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colinbell
27-09-2007, 17:47 PM
If on a contract of sale there is a special condition listed which reads along the lines of: "all information kept in public register is considered to be known by the transferee". Which aspects would this clause cover? Searches with LAs, Landlord status, Management Company status at Co House? Bankruptcy?
Also does this clause override any other information provided by seller in relation to any of the above?

jeffrey
30-09-2007, 13:19 PM
If on a contract of sale there is a special condition listed which reads along the lines of: "all information kept in public register is considered to be known by the transferee". Which aspects would this clause cover? Searches with LAs, Landlord status, Management Company status at Co House? Bankruptcy?
Also does this clause override any other information provided by seller in relation to any of the above?

This Special Condition is aimed at Standard Condition 3.1.2(d).
The latter makes property sold subject to "entries made before the date of the contract in any public register except those maintained by HMLR or its Land Charges Department or by Companies House".
The Special Condition therefore lumbers P with burden of entries in any other public registers.

colinbell
30-09-2007, 13:50 PM
So does that mean that under this clause it is assumed that the buyer knows about entries in a register such as companies house (for example status of landlord company or resident management co)?

jeffrey
30-09-2007, 15:45 PM
Condition deems P aware of every register's contents. Presumably P's solicitor makes usual searches and these should reveal anything untoward. I always check at Companies House whenever transaction involves a co., either as my client or on other side.

colinbell
30-09-2007, 17:56 PM
What happens if a seller provides wrong information (knowingly or innocently) on what is contained in one of these public registers in the sale quest.?

Is the clause invalid or does it still protect the seller from any comeback?

colinbell
01-10-2007, 07:27 AM
This Special Condition is aimed at Standard Condition 3.1.2(d).
The latter makes property sold subject to "entries made before the date of the contract in any public register except those maintained by HMLR or its Land Charges Department or by Companies House".
The Special Condition therefore lumbers P with burden of entries in any other public registers.

Forgot to mention that the clause on the SC refers to the Law of Property Act 1994. Is this still aimed at Standard Condition3.1.2 d listed above?

jeffrey
02-10-2007, 20:27 PM
No. Anyway, the clause's reference ought to be to the Law of Property (Miscellaneous Provisions) Act 1994. This deals with Title Guarantees; see s.3 of the Act re the main difference between the two types usually found.

colinbell
02-10-2007, 20:45 PM
Yes it does refer to that act.
So in essence it does not cover public registers such as companies house and others.

Regards

colinbell
03-10-2007, 12:04 PM
Apologies for this:

I've checked the paperwork I have and I have copied
and pasted the relevant clause it refers to from the PA 1994:

6 No liability under covenants in certain cases

(2) Furthermore that person is not liable under any of those covenants for anything (not falling within subsection (1))—
(a) which at the time of the disposition is within the actual knowledge, or


The SC of contract refers to section 6.2 point a above.
Now does this only affect title as Jeffrey explained or does it cover other public register such as c house, bankruptcy etc etc

jeffrey
07-10-2007, 21:38 PM
S.6(2)(a) means that V is not liable under title guarantee if P actually knows of an incumbrance- not just "deemed" knowledge.

colinbell
08-10-2007, 11:11 AM
S.6(2)(a) means that V is not liable under title guarantee if P actually knows of an incumbrance- not just "deemed" knowledge.


So the clause does not cover issues relating to landlord co status, management co status and other public registers?

jeffrey
08-10-2007, 11:47 AM
So the clause does not cover issues relating to landlord co status, management co status and other public registers?

The clause deals with registers of incumbrances.
Contrast this with the section which deals with the implied covenants under Title Guarantees.
So, no- the clause does not deal with status of companies. Solicitor should simply verify these statuses in the usual way.