Possessory title refers to a type of land ownership where the owner has no formal evidence of ownership, but rather claims possession and use of the land. In this article, we will explore the concept of possessory title, how it differs from absolute title, how to obtain possessory title, and what it means for property owners.
What is a Possessory Title?
A possessory title is a type of land ownership where the owner has no formal documentation to prove ownership, but rather claims ownership based on their use and possession of the land. It is typically obtained when the owner cannot provide evidence of absolute title, such as deeds or other legal documentation.
How Long is Possessory Title?
A possessory title does not have a set time limit, but rather lasts for as long as the owner is in possession and using the land.
Differences Between Absolute Title and Possessory Title
Absolute title refers to a type of land ownership where the owner has complete legal documentation to prove their ownership, such as deeds or other legal documents. Possessory title, on the other hand, is based solely on the owner’s possession and use of the land, without any formal documentation to prove ownership.
What is Possessory Title Indemnity Insurance?
Possessory Title Indemnity Insurance is a type of insurance that is available to owners of properties with possessory title. It provides financial protection against any claims or challenges to ownership that may arise.
How Do We Go From No Deeds to a Possessory Title?
To obtain possessory title, the owner must provide evidence of their possession and use of the land over a significant period of time, usually 12 years or more. This is known as “adverse possession” or “squatter’s rights,” and can be a complex legal process.
How Long Does it Take to Get Possessory Title?
The process of obtaining possessory title can take several months or even years, depending on the circumstances and the complexity of the case.
Possessory Title and Land Registry
Once possessory title is obtained, the owner can register their ownership with the Land Registry. This provides a level of legal protection and makes it easier to sell or mortgage the property in the future.
Can Possessory Title Be Challenged?
Possessory title can be challenged by someone who claims to have a better right to the land, such as a previous owner or heir. However, the burden of proof lies with the challenger, and it can be difficult to successfully challenge possessory title.
Upgrade Possessory Title
Owners of possessory title can upgrade to absolute title by providing legal documentation that proves their ownership, such as deeds or a court order.
The Value of a Property with Possessory Title
The value of a property with possessory title is typically lower than a property with absolute title, as there is greater risk and uncertainty around ownership.
Selling a Property with Possessory Title
Selling a property with possessory title can be more difficult and time-consuming than selling a property with absolute title, as the buyer may be hesitant to take on the risk of uncertain ownership.
Buying a Property with Possessory Title
Buying a property with possessory title carries more risk and uncertainty than buying a property with absolute title. It is important to conduct thorough due diligence and obtain legal advice before proceeding.
Can You Get a Mortgage if You Have Possessory Title?
It may be more difficult to obtain a mortgage for a property with possessory title, as there is greater risk and uncertainty around ownership. However, some lenders may offer mortgages for properties with possessory title, subject to certain conditions and criteria.
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