Alison Fielden & Co: Property Transfers

Property Transfers

Today I am going to give you some information on Transfers which are the legal documents that you sign just before completion of a sale or purchase, and which are then submitted to the Land Registry to completion Registration of new ownership. I will also provide a brief synopsis of what a Title document is.

Transfer (TR1) this is the most common Transfer that is used, for the transfer of properties or land that totally exist under one Title number or is unregistered but is composed of only one address.

So, if you are selling a house, flat, or any other residential property (or commercial) which can include land belonging to it, then this is the document to be used.

The information it contains is the full names of both the buyers and the sellers, the Title number, the full address of the property, the purchase price, and the address for any notices to be sent which could be different from the property if you are buying say a buy to let. Also included are what we call Execution clauses were all parties sign the document, in the presence of a witness (not a relative), who must then sign as well. This document is dated at completion. It is then dated and sent to the buyer’s solicitors, or if we are buying to us.

Transfer of Part (TP1) this is for property or land that is being sold out of someone else’s property, i.e., one field from a farm, a garage from a block of garages or part of a garden from a house. The difference with this Transfer is that it usually (but not always) has a plan with it depicting the area of land to be sold.

It can also contain rights for the use of sewers and services, roads etc., together with reserved rights for the property it is being transferred out of which are the same or similar. It will also contain details of rules that the property is bound by.

The only difference is that when this is sent to the Land Registry to register ownership it will then be provided with its own individual Title number. It can then in future be sold as a whole property and not a part.

Transfer of Equity

This is when a property is transferred between parties usually with no monies changing hands. This relates normally to property owned by either two people who wish to transfer to just the one (matrimonial split), or when one person owns the property and they wish to transfer a share to their spouse, partner.

The document contains the same information names of both parties, address and title number of the property. It is then signed by all parties and submitted to the Land Registry at completion to change the ownership of the property.

Title Number – each property when submitted to the Land Registry is provided with its own unique title number and will have a corresponding Register and Plan. Once a property is registered or changes hands new updated copies are provided to the owner via their solicitor.

There are 3 parts to the Register, the Property Register which contains a brief description of the property and reference to the plan. It also confirms if the property is Leasehold or Freehold.

It can also hold information as to matters which benefit the property, i.e., rights of way over neighbouring land if the property benefits with the same.

Proprietorship Register – contains the class of title which is usually Absolute (which is the best title there is), together with the owners’ full names, the price they paid for the property and any limitations on their powers to deal with the property, i.e., if the property has a mortgage, then their permission would be required to transfer a property. If the property is being sold, then the mortgage has to be repaid when it is sold.

Charges Register

This contains details of Mortgages or secured loans against the property that have been taken out by the owners.

It will also set out restrictive covenants (rules) that govern the property, together with positive covenants, perhaps maintaining fence, or using a shared driveway.