What Rights do you enjoy with a Possessory Title?



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What does possessory title mean and how does it impact the owner’s rights? Possession title is merely one of the kinds of land registration in UK.

A land parcel will be given one of three class titles when it is originally registered with the Land Registry: absolute, qualified, or possessory. The Land Registration Act of 2002, which was intended to streamline and modernize the way land is registered, applies to these titles.

So let’s look into what the title signifies.

What does “Possession Title” mean?

Possessory title merely denotes the absence of all the required paperwork for the applicant to satisfy the Land Registry’s requirements for absolute title.

Owners were required to present the actual title documents in their name to demonstrate absolute title before the Land Registry began storing property records online. These days, you may only assert possessory title if you don’t have the legal title or a registered electronic evidence of possession with the Land Registry.

There are many good reasons why paperwork could be lacking, thus there has been nothing unusual with a land just having a possessory title. For instance, the original deeds could have been stolen or destroyed by fire or water. The applicant must get copies of any missing original papers and provide an explanation of the circumstance in their application.

What is the duration of possessory title?

The owner may submit a request to the Land Registry for absolute title upgrade once the property has been recorded using a possessory title for nearly 12 years.

Is it possible to contest a possessory title?

A possessory title, as we have discussed, indicates that the applicant lacked the necessary documentation for an unconditional title, making it theoretically subject to dispute. Anyone can apply for registration even if they believe they have a “superior” claim.

In this case, your possessory title will expire if another party is successful in convincing the Land Registry of their superior title to the estate than yours.

In other cases, this can be devastating since the holder of the restricted “possessory title” will not be able to recover any damages, despite them having constructed a building on the property.

Do rights of ownership impact a property’s value?

Yes, possessory title ownership could induce a negative impact on a property’s market value. If you are buying the house, this can be excellent news, but what transpires your decision to sell?

The precise details of the rights of ownership determine the degree of any discount. A stronger case will command a higher asking price, but you can only determine the strength of the ownership rights title with the help of an experienced real estate lawyer.

An indemnity insurance coverage will be necessary in any transaction involving property with a possessory title.

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