Problems arising when the seller is not the registered proprietor
Where the seller is not the registered proprietor but is entitled to be registered as such, the seller can give title to the property (section 37, Land Registration Act 1925). If, however, the buyer makes a request under section 110(5) of the Land Registration Act 1925, that the seller either procures its own registration as proprietor, or procures a transfer to the buyer by the registered proprietor, the seller is contractually unable to complete.
The Court of Appeal has ruled that even if a section 110(5) request is made in these circumstances, the buyer is still contractually bound to pay the completion monies and will be liable for any interest due under the contract for late payment of the completion monies.
The Court also considered the obligation on the seller to stamp documents of title and the right of the buyer to refuse to complete where documents have not been stamped.
This item contains a link to a practice note on Condition 4, Standard Commercial Property Conditions: Title and transfer.