Implied covenants for title

by Practical Law Property

A practice note that considers the covenants for title that are implied into property dispositions under the Law of Property (Miscellaneous Provisions) Act 1994 (LPMPA 1994). This note explains the nature of title covenants and the circumstances in which they are implied, examining in detail the differences between giving a "full title guarantee" and a "limited title guarantee." It outlines the specific covenants implied by these phrases, including the right to dispose of the property, obligations concerning encumbrances, and further assurances for leasehold properties. The note also addresses the scope of liability for breach of an implied covenant, the potential for enforcement by successors in title, and how parties can modify or exclude these covenants within the disposal instrument. This practice note discusses the interplay with the Land Registration Act 2002 (LRA 2002) and offers insights into practical scenarios, such as dispositions by co-owners and the modification of covenants in leasehold transactions.