Title guarantee and covenants for title

Published by a ÀÏ˾»úÎçÒ¹¸£Àû Property expert
Practice notes

Title guarantee and covenants for title

Published by a ÀÏ˾»úÎçÒ¹¸£Àû Property expert

Practice notes
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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

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Jurisdiction(s):
United Kingdom
Key definition:
Covenant definition
What does Covenant mean?

(1) legal safeguard put in place to protect bondholder's interests

(2) underlying promise of the employer to pay contributions to a pension scheme

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