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  1. Home
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  4. Issues
  5. April 2007
  6. PSG - new certificate of title

PSG - new certificate of title

Property Standardisation Group introduces the new version of its commercial certificate of title
16th April 2007 | Iain Macniven

In 2005 the Property Standardisation Group (www.psglegal.co.uk) launched a new form of commercial Certificate of Title, for use as a stand-alone certificate for property in Scotland or to mirror an English equivalent in a cross border transaction. It was based on the City of London Law Society (“CLLS”) Certificate of Title (fifth edition), the then industry standard in England & Wales.

The CLLS has now issued a sixth edition of its certificate following approval by the Law Society of England & Wales. The PSG has been working with the CLLS, and the PSG is pleased also to announce its revamped certificate to mirror the new CLLS certificate.

As before, although the CLLS cannot formally ratify the PSG certificate, it is likely that English solicitors will recommend or, possibly, require that the PSG certificate be used in cross border transactions. It is referred to in a forthcoming article on the CLLS certificate in the LSEW Gazette, and a link to the PSG website will probably be set up on the CLLS website.

The changes to both certificates are fairly significant, and the documentation is now more logical in format and streamlined.

In a previous article (Journal, November 2005, 56) I commented in detail on the form and use of the PSG certificate. Practitioners will be familiar with the split between the fixed certification element at the front end, and the back end with further details of the property and disclosures against the certification.

The new front end is much shorter, with some sections, notably the definitions, being moved to a new part 1 of the schedule.

Previous versions have been a mixture of fixed text and variable information and disclosures. In the new certificate almost all this variable information is now in one place, part 5 of the schedule. This contains details of the property, benefits and burdens, existing use, searches instructed, details of leases and letting documents, and disclosures to the main certification. A tabular format has been used in some instances in order to aid comprehension.

There are a few other changes. Environmental matters are now specifically not covered. Similarly, matters relating to property insurance and licensing are excluded, on the basis that they will be dealt with separately. Significantly, there is now a statement to the effect that the PSG form of certificate has been used unaltered, so that one can be assured that the front end certification has not deviated from the precedent form.

One of the most significant changes is the manner of lease reporting (if the property is leasehold) and confirming details of the letting documents (if the property is subject to leases). The certificate now contains a detailed series of statements describing material provisions of a “typical” lease against which any deviations can be disclosed.

The new certificate is accompanied by forms of guidance notes, a questionnaire to be sent to the client seeking the information bearing to have been provided by the client, and also a simple form of letter to be granted by the client confirming the accuracy of the certificate.

As with the previous certificate, the PSG is indebted to Susan Lindgren of Tods Murray for her specific input. PSG contact details remain as before

  • douglas.hunter@dundas-wilson.com;
  • iain.macniven@mms.co.uk;
  • rachel.oliphant@mcgrigors.com;
  • ann.stewart@shepwedd.co.uk;
  • Iain Macniven, Maclay Murray & Spens LLP

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    In this issue

    • The bigger picture
    • Citizen justice
    • Purely rhetoric?
    • Purely rhetoric? (1)
    • Profit, team by team
    • Bring them home
    • Bring them home (1)
    • Local roots
    • Wanted! (for conspiracy)
    • One voice
    • AGM report
    • Dealing positively with client concerns
    • Block fees: the story behind the changes
    • Think before you charge
    • For the high jump
    • Jury questions
    • Put to the test
    • Yet another expense
    • Planning with people
    • Lifting the lid
    • Website reviews
    • Book reviews
    • Home is where the heart is
    • PSG - new certificate of title
    • SEPA: apply online and save
    • SEPA: apply online and save (1)

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