Understanding Title Deeds: What Are You Really Buying?

 

Understanding Title Deeds: What Are You Really Buying?  

A blog Post by Elliott Mutlow, Paralegal with MJP Conveyancing

When buying a property, the term "title deeds" comes up a lot—but what exactly are they? These documents hold the key to understanding what you’re purchasing, including rights, boundaries, and responsibilities tied to your new home. Let's break down what title deeds are, what information they provide, and why they matter.

What Are Title Deeds?

Simply put, a title deed is a collection of legal documents outlining the ownership and details of a property. While historic deeds might consist of paper records, most modern properties in England and Wales are registered with HM Land Registry, where the title register serves as the definitive proof of ownership.

That said, older deeds still hold relevance, particularly for unregistered properties or where details like boundaries or covenants are unclear.

Common Types of Title Deeds:

1. Conveyance Deed - Transfers ownership from seller to buyer and outlines any restrictions or rights linked to the land.
2. Mortgage Deed - Confirms the lender's interest in the property until the mortgage is fully repaid.
3. Contracts for Sale - The agreement between buyer and seller that becomes part of the title history.
4. Wills or Probate Documents - Used when property changes hands through inheritance.
5. Leases - A central document for leasehold properties, defining the rights and responsibilities of the leaseholder.

For most registered properties, the title register (maintained by HM Land Registry) is the go-to document. However, these historical deeds often provide valuable context, particularly for older properties.

What Information Do Title Deeds Contain?

Title deeds provide a wealth of information about a property, including:

• Ownership History: A record of previous owners, tracing ownership over time.
• Class of Title:
  • Absolute Title - The highest level of ownership security.
  • Possessory Title - Used when ownership evidence is incomplete.
  • Qualified Title - Indicates specific title defects.
  • Good Leasehold Title - For leasehold properties missing superior ownership records.
• Property Description: Includes the address, boundary details, and rights like easements (e.g., a neighbour’s right to cross your property).
• Covenants and Notices:
  • Covenants are obligations tied to the property, such as restrictions on building.
  • Notices highlight external interests, like rights of access or a lender’s mortgage charge.

These documents also confirm whether a property is freehold (outright ownership of the land and structure) or leasehold (ownership defined by lease terms).

Why Are Title Deeds Important?

Understanding your title deeds is crucial because they give a full picture of what you’re buying—not just the structure but the associated legal rights and obligations. They are important for several reasons:

1. Proof of Ownership - Essential for unregistered land or legal disputes.
2. Conveyancing Checks - Enables your conveyancer to identify potential legal issues.
3. Resolving Disputes - Helps address boundary conflicts or rights-of-way concerns.
4. Future Sales - A clear title ensures smoother transactions when you sell.

Common Issues in Title Deeds

Title deeds don’t always tell a perfect story. Some common issues include:

• Unclear Boundaries - Leading to disputes with neighbours.
• Outdated Covenants - Restrictions that are no longer relevant but still legally binding.
• Easements - Rights for others to use part of your land (e.g., access paths).
• Charges or Restrictions - Such as historic loans or obligations tied to the property.

These issues aren’t necessarily deal-breakers but need to be addressed. Your conveyancer can guide you through solutions like indemnity insurance or further legal advice.

How Conveyancers Use Title Deeds

A conveyancer plays a key role in reviewing title deeds. They check:

• That the seller has proper ownership and the legal right to sell.
• For adverse issues like restrictions, easements, or missing documents.
• Whether the property's legal and physical details match the seller’s information.

Importantly, your conveyancer reports back to you in plain language so you can understand any limitations or obligations linked to the property.

Tips for Buyers

Title deeds can seem overwhelming, but there are steps you can take to ease the process:

1. Ask Questions - If something in the title deeds is unclear, seek clarification. Your conveyancer is there to help.
2. Check What’s Included - Confirm boundaries, rights of way, and any extras like parking spaces.
3. Review Lease Terms - For leasehold properties, pay attention to the lease duration and your obligations.
4. Save the Final Documents - Keep a copy of the finalised title register and associated documents for future reference.

Final Thoughts

Understanding title deeds helps you gain a clearer picture of what you’re buying and prevents nasty surprises down the line. While your conveyancer does much of the heavy lifting, staying engaged and asking the right questions ensures you’re fully informed. Buying a property is a big investment, and strong knowledge of the title gives you confidence in your purchase.