As you probably know by now, the conveyancing process comes with a variety of different steps, all aimed at making sure that the buyers and sellers can reach a beneficial agreement. It’s also to protect both the buyers and sellers, to make sure there are no hidden problems that could come to light later. As part of that process, your conveyancer will run something called a land registry search.
What Is A Land Registry Search?
Land Registry searches involve a conveyancer or legal professional inspecting the title of the property. We do this to unearth important information about who owns the property, as well as identify any potential risks, caveats or rules that are associated with the purchase. It’s an important part of the due diligence all buyers should be doing on the property they want to purchase.
A few things that a title search can reveal include:
The Grade of Title (Absolute, Possessory, Qualified etc, which show which type of ownership is held)
The names of the legal owners
Whether the property is freehold or leasehold
The date of first registration
Things influencing the use of the property, including:
Easements
Rent charges
Provisions
Restrictive covenants
Third-party interest
Details of ownership, including:
Cautions
Existing charges
Notices
The existence of multiple titles
Why Do You Need A Land Registry Search?
As you can see, title searches provide you with a lot of information on the property you are about to buy, all of which you can use as part of the buying process. It can help you to adjust your budget, negotiate the purchase price, and make you aware of any costly issues that might be waiting for you. Being armed with this information means you’re in a stronger bargaining position with the seller, and means you won’t get caught off-guard by sudden costs.
They also confirm that the property will actually serve the purpose you want it to. For example, a property that’s leasehold will have some limitations on how it can be altered, so if you wanted to extend or renovate it, or you might be buying it for a commercial premises – in both cases you’d be stuck, and might not go ahead with the purchase. Without a title search you would continue with the purchase and not find out until you put in for planning permission. That’s why we always heavily recommend you have one done.
The Potential Risks of Skipping Land Registry Searches
Of course, you don’t have to do a title search on a new property. But almost everyone does, and for good reason. If you skip the title search, you could face some serious legal, financial and even resale complications later on. A few of the risks you’re taking by not having a title search done include:
Legal complications: If there are any issues with the title or legal issues that aren’t found earlier on in the process can cause big problems that could leave you open to disputes. For example, there might be a claim or a restriction on the property. You might face disputes over ownership, or have to deal with mortgage covenants that limit how you can use the property. Most of these can be fixed, but they’re expensive and time-consuming.
Financial complications: Not checking the title can put you as a buyer at risk of paying some particularly nasty bills in the future. If there are unseen problems with the property – things like contaminated land or strict rules, they can lower the value of the property and leave you footing the bill to deal with them. Having a complete title search done helps to reduce these risks and shift the financial responsibility onto the seller instead.
Future resale/mortgage difficulties: Skipping this key search can also make selling or re-mortgaging the property later on much more difficult. Lenders will often refuse a mortgage on a property that has ongoing title issues or legal claims. Selling can be even more challenging, and may make finding a buyer all but impossible.
At Hudson Conveyancing we provide comprehensive conveyancing services to make sure your property purchase goes smoothly – and that the property really is right for you! We can provide support with all areas of the conveyancing process from start to finish, including a clear breakdown of what happens at each stage and how it will all progress. If you would like to know more about property title searches, or conveyancing in general, just get in touch with the team today for your free consultation.
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