Restriction on Title?

arlee

Hi, I bought my house on an auction, after nearly 7 months of wait, the land registry document finally came through, but I found

on the title deed, it has a restriction showing on title absolute: (Date) RESTRICTION: No disposition (except a charge dated contemporaneously with a transfer)of the registered estate by the proprietor of the registered estate or by the proprietor of any registered charge, is to be completed by registration without a consent signed by XX management limited of xx address or its conveyancer or solicitor.

I assumed that the previous owner of this property had a mortgage via this management Ltd who is a mortgage broker, therefore there was a restriction on the previous title, but I have already paid outright on this property upon completion, why is the restriction showing on my title?
Is this restriction going to restrict me from selling this property in the future?

appreciate for any advice on this. thank you!

SmlSave

I take it your house is a Freehold?

It could be from the original developers of the property.

Call your solicitors and ask

Richard_Webster

The most likely guess is that there is a provision in the transfer deed when the house was first sold requiring the owner to contribute towards the maintenance of some common facility,.e.g. an open space, or a private road, or even of a sewage pump or sewage works.

Because positive covenants to pay money etc cannot be enforced against successive freehold owners just because they own the land (which is why flats are generally leasehold) each time the house changes hands the buyer has perhaps to sign a deed of covenant to pay this service charge and when the management company gets the deed of covenant they then provide the certificate to allow registration to proceed.

arlee

yes, its freehold and within a small development, there is a path shared by all the houses here, but we don't have a management company to manage the communal area.
I know on one of my neighbour's title deed there is no such a restriction, and my other neighbour's one the restriction is with his mortgage lender.

My main concern is when I come to sell the house, would it be a problem because of this?

Thanks again.

Richard_Webster

If you have never been asked pay any kind of a maintenance charge etc I would contact your solicitor who acted on the purchase and ask what it is about.

It is possible that it is a stupid foul up. A few years ago I acted on the purchase of a new house in Eastleigh near my office from a national developer (who from my experience frequently get their paperwork wrong). It had lots of wording about paying for maintenance of open spaces and my client said that there weren't any such areas. We looked at the document again and found that it had references in it to an agreement between the developer and Winchester City Council - the developer had simply used a form of transfer deed that had been used for a development in Winchester and forgotten to remove the irrelevant bits!

So it is possible something like this has happened - but your solicitor should have spotted it and raised it with the developer