interests registered on the Charges Register and  Interests overriding registered dispositions (Schedule 3 LRA 2002) The most common charges found on the Charges Register are;  Mortgages (property pledged as security for a loan),  Mortgages are protected by two entries in the Charges Register  Restrictive Covenants (restricting the covenantor from e.g. using the property as business premises)  Restrictive covenants are either fully set out in the register or  By reference to a document annexed to the register.  Positive covenants (requiring the covenantor to do something e.g. maintain a fence)  Positive covenants do not run with the land and are therefore only enforceable against the original covenantor.  For this reason the vendor will require the purchaser for an indemnity covenant that will have the effect of indemnifying the vendor for any loss he suffers should he be sued personally for breach of a covenant.  A note of the indemnity covenant appears on the B: Proprietorship Register. Professional Conduct Rule 2 – Solicitors must keep their client informed. Official Copies must not be more than 12 months old....