Slide 1

Intelligent Conveyancing Solutions 1 Our Natural Strength.. CLS Limited is authorised and regulated by the Financial Conduct Authority Registered Office: 55 Gower Street London WC1E 6HQ Slide 2 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 Slide 3 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? Slide 4 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 4 Slide 5 Example CRL Unilateral Notice Slide 6 CRL post October 2013 Practical Lawyer Guide Article Slide 7 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 Slide 8 Solutions ChancelCheck Premium Slide 9 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 Slide 10 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 10 Slide 11 How Titlechecker can help E.Surv Ltd v Goldsmith Williams 2014 - Over Valuation Lenders 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 11 Slide 12 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 12 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 Slide 13 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 13 Slide 14 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 14 Slide 15 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 15 Slide 16 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? 16 Slide 17 Any Questions our natural strength CLS Limited is authorised and regulated by the Financial Services Authority Registered Office: 55 Gower Street London WC1E 6HQ