Wakefield Solicitor – a thorough title investigation avoids problems for buyers

Wakefield, Ward Lane

Conveyancing Solicitor Labeeba Zia was acting for the buyers of a freehold house at Ward Lane, Stanley, Wakefield WF3 4LU in 2010, and found that the property was being sold by a mortgagee in possession, usually known as a repossession purchase.

The seller’s agents were Reeds Rains, 4 Bull Ring, Wakefield, WF1 1HA,  and they sent details of the agreed sale terms. Shortly afterwards Labeeba received the proposed form of contract from the Conveyancing Solicitors Ford and Warren of Westgate Point, 30 Westgate, Leeds LS1 2AX. They also sent a copy of the land registry title. On checking these documents, it was noted that the house was registered in the names of two owners, but there were notes on the register that indicated that they were bankrupt. There was also a mortgage registered to two partners in the firm of Ford and Warren, who were selling the house under their power of sale.

 Although the owners were bankrupt, the bankruptcy notices were dated after the mortgage, and therefore the mortgagee’s power of sale took priority. Buyers are not concerned about who gets the purchase money after completion. So long as the correct land registry transfer form is used and the price is paid to the mortgagees’ Conveyancing Solicitors at completion, the land registry will register the buyer as the owner and will remove all the entries relating to the previous mortgage as well as those relating to the bankruptcy.

As is usual on a purchase of a repossessed house, the sellers were not in a position to give very much information about the property. Labeeba carried out the usual local search with Wakefield Metropolitan District Council, County Hall, Bond Street, Wakefield, West Yorkshire, WF1 2QW which showed these entries relating to previous planning consents:

95/31768/D Detached double garage with studio first floor CP 04.08.1955
82/31768 Lounge and bedroom extension CP 12.07.1982
81/31768/A Erection of bungalow R 03.11.1987
91/31768/C Extension for disabled persons bedroom CP 06.12.1991

No copies of these were available, but as the alterations and extensions had been carried out over ten years previously it was not considered necessary to obtain copies from the council.

The description of the property in the land registry title contained the following notes:
“(19.06.1998) A Conveyance of the land in this title and other land dated 1 November 1968 made between (1) Frank Soper and Clara Soper (Vendors) and (2) Bernard Norton and Doreen Norton (Purchasers) contains the following provision:-
It is hereby agreed and declared that the walls and fences separating the property hereby conveyed from the adjoining property of the Vendors shall be mesne or party walls and fences and shall be repaired and maintained accordingly and that all chimneys gutters spouts drains pipes cables and other services and things previously used jointly in connection with the property hereby conveyed and the adjoining or neighbouring properties now or formerly of the Vendors shall continue to be so used and shall be repaired and maintained at the joint expense of the owners for the time being of the respective properties served thereby and all rights necessary for the reasonable use and enjoyment thereof are hereby granted and reserved accordingly.
(03.04.2006) A new title plan based on the latest revision of the Ordnance Survey map has been prepared following an order of the High Court dated 13 July 2009 (Leeds District Registry claim no.6LS30328) relating to the north east boundary of the land in this title.

(19.06.1998) The deeds and documents of title having been lost the land is subject to such restrictive covenants and easements as may have been imposed thereon before 20 July 1964 and are still subsisting and capable of being enforced.”

The first note refers to a Conveyance when the sellers would probably have retained some adjoining land, and so there was a declaration that the boundary walls separating the property from the land retained by the sellers were to be party walls. This means that the wall effectively belongs to both properties, so one owner cannot demolish or build onto a party wall without the consent of the other. The Party Walls Act 1996 contains provisions regulating the position of adjoining owners, and provides a framework for the procedures to be followed should one owner wish to carry out works to a party wall.

It is assumed that there was some previous litigation regarding the position of the boundaries of the property, and that the court ordered the land registry to issue a new title plan. Labeeba sent her clients a copy of the latest title plan, and they confirmed that it appeared to show the correct boundaries of the property. It is of course important that clients should check these title plans to ensure that they show the full extent of the property, as the clients will have seen the property whereas the Solicitor won’t.

The clients were advised that the Seller sells the property ‘as seen’ at exchange of contracts. In other words, the Seller is under no duty to disclose to the Buyer any faults with the structure of the property or its services. For this reason, the onus is on the Buyer to commission such condition reports as they see necessary to satisfy themselves that everything is in order. This may include a property survey (as opposed to a limited lender’s valuation) but could also include checking the services by a qualified plumber, electrician and/or damp or timber specialists (particularly for older properties). Many buyers are inclined to rely on the limited mortgage lender’s valuation inspection, but that is not a full survey.

Once the result of the searches had been received, Labeeba reported to her clients, and they confirmed they were happy to proceed with the purchase. The contract and transfer documents were therefore signed, and contracts were exchanged once the clients had paid their deposit. The purchase then completed, and the Solicitors handed over the correct form of transfer deed for a sale by a mortgagee. This transfer was then registered so that the buyers obtained a ‘clean’ title free from the previous mortgage and all the entries relating to the registered owners bankruptcies.

If you are looking for a Solicitor for Conveyancing in Wakefield, whether buying or selling, and want the reassurance of employing a firm that will give you this level of attention - call us now.