Intelligent Conveyancing Solutions
CLS Limited is authorised and regulated by the
Financial Conduct Authority
Registered Office: 55 Gower Street London WC1E 6HQ
Our Natural Strength…..
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Agenda
1. Chancel Repair Liability
• Overriding Interests, what you should be doing and recent news
2. Title Indemnity Insurance
• How it works
• What we offer
• How it can help
• Compliance / Regulation
Chancel Repair Liability – Overriding Interests
• No longer an Overriding Interest
• Where is the danger in a transaction?
• What is the Church doing?
• What does Land Registry say?
• What should you do?
Chancel Repair – Overriding Interest?
• Unregistered Land
• Church can still enter a Caution against a Title
• Unless a property has changed hands for valuable
consideration
• Registered Land
• A Notice (UN1) can be entered at any time before a
transfer for valuable consideration is registered
The absence of a notice on the OC1 of the register entry for a
title should not be relied upon
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Example CRL Unilateral Notice
CRL post October 2013 – Practical Lawyer Guide Article
Solutions – ChancelCheck® Premium
• ChancelCheck® Premium has been specifically designed to
enable you to select an area of land rather than a single address
point
• ChancelCheck® Premium will benefit property transactions that
fit the following criteria:
• Clients who usually request multiple point ChancelCheck®
searches will save money and time using ChancelCheck®
Premium
• Radius of the property is over 25 metres
• Commercial premises
• Property without an address, such as “land at …”
• A property that may fall within more than one parish – for
example, in central London
Solutions – ChancelCheck® Premium
ChancelSure® - What happens if I receive a Report?
• Where a property has been identified as being within a Parish
that retains the right to charge for repairs to the chancel of the
Parish church, ChancelSure® offers a cost effective solution
protecting the owner/occupier, mortgagee, lessees and
successors if required.
• ChancelSure® Features include:
• Cover available for up to 10 Acres Online
• Available for both residential and commercial properties
• Diminution in value and 200% escalator clause
• Up to £3m cover as standard online for both residential and
commercial
• Option for 25, 35 years and in perpetuity cover
Titlechecker®
• Interrogates the Land Registry records contained in an OC1
• Where an entry requiring lender consideration is identified, it provides the
relevant CML Part 1 and Part 2 responses to the entry, assisting the
Conveyancer in identifying lender compliant solutions
• Provides a check against human error and negligence
• Streamlines your process, saving you time and money
• Where a TitleChecker identifies insurable risks, it can provide a 20%
discount on the suggested policy premium/s online
• Comes with the benefit of a Search Insurance policy offering cover up to a
market value of £2m, where there is an error in the Land Registry data
• Succinct report, highlighting areas that need further investigation. Free
refresher service provides audit trail
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How Titlechecker® can help
• E.Surv Ltd v Goldsmith Williams 2014 - Over Valuation
• Lender’s surveyor estimated the property value for mortgage at £725,000.
Borrower defaulted and the lender suffered a loss. Lender pursued the surveyor,
claim settled for £200,000. Surveyor pursued solicitor to cover their share of the
£200,000
• Surveyor was told the property last sold for £600,000 six years earlier. But the title
showed that the purchase price was £390,000
• Property had been registered to owner for less than 6 months
• Court determined that solicitor should spotted the difference when inspecting the
title, held jointly liable with surveyor (50/50)
• TitleChecker would have flagged the amount of the most recent transaction
• TitleChecker would have also flagged that the property had been registered
for less than 6 months – CML say “report immediately”
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Title Insurance – A possible solution?
• 8-12hrs? Set fees? Problem –
20hrs?
• Covers real risks to continued use
or development
• Redress the balance, put insured
back to financial position before
loss
• Comfort to buyers, diffuses
issues, satisfies lenders
• Helps manage nuisance claims
and ransom risks that can be real
threats to development sites
“An indemnity against the
risk that an insured
matter relating to
ownership and/or use of
an interest in land or the
processes and rules
relating to transactions
with it which existed
when the policy
commenced causes actual
financial loss”
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Title Insurance – Self Issue
• Online or Offline?
• Traditional book policies – costly and slower
• Typical policies used: Absence of easements, lack of planning
or building regs, Insolvency Act, Restrictive Covenant, Search
Delay
• Online – quicker, save quotes, cost effective
• Very effective as transactional Warranties
• Value/Volume
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Title Insurance – Bespoke (Express)
• Bespoke Title insurance but processed offline into an Express
(streamlined) form to help transactions complete
• Looking to convert a legal issues into a risk that can be
underwritten
• Underwriting test – likelihood, solution, cost
• Triggers / defences
• Measuring the level of risk e.g. absence of easement
• Statements of Fact..
• Increase turnaround times…
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Heads of Loss
The standard heads of Loss on the policies are:
•
Loss in market value of the land as a result of the adverse
interest
• Court costs / legal costs / complying with court orders /
damages
• Settlement costs (such as a deed of release) and associated legal
costs
• Any abortive costs
For more complex cases we can include other elements of
consequential loss such as Delay Costs. These are particularly
useful when insuring a development
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Title Insurance – Compliance/Regulation
• SRA & CLC regulate conveyancers
• FCA regulates Insurance mediation
• Approx. 15% of firms not currently compliant
• Exempt Professional Firms Register
• Not on the register? What are the risks?
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Any Questions…
…our natural strength
CLS Limited is authorised and regulated by the Financial Services Authority
Registered Office: 55 Gower Street London WC1E 6HQ