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.
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.
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.
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.
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.
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.
- 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.
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.
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.
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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