Limited title guarantee?

kasqueak

Hello everyone,

Currently trying to buy a bungalow. It’s going through a power of attorney as the lady who owns it has gone into a care home. 

I’ve had this from the solicitor today:

“The sellers are selling the property under Limited title Guarantee and therefore obtaining a Home buyer report is better with regard to the alterations or installation on property.”

The property was built 15yrs ago and hasn’t been touched since then. We can see it needs new boiler and also new bathroom suite/kitchen units. Personally from the sample reports I’ve seen I don’t think the home buyers survey will tell us anything we don’t know or can’t see ourselves. It hasn’t been extended or modified in anyway. 

My solicitor is insisting we get one done because of the limited title guarantee.....but do we really need one? 

Anyone have any experience with buying a property of limited title guarantee? 

Many thanks!

princeofpounds

The question is why the solicitor is insisting on it? It may be a requirement of the mortgage company in a situation like this - the solicitor also acts for them - in which case you don't have a choice.

A survey may not tell you anything you don't know, but that depends on how much expertise and observational skills you have. Not every serious problem is obvious to the layperson. You can see that from a couple of the threads floating around in recent days about squeaky floors etc. Personally I wouldn't buy a place without a basic survey, just for due diligence purposes. Perhaps I would use a trusted builder, if I had one, but I don't. Home buyers reports are basically checklists and not that informative, but they will help identify the most serious problems - damp, subsidence etc.

davidmcn

Limited title guarantee is, as the name suggests, to do with the title - I don't see how a different type of survey helps you, though it may reduce different types of risk associated with the property. Is your solicitor actually "insisting" or merely recommending? It wouldn't be a requirement of the lender.

kasqueak

They’re strongly recommending us getting the survey done to the point of insistence. They say if we don’t have one done we need to state in writing that we are buying at our own risk without a survey. They’re saying there is no issue with the title deeds but the problem is the seller doesn’t know anything about the property. 

 

AdrianC

I suspect the reason for the limited title is that it's not registered in the vendor's name. Long-deceased husband?

davidmcn

kasqueak said:

They’re strongly recommending us getting the survey done to the point of insistence. They say if we don’t have one done we need to state in writing that we are buying at our own risk without a survey.

Well, sigh, roll your eyes, and tell them that then (assuming they just mean a disclaimer about things which would have been disclosed in a survey, rather than a disclaimer from their own negligence!). Any seller who hasn't actually lived in the property will give this sort of response, I'm not sure why your solicitors are making a song and dance about it.

kasqueak

I don’t understand it at all.

If it’s just a case of the owner saying they don’t know anything about the property so therefore we should get a survey done to know more about it that’s fine.  

I believe the husband died and the lady went into a care home and that’s why it’s now being sold. Perhaps the issue is that it’s only in the husbands name. 

I guess the things we’re worried about is some random person knocking on the door saying actually they have legal right to the property?
My solicitor isn’t being much help! 

davidmcn

kasqueak said:

I guess the things we’re worried about is some random person knocking on the door saying actually they have legal right to the property?

Has anyone advised you that that's a risk? What advice has your solicitor actually given about the title (as opposed to the things which might be disclosed by a survey)?

steampowered

"Full title guarantee" does not give you any guarantee about the condition of the property. It's about title.

I don't really see why there is a relationship between "limited title guarantee" and having a survey done, or not having a survey done.

If you are happy to proceed without a survey, then instruct your solicitor in writing that you are happy to proceed without the survey and accept the risk of not having one done - as they suggested.

maz1975

Can someone help. I own a leasehold house. I am trying to buy the freehold but the TP1 states the transferor transfers a 'limited title gaurantee'. What does this mean? Will I be liable for charges if Avia start charging for the lease. I dont understand why, if I buy the freehold that I am liable for any fees.