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Possessory Title + Indemnity Insurance = Title Absolute???
gwernybwch
Posts: 214 Forumite
Hi,
I was wondering if someone with conveyancing experience could give me some advice.
The situation is that I put an offer on a property based on what the Estate Agenttold me to be the boundaries of the property and on the understanding that ‘title absolute’ existed for the whole property. This offer was then accepted by the vendor.
It turns out that the property is not registered with the Land Registry and the deeds are of such poor quality that they can’t be used. The Land Registry have done a survey and served notice on the owners of the adjoining properties. From this I understand that the LR are likely to issue a Possessory Title rather than a ‘title absolute’.
I have explained to my Solicitor that I had planned to build on the land (subject to relevant PP) which is likely to be given a Possessory Title and she has advised be that a possessory title together with a indemnity insurance is “perfectly acceptable”.
Sothe questions are;
(a) Is a possessory title together with a indemnity insurance is “perfectly acceptable” i.e. is a title stating that you have a possession over the property together with an insurance policy the same as having a title that you absolutely own it?
(b) I’m assuming that a property with a possessory title is worth less than a property with a title absolute. But to what extent is it worth less?
(c) I’m assuming that there is a risk of building on land with a possessory title. Again is anyone able to quantify to what extent that risk would be?
(d) Does having a possessory title affect my ability to resell the property? How acceptable does an average mortgage lender view a possessory title together with an indemnity insurance?
Oneother query, the Vendors Solicitors has asked for a 1% deposit to be made upon exchange of contracts. My Solicitor has advised me that “it is not possible to exchange contracts without a deposit”. Is this true??
Thanks in advance for any replies.
I was wondering if someone with conveyancing experience could give me some advice.
The situation is that I put an offer on a property based on what the Estate Agenttold me to be the boundaries of the property and on the understanding that ‘title absolute’ existed for the whole property. This offer was then accepted by the vendor.
It turns out that the property is not registered with the Land Registry and the deeds are of such poor quality that they can’t be used. The Land Registry have done a survey and served notice on the owners of the adjoining properties. From this I understand that the LR are likely to issue a Possessory Title rather than a ‘title absolute’.
I have explained to my Solicitor that I had planned to build on the land (subject to relevant PP) which is likely to be given a Possessory Title and she has advised be that a possessory title together with a indemnity insurance is “perfectly acceptable”.
Sothe questions are;
(a) Is a possessory title together with a indemnity insurance is “perfectly acceptable” i.e. is a title stating that you have a possession over the property together with an insurance policy the same as having a title that you absolutely own it?
(b) I’m assuming that a property with a possessory title is worth less than a property with a title absolute. But to what extent is it worth less?
(c) I’m assuming that there is a risk of building on land with a possessory title. Again is anyone able to quantify to what extent that risk would be?
(d) Does having a possessory title affect my ability to resell the property? How acceptable does an average mortgage lender view a possessory title together with an indemnity insurance?
Oneother query, the Vendors Solicitors has asked for a 1% deposit to be made upon exchange of contracts. My Solicitor has advised me that “it is not possible to exchange contracts without a deposit”. Is this true??
Thanks in advance for any replies.
0
Comments
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Can anyone help me with my queries?0
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If you don't get a reply in the next 24 hours, bump your thread to the top - there are a couple of solicitors who post here but they don't do so every day.0
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Bump. Anyone with conveyancing experience able to answer some or all of my queries?0
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