RE - Certificate of Title - Notes PDF

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Real estate first class...

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Certificate of Title This is essentially a summary of information of property It contains important information that a buyer or lender needs to decide whether to continue with the property. Who prepares? Seller’s solicitor may do in the case of a complex case Buyer solicitor may also prepare based on the information provided from the seller. Most information comes from seller The Company The entire document is written on behalf of the Company. The Company is always the party preparing the certificate. Template CLLS Certificate of Title is used by most firms. Whilst over 60 pages, the actual certificate is only the first 4 pages, the rest is schedules. Schedule 1 This contains the definitions. Review the parties’ definitions as this denotes which party is the company.

Key Entries The Certificate – in paragraph 2.1.3(a) the buyer’s solicitors confirms to the lender that the seller has a good an marketable title. Confirmation of Statement – the buyer has had to rely on information from the seller. Thus, in clause 4 the buyer makes clear where the information has come from. This is to protect themselves. Schedule 2 sets out the property of the details, such as easements, incumbrances, and rights of way. The information will come mainly from the official copies and the seller. This must be completed fully.

In practice, the buyers will usually get a separate report from their solicitors highlighting any particular issues/solutions. E.g. Restrictive covenants would be set out in part 3 incumbrances of schedule 2 Schedule 3 contains a list of general statements. These must not be amended even if incorrect/inappropriate. Instead, a comment should be listed in the box beneath it. E.g. issues with a private road would appear as a disclosure against paragraph 3 of schedule 3 Schedules 4/5 is only relevant to leasehold. Schedule 6 sets out what searches and enquiries have and have not been done. This then sets out anything which has been revealed which may affect the decision to buy/lend on the property. E.g. whether any recent mining has been covered as a disclosure against the coal mining search in schedule 6...