News from the Residential Property Investor, the bi-monthly magazine for RLA members other artilces from the April / May 1999 issue RPI news archive

Title checks 'superficial' - April / May 1999

Shortfalls in the system of checking existing rights over property offered for sale have been exposed in a recent Court of Appeal decision, warned City lawyers Dibb Lupton Alsop last month.

The case, Ferrishurst Ltd v Wallcite Ltd concerned the sale of a property in which Ferrishurst, as it turned out, had an 'overriding interest' in property sold to Wallcite. Ferrishurst occupied part of the building but its sub-underlease contained an option for it to acquire the underlease of the entire premises.

The Court decided that it was entitled to exercise its legal rights over the entire premises.

'Overriding interests cannot be registered but take precedence over the interests of those acquiring the property if the appropriate steps and precautions are not taken', said Dibb Lupton partner Nicholas Lliff. Lawyers' investigations into legal title can be 'dangerously superficial' and involve no more than a 'cursory glance', he warned.
 

other artilces from the April / May 1999 issue

• Licensing Logic
• HMG proposes to licence HMOs
• City's central role
• In brief
• Brown serves up mixed Budget
• Housing benefit set for major reform
• Title checks 'superficial'
• CO alarms recalled
• House prices take drop