Handing over title deeds - is this normal?

Mind_the_Gap

A slightly vulnerable relative of mine has recently put her house up for sale with a local estate agent and (not realising she had a choice), agreed to their 'preferred' conveyancers acting for her. This is a 'property law firm' some 150 miles from where she lives. That in itself isn't the issue (although because of the distance, it means we know nothing about them).

They have immediately asked her to send them her title deeds (normally kept at her solicitors), which she has done. This seems odd to me. If the house were mortgaged, which it isn't), I cannot imagine any bank or B Soc handing over the deeds at this stage, before anyone has even made an offer on the property. The estate agent and the law firm insist it is perfectly normal.

What are the risks of any of this practice, for the vendor? (I'm thinking unscrupulous employees, etc). Should she demand their return until the conveyancers actually need them? Or am I being paranoid?

Thanks in advance for any information/advice.

getmore4less

Mind_the_Gap wrote: »

They have immediately asked her to send them her title deeds (normally kept at her solicitors),

Get a quote from the solicitor.

Mind_the_Gap

getmore4less wrote: »

Get a quote from the solicitor.

Yes, we have suggested that already, thank you.

We (the rest of the family) just need to know whether there is any inherent risk to her in handing over the title deeds at this stage.

kingstreet

Mind_the_Gap wrote: »

If the house were mortgaged, which it isn't), I cannot imagine any bank or B Soc handing over the deeds at this stage

They used to, when there actually were deeds, rather than the Land Registry record alone as it is now for registered land.

Now, the solicitor usually obtains Office Copy Entries from the LR to begin to prepare the draft contract.

If she has owned this property for a while, the land may not be registered with the Land Registry and the first job for the solicitor will be to do that. Then, the deeds pack becomes a historical record of curiosity and no longer the key tot he ownership of the property.

So, it's "normal." If they are doing the first registration, I'd ask them for a quotation of the costs first.

Mind_the_Gap

Thanks kingstreet, that's useful to know. I'll get her to check.

Another family member is worried that if the property isn't registered with the LR and the deeds fall into someone else's hands, they could somehow register the property in their own name, or get a large loan/mortgage on it (which our relative may then be liable for).

Is that possible, or not?

kingstreet

You need to take care of the deeds if it isn't registered land. However, providing deeds to a solicitor isn't the same as handing them to any tom, !!!!!! or harry and they will have insurance cover for such documents.

A secure delivery system should be used to transmit them from one solicitor to another.

Mind_the_Gap

Again, thanks. Finally, is there an easy way of checking the credentials of a property law company/firm other than by taking the estate agent's word for it?

Mallotum_X

I would advise strongly against using a firm the agent is choosing. They are supposed to act for your relative but will be keen not to upset the agent. I'd cancel any agreement and request the deeds back, then use a local firm that is independent.

G_M

Pay £3 to the Land Registry here to check if the property is registered.

If it is, the 'Deeds' are held elctronically by the LR, and the importance/relevance of any paper Deeds is minimal.

If it is not registered, then yes, the solicior would eed to see the original paper Deeds to check that she actually owns the property.

Has she actually signed a contract with the soliitors? Seen and agreed their Terms of Business and quotation?

If not, there is no commitment. She could write to them to say she's changed her mind and request thereturn of all documents.

If she's signed up, she can still do the above, but they might charge a niminal amount for any time they have spent on her so far.

Mind_the_Gap

Mallotum_X wrote: »

I would advise strongly against using a firm the agent is choosing. They are supposed to act for your relative but will be keen not to upset the agent. I'd cancel any agreement and request the deeds back, then use a local firm that is independent.

I agree completely and Have advised my relative to that effect, but I cannot force her to do so. She has already filled in and signed some form authorising the company in question to act for her and I doubt she will want the upheaval of disinstructing them now, however much we feel she should.

kingstreet

Check if the firm is registered with the Law Society and has CQS accreditation - Conveyancing Quality Scheme, to reassure yourselves.