Process of Analysing an Epitome of Title and Deducing Ownership
An epitome of title is a summary of the documents that establish the ownership history of unregistered land. It is a crucial tool for deducing ownership and ensuring that a seller has the right to sell the property. The process involves examining a series of legal documents that trace the property's ownership and any rights or interests affecting it. This analysis helps confirm the validity of the seller's title and identifies any issues that may need to be addressed before completing a transaction.
Components of an Epitome of Title
An epitome of title typically includes key documents that record the property's ownership and any encumbrances. The primary components include:
- ★ Root of Title: The root of title is the initial document that starts the chain of ownership. It should be at least 15 years old and must sufficiently describe the property and show an unbroken chain of ownership. Common examples include conveyances, transfers, or an assent.
- ★ Conveyances and Transfers: These documents record the transfer of ownership from one party to another. Each conveyance or transfer should be examined to ensure it accurately reflects the property's history and that all transactions were properly executed.
- ★ Leases: If the property is subject to a lease, the epitome will include copies of the lease agreements. These documents outline the terms and conditions under which the property is leased, including rights and obligations.
- ★ Deeds of Covenant: These documents impose obligations or restrictions on the property's use. They are legally binding and must be disclosed and understood by the buyer.
- ★ Mortgages and Charges: Details of any mortgages or financial charges against the property are included. These documents indicate any debts secured against the property that must be cleared upon sale.
- ★ Wills and Probate Documents: If the property passed through inheritance, the epitome will include wills and probate documents to establish the transfer of ownership to the heirs or beneficiaries.
Steps in Analyzing an Epitome of Title
The process of analyzing an epitome of title involves a thorough review of the included documents to confirm ownership and identify any potential issues:
- ★ Examine the Root of Title: Verify that the root of title is a valid starting point, providing a good legal basis for ownership. It should describe the property accurately and be at least 15 years old.
- ★ Review the Chain of Ownership: Ensure that there is an unbroken chain of ownership from the root of title to the present owner. All transfers, conveyances, and other documents must be accounted for and properly executed.
- ★ Check for Encumbrances: Identify any mortgages, charges, or other encumbrances affecting the property. Confirm that any existing charges will be discharged upon completion of the sale.
- ★ Assess Covenants and Restrictions: Review any deeds of covenant and other restrictive covenants. Understand the obligations and limitations they impose on the property's use.
- ★ Verify Consents and Clearances: Ensure that all necessary consents, such as from mortgagees or leaseholders, have been obtained. Verify that any required clearances, such as discharge of mortgages, are in place.
- ★ Consider Legal Implications: Analyze the legal implications of the documents and any potential issues, such as missing signatures, unclear descriptions, or unregistered rights. Seek legal advice if necessary.
Case Law
Case Example - Williams & Glyn's Bank Ltd v Boland (1981)
In this case, the House of Lords held that the overriding interests of a spouse in occupation could bind a purchaser even if not registered. This case underscores the importance of investigating all interests, including equitable interests, when analyzing an epitome of title.
Examples
Example 1 - Missing Conveyance
Scenario:
During the analysis, it is discovered that a key conveyance document is missing from the chain of ownership. This missing document creates a gap in the title, which must be resolved before the property can be sold. The parties may need to obtain a statutory declaration or indemnity insurance to cover this defect.
Example 2 - Restrictive Covenant
Scenario:
While analyzing the epitome of title, a restrictive covenant is identified that prohibits the construction of additional buildings on the property. The buyer, intending to develop the land, must negotiate the release of this covenant with the benefiting party or seek a modification or discharge through legal channels.
Conclusion
Analyzing an epitome of title is a crucial step in the due diligence process for unregistered land transactions. By thoroughly reviewing the chain of ownership, identifying any encumbrances or restrictions, and understanding the legal implications, parties can ensure that the seller has a good and marketable title. This process helps prevent future disputes, ensures compliance with legal requirements, and protects the interests of both buyers and sellers in property transactions.