Title guarantee and covenants for title

The following Property practice note provides comprehensive and up to date legal information covering:

  • Title guarantee and covenants for title
  • Full title guarantee
  • Limited title guarantee
  • No title guarantee
  • Amending the covenants
  • Common seller's amendments
  • Common Buyer's amendments

Title guarantee and covenants for title

On the disposition of a property (whether by way of conveyance, transfer or charge), the party making the disposition will normally provide a title guarantee which implies standard form covenants for title. A landlord may give a title guarantee when granting a lease, but this is rare in practice. For the purposes of this Practice Note, we refer to the parties to the transaction as the seller and the buyer and the document effecting the disposition as the transfer. Covenants for title are warranties and are set out in sections 1–13 of the Law of Property (Miscellaneous Provisions) Act 1994 (LP(MP)A 1994) and apply to both freehold and leasehold transactions. While often considered boilerplate provisions, it is important that both the buyer and the seller are aware of the effect of the title guarantees and implied covenants, how they apply in different scenarios and what amendments should be made to them.

A seller will usually sell with either ‘full title guarantee’ or ‘limited title guarantee’, or with their Welsh equivalents, gyda gwarant teitl llawn and gyda gwarant teitl cyfyngedig (the key words). Inclusion of those key words in the transfer automatically confers the statutory covenants for title into the transfer without the need to set them out expressly in the document itself. If those key words are omitted, no guarantee

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