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What is a Certificate of Compliance?

Posted on Monday, 24th November 2014 by

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When buying or selling a property, in order to register the property sometimes the land registry needs to be sent a certificate of compliance. This is more common amongst leasehold properties or newly built properties.

When a certificate of compliance is required, the Official Copies held at the land registry would show what is called a ‘restriction’ and the conveyancer acting for the purchase will need to make sure they know how to remove this on completion or obtain a legal promise the seller can deal with this on completion.

In most cases, especially for leasehold properties, the buyer is required to enter into a ‘Deed of Covenant’. This is a document the buyer signs to say they will abide by all of the terms in the Lease as if the original Lease was granted to them. Once the buyer has signed and has this witnessed, they will need to send it to their conveyancer who will forward this on to the landlord on completion. The landlord would then issue the certificate of compliance to say they required information has been complied with so the land registry can lift the restriction from the Official Copies.

The above is just one reason a Certificate of Compliance may be required. In some cases, the Conveyancer acting for the Seller or Buyer can supply a certificate if the restriction allows this. You should also be aware there is normally a fee payable to the restriction holder for issuing the certificate and it is usual for the buyer to bear the cost of this.

For further information on a Certificate of Compliance, please contact a member of the property team on 0116 266 5394.

The information provided in all of our blogs reflects only a narrative of some elements to consider on the topic.  The blogs do not contain considered legal advice and should not be relied upon as advice. Please see our website terms and conditions for full details of our disclaimer.  If you are interested in obtaining advice, please contact one of our lawyers who will be happy and able to advise you on your own particular circumstances.

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