full title guarantee

One of the two key phrases used to imply covenants for title under the Law of Property (Miscellaneous Provisions) Act 1994 in an "instrument effecting or purporting to effect a disposition of property" ({{}}section 1(1)). The other key phrase is limited title guarantee . Full title guarantee implies that:

6. The disposing party has the right to dispose of the property ({{}}section 2(1)(a)).

7. The disposing party will do all it reasonably can to give the title it purports to give, at its own cost ({{}}section 2(1)(b) and (2)).

8. If the property being disposed of is registered, there is a presumption that the whole of the property in the registered title is being disposed of ({{}}section 2(3)).

9. If the property being disposed of is not registered, there is a presumption that the interest being disposed of is the freehold . If it is clear that the interest is leasehold, it is presumed that the interest is the unexpired residue of the term of the lease ({{}}section 2(3)).

10. The disposal is free from all charges , encumbrances and adverse rights, except any charges, encumbrances or adverse rights about which the seller does not know and could not reasonably be expected to know, that is, free from all known encumbrances ({{}}section 3(1)).

11. Where the full title guarantee covenant is used in respect of the sale of leasehold property, additional covenants are implied: that the lease is subsisting and the seller has complied with its terms.

Related links

covenant