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Full title guarantee: Difference between revisions
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An expression | {{a|security|}}An expression [[Mediocre lawyer|financial lawyers]] toss casually about, without much of a backward glance, but which has a specific meaning under the [[Law of Property (Miscellaneous Provisions) Act 1994]]. Under section 1 of that act, there are two types of [[covenant]] a chap can give when transferring property: by “[[limited title guarantee|''limited'' title guarantee]]”, and by “[[full title guarantee|''full'' title guarantee]]”: | ||
:''(1): In an instrument effecting or purporting to effect a disposition of property<ref>defined as including a “[[thing in action]], and any interest in real or personal property”</ref> there shall be implied on the part of the person making the disposition, whether or not the disposition is for valuable [[consideration]], such of the covenants specified in sections 2 to 5 as are applicable to the disposition. <br> | |||
:''(2) Of those sections— <br> | |||
::''(a) sections 2, 3(1) and (2), 4 and 5 apply where dispositions are expressed to be made with [[full title guarantee]]; and <br> | |||
::''(b) sections 2, 3(3), 4 and 5 apply where dispositions are expressed to be made with [[limited title guarantee]]. | |||
[[Full title guarantee]] implies that: | |||
*The transferor is entitled to dispose of the property (section 2(1)(a)). | |||
*The transferor | |||
*The transferor will do all it reasonably can to pass the [[title]] to the transferee, at its own cost (section 2(1)(b) and (2)). | *The transferor will do all it reasonably can to pass the [[title]] to the transferee, at its own cost (section 2(1)(b) and (2)). | ||
*There is a presumption that the whole of the property if on a registered title, is being transferred (section 2(3)). | *There is a presumption that the whole of the property if on a registered title, is being transferred (section 2(3)). | ||
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*The transfer is free from all charges, encumbrances and adverse rights, other than those the seller could not reasonably be expected to know about (section 3(1)). | *The transfer is free from all charges, encumbrances and adverse rights, other than those the seller could not reasonably be expected to know about (section 3(1)). | ||
That latter representation makes “[[full title guarantee]]” an odd thing to say in the context of cleared [[Security|securities]], where interests are transferred subject to [[clearing system]] [[lien|liens]] (and actual legal title is held by the bearer of a [[global security]]). | That latter representation makes “[[full title guarantee]]” an odd thing to say in the context of cleared [[Security|securities]], where interests are transferred subject to [[clearing system]] [[lien|liens]] (and actual legal title is held by the [[bearer security|bearer]] of a [[global security]]). It’s also not really much to do with {{tag|guarantee}}s generally, which are a topic of no small gruelling exactitude, should that be your kind of thing. | ||
It’s also not really much to do with {{tag|guarantee}}s generally, which are a topic of no small gruelling exactitude, should that be your kind of thing. | |||
{{sa}} | |||
*[http://www.legislation.gov.uk/ukpga/1994/36/contents Law of Property (Miscellaneous Provisions) Act 1994] | *[http://www.legislation.gov.uk/ukpga/1994/36/contents Law of Property (Miscellaneous Provisions) Act 1994] | ||
*[[limited title guarantee]] | *[[limited title guarantee]] | ||
*[[title transfer]] | *[[title transfer]] | ||
{{C|Magic Words}} | {{C|Magic Words}} | ||
{{ref}} | |||