{"id":601,"date":"2022-11-03T09:00:00","date_gmt":"2022-11-03T09:00:00","guid":{"rendered":"https:\/\/ctt-group.co.uk\/legal\/?p=601"},"modified":"2023-09-26T15:00:27","modified_gmt":"2023-09-26T14:00:27","slug":"legal-titles-the-importance-of-keeping-them-updated","status":"publish","type":"post","link":"https:\/\/ctt-group.co.uk\/legal\/legal-titles-the-importance-of-keeping-them-updated\/","title":{"rendered":"Legal Titles: The importance of keeping them updated"},"content":{"rendered":"
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Updating legal titles for properties might be a task that falls down a to-do list but failing to keep a title up to date can have significant consequences. It\u2019s an important task and, in practice, should always be done after a change in circumstances, such as after the death of an owner or a change in equitable ownership.<\/p>\n

Before looking at the reasoning behind updating a legal title, let\u2019s first understand what it means.<\/p>\n

What are legal titles?<\/strong><\/h4>\n

Practical Law defines the legal title as the \u2018Absolute ownership of real property that is enforceable in a court of law. Legal title to real property is evidenced by a deed that is recorded in the public records in the county where the property is located.\u2019<\/p>\n

Essentially, legal titles detail the property address, ownership and any restrictions, charges, and encumbrances.<\/p>\n

Why is it important to ensure legal titles are up to date?<\/strong><\/h4>\n

In the event of a dispute regarding a property the legal title is often the first thing which is examined. Therefore, keeping the title up to date is not only good practice but almost essential.<\/p>\n

In some situations, it is possible for the legal title to be held differently from the equitable ownership. For example, a Declaration of Trust can be signed, moving the equity of a property into a Trust or to another owner. However, unless the legal title is updated, this would not be apparent to the outside world.<\/p>\n

By updating the legal title, any third party who wishes to obtain a copy of it will be able to see the existence of the Declaration of Trust affecting the equitable ownership. This is especially important in the context of estate planning.<\/p>\n

As registered property is now logged digitally with the Land Registry, obtaining a copy of the title is easier than ever. Consequently, in the event of a challenge to a client\u2019s lifetime estate planning, the Local Authority is likely to examine the property title to see if there is any reference to a Trust or some form of estate planning. If there is not and there is only a Declaration of Trust in place, the Local Authority is likely to query it. This alone highlights the importance of updating legal titles.<\/p>\n

It is also important to keep the legal title to a property up to date with more everyday things such as a name change after marriage or removing a deceased owner after death. Legal titles are looked at prior to many applications affecting a property, such as a mortgage or equity release, and therefore should be corrected alongside any changes.<\/p>\n

Making title amendments smoother<\/strong><\/h4>\n

With our experienced Legal team, CTT Group is here to help you apply for title changes under a range of circumstances, including:<\/p>\n