Fixed Fee Sale Package: Part 2 - Deducing Title

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16 February, 2017

In order to sell a commercial property the buyer's solicitor will request that the seller's solicitor deduce the title to them as part of their due diligence requirements. This is because of the "buyer beware" caveat in property transactions that it is the buyer's responsibility to carry out satisfactory investigations at its own risk.

In order to deduce title the seller's solicitor will provide details of the title to the buyer's solicitors. If the Property is registered then this will be by way of official copies of the title produced by the Land Registry consisting of a register and title plan.

If the Property is unregistered then the seller's solicitors will need to provide the deeds to the Property showing that the seller has a good root of title.

In both cases these documents will reveal any covenants, rights, restrictions and charges which the Property is subject to along with the class of title, description of the Property and details of the proprietor. The buyer's solicitors will then raise specific enquires revealed by their investigations which the seller must then answer. It is important that the title is deduced early on in a commercial transaction to prevent any unnecessary delays and to allow for the enquiries to be dealt with in sufficient time. As such at Forbes we will provide these documents to the buyer following the initial consultation along with the contract documentation.

In the next part of this series of articles, we will focus on commercial property standard enquiries.

Learn more about our Commercial Property department here

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