What is the title deed, and what is the importance of the title deed?

Almost everyone has heard of title deeds, yet very few know much about them. Here, we answer many of the questions surrounding these contracts, so read on to discover what title deeds are, why they are important and how they can be located, as well as the potential issues relating to these important documents.

What are title deeds?

Title deeds comprise numerous documents that provide proof of ownership of a property or piece of land, as well as the history of its ownership. Property ownership is established by documents including wills, leases, mortgages, conveyances and contracts for sale. Title deeds are therefore foundational documents that feature heavily in the sale and purchase of a property.

The importance of title deeds

Title deeds are vital for numerous aspects of conveyancing:

Proof of ownership

Title deeds confirm legal ownership of a property or piece of land. Without these documents, it’s not possible for owners to prove their possession and thus to sell or remortgage. Potential buyers may wish to see the title deeds before making an offer, as part of their due diligence process.

Legal security

Title deeds can prevent property ownership disputes because they are act as proof of proprietorship, affording both buyers and sellers legal protection and peace of mind.

Ease of transfer

Purchasing or inheriting a property involves formally transferring its legal title deed to change ownership from one proprietor to another. Clear title deeds instil confidence in potential buyers, signifying a smooth future route to completion.

Conveyancing solicitors are experts in buying and selling processes and, using the title deed, can assist with the lengthy and complex paperwork involved in the transfer of ownership.

Financial transactions

Title deeds include information on any mortgages currently or previously held against the property.

Mortgage lenders may ask for and hold on to the title deeds until your mortgage is paid off, so ensuring you have access to these documents from the outset is essential. Lenders also use the property as security, taking back possession of your home if the repayments are not met.

Property value

There are many ways to enhance the value of your property, from building an extension or fitting a new kitchen to making it more energy efficient or simply giving it a deep clean.

Clear and absolute title deeds can enhance a property’s value by instilling potential buyers with confidence in the seller and their asking price. Possessory title deeds are those appointed to owners who have occupied a property or piece of land without a documented, absolute title to it. This can decrease the value of the property in potential buyers’ eyes, as its ownership can appear contestable.

Key details of title deeds

• Details typically found within title deeds include:
• The names of the current freeholders or leaseholders
• A precise description of the property, including the footprint and boundaries
• Property rights and restrictions, including access details (such as right of way)
• Maintenance obligations
• Proof of legal compliance, such as planning approval (minimising liability risk)
• Easements granting limited access to third parties, such as utility companies
• References linking to previous deeds and covenants

Common issues with title deeds

Occasionally, title deeds will contain inaccuracies or omissions, and this can slow down or even halt the buying or selling process.

If you notice a minor error such as a name misspelling, or an incorrect mortgage charge, in your documents and you are selling your property, notify your solicitor. If you are not selling, contact the solicitor who dealt with the purchase of the property. If the purchase price is incorrect on your deeds, this could undervalue your home should you decide to sell, so the Land Registry should be notified immediately to rectify this for you.

HM Land Registry records are digital, and no paper copies are kept on file unless property or land is being registered for the first time. If you’re missing your deeds, as previously mentioned, your mortgage company may have retained them, or your conveyancing solicitor may have them.

If your property has already been registered, it’s possible the seller may not have handed over the original deeds, as there is no legal obligation to do so. To apply for scanned copies of any documents, you can visit the Land Registry’s website.

Disputes over property ownership are mitigated by the presence of title deeds, but clear, accurate and absolute deeds are required for full authentication and protection, so it’s essential to check these documents for any errors and update them if necessary.

How to obtain and maintain title deeds

Where are my deeds?

The Land Registry is now the definitive record of all of land and property ownership in England and Wales. They scan copies of all deeds sent to them and then send the originals back to the person who logged them – typically, this is the solicitor or conveyancer acting for the buyer.

You can request an official copy of your home’s register or title plan by searching the Land Registry’s property information and identifying your property number. With this reference, you can check if the register refers to your deeds being ‘filed’ and, if so, request copies.

If your property isn’t yet on the register, all original title deeds should be sent to the Land Registry to confirm property ownership. It is advisable to keep hold of the physical copies, as they contain extra information, such as on legal boundaries and previous owners.

How do I maintain or update my deeds?

If deeds are lost or destroyed, the process of replacing them can be lengthy and difficult, so keep these documents in a clean and safe place that is easily locatable, such as in a filing cabinet or folder.

If you wish to change your name on the title deeds, due to marriage, divorce or deed poll change for example, you can do so for free by visiting the Land Registry website and sending an application to change the register. It’s also possible to stop your previous name(s) from appearing on any documents (for a fee) and to alter your deeds to reflect a change of gender.

The role of the conveyancing solicitor

As you can see, title deeds are essential for homebuyers and sellers alike. They are used for proof of ownership for property and land and are used by conveyancers and solicitors to prove a person has the right to sell their home. Although it may be possible to sell your home without them, the process will invariably be more complex and time-consuming.

A lack of title deeds can leave homeowners open to disputes over property rights and to legal and financial imperilment, so these documents are essential for minimising unnecessary worry and to mitigating risk.

Conveyancing solicitors are there to take the stress and complexity out of navigating title deed–related matters. They can answer any questions you have, engage with the Land Registry on your behalf, and acquire signatures and manage stamp duty fees. Engaging with an expert conveyancer can take the worry out of the process, leaving you free to enjoy your sale or purchase.