no title guarantee

Tracey_Baker

Hi, can anyone help with the meaning of 'Transferor transfers with 'no title guarantee' being a modified statement mentioned in the land registry form. This is a property I'm thinking of buying which I believe could be a repossession & worried whether the bank/building society would still hold any title on the property upon completion//sale

steampowered

Have a read of http://www.ehlsolicitors.co.uk/full-title-guarantee-limited-title-guarantee-difference/

A bank selling a repossession will not give full title guarantee (which is what you usually get in most standard sales).

However I would have thought they should at least give limited title guarantee - essentially a guarantee that the bank has the right to own the property.

If there is no title guarantee at all, the bank does not provide any guarantee that it has good title to the property - so you could in theory find out that the property is owned by someone else. You would then be completely reliant on your solicitor to verify that the bank does in fact own the property.

You should ask your solicitor about this. It may be that the form should be amended to state 'limited title guarantee', or you might be able to buy insurance to cover yourself.

G_M

steampowered wrote: »

....or you might be able to buy insurance to cover yourself.

the insurance is unlikely to protect you from a 'real owner' taking the property from you. But would compensate you financially for your loss. You'd still have to move out though.

Tracey_Baker

Thank you for your help - this is extremely insightful & perhaps not worth considering bidding on this property at auction.

steampowered

If you were interested in the property, make sure you get a solicitor to look into the legal pack before bidding.