Covenants for title
  • Covenants for title
  • What covenants are given as part of full title guarantee?
  • What covenants are given as part of limited title guarantee?
  • Sale by reference to registered title numbers
  • Subject to and actual knowledge
  • The benefit of a covenant

Under the Law of Property (Miscellaneous Provisions) Act 1994 (LP(MP)A 1994), the seller will normally provide covenants for title, in standard form, by selling with full or limited title guarantee, or with their Welsh equivalents, gyda gwarant teitl llawn and gyda gwarant teitl cyfyngedig. The Standard Commercial Property Conditions (second and third editions) (SCPCs) and the Standard Conditions of Sale (fifth edition) (SCs) provide for the seller to transfer the property with full title guarantee unless otherwise provided in the contract. Any of the implied covenants can be limited or extended by express agreement in the contract and incorporated in the transfer.

A liquidator selling a property or a seller that cannot prove good title may sell with no title guarantee. In such cases, no covenants for title are given, and there is nothing in respect of which the buyer can sue.

What covenants are given as part of full title guarantee?

Where a seller transfers the property with full title guarantee, the following covenants for title are implied:LP(MP)A 1994, ss 2–5

  1. the seller has the right to dispose of the property in the manner purported

  2. the seller will at its own cost do all that it reasonably can to give the buyer the title that it purports to give