REP 2 - Searches PDF

00:03 Welcome to the segment on searches and investigation of title. My name is Ying Wai Lin. By the end of this lecture, you should be able to describe what a title search is, extract relevant information from a title search, explain the significance of a solicitous undertaking for title deeds, de...

00:03 Welcome to the segment on searches and investigation of title. My name is Ying Wai Lin. By the end of this lecture, you should be able to describe what a title search is, extract relevant information from a title search, explain the significance of a solicitous undertaking for title deeds, describe what a good route of title and how to establish a good title, and then lastly explain how legal acquisitions relate to title. 00:35 What is a title search? A title search is simply a process that is performed primarily to determine the answer to three questions. Firstly, does a vendor have a saleable interest in the property? One. Second, do any encumbrances exist on the property which needs to be paid off at completion? And lastly, what kind of restrictions or easements pertain to the use of the property? 01:04 So who can make a title search? Anyone may do a title search. Documents concerning transfers or conveniences are a matter of public record. However, it is often the case that people choose to contact a solicitor to conduct an exhaustive title search. 01:24 Where do you go to make a title search? The title search can be done online via SLA\'s website or at SLA\'s office upon payment of the appropriate fee. 01:41 The solicitor will conduct a title search upon receiving instructions from his client that he has given a booking or optioned fee for the purchase of a property. The solicitor will then update the title search just before completion of the purchase of the property. As property transactions take about eight weeks from start to finish, the updating of the title search is to ensure that there is no new adverse information. 02:15 What can a Certificate of Title tell us? Firstly, it will tell you whether it is an estate in fee simple, estate in perpetuity or a leasehold estate. 02:27 It also tells you the State Title details. In some cases, the listers will obtain copies of the State Title, for example, a State Lease or a Statutory Land Grant, to check for restrictive or special covenants imposed by the State. 02:44 It also tells you what the title document number is. For example, Subsidiary Strata Certificate of Title, Volume 1030, Folio 174. It also shows you the lot area in square metres, and it also shows you the manner of holding, be it joint tenants or tenants in common. This indicates to the world at large each owner\'s share. It also affects how a person\'s share in the property 03:13 will pass on his death. 03:17 It also shows you the name and details of the registered proprietor, for example his identity card number, address and citizenship. Since all this is part of public record, estate agents can track the owners down easily and offer to sell or purchase the properties. 03:37 Instrument of Transfer is also another information bit that you can find on the Certificate of Title. And so what does this tell us? What if there was no purchase price but a gift? So let\'s go on with what else a CT can tell us. There is also the Caution as to Title. This entry will either be marked NIL or subject to any interest that may have affected the land. 04:04 as at the date of the last cancelled convenience, or words similar to this effect. 04:11 There may be notices, orders of court, orders of collective sale by Stratat, Title Board. In such a case, the solicitor concerned should extract copies of such notices, orders of court, for further examination. There may be encumbrances on the certificate of title, for example caveats, restrictive covenants, charges, mortgages. Again, copies of caveats other than to your own clients. 04:41 and restrictive covenants must be extracted for further examination. 04:49 What else does a certificate of title tell us? The type of development. For example, whether it is a condominium or strata-landed housing. These are initiatives introduced by the Singapore Land Authority. Such endorsements are usually indicated at the top left-hand corner of the certificate of title. So if you see strata-landed housing, this is to alert you that such developments are restricted residential property. As such, the Minister\'s approval is required 05:18 for foreign persons as defined under the Residential Property Act. 05:27 Apart from the CT search, there is also what you call an LBS search. LBS stands for Lot-Based System. It shows you the lot particulars, meaning it shows you particulars and notice of acquisition of land. It shows you the lot history. It shows how lots are derived from parent lots, traces, amalgamation and subdivision. This is very useful for developments. 05:54 One of the parent lots of a new eight-storey development was found to be affected by a give transfer. As such, all 275 units of this particular development and the buyers of these units will be affected by the give transfer. 06:14 So let\'s recap. Why is a title search important? One, it confirms client is buying from owner and that he\'s the correct person. It confirms particular properties, such as tenure and area. It alerts client to encumbrances or encroachment on state land. It alerts the solicitor as to possible problems with title or need to get approvals from authorities. 06:43 is a solicitor\'s undertaking. After a contract is concluded, title deeds are then sent over to the purchaser\'s solicitor to enable investigation of title. Title deeds are sent on a solicitor\'s undertaking to return the same to us on demand without any claim or liant thereon whatsoever. 07:07 How serious is breach of the solicitor\'s undertaking? The legal professional conduct rules state that an advocate and solicitor shall honour the terms of a professional undertaking given to another advocate and solicitor. Therefore, breach of the solicitor\'s undertaking is possible ground for professional misconduct. 07:34 So let\'s go on to the next segment, which is investigation of title. Where to start, you may ask. Well, you would start with a title search that we\'ve been talking about. And this title search would then reveal whether the land is registered or unregistered. If it\'s registered land, it will be qualified or unqualified. 08:03 two types of land, registered land and unregistered land, and at the end of it all, the purpose behind an investigation of title is to look for a good route of title. 08:21 What is a good root of title? Well, a good root of title has been described as an instrument of disposition, which must deal with or proved on the face of it without extrinsic evidence. The ownership of the whole legal and equitable estate in the property sold contain a description by which the property can be identified and show nothing to cast any doubt on the title of the disposing 08:50 This is taken from Williams on purchaser and vendor. 08:58 What sort of instrument would be considered a good root of title? From my years of practice, I\'ve only used two, mainly. Conveyance on sale, illegal mortgage. 09:12 So you would then ask, what are bad roots of title? Examples would be, one, in the case of a freehold estate, a lease for whatever term cannot be a good root of title. A voluntary conveyance is a bad root of title. A will is a bad root of title. And of course, a document exercising a power of appointment is not a good root of title. 09:39 Now we go on to another part, it\'s called Investigating Title. Under the Land Titles Act, it\'s called the Torrance Title. So under the Torrance system, there are two types of title. The first is the Indefeasible Title. An indefeasible title is the mirror of the title. In other words, the solicitor need not investigate the earlier common law title. This is because the title is unqualified. He can commence investigation from the current certificate of title. 10:08 as there is no caution to time. 10:12 Is investigation of title confined to examining certificate of title SSCT or SCT? Well, the answer is only if it is an indefeasible title. You should check the terms and covenants and determine if they affect the property. Is excess part of good title? The answer to this, you have to read the case called Chingt-Jerriza and Wee-Hong Leong. This is a 206 case. 10:45 Legal Requisitions. The definition of legal requisitions was set out and explained fully in the case of Choo Yikmand and Raju Kopal. Have a read. It\'s a 1987 case. Legal requisitions essentially are questions sent to government departments or Blake statutory boards. And the tenth one is sent to the management corporation. These are for purchases of strata units. And this is set out at Section 47.1c. 11:14 of the Building Maintenance Tractor Management Act. 11:22 Subject to the wording of the option to purchase, legal requisitions allow the purchaser to rescind the contract if the replies are unsatisfactory. Have a look at this case, a 2011 case called Su Nam Tung vs Pang Song Hua. The court held that the LTA requisition reply was declared unsatisfactory, and the proviso providing for standard words of limitation or exception failed to apply in this case. 11:53 What do legal requisitions have to do with title? Replies to legal requisitions are important because they review whether the property is affected by charges, fees, assessment, or any notices sent to the owner or occupier of the property. For the owner or occupier to do, sit next. 12:18 Non-payment of any charges or fees or assessment or non-compliance with notices may give the authorities a right to impose a charge on the property, or it may itself constitute an offence for which there is a penalty. 12:38 The property may also be affected by changes, alterations or road widening schemes. So a prospective purchaser is entitled, as of right, to be fully informed so that his interests can be safeguarded. 12:57 So to recap, legal requisitions show up non-compliant with law and regulations. The effect of non-compliant is often a charge on the property with power to sell the property. The management corporation also has power to lodge a charge against the flat and sell the flat to use sale proceeds to pay for arrears in maintenance fees. That is set out in Section 43 of the Building Maintenance and Strata Management Act. 13:29 Other examples, unpaid property taxed. The controller does not care who is the proper party responsible for payment. He goes just after the current owner. Another example would be a condominium encroaches onto state land. The Singapore Land Authority will go after the current owners and not the developers. B24 REP - Lecture 2 searches - Describe what a title search is - **[ Extract relevant information from a title search]** - Lot Base Search - What is the importance of a title Search? - Explain the significance of a **[solicitor's undertaking]** for title deeds - Describe what **[a good root of title]** and how to establish a good title - Bad roots - **[Indefesible title]** under the Land Titles Act - Is access part of good title? - Explain how **[legal requisitions]** relate to title