Product Focus: Dispossession Background The insured was acquiring hotel premises in Scotland as part of a larger UK property portfolio transaction. Upon review of the title deeds for the property and a plan prepared by the insured’s surveyor, it became clear that part of the land occupied by the hotel owner was outwith the legal title extent.
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The Affected Areas were enclosed by a boundary structure and these were incorporated as part of the boundaries to the land.
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No contact had been made to or by any third parties who could potentially own the Affected Areas.
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An Affidavit by the seller confirming use of the Affected Areas for more than 20 years without challenge was available.
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No attempt to register ownership of the Affected Areas in the Land Register was to be made by the insured upon completion of the acquisition.
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No registered owner of the Affected Area had been identified by the insured as a result of searches carried out.
Challenge The insured’s solicitors were therefore concerned that a third party could come forward and claim ownership of the relevant areas (the ‘Affected Areas’), thus preventing use and occupation of the Affected Areas. Cover for dispossession of the Affected Areas was therefore requested. Our considerations when deciding whether to provide cover, included the following: •
Use of the hotel would continue on the same basis following completion of the acquisition, and no development works were planned.
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The Affected Areas outwith the legal title extent were not built upon and comprised landscaping / garden ground only, so losses could potentially be mitigated in the event of a claim.
Solution First Title was able to offer the insured a policy in respect of a claim by the legal title owner, resulting in the dispossession of the insured from the Affected Areas. 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)141 413 8800 Email: scotinfo@firsttitle.co.uk Visit: www.firsttitle.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 1166-0219-Scot