Make no mistake – every buyer and seller wants to avoid what can hold up exchange of contracts. However, despite everyone’s best effort sometimes delays are inevitable.

When you reach the point of exchange of contracts, you can start to feel confident that your property deal might actually come through. This is because following the exchange both buyer and seller have legal recourse if the other pulls out, meaning that they can sue each other for damages.

While it is not as final as the succeeding step, completion, when the new owner takes possession of the property, generally if the exchange of contracts goes ahead, the deal is likely to succeed.

However, reaching the exchange can be difficult, and a lot of different things can cause delays during any of the conveyancing stages. All of this can really add up if you are not careful.

This post details what can happen as you draw close to exchanging contracts and what you can do to help ensure things run smoothly.

01 | What needs to be done before the exchange of contracts?

Before you can exchange contracts there are quite a few things that must be completed.

Some of these things fall on the buyer, while others fall on the seller. Both will need the assistance of either a licensed conveyancer or a solicitor.

Other things fall on both parties, and the exchange cannot proceed until these are agreed.

02 | What do buyers need to do before the exchange?

• Order and conduct searches and surveys on the property and read the legal report your conveyancer will have composed using them. This document holds all the property’s details. Make sure you are happy with the results of the searches and the survey before you commit to exchanging contracts. These will show you if there are areas of the property that require additional paperwork, or indemnity insurance. IT can also warn you about other problems which could impact a property.
• Ensure you have your deposit ready. It would be very embarrassing to reach the point of exchange and be unable to pay. Beyond embarrassment, this could even lead to the transaction falling through. The seller may feel they can no longer trust you to pay your deposit the next time they try to exchange or the remaining monies when it comes to completion.
• Get your mortgage offer in writing. When buying with a mortgage you will need a final offer in writing at exchange. An agreement in principle will not do at this point!
• Check any leasehold agreements carefully. Leasehold property often comes with obligations, fees, and costs which affect whoever is leasing it. When buying any leasehold property you should ensure that you understand these before agreeing to exchange contracts.
• Arrange building insurance for your new property. Typically, sellers end their policies at exchange, as from this point insuring the house becomes your responsibility. You should buy insurance to ensure the worst doesn’t happen. Your lender may insist on seeing your insurance policy before exchange of contracts.

03 | What do sellers need to do before exchange?

• Ensure all available paperwork for your property is collected and provided to the buyer’s conveyancer along with the TA6 property information form. This can range from planning permissions and guarantees for building work to instructions for household appliances. By supplying these documents, you can ensure that you do not have to buy indemnity insurance.
• Fill out the TA10 fittings and contents form. This form indicates what is to be sold with the property, and what is to be left behind. Sellers can also include optional extras in the form, giving the buyers the choice to buy certain items with the house.
• Inform your property’s insurance provider that you are moving and need to cancel your policy. Buyers will typically organise insurance starting from the day of exchange.
• If your property is a Buy to Let investment ensure that your tenants have a definite plan for moving out. This is best done by getting written confirmation from them. You should ensure they have left before the agreed completion date just in case they meet delays.

04 | Understanding what can hold up exchange of contracts

05 | What do both parties need to agree on before exchange?

Often, the results of the property searches can lead to re-negotiations over the property’s asking price. This could involve one party having to pay for indemnity insurance policies and any necessary repair work that must take place.

The need for providing an indemnity insurance policy is often due to missing or problematic paperwork and permissions. This could include covenants, deed issues and building regulations. The buyer will typically want indemnity insurance to be bought to protect them from costs associated with potential enforcement action associated with this type of issue. Who pays for this can vary, depending on who is in the stronger negotiating position. Usually sellers will cover any issues that they are to blame for by paying for the indemnity policy.

Negotiations can also result from structural and/or maintenance issues uncovered by the survey. This can lead to a buyer reducing their offer in order to cover the costs of work, or sellers agreeing to complete or pay for needed work prior to the exchange. Like issues brought up by searches, who pays to resolve problems found in the survey often depends on the strength of the parties negotiating position, though normally sellers will be expected to cover things they are at fault for. By far it is structural issues that what can hold up exchange of contracts the most.

The parties involved in the transaction must also agree on what fittings and fixtures will be included with the property. The seller will specify what is included as default, and what is available in the TA10 fittings and fixtures form. The buyer must indicate which of the optional items they wish to buy and the price they are prepared to pay.

Both parties will need to sign a TR1 transfer document. This document, which will contain the details of the transaction, authorises the property transfer and enables the conveyancers to conduct the exchange.

Finally, before exchange and completion can take place both parties must agree on a completion date. This is when the buyer will transfer the remaining balance of the payment and take possession of the property. Both parties should ensure that this date suits them, particularly if they are moving into or out of the property at that point.

06 | What can hold up exchange of contracts?

Straightforward house sales usually take between 8 and 12 weeks to go from the initial offer to exchange of contracts.

Normally, much of this time is spent waiting for the results of searches and surveys. Sometimes, this can be delayed due to a slow surveyor taking a long time to complete their report. Other times this can be slow due to conveyancers being too busy, and therefore taking a long time organising and compiling searches.

On top of this, some local authorities are notoriously slow when tasked with providing their local authority search. They may choose to prioritize their own searches over private regulated searches.

Negotiations resulting from searches and surveys can also make up this time. If the buyer and seller are unable to agree on a revised sale price, who carries out repairs, or who pays for indemnity insurance, the sale can be delayed dramatically.

At other times, hold ups can be caused by questions going unanswered, especially regarding planning permission, covenants, and paperwork. If a conveyancer is not satisfied with the answer they have been given, they will not allow the process to proceed.

Complicated transactions, particularly those with unusual elements can also add to delays. Slow mortgage lenders also do not help as the exchange of contracts is often dependent on a final mortgage offer being made.

Long chains also cause delays. This is because every party in a linked property chain needs to exchange in the correct order to each in turn be able to pay for their property transaction. This means every party and their conveyancers must be ready at the same time. Given the inherent number of people involved in a longer chain this can be difficult to achieve. On top of this, the chain may still be incomplete at the time you join it. This could mean you are waiting on someone else finding a buyer or seller for their property.

Finally, delays can be caused by the buyer or seller not providing signatures, orders, or documents when required. Sometimes parties are not even aware of this, so you should keep in close contact with your conveyancer in order to ensure you are not unwittingly slowing the transaction down.

07 | How can you speed up the exchange of contracts?

In order to speed up the exchange of contracts you will need to collaborate with all parties. This is so that all buyers and sellers can attend to their separate steps in turn for the exchange to go ahead.

You should try to ensure everyone selling a property in the chain has all their documents or indemnity insurance policies ready, including guarantees, warranties, planning permissions and safety certificates. Buyers should have their finances in order and be ready to proceed.

Solicitors and conveyancers should be chosen on the basis that they provide a fast service, in addition to a good one. This is because so much of the conveyancing process is dependent on how effective they are. A slow solicitor, especially working on the behalf of a buyer can dramatically slow down a property sale.

All parties involved should think carefully before deciding to go on holiday during the transaction. The timing of developments can be fairly unpredictable. Something coming up while you are on holiday can be an enormous nuisance for everyone involved if it is not dealt with swiftly.

Finally, when selling, the single biggest thing you can do to speed up the exchange of contracts is by weeding through potential buyers. A cash buyer will normally be the fastest, while a buyer who is dependent on their house selling will be much slower. Consider the length of any chains you are becoming involved with and if possible, avoid any longer examples.

Leading property site Rightmove offers guidance on how to speed up selling a property.

Summary

The exchange of contracts is the point where a property transaction becomes legally binding and represents the final steps towards completing your transaction.

However, exchanging contracts can be held up by numerous things.

Firstly, the buyer’s searches and surveys need to come back. This can be delayed by missing documents, slow conveyancers, or local authorities. Following these searches returning, the buyer and seller need to agree to the final terms of the contract. If neither party is keen to give ground, these negotiations can take a long time.

While there are lots of things you can do to attempt to speed up the exchange of contracts, you will inevitably be dependent on other people. You will never have total control over when it happens. All you can really do is ensure you hire a competent and fast conveyancer and provide them with whatever documents they need as quickly as possible once requested.

Has this article been helpful? Let us know by leaving a short comment below.

When buying or selling a house, your conveyancer may use the term ‘indemnity insurance’ without explaining its meaning.

Commonly purchased during housing transactions to cover a variety of risks, indemnity insurance policies are there to proctect you.

In this article we explain what indemnity insurance is. We also look at when and why you might need it.

01 | What is indemnity insurance used for in house sales?

An indemnity insurance policy protects you against the costs of a third party making a claim against you following a legal fault when buying or selling property.

Each policy protects against a specific potential problem that could cost you substantially in the future. These legal defects can be things like problems with the deed, planning permission issues, or missing paperwork, all of which could potentially lead to a huge bill.

Typically, you would use indemnity insurance to cover legal defects which would be either very costly, or very time consuming to fix, but are low risk and are therefore unlikely to ever actually cause a problem.

Indemnity insurance would only protect you against costs and damages caused by legal claims. It would not cover any repair costs or the costs of any fines or penalties.

Normally indemnity insurance lasts in perpetuity, and stays with a property, passing from one owner to the next.

02 | Do I need indemnity insurance?

If there are any legal defects with your property you are likely to need indemnity insurance. These will become apparent as your conveyancer takes you through the legal process of buying or selling a property.

These legal defects should be indicated by your conveyancer based on their analysis of the TA6 form. They can include things like problems with the deed, missing paperwork, missing planning permission and missing or late searches.

Mortgage lenders will refuse to let buyers borrow money against a property until such defects are resolved. Most conveyancers will also strongly suggest not to buy a property without a solution to problems such as these.

Getting indemnity insurance to cover each legal defect can be a good way to resolve such issues quickly. If an outside party decides to sue over one of the defects, the insurance policy should pay out and cover your costs.

03 | Reasons why you might need indemnity insurance

There are a lot of potential issues that can come up when buying a property which can make the purchase of indemnity insurance a ‘no brainer’. Here are the four most common issues:

1. You are missing paperwork for building or repair works

One of the most common reasons to buy indemnity insurance is to cover building work with missing documents.

Indemnity policies are usually bought to cover missing building control completion certificates, self-certification certificates or work which does not have planning permission. Usually, each missing document will require a separate policy.

Building Regulation completion certificates are issued by building control surveyors to demonstrate work has been carried out to a safe standard. Similarly, boiler engineers, window specialists and electricians can join schemes which allow them to self-certify their work, FENSA being a good example of this.

Planning permission, on the other hand, controls the use and appearance of a property. While in some areas, some development without express permission is permitted (called permitted development), this is not the case everywhere or for much in the way of substantial construction.

If either planning permission or building regulations approval is missing for work carried out on a property, it is vulnerable to the local authority issuing an enforcement order. This means they can order you to have work rectified, modified, or even demolished if it lacks the correct paperwork.

As a buyer, the reasons you would want indemnity insurance in cases with missing documents is to protect you from the costs caused by local authority enforcement action. While it might never happen, if it does this could be very expensive. For example, if you have bought a house which has previously been extended without planning permission, it would cost you a lot of money if the local authority ordered the extension to be torn down – not to mention substantially reducing your property’s value.

Note that this type of indemnity insurance can only be bought a year after the completion of the work in question. This is because prior to this point the local authority can issue an order against it without having to go through the courts.

2. You are subject to a restrictive covenant or lack an important easement

Often, older properties have restrictions in their deeds determining what you can do with them. These are called restrictive covenants. They can date from centuries ago and include things like bans on construction, business, or livestock or requiring you to grant access to a neighbour.

If you are buying a property where the previous owners have breached a covenant without a charge being levied against them, you can buy indemnity insurance to protect you from any legal problems this breach may cause you in future.

In addition, indemnity insurance can help you if this situation is the other way round. An easement is essentially the opposite of a covenant, and gives the owner of a property a right over another property. These are often used for access rights.

If you are using another person’s property to access your property but you have no easement in place allowing this, you can buy indemnity insurance to protect you from financial losses caused by them preventing you from doing so.

3. Your property is suffering from title issues

While ideally, every property would have a perfect absolute title, unfortunately this is not always the case. Many properties in England and Wales are held under possessory titles or good leaseholds.

Possessory titles are created when an applicant registered a title with the Land Registry while providing insufficient documents to prove they owned it. This status can either be caused by a lost title deed, or because the land was acquired through squatting on it.

If someone emerges with a title deed to the property, they can challenge the possessory title holder’s ownership and occupation.

After 12 years with no challenges, this type of title can be upgraded into an absolute title.

Rarer than a possessory title, a good leasehold is created when a leasehold interest in a property is registered, while the freeholder is unknown. Often this can occur when the freeholder has not registered their land with HM Land Registry. If it emerges that the person who granted the lease had no right to do so, this can cause the leaseholder very serious problems.

Generally, you will want indemnity insurance if you hold a property through either of these title types. This type of insurance will cover your legal costs and pay out the full value of the land if a newly emerging ‘paper owner’ makes a claim for it.

4. Your property searches are missing or late

Sometimes, issues at the relevant authority can cause a conveyancing search to be substantially delayed. This could be past the point in time when the parties involved in the transaction need the exchange of contracts to take place.

In these circumstances it can make sense to buy an indemnity insurance policy to cover the missing search. You can buy a so called “no search indemnity insurance” to cover a variety of missing searches, including local authority searches, mining searches, water and drainage searches and chancel liability searches.

This type of insurance will cover any loss in property value and any expenses arising from matters which would have been revealed had the search taken place.

04 | Is indemnity insurance my only choice?

Normally, your conveyancer will simply advise if you need to purchase indemnity insurance and how to proceed. You should ask them to ensure that there is no free way around an issue before you purchase an expensive insurance policy.

For some issues, it is a much better idea to fix them than to insure against them. For example, gas and electricity safety, or structural issues all pose dangers to buildings occupants but an indemnity policy would not cover this. Instead, you would arrange a gas and electrical safety certificate rather than relying on indemnity insurance to protect you against something going wrong with your home.

For other issues, buying a policy pretty is often your only choice. For example, when buying a property with a possessive title it can be impossible to find the title documents required to upgrade it, as they may not even exist.

05 | Who pays for indemnity insurance?

The short answer is it depends.

Given the buyer benefits from the insurance rather than the seller there is a good argument it is the buyer’s responsibility. This is especially the case when an issue has been present for many years.

Alternatively, when the issue results from something the seller has done, such as employing less than perfect builders or disregarding a covenant, they will normally be expected to pay for insurance to cover this.

Often, who purchases the indemnity insurance is decided through negotiation, depending on who has the strongest position.

Your conveyancing professional should help you with these negotiations. They may be able to help determine how strong your negotiating position really is.

06 | How much is indemnity insurance?

The price of indemnity insurance varies a lot depending on the risk you are insuring against.

Some risks are substantially cheaper to ensure against than others. For example, some companies charge as little as £12 to insure a window without a FENSA certificate against future enforcement action.

Other types of indemnity insurance can be considerably more expensive. If you wish to protect your property against chancel repair liability, this can cost you around £200, while insurance against enforcement due to missing planning permission or building regulation’s approval can cost you substantially more. This could be as much as £500 per document, depending on the value of your property.

You will probably not be able to negotiate for a cheaper indemnity insurance policy. This is because indemnity insurance policies are only offered by specialist providers. Your conveyancer may charge you a fee for arranging cover. Ensure that you ask for the whole quote in order to avoid hidden charges.

Note that while most insurance policies charge an annual premium, indemnity insurance is a one-off payment for the term that you own the property.

07 | Can I invalidate my indemnity insurance?

Yes!

It is a common clause in indemnity insurance policies for them to become void if the problem it relates to is revealed to a third party.

For example, if you take out a policy to cover an alteration to a building constructed without planning permission, applying for retrospective planning permission from the local authority would void your policy.

This makes sense, as the policy is only low risk because the chances of anyone at the local authority finding out about the planning or building regulations breach is very low. By notifying them of your actions, enforcement is much more likely.

08 | Conveyancer’s indemnity insurance

Your solicitor or licensed conveyancer will also have professional indemnity insurance. This is not the same as the indemnity insurance you buy during a property transaction.

However, if your conveyancer makes a mistake with your conveyancing which causes you financial harm, you can go to the legal ombudsman for recompense.

This mistake could be a missed deadline, incorrect advice, or failing to follow instructions.

In Summary

Indemnity insurance can be a useful tool for protecting yourself against niggling legal defects a property may have.

It can protect property owners from legal challenges from a third party, be it the local authority, a covenant holder, or even a long-lost freeholder. It can also allow a sale to go through without all of the necessary searches.

For some issues, such as problems with a title deed or missing planning permission papers, indemnity insurance can be the easiest, best, and sometimes the only solution.

Has this article been helpful? Let us know by leaving a short comment below.

09 | Frequently asked questions

Here we list the most common questions we are asked. Simply click on a question for the answer.

2026 Indemnity Insurance Essentials

Strategic Selling & Quick Closures

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Office copy entries are an electronic condensed version of a property’s title deeds recorded at the Land Registry.

These are technically known as an Official Copy of The Register of Title. Office copy entries are effectively the modern equivalent to an old-fashioned paper title deed.

They are also often informally referred to as a property’s title register. However, this specifically refers to the information inside, rather than the official form of the document.

Essentially, office copy entries contain a snapshot of the pertinent details relating to a property. These will include who owns it, who leases it, and any charges held against it.

01 | When do you need office copy entries?

You will need an office copy entry when you are selling a property. Your solicitor or will order this for you as part of the conveyancing exercise.

This is because the title register shows the recent ownership history of a property and acts as proof of ownership.

When buying a property, you may also want to see a copy of its title register.

This is so that you can ensure the ownership, leasehold status, and any secured loans are known.

In addition, as a buyer you will need to know about any covenants that apply to the property. Covenants may impact whether you want to purchase the property and the amount you are willing to pay as much for it.

02 | Where do I get office copy entries?

You can order office copy entries from HM Land Registry. They cost £3 each.

Anyone can order copies of the title register for any property. This does not require the permission of its owner.

All you need is a credit or debit card and to visit the Land Registry’s website.

You can also order other documents from the Land Registry, including the title plan, which supports the information contained in the title register.

03 | What is included in office copy entries?

An office copy entry is divided into four parts, each of which contains different type of information about the property.

These are the header, the property register, the proprietorship register, and the charges register.

Note an office copy entry must have “Official Copy of the Register of Entries” at the head of the first page in order to be valid.

If it is headed with something else, including the words “Register View”, it is not an official copy. This means it is not admittable as evidence of contents of the register.

04 | Header

The header contains the title number, the edition date, the date and time of the official copy, and details of the Land Registry office which is responsible for the title.

The title number is a unique code representing a parcel of land. Each separately registered property has a unique title number, which connects all the documents that relate to it.

The edition date indicates when the title was last updated. This is usually when the property was last sold, when a mortgage was taken out against a property, or when a mortgage was paid off. Any change to a property ownership will lead to a new edition of the title register being created

The date and time the official copy was download will be recorded in the header. Note that ordering an official copy will not create a new edition.

Technically, an office copy entry is out of date as soon as it is created, and you need to use one created six months or less ago when completing a sale.

Finally, the header contains details of which Land Registry Office produced the title. This is normally a Land Registry office, but occasionally it can be a dedicated team at a solicitor’s firm.

05 | Section A: The Property Register

The property register contains information about the land and any rights which benefit it. These can include access rights, rights to light, and more.

It also indicates which county the property is in, which local authority administrates its area, what its address is, whether it is leasehold or freehold, and describes the land boundaries on the title plan.

If the property is a leasehold this section will also show basic information about the lease, including when it was agreed, and the parties involved.

06 | Section B: The Proprietorship Register

The proprietorship register shows you who currently owns a property, and the class of their title.

Title classes come in four categories.

These are absolute titles, qualified titles, good leaseholds, and possessory titles.

Absolute titles

Absolute titles are the strongest form of property title, and there is no way this kind of property can be legally contested or claimed against.

Owners with an absolute title retain all rights to the underlying land. They are sometimes referred to as perfect titles. They can apply to both leasehold and freehold property.

Properties owned with an absolute title are often substantially more valuable than those owned through other kinds of title.

Possessory title

A possessory, or possessive, title is created when an applicant registers a title without sufficient documents.

This is often caused by the loss of title deeds. For example, many deeds were lost during bombing raids in the second world war while others have been lost in housefires or floods.

When these properties were registered with HM Land Registry, they will have been granted possessive titles.

At other times, a possessory title can arise from people squatting on a property for an extended period without objections.

If a person, or group of people, have been exclusively using a property for 12 years without permission or objections and have demonstrated they intend to own and protect the land they can claim a possessive title.

If this happens, HM Land Registry will write to everyone with an interest in the land, who can then respond and put a stop to this process.

After a possessive title has been held without successful challenge for 12 years, it can be upgraded to an absolute title.

It can be very difficult to get a mortgage against a property held via possessive title.

If you own a property via a possessory title, you should probably buy possessory title indemnity insurance.

Qualified titles

A qualified title is a title with a specific defect.

This defect will be stated in the register and is generally a threat to an owner’s right to claim or sell a property.

This could be an ownership dispute, or a mortgage debt. Alternatively, they may have the trail of proof of ownership going back the full 15 years required.

Because other parties can claim the property, a qualified title cannot be legally transferred to someone else by sale or inheritance.

Qualified titles are very rarely seen. They can be upgraded to absolute titles at the Land Registry if proof is provided that the ownership problems have been resolved.

Good leasehold

A good leasehold is also very rare. It confirms when a leasehold interest in a property is registered while the freeholder is unknown.

This is sometimes the case when a leasehold is registered at the Land Registry, but the freehold is not.

If someone proves they own the freehold to a property, and that the person who granted the lease has no right to have done so, this can cause serious problems for the leaseholder.

It is advised to buy indemnity insurance when purchasing a property held as a Good Leasehold, as the sudden emergence of the freeholder could potentially cause you substantial losses.

07 | Section C: The Charges Register

The final section of the title register is called the charges register.

This section contains information on existing mortgages, other financial charges, notices which apply to the property and any restrictive covenants.

These appear in the order they were originally registered, and earlier entries have priority over later entries.

Covenants are binding conditions which are contained in a property’s deeds. These can include things like limiting or banning building and business.

Covenants run with the land, meaning that they pass from owner to owner. Covenants traditionally stop people doing things, but you can legally enforce a positive covenant too, even over an extended chain of sellers.

Charges generally refers to financial charges, like mortgages, registered against the property.

These are listed in order of priority. If a property is sold, and there is not enough equity to satisfy all charges, the higher priority charges will be paid off first.

The holder of a charge possesses a legal right called power of sale. This is the power to repossess a property if the holder breaks the conditions of the charge.

Finally, notices are entries in the charges register which protect a third party. These can include things ranging from matrimonial home rights to bankruptcy petitions to contracts for sale.

Just because a notice is in the register, it does not make it valid.

Conclusion

An Official Copy of The Register of Title for a property is a legal copy of its title register.

This is one of the most important title documents and is vital when selling a house.

Also known as an office copy, or an official copy, office copy entries confirm many important aspects about a property.

These includes its ownership status, owner, leasehold status, any covenants it either benefits from or is bound by, and any notices or charges which apply to it.

By using the unique title number you can find other related documents held by the Land Registry, including the title plan, which supports the information contained in the title registry.

Has this article been helpful? Let us know by leaving a short comment below.

The Deed of Covenant meaning is a legal document which states a leaseholder agrees to a set of obligations laid out by a freeholder.

Leaseholders have to sign a Deed of Covenant when they agree to lease a property from a freeholder or buy a leasehold property.

01 | Why do freeholders use a Deed of Covenant?

Freeholders have leaseholders sign deeds of covenant to legally ensure they adhere to a set of promises, known as covenants.

This enables freeholders to maintain a level of control over their property and cover maintenance costs via their leaseholders.

If a leaseholder breaches the terms of the Deed of Covenant, the landlord can take them to court for damages or, depending on the particular terms of the covenant, even have them evicted.

A Freeholder will have a leaseholder sign this either when they agree to lease the property from them, or when they buy a property from the previous leaseholder.

All the terms leaseholders must adhere to are contained in the Deed of Covenant.

These terms, or covenants, are divided into positive and negative covenants.

02 | What is a Positive Covenant?

A positive covenant indicates a leaseholder is obliged to do something.

These covenants are often intended to improve the living conditions of everyone in the development and include requirements to:

• Pay a specified amount to fund maintenance
• Agree to fund occasional larger works, often subject to a committee decision
• Pay service charges on time
• Keep communal areas tidy and in good condition
• And conduct maintenance on certain parts of the property, for example painting

03 | What is a Negative Covenant?

A negative covenant prohibits a leaseholder from conducting a certain act on the property.

This is often used to ensure a leaseholder cannot do things the freeholder does not want them to.

• Common negative covenants include:
• Banning subletting and/or renting the property as holiday or service accommodation
• Banning or limiting pets
• Limiting the amount of noise that can be made, either at certain times of day or generally
• Banning the running of specific types of, or all businesses
• Access restrictions, limiting where you can travel near the leasehold property, for example a farmer specifying which track you should use to access a farmhouse.

04 | What does it mean to sign a Deed of Covenant?

When you sign a Deed of Covenant, you agree to the terms contained within it.

It is a legal contract issued by the freeholder, and the leaseholder is obliged to follow its terms.

If you breach these terms it could lead to the freeholder claiming damages, or even getting the court to issue an injunction, forcing you to stop.

Some deeds of covenant even specify forfeiture as a consequence of breaching some of the conditions, meaning you could lose your property.

As different covenants may apply to every leasehold property you should always have this document examined by an experienced conveyancer.

05 | Do I have to sign a Deed of Covenant?

No…. if you are not willing to buy the property.

This is because most leases state a signed Deed of Covenant from the buyer is a compulsory requirement for the seller to be able to sell.

Typically, a wet signature will be required. This may also need to be independently witnessed by a nonrelated adult over age 18.

You should not sign this until coveyancing has been completed.

In the case of new leases, a freeholder is again under no obligation to lease you the property and will almost always make the lease dependent upon the Deed of Covenant being signed.

If you think a Deed of Covenant is too rigid or complicated, you should attempt to negotiate with the freeholder. They may be willing to compromise.

06 | What is contained in a Deed of Covenant?

A Deed of Covenant typically comes attached to the lease, and a copy will always be included in the leasehold information pack.

This will usually contain the following specific points:

• Details of the freehold and leasehold, including the address, postcode and both Land Registry title numbers
• Background information summarising the contents of the deed
• The full names and addresses of both parties to the agreement, the covenantor and the covenantee
• Definitions and references for complicated terms in the deed, particularly regarding ambiguous terms
• Details on the full terms of the covenant, specifically drafted by a conveyancer to state the requirements of the deed
• An execution clause and a signature area, which ensures the terms contained are legally binding.

07 | What is the ‘direct Deed of Covenant’ meaning?

If a freeholder gives a leaseholder permission to let their property this is referred to as a sublet.

Often, when a freeholder allows subletting, this will state that a separate deed of covenant is required between them and any subletters.

This is known as a direct Deed of Covenant. It only impinges on the person who signed it, and it does not impose any conditions on the other leaseholders.

08 | Who pays for a Deed of Covenant?

When initially leasing a property, a freeholder will pay their conveyancer to draw up the deed. This can cost £150-£250.

Normally, freeholders charge a fee to a person buying a leasehold property for issuing this.

Usually this is included in the charge the freeholder makes for forwarding the leasehold management pack to the buyer’s conveyancer. Freeholders normally charge around £300 for this pack.

In addition, your conveyancer will charge for looking over and summarising this document for you. An older, more complicated document is likely to be more expensive.

Conclusions

A Deed of Covenant is an important tool for freeholders to us to control their properties.

They can limit what a leaseholder can do with a property, or enforce requirements, such as paying for maintenance.

While signing a Deed of Covenant is entirely optional, you will not normally succeed at buying a leasehold property unless you do so.

This is because most leases include signing this as a compulsory step in the transfer process.

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When selling a property, you will need to have Form TR1 filled in for completion day.

Otherwise, your conveyancer will not be able to legally transfer your property to the buyer. Even if they receive the money.

This is because your conveyancer uses Form TR1 to create the deed of transfer. This needs to be sent on to the buyer and then on to HM Land Registry to legally transfer the ownership of the property.

If no TR1 Form has been completed by this point, the property sale will not be able to go ahead.

01 | What is meant by completion day?

Completion day is when final payments go through, and buyers take possession of their new property.

The day is normally chosen just prior to the exchange of contracts and tends to be set for one to two weeks afterwards.

On completion day, the buyer’s conveyancer will send your conveyancer the money still owed for the property, and in return your conveyancer will send them a deed of transfer.

This document is used to transfer the ownership of a property at the Land Registry

02 | When do you usually complete the Land Registry TR1 Form?

Typically, you will be asked by your solicitor to complete Form TR1 later on in the stages of conveyancing. This normally means doing it shortly after the exchange of contracts, and before completion day.

There are some parts of the form you should leave blank, including the date,. This so your conveyancer can fill this in on completion day. Your conveyancer should explain all of this to you.

Note that if you lie for the purposes of personal gain on a TR1 form you can be charged with fraud. This carries a maximum prison sentence of ten years, or an unlimited fine!

03 | What is included in Form TR1?

The TR1 form is divided into 12 sections, each asking for a different detail about the property transaction.

It is split down the centre, with the left-hand side offering directions on how to fill in the form, while the right-hand side is occupied with a series of boxes with room for your answers.

Sections 1-7: The Property and the Parties

These sections are relatively simple to fill in, focusing on the details of the property itself and the parties involved in the transaction.

The first section calls for the properties Land Registry title number, the second for the properties address, and the third for the transaction’s completion date.

Remember, this is completion day, not the day the rest of the form is filled in. And so you should not write anything here.

Instead, your conveyancer will fill this in when the sale completes. Eventually, they will know the completion date for certain.

Section four and five deal with the transferor and the transferee. Four requires the full name of the seller or sellers, while five requires the full name of the buyer or buyers. \

If either party is a UK incorporated company or a limited liability partnership rather than an individual person, sections four and five require the company’s registration number in addition to a name.

When a UK property is bought or sold by an overseas entity, section four or five of the Land Registry TR1 Form requires you to write its territory of incorporation or formation. You will also be asked to confirm the companies house overseas entity ID including prefixes, and if the company operates in the UK, its place of business.

The next section, six, asks for the transferee or transferees intended address. This is often the address of the property sold, although this is not always the case. It may be a second home, or a buy to let investment property. A transferee can list up to three addresses, of which one must be a postal address. When there is more than one transferee, each is allowed three addresses.

Section seven requires no input. It is a standard clause which transfers the property and is therefore relevant in all cases where Form TR1 would be used.

Sections 8-11: The Transaction

Sections 8-12 focus on the details of the transaction itself. This includes how much is paid, the extent of the title guarantee being transferred, and how the property is to be owned. Some of these elements are a bit more complicated than the simple sections at the start of the form.

The eighth section is for confirming the consideration, or amount paid, for the property. If the property was bought, the amount the seller has received must be written in both numbers and letters. Any currency paid other than Sterling must also be detailed.

Alternatively, If the property is a gift, there is a tick box for this. As a third option, if the property was purchased for any consideration other than money, a separate box must be ticked. The consideration must be detailed alongside any relevant documentation.

Section nine is about the title guarantee. This refers to how far the seller can promise that there are no financial charges or encumbrances held against the property. A title guarantee is either full or limited.

If a seller can promise the absence of charges, they will always sell the title with a full guarantee. This is because they can reasonably trust the property which they own is free of charges.

Alternatively, a Limited Title guarantee is normally used when an executor of a will is selling a property. This is because they cannot completely confirm that nothing is held against it. Instead, this merely promises that they have not allowed or created any such charge.

The next section, section 10, is called the declaration of trust. In this section, the transferees must describe how they intend to own a property. This can be as joint tenants, each owning the whole property, or as tenants in common, each owning a share. Our guide on joint tenancy and tenancy in common explains more.

Section 11, referred to as the additional provision, is for any new restrictive covenants or agreements between the buyer and seller. This can range from bans on business and construction to requirements to grow certain crops in the garden.

The Execution

The final section, 12, is referred to as the execution. By signing this, the transferor executes, or carries out, the TR1, and allows their conveyancer to create a deed of transfer to transfer of the property to the new owner.

If the transfer contains any covenants or declarations which bind the transferee, they must also sign here before the form becomes valid.

Once the execution is signed the seller or transferers conveyancer can proceed to transfer the property as soon as payment has come through.

Summary

A completed TR1 form is vitally important to ensuring a property transaction proceeds.

Your conveyancer uses this form to create the deed of transfer, which legally transfers the property from you to the buyer.

If you have not completed and supplied this form by completion day your property transaction will not be able to proceed. This could potentially derail your sale.

Because of this, conveyancers will generally have you complete the TR1 form shortly after the exchange of contracts.

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The deed of transfer, also known as a transfer deed, is a legal document used to record a change in ownership of a property.

This document is always used when buying or selling property in the UK.

After the buyer’s conveyancer transfers the balance monies paid for a property, the document is sent from the seller’s conveyancer to the buyer’s conveyancer.

The buyer’s conveyancer then sends it to HM Land Registry so the register can be updated. The ownership is then changed on all the relevant documents stored there.

01 | How is a Deed of Transfer created?

A deed of transfer is created by a conveyancer using a TR1, or occasionally a TP1 form.

One of these forms must be filled in by the seller to create a transfer deed for their property.

Usually, this form is filled in shortly after the exchange of contracts, but theoretically it can be left as late as completion.

You can download a blank copy of both the TR1 form and the TP1 form from HM Land Registry.

02 | How is the Deed of Transfer used?

The deed of transfer is used for two closely connected things.

Firstly, it is used by the seller’s conveyancer during completion. They must hold a completed deed of transfer at this point, as the property’s ownership change is executed by this document.

Following payment being made for the property, they will send it to the buyer’s conveyancer, who uses it for the second purpose.

This is registering the new owner with the Land Registry. When you buy a property, your conveyancer will send a copy of the transfer deed to HM Land Registry, changing the owner in its records.

It can take weeks or even months for the updated property details to show up online with the Land Registry.

While the Land Registry’s website could take a few months to update, the deed of transfer legally transfers the ownership of the property immediately.

03 | What is a TR1 Form

A Land Registry TR1 form is used by a conveyancer to create a transfer deed, which is then used to transfer property.

It requires the seller’s signature, as well as information relating to the property transaction, including its location, price. Finally, it requires the names of the buyer and seller.

If it contains any legally binding agreements or covenants, it will also require the buyer’s signature.

04 | What is a TP1 form?

A TP1 form is like a TR1 form, except that it is used to transfer part of a property rather than the whole thing.

A good example of this is selling only part of a property’s garden for development or splitting a large house into two.

When selling using a TP1 form you must include an attached plan showing the new divisions.

In addition, you will be asked to include either an AP1 form, if the property is being merged with another pre-existing property, or a FR1 form, if the split-off section of land creates a new property requiring a first registration with HM Land Registry.

05 | How do I fill in the Transfer Form?

Whether you are selling all a property using a TR1 form, or part of a property using a TP1, you will need to complete a transfer form.

Both forms are very similar, having 12 sections in common.

These are:

• The title numbers of any relevant properties
• address of the property
• transferor and transferees’ names
• the transferees intended address
• the amount paid for the property
• the title guarantee
• the intended future ownership structure of the property and
• any additional provisions, including access rights and covenants

Of these things, the title guarantee is the most complicated. When someone sells a property, they offer a guarantee that there are no charges against it. This is so that when you buy a property, you do not end up liable for someone else’s debts.

Title guarantees come in two types, full and limited. Full guarantees are used when a seller can be sure that no charges are held against a property. If you are selling a property you own, this is almost always the type of guarantee you offer.

Alternatively, a limited title guarantee only covers a property to the extent of knowledge of a seller. This type of guarantee is normally used by an executor of a will, who is not selling their own property.

06 | Unregistered property

Prior to buying the property your conveyancer will have noted if it has been previously registered or not.

Even though registering your land upon transfer has been a legal requirement in England and Wales for more than 30 years.

However, currently more than 10% of the land in the UK is not registered.

If you buy property that has not been sold since the 1980s, there is a fair chance it will be unregistered.

In addition, if you buy a brand-new property, created by splitting an element from a pre-existing property, the chances are it will also not have been registered.

If your property has not been registered, you will have to pay an additional fee for first registration and submit an FR1 form alongside the transfer deed.

07 | What is a TR2 form?

The TR2 Form is a document used to transfer the ownership of a registered property under a right of sale. It is normally used by mortgage lenders.

The form is used when a lender is registering a property which they have a mortgage secured against. When you take out a mortgage, if you fail to keep to its terms, you grant the lender the right to sell your house to reclaim their money.

The TR2 form works rather like a TR1 form, except the transferee does not need the transferor’s permission. This has effectively already been granted when the mortgage was accepted.

Hopefully, you will never encounter this form as a homeowner.

In Summary

The deed of transfer is one of the most important documents involved in a property transaction.

This is especially the case given it is used by the seller’s conveyancer to authorise the transaction itself. It is then sent to the Land Registry, where it is used to change the owner on a property’s title register.

The deed of transfer is created by a conveyancer using a TR1 transfer of whole or a TP1 transfer of part document. This must be filled in prior to completion day when you are selling a property.

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When a piece of land is registered with HM Land Registry a document called a title plan is created.

The title plan shows the registered piece of land and is created alongside another document, called the title register, also known as its office copy entries, which contains information about the property, including its ownership status.

The title plan, which was previously and is still sometimes referred to as the filed plan, supports this description pictorially.

Using extracts from ordinance survey maps this shows the location and approximate boundaries of the property.

Each property is given a unique reference number called its title number, which connects the title plan and the title register, as well as the other documents which together make up its title deeds.

01 | What is the purpose of a Title Plan?

A title plan is created to support the description of a property given in the title register by providing a graphic illustration showing the properties general extent and location. The plan will be ordered by your solicitor as they begin collecting documents as part of the conveyancing task.

On top of showing the land under a registered title, the title plan also indicates which parts of the land or adjacent land are affected by any covenants or easements.

02 | What does a Title Plan show?

The first thing you will find on a title plan is an image taken from a map showing the property in question.

You will also find the title number of the land. This will be something like TGL654321.

The image is taken from an Ordinance Survey map and will have an associated scale. There will be a reference to which OS map was used to prepare the title.

Generally, title plans are drawn at a 1:1250 scale in urban areas, and 1:2500 scale in rural areas.

Title plans are based on the ordinance survey map which was current at first registration. This means they will often be outdated. This means they do not include new buildings, or those that have been since demolished.

The land included in the title will be highlighted by a black line highlighted in red.

If a physical feature, like a fence or a hedge, marks the boundary the black line will be solid, while if it is unmarked it will be dashed.

Any exclaves, or separate pieces of land included in a property will be hatched in green, in addition to being surrounded by a red line.

If there are other coloured markings on the title plan you should refer to the title register. There will be a section which explains their individual significance.

03 | A Title Plan example

Here is an example of a title plan showing these are marked:

Colours other than red are often used to show the areas affected by easements and covenants.

04 | Can I rely on the boundaries shown on a Title Plan?

A title plan should show the approximate area covered by its associated property.

However, the plans are not always accurate. In fact all title plans carry the following warning against using them when mapping out boundaries:

“This title plan shows the general position of the boundaries: it does not show the exact line of the boundaries.

“Measurements scaled from this plan may not match measurements between the same points on the ground.”

Errors may enter the title plans as they do not define boundaries, but rather are created to show them.

This is because title plans in England and Wales use the general boundary system.

While precise legal boundaries do exist, they are often unknown and can sometimes be difficult to define.

Therefore, precise legal boundaries are very rarely included on title plans.

When the Land Registry shows a boundary on a title plan, they are telling you the legal boundary is nearby, at an unknown distance and not exactly parallel to the marked boundary.

The general boundaries do not show who owns any physical boundary barriers, like fences, walls, or hedges.

Often more information about a particular property’s boundaries can be found in documents contained in its title deeds.

If you would like to learn more about boundary law the Jon Maynard Boundaries Limited website Boundary Problems is an extensive if slightly dated fount of knowledge.

05 | How can I get a copy of my Title Plan?

You can order a copy of your title plan online from HM Land Registry. This will cost you £3.

To order a copy you must create an account on the Land Registry website and pay with a credit or debit card.

Anyone can order the title plan for any property provided they know the postcode and street address.

You do not need the owner’s permission to buy a copy of a property’s title plan from the Land Registry.

You can also order a copy of the title register, which will confirm an up-to-date snapshot of any restrictive covenants which apply to a property.

06 | Vector Title Plans vs Raster Title Plans

Vector title plans are created using a computer mapping system and electronically stored. All newly created title plans are made this way.

Raster title plans are electronically stored images of what was previously a paper plan.

Historically, all title plans were in paper form, although the majority have now been digitised.

The only exceptions to this are drawer/canister plans which were too large to be scanned. You will almost never encounter one of these when dealing with normal residential property. If you do come across these they can make for very interesting historical reading.

07 | What is a Lease Plan?

A lease plan is a scaled drawing that shows how a leasehold property is split up.

It will show the land or part of a building where a lessee (or tenant) has exclusive or shared access. They can often take the form of a floor plan.

The private part of a leasehold property will be show outlined in red, while common areas will be outlined in green.

Lease plans have been a legal requirement since the Land Registration Act 2002 came into effect.

08 | Should I check the Title Plan when buying a property?

Yes!

If you are buying a property, you should compare its physical boundaries with those shown on the title plan.

Checking this will ensure that you end up purchasing what you are expecting.

Any land not enclosed in red is not part of the property. Common issues that can arise include garages, parking spaces, and gardens, as well as separated plots of land.

You should check that all of these are outlined in red on the title plan.

If you spot any issues, you should bring these to your conveyancer’s attention immediately.

Enquiries can then be made of the seller to see if the land belongs to the selling party. If it does not, the value of the property could then be called into question.

Always sort out this kind of problem before exchanging contracts. Even if this causes a delay, it is better to sort it out before committing to a property.

Conclusion

A title plan shows a properties general location and boundaries, as well as areas affected by covenants and easements.

It is an important document to check when buying a property. While the boundaries shown upon it are not exact, they can give you a good idea of what you are buying.

Often, more exact details about a property’s boundaries can be found elsewhere in its title deeds. This can be useful when determining who is responsible for boundary maintenance.

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A restrictive covenant is a binding condition written into a property’s deed or contract by a seller.

This condition will apply to all future owners and determines what they can or cannot do with the property.

These conditions can theoretically be almost anything, but often relate to whether you can change, build on, or run certain businesses from a property.

01 | Why would you put a restrictive covenant on a property?

Often, covenants are put in place to maintain living standards for all or some of the residents local to a property. Limitations on development and commercial activities often fall into this category.

Alternatively, reasons can be more sentimental. Some covenants require things like the growing of a particular plant in the garden, or the keeping a certain book on the property.

This can be as a kind of memorial, or to ensure the continuity of a tradition.

02 | How are homeowners affected by restrictive covenants?

Some of the common restrictive covenants which impact on homeowners are:

• Banning pets or livestock, either regarding specific animals or in general
• Disallowing certain types of, or all commercial activities
• Not allowing building on part of, or all the land
• Limitations on what can be built, be it the number of homes or the height of the buildings.
• Controls on the aesthetic appearance of any building
• Requirements to preserve scenic views
• Bans on signs or flag poles
• Bans on outbuildings and swimming pools.
• Bans on renting the property out
• Limits on the presence of caravans or tents
• Limits on the number of occupiers
• Bans on solar panels, satellite dishes and CCTV cameras
• Limits or bans on the conversion of any pre-existing buildings
• Limits to loud noises, nuisances, and other undesirable activities

Many of these restrictive covenants could reduce the value or enjoyment you can get out of a property. This is why it is particularly important your solcitors check for these when going through the conveyancing process.

The real problem is these covenants can be extremely difficult to remove.

One of the most important things to know about restrictive covenants is that they “run with the land.” This means they are applicable to all future owners of the land.

If you buy a property on which a restrictive covenant applies and then sell it on, it will still apply to the next owner. When they sell, it will apply to the owner after them, and the owner after them. Theoretically, a restrictive covenant should remain with a property forever.

When you are buying property, it is important for you to instruct your conveyancer to check for covenants, and flag them up before you complete the transaction.

If a covenant is a deal breaker, you should carefully consider your purchase, as removing it may be extremely expensive, or even potentially impossible.

Once you have completed the transaction and the property is yours on paper, you will be held accountable for any breaches.

03 | Do restrictive covenants apply to new builds?

Most houses in new developments are subject to some restrictive covenants. These can be onerous or minimal, depending on the development.

These covenants are often intended to control the feel and aesthetics of a neighbourhood and help avoid the risk of one owner de-valuing all properties.

For example, they often prohibit things like further construction and keeping livestock, control where satellite dishes and security cameras can be placed. They could also ban the parking of caravans and boats in front of the houses.

Sometimes, these conditions are put in place by the developers as they are required conditions for the local authority to grant planning permission. At other times landowners may place covenants on land when they sell it to the developers. This is often the case if the developers are retaining some adjacent land or have a neighbour who they do not want to annoy.

Some suspect less scrupulous developers write restrictive covenants into deeds purely to secure the payments required to remove them.

It is always worth looking at the restrictive covenants which apply to a new build property and ensure you will not wish to contravene them in future before you buy it.

04 | How do I find out about restrictive covenants?

Details about any restrictive covenants on a property are found in its title deeds.

Alternatively, they can be found in Section C of the Title Register, which is downloaded from HM Land Registry for £3.

If several covenants apply to the property, they may only be summarised in section C of the title register, the Charges Register.

When this is the case, the full details will normally be in an attached document referred to in the charges register.

05 | What does it mean to have the benefit of a covenant?

When dealing with a restrictive covenant it is particularly important to find out where the benefit of the covenant resides.
This person or organisation (the beneficiary) is ultimately who gains from the covenant being in place. They normally obtain this status by owning a particular property, often a neighbouring one.

When dealing with leasehold property, the benefit of a restrictive covenant usually stays with the landowner.

Occasionally the benefit of the covenant will have passed on to a seemingly unrelated person or property. If this is the case, it can be easier to challenge it.

06 | What happens if you breach a covenant?

A breach of a restrictive covenant is defined as when a property owner fails to act in accordance with its requirements.

If you breach a restrictive covenant, you can be forced to make good any work to its previous state, pay an large fee, or even face legal action.

When a breach of a restrictive covenant also breaches the terms of a lease, the leaseholder has no defence against their lease being terminated.

If you are selling a property and have found out that you have breached the terms of the covenant, you should seek legal advice immediately.

A solicitor can check the wording of a contract to see if it is enforceable. If it is, they will need to buy insurance to cover it before you sell the property.

07 | Restrictive covenant indemnity insurance

If you have breached a covenant for longer than 12 months and have yet to receive a complaint you can purchase restrictive covenant indemnity insurance.

Once bought, these policies will protect you from the potential costs that could come about through future enforcement.

A restrictive covenant indemnity insurance policy can last in perpetuity. This means it can be passed onto future owners. This means that your property will be much easier to sell.

08 | Who enforces a restrictive covenant on property?

The enforcement of a restrictive covenant is up to its beneficiary.

This is the person, persons or organisation who has the benefit of the covenant. They are also sometimes known as the covenantee.

A covenantee can be a private induvial, a company, or a trust. The status can be inherited or sold but is almost always attached to a particular property.

For example, often a property’s neighbours can be the beneficiaries of a restrictive covenant applying to it.

When a restrictive covenant on property is breached, the beneficiary must act quickly and take out an injunction.

An injunction forces all work breaching the covenant to stop immediately.

If your neighbour is conducting work which breaches a covenant you are the beneficiary of, you should speak to a solicitor and enforce an injunction immediately.

If you fail to do so within reasonable time, the case could end up going to the Lands Chambers of the Upper Tribunal.

This is the court chamber responsible for enforcing covenants. If a case takes too long to reach a judge, they may rule in favour of the party who breached the covenant, due to inaction on the part of the beneficiary.

09 | Positive restrictive covenants

“Positive” restrictive covenants are clauses and conditions in a deed which specify that an action must be taken. This will usually involve spending money.

These are common with listed buildings or new build property and can involve maintaining something in a specific way. This could include mowing any lawns, building in a certain style, or using specific materials.

Normally, positive restrictions do not run with the land.

10 | How do I remove a restrictive covenant on property?

There are a few tricks to removing restrictive covenants.

Firstly, you should check if the beneficiary can be tracked down. If they no longer exist, then the covenant is essentially unenforceable.

If, for example, the company who is the beneficiary of the covenant has shut down, or the person named in it has passed away, there can be a strong legal argument for it being obsolete.

Covenants may also be unenforceable if the offending land is not registered with HM Land Registry.

Finally, a good solicitor may be able to look closely at a covenant’s wording, and check if it is still watertight, legally speaking.

If the terms of the covenant are too ambiguous it may not be enforceable. Alternatively, the terms of it could be prohibited by competition law or contradict public policy.

Your solicitor may want to run part or all the covenant by a barrister to ensure this is the case.

11 | Negotiating the release of a restrictive covenant on property

If a covenant looks enforceable, the best approach can often be to talk to the beneficiary and negotiate for its release.

What this will cost you generally depends on how much the beneficiary gains from the covenant. If the covenant substantially increases the value of their land, they are unlikely to want to remove it.
Generally, the goal here is to find a mutually acceptable solution. This will often involve monetary compensation.

When the reason you are attempting to remove a restrictive covenant is to allow development, offering a share of any profits can be an effective way to convince a beneficiary to go along with it.

Generally, solicitors suggest offering a 33% share in these situations.

After reaching an agreement, the beneficiary will need to sign a deed of discharge, release, or modification. This document will then be formally lodged with HM Land Registry

12 | How to challenge a restrictive covenant

If the beneficiary refuses to cooperate you can take the case to the Lands Chamber of the Upper Tribunal. This process is governed by Section 84 of The Property Act 1925.

This court will decide if the covenant should be removed, or if it should stay in place. If the covenant is removed, they can award the beneficiary of it damages from the claimant.

In addition, the claimant is liable to pay the beneficiaries’ legal fees, no matter whether the case is won or lost.

There are several grounds which could lead to a covenant being discharged by the Tribunal. These include:

• If it is judged obsolete or irrelevant
• If it is an unjustified impediment to reasonable use or development
• If it is of insubstantial benefit to the beneficiary
• If it is within a development or neighbourhood which has notably changed since it was established
• If it is time bound, and the stated period of time has ended
• And if removing it is of no injury to residents and occupants in the immediate vicinity

Often, judges can remove covenants when changing population dynamics have made them no longer beneficial to the area. This can mean allowing sustainable urban development or removing bans on alcohol consumption.

However, if removing the covenant means disturbing a peaceful environment, the court is less likely to rule in favour of it.

Notably, the legal goal of the covenantee must be to protect an amenity, or the value of the land. If they are purely seeking financial gain the judge is likely to rule in favour of the claimant.

When the court rules for the discharge of a covenant, they have broad powers to award damages. Most will examine the potential reduction in value of property caused by the removal of the covenant and base the damages figure on this.

Generally, damages resulting from the removal of a covenant are not too substantial. If removing a covenant is likely to cause huge damage to a properties value, the court is unlikely to remove it.

Challenging a restrictive covenant in the courts is a difficult and expensive process. This generally takes at least three months and will cost thousands of pounds in damages and legal fees. And there is no certainty of the covenant being removed at the end.

Therefore, this process should only be a last resort.

13 | What if my conveyancer misses a restrictive covenant?

It is your conveyancer’s responsibility to highlight restrictive covenants on a property when you are buying it.

If they fail to do so, you are well within your rights to go to the Legal Ombudsman. Your conveyancer could be forced to pay compensation to you.

However, if you are out of pocket more than £50,000 the Ombudsman will not be able to renumerate you. This is because this is the limit of the amount it can award.

If your conveyancer missing a covenant has caused you more than £50,000 worth of damages, you should consult with a private litigator.

In Summary

Watching out for restrictive covenants when buying property is hugely important.

You need to be sure that any that exist do not impinge on your plans for the future of the property.

This is because removing restrictive covenants can be extremely expensive, time consuming and in some cases impossible.

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If you have been wondering what is a title deed the answer is fairly straightforward. A title deed is the legal term for a document which records the ownership or transfer of a property.

These can include contracts of sale, lease agreements, wills and mortgage documents.

A property’s title deeds are made up of a trail of documents which together show its ownership history.

01 | What are title deeds for property?

Together, all the documents relevant for confirming the ownership of a property are referred to as its title deeds.

This collection of documents is very important as they prove a certain person, group of people or a Limited Company owns the property they refer to.

Generally, title deeds extending back in a chain for 15 years are required to prove ownership of a property.

Title deeds can show you who owns a property now, who has owned it in the past, and if it is held as a freehold or as a leasehold.

In addition to confirming who currently owns a property, deeds for property also show the properties rough boundaries.

They will also state if any rights or access considerations apply. For example, title deeds will show if any public footpaths cross a property.

Title deeds may also include important information on  previous conveyancing matters related to a property.

02 | What does a title deed look like?

While in the past title deeds were impressive looking collections of handwritten paper legal documents, this is no longer usually the case.

Since the introduction of the Law of Property Act 1925, title deeds have been mostly typed and today are kept as digitally scanned documents by HM Land Registry.

The Land Registry takes the original title deeds and scans them when they are registered before returning them to whoever lodged them. This is usually the owner’s solicitor. It has been mandatory to register purchased residential property since 1990.

HM Land Registry is the definitive record of land ownership in England and Wales. If your property is registered, this supersedes paper deeds.

Nowadays, you are unlikely to encounter any paper title deeds. You no longer need to be given them physically when you buy a house or provide them to the new owner when you sell a house.

If you still have copies of any paper title deeds it can be worth holding on to them. They may contain information about the property that is hard to find elsewhere.

03 | What are title deeds used for?

Title deeds are used to prove who is the owner of a property for many different reasons.

Normally, this is required prior to a sale, or during a legal dispute. As a further title deed example, divorce proceedings often require this to establish how a shared property is owned.

These deeds are also sometimes used during disputes over who should maintain boundary areas, such as fences or hedges.

When selling a property, the title deeds are required at the start of the process. Your conveyancer will request copies as soon as you instruct them.

This is because they need to be provided to any potential buyers’ conveyancers for them to review, ensuring you own the property as you claim.

04 | Who holds the title deed for my property?

Generally, the first port of call when looking for title deeds is HM Land Registry.

If the property has been sold since 1990, when the registration of residential property became mandatory, they will have digital copies of the deeds.

If the property in question has not changed hands or been re-mortgaged since the 1990s it is likely the original deeds are not yet stored digitally.

05 | How do I get a copy of my title deed?

The conventional way to obtain this is to request a copy of the title deed from the HM Land Registry.

The Law of Property Act 1988 made it possible for the public to obtain a copy of a property’s title documents without the knowledge or consent of the owners.

You can pay £3.00 to download a copy of the title register. This is a summary of the title deed for a property.

If you need a specific document, you should fill in a deeds request form, the OC2. Once you have filled in this form, you can order the specific documents which make up your deeds at a cost of £7.00 a document.

You will need to support an application with documents relating to your history in the property. Death certificates, probate documents, transfer papers, conveyancing letters, mortgage statements and utility bills can all play an important part supporting your claim.

When buying or selling a house, your conveyancer should handle all the work related to the property’s deeds.

06 | Do title deeds show covenants?

A covenant is an agreement made when land is sold. They come in two types.

Restrictive Covenants run with the land and continue to apply to a property no matter how many times it is sold. Personal Covenants only apply to the person buying the land, and not the person they sell it on to.

Covenants are usually recorded in the title register, with more details often being held in the other documents which make up the deed.

07 | Do deeds show easements?

An easement is a private right to use another person’s property without owning it.

There are four main types of easement. These are rights of way, rights of light, rights of support and rights relating to artificial waterways.

An easement is recorded on the deeds of both the property that benefits, which is called the dominant tenement, and the property which has the burden, which is called the servient tenement.

In the case of registered land, easements should be recorded on the title register.

08 | Do I need my title deeds to sell my house?

If a property is registered with the land registry paper copies of its title deeds are unnecessary for selling it.

If the property is unregistered, this changes. When property is unregistered the paper title deeds are still the primary proof of ownership.

If you intend to sell unregistered property or land you will need to provide the physical title deeds to prove it is yours.

These title deeds will be handed over to the buyer’s conveyancer following a sale.

They will then proceed to apply for registration with HM Land Registry. This is mandatory upon the purchase of unregistered land.

09 | Replacing lost title deeds

Paper title deeds can be quite easy to lose, especially when inherited, or in disasters like floods or house fires.

Replacing lost deeds to an unregistered property can be complicated. In this situation it is worth checking with the solicitors you instructed when you bought the property as they may still have a copy in their records.

Alternatively, it could be worth checking with your mortgage lender. In the past, it was common for mortgage lenders to hold onto title deeds to speed things up in case they needed to repossess a property.

If you still cannot locate your deeds, you will need to apply for a First Registration based on a Statement of Truth.

A First Registration Based on a Statement of Truth is a Complex Process. It involves providing HM land Registry with a fully factual account of the circumstances leading up to the loss of your original title deeds.

In Summary

Title deeds for a property are historically, very important paper documents. However, today most paper deeds have been effectively replaced with the online title register.

This makes buying and selling property easier as conveyancers can check against and alter the master copy held by HM Land Registry.

Historic deed documents are still sometimes useful, however. This is because they can show important additional details about a property, including covenants, and boundaries, that are not included in full on the title register.

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When selling a leasehold property, you will need to fill out Leasehold Information Form TA7.

Form TA7 will be given to you by your conveyancer to fill out at the start of the sale process.

You can download an example TA7 Form from the Law Society’s website.

The Leasehold Information Form is made up of a list of questions which are relevant to a leasehold property, including about its management, insurance details and any maintenance or service charges which may apply to it.

Note that this form works in addition to, rather than replacing, Form TA6 and Form TA10, which are important when selling any property, not just leaseholds.

01 | How should I fill in Form TA7?

Form TA7 will ask questions about your leasehold property. You must answer these truthfully and to the best of your ability.

If you cannot answer a question on the form you are advised to simply leave it blank and carry on. Many of the answers needed for a Leasehold Information Form can be found in a property’s management information pack. Your conveyancer should order this after you return Form TA7. Make sure to speak with your solicitor about any sections you have left blank.

Once your conveyancer has received the management information pack, they will be able to fill in the remaining parts of Form TA7 on your behalf.

02 | What does Form TA7 ask?

Form TA7 is split into ten sections, each of which go into detail about one aspect of the leasehold.

It also asks for several other important documents. These can either be included or provided to your buyer at a later date as you complete conveyancing.

While many of the questions in the Leasehold Information Form are self-explanatory, we will go through them here to ensure you do not miss anything important.

1. The property’s details

This section asks you to confirm if the property is a house or a flat. This will include maisonettes and apartments. There is a tick box for flats, properties in shared ownership, and long leasehold houses.

Note that shared ownership property’s can apply to both houses and flats and this means that a tenant owns part of the lease and pays rent on the remaining section. If you are unsure about your property’s shared ownership status you can check the title deeds.

Section one also asks about the property’s annual rental cost and how many payments that rent is split across.

If you must pay a ground rent to your freeholder, like most leasehold properties, you should include it here.

2. Relevant Documents/ The Management Information Pack

Section two of Form TA7 checks to ensure you have all the necessary documents to sell a leasehold property.

There are several other pieces of paperwork which need to be provided alongside Form TA7 when selling a leasehold property.

These include everything that is relevant to the lease.

This includes a copy of:

• The lease and copies of any supplemental deeds.
• Any additional regulations made by the landlord, or by the management company.
• Any correspondence with the landlord, management company or managing agent.
• Any invoices, demands, statements, and receipts for ground rent, maintenance payments or service charges from the last three years.
• The buildings insurance policy, whether this is arranged by you, or by your landlord.

In addition, if the tenants have formed a management company to run the building, you will also need to include copies of:

• The Memorandum and Articles of Association.
• Your share or membership certificate
• The companies last three years’ worth of accounts.

Generally, your conveyancer will gather all the relevant documents as part of their enquires of the landlord.

This collection of documents is collectively referred to as the Management Information Pack or the Leasehold Information Pack.

These documents are always required when selling a leasehold property, but your landlord is not bound to provide them for free.

Often a freeholder will charge between £100 and £300 for the Management Information Pack.

3. Building Management

The third section of Leasehold Information Form TA7 asks about the management of your property.

It asks if your landlord employs a managing agent, if any tenant formed managing company still exists and if so, if the tenants pass day to day management responsibility to their agents.

4. Contact Details

Section four of Form TA7 asks for the name, address, telephone number and email of both the landlord and any managing agents.

If a tenant run management company exists, this should be listed here too.

If you only know the managing agent’s contact details this is normally sufficient. Your conveyancer will be able to contact them to find your landlords details.

5. Maintenance and Service Charges

The fifth section of Form TA7 asks several questions about the maintenance, insurance, and charges payable on the leasehold property.

It asks who is responsible for the insurance, when the property was last decorated, and if the seller contributes to the property’s maintenance costs.

If the seller does contribute towards the property’s maintenance, it then asks for details about this. Specifically, you will need to disclose any maintenance charges which are not incurred annually.

If the seller knows about or has challenged problems with the service charges in the last three years, you must also mention this.

6. Notices

This section of the Leasehold Information Form asks if you have received any notices regarding the property.

These can include notices from the freeholder stating their intention of selling. It could also include notices about the building, including about it’s use, condition and repair.

If a landlord intends to conduct serious repair work, they must serve a Section 20 Notice to their tenants beforehand.

You will be expected to include copies of any notices received from your landlord with Form TA7.

7. Consents

Section seven concerns consents.

When speaking about leasehold property, a consent is defined as a landlord giving a tenant permission to do something they would otherwise not be allowed to under the terms of their lease.

This can include things like decorating a property or building an extension.

You will be asked to include written evidence of any consents you have been given as part of Form TA7.

If you do not have paperwork about these matters, you will need to source it from your landlord.

8. Complaints

The eighth section of Form TA7 concerns complaints. This includes complaints from all parties, including the landlord, their managing agent and the lessee.

Complaints can be made about pets, noise, litter, mess, or any number of other things. You should include details of all complaints even if they were resolved.

9. Alterations

Section nine of the Leaseholder Information Form asks about any alterations made to the property.

If you own a flat, this refers specifically to that flat, rather than works conducted on the whole building.

You will need to include any planning consents, building regulations approvals and guarantees that apply. You will also need to provide evidence of the landlord giving you permission to conduct any works.

If you do not have evidence of the landlord giving you permission, you will need to contact them to provide you with a duplicate of this proof.

10. Enfranchisement

Enfranchisement is the right of leaseholders to buy the property where they live. The closing section of Form TA7 asks about any enfranchisement proceedings which could affect the property.

You will be asked how long you have lived in the property. This can be important, as you are only eligible for enfranchisement if you have lived somewhere longer than two years.

This section will also ask about any ongoing attempts to collectively buy the freehold. You will be asked if you are currently trying to buy it, or if you are aware of any other attempts to buy the freehold.

If you are, it will also ask if the freeholder has yet responded. If they have, this response must be included.

Conclusions

The Leasehold Information Form TA7 is an integral part of selling any leasehold flat, house or apartment. As a seller, your buyer will be relying on your answers as they look to purchase your property.

Completing Form TA7 accurately could mean having to liaise with your conveyancer to ensure it is done properly so as not to waste unnecessary time later on.

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