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  •  

Property Lawyers and Conveyancing Solicitors in Manchester at Ford Banks Irwin Solicitors - Selling a House / Flat Implied Covenants

 
Please note: Not to be used or relied upon without legal advice. These notes are for illustrative purposes ONLY.

Abbreviations and terms used:

In this guide:
'LRA 1925' means the Land Registration Act 1925 as amended;
'LRR 1925' means the Land Registration Rules 1925;
'LRA 2002' means the Land Registration Act 2002;
'LRR 2003' means the Land Registration Rules 2003;
'1964 Act' means the Law of Property (Joint Tenants) Act 1964
'1967 Act' means the Leasehold Reform Act 1967
'1993 Act' means the Leasehold Reform, Housing and Urban Development Act 1993
'1994 Act' means the Law of Property (Miscellaneous Provisions) Act 1994
'1995 Act' means the Landlord and Tenant (Covenants) Act 1995


In this section, we refer to the person making a disposition of Land / Property as 'the Seller' and the person to whom the disposition is made as 'the Purchaser'. This is so whether or not the disposition is for valuable consideration. Where the disposition is a charge or mortgage, the chargor or mortgagor is 'the Seller'. By 'registrable disposition' we mean a disposition that is required to be completed by registration under section 27 Land Registration Act 2002, that includes a transfer of registered Land / Property.

When Land / Property is disposed of by way of Conveyance, Transfer, Charge or Lease, certain covenants for title on the part of the Seller may be implied into the document effecting the disposition (section 1(1) Law of Property (Miscellaneous Provisions) Act 1994.

The disposition prepared by Property Lawyers and Conveyancing Solicitors need not be for valuable consideration. Gifts and dispositions made under a Court Order are treated in the same way as sales and charges (Mortgages).

The Land Registry state the covenants will only be implied if the disposition prepared by Property Lawyers and Conveyancing Solicitors is expressed to be made with 'full title guarantee' or with 'limited title guarantee' (sections 1(2) and 8(4) Law of Property (Miscellaneous Provisions) Act 1994;  Rule 67 Land Registration Rules 2003.  Documents affecting registrable dispositions can incorporate these terms (section 67(1) Land Registration Rules 2003).

The Land Registry state Right to buy Transfers and Leases must be made with full title guarantee, that should not be modified: paragraph 4A, Part I Schedule 6 to the Housing Act 1985. The benefit of these implied covenants runs with the Purchaser's estate or interest, so that a successor in title is able to enforce them (section 7 Law of Property (Miscellaneous Provisions) Act 1994.  However, the liability under these implied covenants does not attach to Land / Property retained by the Seller and so does not pass to the Seller's successor in title.

The implied covenants may be limited or extended by Property Lawyers and Conveyancing Solicitors in the document effecting the disposition (section 8(1) Law of Property (Miscellaneous Provisions) Act 1994). Generally, no reference to any covenant implied by the 1994 Act, or to any limitation or extension of such a covenant will be made in the register (Property Title Deeds) (section 67(5) Land Registration Rules 2003). However reference may be made where a registrable disposition of leasehold Land / Property limits or extends the covenant implied under section 4(1)(b) Law of Property (Miscellaneous Provisions) Act 1994, that there is no subsisting breach of a condition or tenant's obligation, and nothing which at that time would render the Lease liable to forfeiture.  Any document effecting a registrable disposition which limits or extends that covenant must do so by express reference to section 4(1)(b) of the 1994 Act.


The Covenants implied in disposition made with full or limited title guarantee:

The effect of sections 2 to 5 of the Law of Property (Miscellaneous Provisions) Act 1994 is that where a disposition prepared by Property Lawyers and Conveyancing Solicitors is expressed to be made with full title guarantee or with limited title guarantee, without modification, the following covenants are implied:

(a) That the Seller has the right (with the concurrence of any other person making the disposition) to dispose of the Property as they purport to;

(b) That the Seller will at their own cost do all that they reasonably can to give the Buyer the title they purport to give, which includes doing what they reasonable can to ensure that the Buyer is entitled to be registered with at least the class of title registered before the disposition (or, if the disposition gives rise to compulsory first registration, giving all reasonable assistance fully to establish to the satisfaction of the Registrar the right of the Buyer to registration as proprietor).  

  
(All italics in this page are Crown Copyright and reproduced here for your information with permission from HM Land Registry)

. . continued on page 2 (Property Lawyers and Conveyancing Solicitors in Manchester for Selling a House - Implied Covenants page 2)

Please telephone Paul on 0161 866 8999 if you require any further information.

                       
    

Contact Us

Ford Banks Irwin Solicitors
50 Stothard Road
Stretford
Manchester
M32 9HB


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What our Clients say about us:
 
"Again, many thanks for your help. I would recommend your service to anybody who is about to purchase a property" . . . Professor J. Kang (Manchester Business School)

"We will be delighted to recommend you and your firm. Your service has been first class, prompt, accurate and exceptional value" . . .  Jason Cotterrell (Commercial Director, CBS Outdoor Limited)

". . . extremely thorough, professional and helpful . . . We would not hesitate to recommend you to anyone looking to purchase / sell a property" . . . Dr L. Hampson (St. Marys Hospital, Manchester)

“. . . a refreshing approach . . . thank you”

 “. . . excellent value for money . . .”

 

Please telephone 0161 866 8999 for a free quote. 


Property Lawyers and Conveyancing Solicitors in Manchester for Selling a House / Flat Implied Covenants 1 | Property Lawyers and Conveyancing Solicitors in Manchester for Selling a House / Flat Implied Covenants 2 | Property Lawyers and Conveyancing Solicitors in Manchester for Selling a House / Flat Implied Covenants 3 | Property Lawyers and Conveyancing Solicitors in Manchester for Selling a House / Flat Implied Covenants 4 |