AI says I must register my deeds – is that true?

I recently took a call from a very concerned elderly client. She’d asked AI about selling her home and was told quite definitively that she must register her deeds; that if she didn’t, her buyers wouldn’t be able to get a mortgage and she wouldn’t be able to sell her house.

Is this correct? Ordinarily the answer is no, but there are occasions where registration before a sale is the best way forward.

Understanding registered vs unregistered land

Registered land

Most property and land in England and Wales is now registered centrally with HM Land Registry, which holds digital records of the relevant title deeds and evidence of ownership. Once a property is registered, the Land Registry maintains the title register, recording any significant changes.

Unregistered land

In contrast, unregistered land has never been recorded at the Land Registry. Instead, ownership is proved through physical title deeds. Certain transactions, such as a sale or mortgage of unregistered land, will trigger compulsory registration, bringing more land into the registered system.

Can you sell a home with unregistered deeds?

Unregistered land is still perfectly acceptable and legally transferable, and there’s no absolute requirement to register it before a sale. A set of deeds showing a clear and marketable title is just as valid as a registered one.

However, issues can arise where the deeds are unclear, poorly drafted or incomplete. These problems often only come to light at the point of sale.

Staying with our concerned client, we might find on inspecting her unregistered title deeds that the only plan of the property is a hand-drawn sketch from the 1950s, with no clear boundaries or description. The buyer’s solicitor might be concerned and require the title to be registered before completion to ensure there are no issues with boundaries or the property extent on registration. What could have been a straightforward sale would then be delayed for several weeks or months while plans are prepared, an application submitted to the Land Registry and the title registered.

In contrast, we might find a single, well-drafted, clear title deed which presents no problems or issues on sale.

Unregistered land, therefore, isn’t automatically problematic – it depends on the title deeds in each case.

Voluntary registration

Once we’d discussed the options with this client, she decided to proceed with voluntary first registration. This means choosing to register land before you’re required to. It’s nearly always a good idea to do so, as it:

• Provides greater certainty over property extent, boundaries, rights and obligations
• Removes the risk of lost, destroyed or stolen deeds and provides peace of mind
• Simplifies the title and future dealings, with access to all relevant documents held digitally
• Reduces the risk of fraud and adverse possession from third party claims
• Prevents delays on sale.

Final thoughts

This brings us back to the original concern. The AI our client consulted gave a misleading and incomplete answer.

AI might point you in the right direction, but it’s no substitute for a conversation with a legal advisor who understands the context and complexity of your individual scenario.