Of all the documents you need for your home, your property deed is one of the most important. However, the terminology surrounding titles and deeds can often be confused and misunderstood.
Let’s take a look at the difference between a title and a deed, how to obtain your deeds, and what you need to know when selling your property.
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What is a property title?
A title is a legal term that signifies the rights of ownership and possession of a property. It is not a physical document but rather an abstract concept that outlines who legally owns the property and who has the right to use it. The title includes the owner’s legal right to sell, let, or transfer the property.
What is a deed?
A deed is a legal document that formally transfers ownership of a property from one party to another. It is a collection of written and signed documents that transfer the seller’s rights to the property to the buyer.
Unlike a title, which signifies ownership, a deed is the physical evidence of the transfer of that ownership. A copy of these documents is held by the HM Land Registry.
Related: What is conveyancing?
Why do you need them?
There are several reasons why it is important to make sure you have the title and deeds on the property you own or are buying.
Proof of ownership
One of the main reasons why you need deeds and titles is to establish proof of ownership. Without a deed or title in your name, you may have difficulty proving ownership in disputes or legal issues.
Legal protection
Deeds and titles also provide legal protection for property owners. These documents outline the boundaries of the property, any restrictions or covenants, and many other important details.
Securing a mortgage
Lenders often require the property deeds as proof of ownership when taking out a mortgage on a property. Usually, the lender will retain the property deeds as security until you pay off the mortgage. Without a deed or title, you will be unable to obtain a mortgage on a property.
Related: How to speed up the conveyancing process
What is a title search?
A title search is the process of examining the history and legal status of a property to ensure that the seller has the right to sell it and that there are no legal issues that could affect the buyer’s ownership.
The search will provide you with information such as a history of property ownership, the property’s title number, and the property’s location and boundaries. A solicitor or conveyancer typically completes the title search on behalf of the buyer.
How can I obtain a copy of my house deed?
If you want to find out past information about your property, you can request a copy of the title deeds from the Land Registry. For a fee of £3, you can download a copy of the title register to find your property’s title number.
You use this number to fill in a deed request form and send it to the Land Registry. Each official copy of a document costs £7, and it may be made up of several documents.
What happens to deeds when a mortgage is paid off?
When paying off your mortgage, you need to contact your lender to cancel any scheduled payments and reclaim the deeds. Your lender will inform the Land Registry that the mortgage has been paid off, and your details will be updated accordingly.
Once you have paid off your mortgage in full, the lender no longer has a legal claim on the property, meaning you will have the right to reclaim the property’s deeds. This is commonly referred to as the ‘discharge of mortgage process.’
To initiate the discharge of mortgage process, you must request the lender to release the deeds back to you. The lender will then prepare a legal document known as a discharge of mortgage deed. This document formally confirms that the mortgage has been paid off in full and that the lender no longer has any claim on the property.
Once the discharge of mortgage deed is signed and registered with the HM Land Registry, you will officially become the sole owner of the property. The property deeds will be updated to reflect this change in ownership, and the homeowner will receive a copy of the updated deeds for their records.
Do I need my property deeds to sell my house?
You do not necessarily need your property deeds to sell your house, although they do make the process of proving ownership slightly easier. When you sell a property, the buyer’s solicitor will conduct a search with the Land Registry to confirm its ownership.
As long as the property is registered with the Land Registry, the buyer’s solicitor will be able to obtain all the necessary information about the property without needing the physical property deeds.
Related: House-selling checklist: Is your home ready to be sold?
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