Registration and Property Title

First registration became compulsory in all of the UK on December 1990 following a trigger event. Typically a trigger event are

• The transfer of title of a freehold whether for consideration or as a gift, 
• The grant of a lease for more than seven years, 
• The assignment of a lease which at the time of assignment has more than seven years unexpired, 
• Creation of a first legal mortgage, 
• the Partitioning of unregistered land amongst beneficiaries of a trust.
• Appointment of a new trustee of unregistered land.

Registration is governed by the Land Registration Act 2002 (which came into force on Oct 2003). An application for first registration can be made using Form FR1 with documents in support listed on Form DL.

The classes of title that can be awarded under the LRA 1925 & 2002 are:

1. Absolute Title: this is the best possible title. The buyer is awarded the freehold/leasehold title with all rights, privileges and benefits of easements for that property. Absolute title guarantees the proprietor (owner) was the holder of the lease and that the lease was validly granted. The registrar must approve title of lease and the freehold too.
2. Good Leasehold Title: this is granted in situations where the Registrar has not checked the freehold title (usually because one cant not be found) and therefore the Registrar can't guarantee the landlord is entitled to grant a lease which in turn leaves the buyer/tenant at risk of losing the property. Therefore a Defective Title Indemnity policy maybe required.
3. Possessory title: a title granted based solely on possession of the property (usually to a Squatter).
4. Qualified Title: a title that is subject to a specific defect. In this situation a Defective Title Indemnity Insurance Policy will be required.

A title typically contains a title number and is split into 3 parts:

• The Property Register: contains a brief description of the land with reference to the official plan based on a survey. It will also tell you if the property is freehold or leasehold. If its LH then it will also contain details of the lease i.e. date, term, parties, rent and lessors title number. Plus it may also contain any easements/covenants which benefit the land.
• The Proprietorship Register; includes class of title, name and address of registered proprietor. Any limitation to the registered proprietors powers to deal with the land i.e. registered proprietor cant transfer property without consent of the mortgage lender. And as of April 2000 the price paid for the property. In addition indemnity covenants are also noted in the proprietorship register. 
• The Charges register; details any encumbrances affecting the title e.g. restrictive covenants, easements, mortgages. With mortgages it usually contains 2 entries. The first states the charge to the lender and the 2nd the name of the lender. In addition to any restrictive or positive covenants. If not registered they will not bind a buyer.