2. Title Searches

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Questions and Answers

What is a primary function of confirming the particulars of property?

To identify potential buyers for the property

To ensure the property is under market value

To verify details such as tenure and area (correct)

To confirm availability of financing options

What constitutes a serious breach of a solicitor’s undertaking?

Not returning title deeds in a timely manner

Failing to honor terms of professional undertaking (correct)

Returning title deeds without notifying the client

Returning title deeds with minor clerical errors

Why is a title search conducted in property transactions?

To determine the best financing options available

To ascertain if the land is registered or unregistered (correct)

To evaluate the market conditions for the property

To confirm the buyer's ability to purchase the property

What is meant by a 'good root of title'?

An instrument that proves ownership clearly and completely Signup and view all the answers

What type of instruments are generally considered bad roots of title?

Instruments that cannot identify the property accurately Signup and view all the answers

What is the primary purpose of conducting a title search?

To determine the vendor's saleable interest and any encumbrances Signup and view all the answers

Who is typically responsible for conducting a title search for a property transaction?

A solicitor upon receiving instructions from a client Signup and view all the answers

What must be ensured when updating a title search before the completion of a property purchase?

No new adverse information has surfaced Signup and view all the answers

Which of the following pieces of information is NOT typically revealed by a title search?

Current neighborhood demographics Signup and view all the answers

What is a potential reason for choosing an exhaustive title search over a quick one?

To ensure all legal covenants are identified Signup and view all the answers

What does the term 'manner of holding' indicate in a title search?

The ownership structure (e.g., Joint Tenants or Tenants in Common) Signup and view all the answers

What function does a solicitor's undertaking for title deeds serve?

To promise the completion of the purchase transaction Signup and view all the answers

What can the presence of restrictions or easements in a title search indicate?

Limitations on property usage Signup and view all the answers

What information does a title search provide about the Registered Proprietor?

Identity card number, address, and citizenship Signup and view all the answers

What does the entry 'Caution as to title' signify in a title search?

There are potential interests affecting the land Signup and view all the answers

What types of encumbrances can be revealed in a title search?

Caveats, mortgages, and restrictive covenants Signup and view all the answers

Why is it important for a title search to indicate the type of development?

To verify if there are any restrictions under the Residential Property Act Signup and view all the answers

What does the 'last contract/option date' inform during a title search?

Liability for seller’s stamp duty Signup and view all the answers

What information can a Lot Base System (LBS) Search provide regarding Lot History?

Amalgamation and subdivision details of lots Signup and view all the answers

Which of the following is a consequence of a gift transfer identified in a LBS Search?

All units in the development may be considered affected Signup and view all the answers

What does an Instrument of transfer indicate during a title search?

The price at which the property was last transferred Signup and view all the answers

What is the nature of an Indefeasible Title under the Torrens system?

It is essentially the 'mirror' of the title. Signup and view all the answers

Which of the following documents can be considered a good root of title?

A voluntary conveyance. Signup and view all the answers

What must a solicitor do when investigating leasehold estates under the Torrens system?

Confirm if access is part of good title. Signup and view all the answers

In the context of Legal Requisitions, what authority do the answers originate from?

Government ministries and statutory boards. Signup and view all the answers

Under what condition may a purchaser rescind the contract based on Legal Requisitions?

If the replies to the requisitions are deemed unsatisfactory. Signup and view all the answers

What is a consequence of a Court finding a requisition reply unsatisfactory?

Standard words of limitation or exception may not apply. Signup and view all the answers

What is the process for checking the terms when investigating leasehold estates?

The terms must be assessed to determine impact on property. Signup and view all the answers

How many questions are typically sent in a Legal Requisition for strata unit purchases?

Ten. Signup and view all the answers

What potential consequence can result from non-payment of charges related to property?

Right to impose a charge on the property Signup and view all the answers

How may Legal Requisitions affect prospective purchasers?

They provide insights into possible penalties related to the property Signup and view all the answers

Which authority has the power to lodge a charge against a flat for unpaid maintenance fees?

Management Corporation Signup and view all the answers

What can be a consequence of non-compliance with notices related to property?

Power to sell the property Signup and view all the answers

Who does the Comptroller pursue for unpaid property tax?

The current owner Signup and view all the answers

Which situation could result in legal action against current property owners rather than developers?

State land encroachment by a condo Signup and view all the answers

How do Legal Requisitions serve prospective property buyers?

By revealing non-compliance with laws and regulations Signup and view all the answers

What legal framework allows the Management Corporation to charge flats for maintenance arrears?

Building Maintenance and Strata Management Act Signup and view all the answers

Study Notes

What is a Title Search?

Conducted to confirm vendor ownership, encumbrances, and property restrictions.
Performed by anyone but often by solicitors.
Documents related to transfers are public record and can be accessed online through INLIS or manually through SLA.
Solicitors update title searches before completion to ensure no adverse information emerges.

What Can a Title Search Tell Us?

Land Tenure: identifies whether it is a freehold, leasehold, or perpetuity estate.
State Title Details: includes restrictive covenants imposed by the state.
Tittle Document Number: includes the volume and folio numbers of the Subsidiary Strata Certificate of Title (SSCT).
Lot Area/ Land/ Floor Area: measured in square meters.
Manner of Holding: indicates individual ownership shares and how the property will be distributed upon death.
Registered Proprietor Details: includes identity card number, address, and citizenship.
Instrument of Transfer: reveals the purchase price or gift details.
Caution as to Title: indicates nil or the presence of any interest that may have affected the land.
Notices, Orders of Court, Collective Sale Orders: solicitor extracts and examines the related documents.
Encumbrances: includes caveats, covenants, charges, and mortgages.
Development Type: highlights condominium, strata-landed housing, or other developments.
Share Value: reflects the property's proportional value.
Last Contract/ Option Date: determines seller's stamp duty liability.

What Can a Lot Base System (LBS) Search Tell Us?

Lot Particulars: outlines details and notices of land acquisition.
Lot History: tracks lot derivation from parent lots, amalgamations, and subdivisions.

Why is a Title Search Important?

Confirms client is buying from the correct owner.
Verifies property details, including tenure and area.
Alerts the client about encumbrances or encroachment on State land.
Identifies potential title issues and requires approvals from relevant authorities.

Solicitor's Undertaking

Title deeds are sent to the purchaser's solicitor for title investigation.
Title deeds are sent under a solicitor's undertaking to return the same on demand without any claim or lien.
Breach of undertaking is considered professional misconduct.

Investigating Title

Title search is the first step.
Investigation determines if the land is registered or unregistered.
The goal is to find a "good root of title."

Good Root of Title

A "good root of title" is an instrument that proves ownership of the whole legal and equitable estate without external evidence.
Examples include conveyance on sale, legal mortgage, and more.

Investigating Torrens Title: Land Titles Act

Torrens systems have two types of title: Indefeasible and Qualified.
An Indefeasible title is a "mirror" of the title, and the solicitor need only examine the current Certificate of Title (CT).
Solicitors need to check leasehold estates and estates in perpetuity for terms and covenants affecting the property.

Legal Requisitions (LRs)

LRs are questions sent to government ministries and statutory boards.
The purchaser has the right to rescind the contract if the LRs are unsatisfactory.
Include a 10th question sent to the Management Corporation in the case of strata units.

What do Legal Requisitions Have to Do with Title?

LRs reveal potential charges, fees, assessments, or notices affecting the property.
Non-compliance with LRs might result in legal charges imposed on the property or penalties. This could affect the title.

Recap: Impact of Legal Requisitions

LRs highlight non-compliance with legal regulations and potential charges on the property.
Management corporations have the power to impose charges and sell flats to cover maintenance arrears under the Building Maintenance and Strata Management Act.
Unpaid property taxes and encroachment on State land can also affect current property owners.

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Description

This quiz explores the processes and significance of conducting a title search in real estate transactions. You will learn about essential information revealed in a title search, including land tenure, state title details, and proprietorship information. Test your knowledge on the necessary components and implications surrounding title searches.