Before buying a property, one thing matters as much as price: whether the title deed record is clean. Records such as annotations, mortgages and attachments on a deed are collectively called encumbrances, and they directly affect the sale. This article explains what they mean and how to run an encumbrance check before purchase.
What Are Encumbrances?
Encumbrances are the general name for rights and restrictions on a title deed. A property may carry a mortgage, attachment, annotation, declaration or easement. These records can limit the use, sale or transfer of the property, so the buyer's first step is to see all encumbrances on the record.
What Is an Annotation?
An annotation is a record placed on the deed to notify third parties of a right or situation, such as a sale-promise annotation, lease annotation or family-residence annotation. An annotation does not always block a sale, but the buyer may have to accept the underlying right, so its type and content must be reviewed.
What Is a Mortgage?
A mortgage is a right placed on a property as security for a debt, usually in favour of a bank when a housing loan is used. A mortgaged property can be sold, but if the debt is unpaid the creditor may have it sold. For a safe purchase, the mortgage is usually released via the bank at the moment of transfer.
What Is an Attachment?
An attachment is a restriction placed on a property by an enforcement office to collect a debt. Transferring an attached property carries serious risk, as it may be put up for forced sale. Always seek expert and legal support before buying such a property.
How to Check Encumbrances Before Buying
An encumbrance check can be made at the relevant Land Registry with the owner's consent or via e-Government. The buyer should review every annotation, mortgage and attachment and postpone the sale in unclear cases. Deposits and payments should be made only when the record is clean and in writing.
For safe title and encumbrance checks, Armet Emlak & Harita is here: (0242) 417 72 72 · armetinsaatemlakharita.com