Full title guarantee

An expression tossed about casually, but which in fact has a specific meaning under the Law of Property (Miscellaneous Provisions) Act 1994.

Under said statute (section 1(1)) there are two forms of covenant a chap can give when transferring property: by "limited title guarantee", and by "full title guarantee".

Full title guarantee implies that:

The transferor has the right to dispose of the property (section 2(1)(a)).
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)).
if the property is not registered, there is a presumption that the freehold interest is being transferred.
Where the interest being transferred is a leasehold only, it is presumed that the the entire unexpired residue of the term of the lease is being transferred (section 2(3)) and that the lease is subsisting and the seller has complied with its terms.
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)).

See Also