Transfer of the Freehold Estate
Can be achieved by:
Sale
Will
Gift
Operation of law (automatic transfer in certain situations such as bankruptcy)
Transfer by Way of Sale
1. Pre-Exchange
Offer is accepted and the seller/ buyer agree to the sale/ purchase
Buyer will make enquiries (searches of public registers, confirming the seller owns the land, etc) before formal exchange of contracts
Buyer will find out about any proprietary rights which benefit/ burden the land
2. Exchange of Contracts
Seller & buyer enter into binding contract and parties become legally committed
Buyer usually pays a deposit at this point but keys aren't handed over yet
All land contracts must comply with s 2 LP(MA)A 1989
s 2 LP(MA)A 1989
All land contracts must:
Be in writing
Contain all expressly agreed terms
Be signed by both parties
Not legally required but common in practice
3. Completion of the Deed
Completion occurs by way of deed
The requirements of a valid deed are set out in s 1 LP(MA)A 1989:
A standard form prescribed by the Land Registry (TR1) is used
The deed is a conveyance in unregistered land or a transfer in registered land
The buyer pays the balance of the purchase money to the seller and the seller hands over the keys
s 52(1) LPA 1925
A legal estate must be transferred or created by deed
s 1 LP(MP)A 1989
Requirements of a valid deed:
Must be clear on the face of the document that it is intended to be a deed
Must be validly executed
Must be delivered
4. Registration
Buyer sends completed deed to the Land Registry
In registered land, legal title doesn't transfer until registration has taken place.
In unregistered land, the legal title is transferred upon completion of the deed. The new owner must register the land within 2 months of completion or legal title reverts back to the seller
s 27(1) LRA 2002
ss 4 and 6, LRA 2002
The document is labelled as a deed
Where the seller is an individual, the deed must be signed by the seller in the presence of a witness. There is no legal requirement for the buyer to sign.
Requires an acknowledgement that a person entering into the deed intends to be formally bound by its provisions. This takes place by dating the document, which the parties' solicitors do