Possessory Title Indemnity Insurance
Protect your property transaction against ownership challenges with our specialised Possessory Title Indemnity Insurance. Designed to mitigate risks associated with possessory title, our insurance provides financial protection and peace of mind for all parties involved.
What is possessory title?
A form of land ownership based on possession rather than formal documentation.
Possessory title refers to a form of land ownership where the title to the property is based on possession rather than a full legal title backed by formal documentation, such as a conveyance or deed. While possessory title allows someone to register land with the Land Registry, it is considered a weaker form of title compared to absolute title.
To mitigate this risk, Possessory Title Indemnity Insurance is often used. It protects against financial loss arising from challenges to ownership, enabling transactions to proceed with greater protection. Over time, if no disputes arise, a possessory title may be upgraded to absolute title, strengthening the owner’s legal standing.
Understanding Possessory Title Indemnity Insurance
Protection for property transactions with incomplete documentation.
Possessory Title Indemnity Insurance is often used when selling or buying property that lacks absolute title (the highest level of property ownership). This can often be due to missing deeds (for example, those lost or destroyed in World War I and II), historic informal transfers, or long-term occupation without formal documentation.
Common scenarios where this insurance is needed:
Missing or destroyed title deeds
Historic informal property transfers
Long-term occupation without documentation
Why does possessory title matter?
Understanding the implications for property transactions and ownership security.
A possessory title is granted by HM Land Registry when the applicant cannot provide the necessary documentary evidence to prove ownership, but they (or a predecessor) have been in undisputed possession of the land or property for a significant period, usually 12 years or more.
This kind of title is considered less secure than absolute title, which confirms full legal ownership. As a result, it can cause concern among buyers, mortgage lenders, and conveyancers, especially if there’s any possibility that someone else may assert ownership rights in the future.
