Conveyancing

Registered properties in England and Wales have legal and physical boundaries. The boundary of your property, and the area you will become owner/proprietor of, is outlined red on the HM Land Registry document known as the Official Copy of the Title Plan.

In England & Wales, the Official Copy of the Register, or legal title, is composed of three sections known as the A, B, and C Registers.

The A Register (Property Register) identifies the property details, including location and whether mines and minerals are excluded from the land ownership. It will also outline any rights that benefit the property.

The B Register (Proprietorship Register) states the name of the current owner, their correspondence address, and the capacity in which the property is held. Any restrictions that the owner is bound by are listed here.

The C Register (Charges Register) lists restrictions that the property is subject to, such as current mortgages or charges.

When a property is first registered, a class of title will be granted based on evidence of the owner’s right to the title (the legal document that proves ownership of property). When buying property, you are buying the legal “title”, meaning you are paying for the property as well as the associated legal rights and responsibilities. Different classes of title that can be awarded include:

Absolute Title: Indicates that no individual or company holds a better claim over property than the registered owner/proprietor. Granted in most cases, it is considered the best class of title and is HM Land Registry’s ownership guarantee.

Possessory Title: Registered when the applicant does not hold the necessary documents to establish legal ownership over a property. For example, when the title deeds to the property have been lost or stolen.

Qualified Title: An uncommon class of title granted when a specific defect has been identified in relation to a property and entered on the HM Land Registry Official Copy of the Register.

A legal agreement between the purchaser and seller, including information such as, agreed purchase price, completion date, and the conditions of the sale. Once exchanged, the contract becomes legally binding for everyone involved.

Requested on behalf of the purchaser, they provide information on the purchase property that may hold legal implications and impact use or enjoyment of the property. They are an integral part of the conveyancing process.

A promise or rule, associated with property, that affects what can or cannot be done by the owner/proprietor.

Positive/Personal Covenants: An obligation imposed on an owner/proprietor to carry out an action related to the property. For example, maintaining a boundary fence.

Restrictive Covenants: An action that an owner/proprietor must not undertake. For example, a restrictive covenant may require a proprietor not to house a caravan on their property.

Practical and legal rights that property may benefit from or be subject to. Common examples include a right of way over neighbouring land to provide access to a property, or a utility company having the right to access key service infrastructure such as sewer systems.

An insurance policy protecting current and/or future owners and lenders from future financial loss or liability caused by a potential limitation or risk associated with a property.

Exchange of contracts is the point at which the transaction becomes legally binding. This is a significant milestone in the process, as it means that both parties are now committed to completing the transaction.

Once exchange has taken place, the buyer is liable to pay the deposit to the seller’s solicitor, and the seller is liable to transfer ownership of the property to the buyer on the completion date. If either party fails to complete their obligations after exchange, they may be sued for breach of contract.

It is important to note that exchange does not mean that the buyer can immediately move into the property. This will not happen until the completion date, which is typically two to four weeks after exchange although in some circumstances this can be achieved on the same day.

Completion is the point at which the sale of a property is legally finalised.

On the day of completion, the buyer’s solicitor will transfer the purchase price to the seller’s solicitor. The seller’s solicitor will then release the keys to the property and send the buyer’s solicitor the transfer deed, which is the document that legally transfers ownership of the property to the buyer.

Once the buyer’s solicitor has received the transfer deed, they will register it with the Land Registry. This is the final step in the conveyancing process, and it is the point at which the buyer becomes the legal owner of the property.