Product Focus: Adverse possession Background The insured was seeking to purchase a property and proposed to construct a double oak-framed garage and store room (pursuant to permitted development rights) on land that was not registered to the seller at HM Land Registry. The insured sought an insurance policy in perpetuity that could be kept with their deeds if a third party challenged this construction on land that did not properly vest in them.
Ramifications of risk Having completed their due diligence of the property, the insured and their solicitor discovered that part of the construction of a new garage and store room would encroach on a sliver of land that was not legally registered to the seller. According to the legal boundary shown on the title plan provided by HM Land Registry, the insured area of land fell outside the seller’s ownership. Consequently, the seller provided a statutory declaration
confirming that they had owned the property since 2013 and that there had been physical possession of this adversely possessed sliver of land within fenced boundaries since the late 1990s. The fenced boundary had never been challenged by the adjoining owner and the sliver of land was occupied without objection, payment, or interruption.
Outcome The transaction was supported by a Known Risk title insurance policy for Adverse Possession to protect the purchaser in the event of a claim by the legal title owner that the construction of the new garage and store room encroached on their adjoining registered title. For further information on how First Title can assist you with its range of specialist cover and policies, please contact directly using the details below.
Call: +44 (0)207 160 8218 Email: online@firsttitle.co.uk Visit: www.firsttitleresidential.co.uk First Title Insurance plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. First Title Insurance plc is registered in England under company number 01112603. Registered office: First Title Insurance plc, ECA Court, 24-26 South Park, Sevenoaks, Kent TN13 1DU.
Leading Title Insurance 1160-0219