Q&As

A common amendment made to a transfer of land is to provide that the transferor’s covenant to comply with title matters is ‘by way of indemnity only’. What is the effect of this amendment and in whose interest is it?

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Published on LexisPSL on 18/11/2020

The following Property Q&A provides comprehensive and up to date legal information covering:

  • A common amendment made to a transfer of land is to provide that the transferor’s covenant to comply with title matters is ‘by way of indemnity only’. What is the effect of this amendment and in whose interest is it?
  • A covenant to comply with title matters ‘by way of indemnity only’

A covenant to comply with title matters ‘by way of indemnity only’

Where a transfer of land takes place, the parties should effect the transfer using Land Registry Form TR1. The use of Form TR1 is required by Schedule 1 to the Land Registration Rules 2003.

It is common for transfers of land to include an indemnity covenant stating that one party (which in fact is usually the transferee rather than the transferor) is covenanting with the other to observe and perform the covenants relating to the subject property. Commonly the indemnity covenant specifies that the transferee is covenanting with the transferor to do so ‘by way of indemni

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