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Land registration

Land registration

Importance of having unregistered land recorded in the Land Registry

13/01/2017

Registration of land helps in identifying land owners and facilitating real estate transactions. HM Land Registry was instituted in 1862. However, there was no obligation for landowners to register their properties. In 1997, the Land Registration Act was formulated to compel all landlords to register their properties. Some people registered voluntarily while others only registered their properties during conveyance. This means that there are still real estate owners with the unregistered land. A good number of these belong to churches and the crown. Over 80% of properties in the UK are registered.

While some people register their properties during conveyance, others register when changing ownership. For example, couples who live like joint tenants may switch to a common tenancy to get a better hold of their properties. Joint ownership does not specify the amount of share each partner owns. Inheritance of joint ownership properties is marred with ambiguity since the law does not recognise wills. Getting into common tenancy allows partners to draw to wills which clarify property inheritance.

The Land Registry handles the property registration and transfers. A landowner has to prove ownership of the land for his property to be registered. Title Deeds are the most common proof of ownership. He must also pay a fee and fill forms that facilitate registration. You do not need a solicitor to help you with registration. The Land Registry can guide you through the steps of registering property. However, a solicitor can help speed up the process or explain clauses that are not clear.

Registration of land helps in speeding up conveyance. Solicitors are usually expected to research property ownership and recover Title Deeds. They do this by colluding with the Land Registry. The Land Registry does not document unregistered properties. This makes it difficult for buyers’ solicitors to verify ownership accurately. They have to rely on sellers’ Title Deeds to confirm ownership. Sometimes they have to register the property at the very beginning of conveyance to avoid disputes arising from ambiguity in ownership. If the seller loses his Title Deeds, the conveyance may be entirely impossible.

Property registration protects owners from claims of adverse possession and squatter rights. Homeless people can informally claim ownership of a property that is not registered. It takes a lot of court battle and trips to the Land Registry to reclaim a property from undue possession.

Unregistered properties make it difficult for potential buyers to know their owner. If a buyer wants to purchase a property, he must identify its owner. He can do this by asking people who live around the property. These people must have seen the owner and may even have his contacts. The buyer can also ask around in the local clubs, shops and other social centres. Local electoral registers may also have the name of the owner.

If inquiry fails to identify property owner, you can go a length further to put a sign post on the property. The sign post should mention your intention to buy. The buyer will see the sign post and contact you. You need to talk to a solicitor before posting the sign. The solicitor will advise you if it is illegal or not to post the sign.

Types of disbursement when selling house

12/12/2016

Buyers and sellers encounter various kinds of disbursement fees during conveyance. The disbursement when selling house does not include solicitors’ fees. They are totally separate from solicitors fees and are individually much less than solicitor fees, but can cumulatively be more expensive than the solicitor fees. The disbursement fees are for other institutions or individuals who help the conveyance progress. The buyer or seller pays the fees indirectly through their respective solicitors. The number and amount of disbursement fees depend on the property on sale and the amount of documents required to complete conveyance. Solicitors usually include the expected disbursement fees in the initial client care letter that they send to a buyer or seller.

Official Disbursement Fees

The first beneficiary of disbursement fees is the Land Registry. Almost all property transactions involve paying some fees to the Land Registry. The fees are paid for title deeds, and title plans are made available by the Land Registry. Both the buyer and the seller need these documents and therefore have to pay the fees. The seller needs these documents to prove his claims as the authentic owner of the property and the buyer needs the documents to prove that indeed the seller is the owner of the property. It is the solicitor’s job to get the documents.

Registered titles attract additional fees apart from the fees for title deeds and title plans. This is because registered titles are protected by additional provisions that are spelt out in a separate document. The document, just like the registered title, is kept at the Land Registry. Registered titles are especially common with properties that are built by developers as part of larger estates. The cost of the title register and title plans is £14 while that of the document is £11. Solicitors used to physically present themselves to the Land Registry’s office to get the document. Currently, the document can be downloaded from the website of the Land Registry. A downloaded document is cheaper. Some solicitors pay the cost of the provisional document from their own pockets rather than bill it separately.

Taxes are another disbursement fee that is necessary expense before the purchase can go through. Many of these taxes like Stamp duty depend on the cost of the property. A buyers solicitor will also analyse if the seller has taxes or expenses due on the property.

Other Disbursement Fees

A seller can also look into Telegraphic Transfer fee. The solicitor charges these fees for the expenses incurred when transferring funds to the seller’s financial institutions. The institution charges solicitors the transfer fees and the solicitor consequently charges his client the same as disbursement fees. Telegraphic Transfer fee comes about when large sums of money are paid to cover for mortgages or when proceeds of property sales are transferred directly to a seller’s bank account through the Clearing House Automated Payment System (CHAPS). CHAPS transfers money to a bank account in one day. BACS transfer is slower compared to CHAPS.

Some solicitors may take advantage of their clients and charge disbursement fees that are higher than the Telegraphic Transfer fees. They can do this since clients never really know the cost of the transfer. The transaction is between the solicitor and the bank. Solicitors who overstate the Telegraphic Transfer fees breach the first rule of the Code of Conduct. The solicitors may also breach the second rule of the Code of Conduct when they fail to declare the amount over the cost of the fee as profit. Dishonesty in handling telegraphic transfer fees is punishable by law. The seller can report such misconduct to the Solicitor Disciplinary Tribunal.

Land Registry fees and Conveyancing

16/11/2016

An additional cost when you move houses or change anything in the ownership are the Land Registry fees. What are these fees and why do you have to pay them? The Land Registry is a governmental agency responsible for every change you make in a title to the property and for all the details regarding a house owner. Any alteration must get through the Land Registry, so you are protected against squatters or tenants and to actually be the legal owner of your house.

Starting with 2014, the Land Registry system changed, and you are able to send any modifications and the necessary paperwork online, which saves you time and also considerably reduced the costs of the Land Registry fees. The difference between posting the alterations by post and by email can sometimes mean hundreds of pounds still in your pocket. You can check if your property is eligible for the electronic platform on the government website. The cost is significantly reduced for bigger properties, where the fee is lower even with £500.

What do you pay Land Registry Fees for? Anything from adding/removing a person from the property title, boundaries amendments, change of name, cancellation of the lease or equity sharing lease constitutes an adjustment to the property title, and there are different fees to be paid.

How can you pay the Land Registry fees?

  • By cheque or postal order
  • Credit/debit card/cash at one of the Land Registry agency, by appointment
  • Variable direct debit, through a Business e-services account

If you plan on buying a new residential property, we recommend a Land Registry search before the transaction. The search will reveal if the seller is the legal owner and if he has the right to sell. Also, there is information about the owners' equity (if the house is under Shared Ownership), any mortgages or leases and details about title registers, any plans or alterations brought to the property in the past and specifics about prior and current owners.

The related costs depend on the value of the property, application type and ownership transfer – in the case of a shared ownership and you only buy an equity (part), or you are the only owner (whole). To this, we add the difference between applying by post or on the digital platform.

An overview of the detailed Stages of Property Conveyancing

15/06/2015

Concerning purchasing or offering a property there are a considerable measure of things to consider. Be that as it may, with the right Conveyancing firms you can make certain that each stage will be both professionally and altogether overseen, abandoning you push allowed to make the most of your new home.

To help you pick up a superior comprehension of the Conveyancing procedure, beneath is an orderly manual/detailed stages for a common deal and buy exchange. The genuine lawful procedure included in exchanging the responsibility for a property starting with one individual then onto the next is called property conveyancing.

Legal Work and others

After picking the right conveyancing farm and you are getting a home /property loan to help fund your buy, it is likely that you will as of now have reached a bank or building society to acquire an offer on a basic level

An outline of what the moneylender is prepared to offer you.

When you have made an offer which has been acknowledged you now need to tell your loan specialist. Your moneylender will then gone through the valuation/overview choices with you, however regardless of the possibility that you are a money purchaser you ought to think about accomplishing as a review. The expense will rely on upon whether you pick an essential study, known as a homebuyer's report, or a full basic overview. The full auxiliary overview will be more lavish than a fundamental one yet is firmly prescribed for more established properties or a recorded building.

Then, your conveyancer will ask for the agreement pack from the dealer's conveyancer. When they have gotten the agreement pack we will ask for any pertinent inquiries, for the most part a Local Authority Search, Water and Drainage Search, Environmental Search and, contingent upon the region, a Coal Mining Report. They will audit the inquiries precisely and analyse the agreement and supporting reports supplied by the vender to guarantee there are no issues which could antagonistically influence your delight in living in the property or the monetary venture you are making in it.

In the lion's share of exchanges there will be inquiries to be raised with the merchant's conveyancer. These can extend from confirming arranging and building regulations

The nature and degree of the inquiries are individual to every exchange. When they have gotten full answers your conveyancer will send you a report. This will abridge the data got, upheld by duplicate archives, eg ensures or declarations, as pertinent.

There will likewise be data about the title, including points of interest of any contracts which tie the property and which you will be obliged to watch once you are the proprietor. Normally these agreements will limit the property's utilisation for private residential staying just, and oblige assent before making any auxiliary changes or augmentations.Your conveyancer will then send you the agreement to sign.

You ought to peruse the report and contract precisely.At the point when your home loan offer is issued, your property conveyancer will check through any unique conditions and affirm that the points of interest held by the home loan bank are right.

Your conveyancer will prompt you once an agreeable home loan offer is spot, the sum total of what inquiries have been fulfilled, pursuits have been sanction and we oblige your store.

Exchange of Contracts

After contracts are exchanged, you are legitimately bound to buy the property. Accordingly, before this stage, consider the accompanying agenda:

  1. You have the store prepared.
  2. Your home loan offer is set up. Extra security and property protection are situated up.

The agreement terms host been updated by all gatherings. A fulfilment date has been set.

You pay the non-refundable store to the vendor.

Your solicitor readies an exchange report which is sent to be marked by the purchaser. This deed exchanges the property to the purchaser from the dealer and, once it is concurred, it must be marked by both sides.

Your solicitor/property conveyancer concludes your home loan courses of action, preparing the cash for exchange to the purchaser upon fulfilment. Then ,Final pursuits and request are completed by your specialist. Land Registry expenses must be paid alongside Stamp Duty.

Final and last parts

From the day of finishing the property is legitimately yours.your property conveyancer will document the Stamp Duty Land Tax Return, and pay any obligation relevant to your exchange., Upon receipt of the deeds from the merchant's specialists he will apply to the Land Registry to have you enlisted as the new proprietor, and any home loan noted as a secured charge.

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