The underlying principle in property transactions is ‘caveat emptor’ or ‘let the buyer beware’.
A seller is only obliged to disclose latent defects in title and therefore a buyer should carry out their own investigation of title and put in hand their own searches and enquiries in order to be fully informed before they proceed with a property acquisition.
See Practice Note: Property—enquiries before contract.
Title is almost invariably deduced before exchange of contracts. Contracts routinely prohibit any objection to or requisition on title after exchange of contracts, unless it relates to a matter revealed by a pre-completion search.
Where contracts are exchanged before title is deduced, the seller must be extremely careful to ensure that there are no technical difficulties with their title and that any such are properly reflected in the contract. This is why it is preferable from the seller’s point of view (as well as the buyer’s) for title to be deduced and investigated before exchange of contracts.
In the rare cases where title is not deduced and investigated before exchange, the seller will deduce title on (or immediately
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