WHY INVESTIGATING TITLE IS ESSENTIAL IN PROPERTY TRANSACTIONS
Ensuring there is good title is the whole aim of investigation of title in property transaction.
WHY INVESTIGATING TITLE IS ESSENTIAL IN PROPERTY TRANSACTIONS
After the vendor has deduced his title, investigation is to be made by the purchaser's solicitor. Ensuring there is good title is the whole aim of investigation of title in property transaction. Its importance cannot be overemphasised. Defective title can emanate troubling issues sooner or later. There are many reasons why investigation of title is essential in property transactions, they will be considered in the subsequent paragraphs.
It is important to investigate title when it comes to property transaction in a bid to verify and confirm claims of the vendor that he is the owner. The fact that a vendor has adduced document showing a good root of title is not necessarily conclusive proof of the title.
Also, it is essential to confirm that there are no restrictions or encumbrances in the property. A defect may exist in the title which had occurred after the document evidencing good root of title was executed which is not apparent from the document. Investigating title to property will go a long way to protect the prospective purchaser. The singular act of investigation will make the lawyer prevent any case of professional misconduct.
The consequences of failure to investigate title are enormous. If the lawyer fails to investigate and there are defects, the purchaser is bound by the defects. Thus, he buys subject to the defect. Where the purchaser suffers any defect in title as a result of the lawyer’s failure to investigate the title, the purchaser may maintain an action in damages against the legal practitioner. The purchaser cannot lay any claim to being a bona fide purchaser for value without notice, as a result of failure to investigate thoroughly. Thus, the purchaser will lose priority.
Essentially, investigation ensures that the seller has the right or authority to sell. It also ensures that there is no inexplicable, break in chain to the devolution of the property. It ensures that there is no exception, reservation or restriction to the use of the property and also ensure that the description in the title deeds fits the land being purchased. Investigation looks out for encumbrances on the title and ensures all necessary consents have been obtained and all charges are paid and duly evidenced in a receipt. It also raises requisitions where necessary.
NB: This article is not a legal advice, and under no circumstance should you take it as such. All information provided are for general purpose only. For information, please contact chamanlawfirm@gmail.com
WRITTEN BY CHAMAN LAW FIRM TEAM
EMAIL: chamanlawfirm@gmail.com
TEL: 08065553671, 08024230080