If you’re buying a property in England or Wales, you’ll see the contract state whether the seller gives Full Title Guarantee or Limited Title Guarantee. Most people overlook this line, but it can make a real difference to the level of protection you have as a buyer.
When property is sold in England and Wales, the Law of Property (Miscellaneous Provisions) Act 1994 (“LP(MP)A 1994”) requires the seller to give either Full Title Guarantee (FTG) or Limited Title Guarantee (LTG). These guarantees shape the seller’s contractual promises about the property’s title. Understanding the difference is crucial for buyers assessing risk.
Full Title Guarantee
Under the Law of the Property (Miscellaneous Provisions) Act 1994, a seller giving FTG is promising that, and in in effect he/she confirms that:
- “I own this property and I have the full right to sell it.”
- “There are no hidden rights, charges, or restrictions—except anything I’ve already disclosed.”
- “If anything needs sorting out to perfect your title, I’ll assist.”
This is the best type of guarantee a buyer can receive. If a problem emerges later—say, an undisclosed right of way—you may have grounds to claim against the seller for breach of these implied promises. In practice, FTG is used in most sales of freehold or leasehold property by owners selling in the ordinary course of ownership.
Limited Title Guarantee
A seller giving LTG only promises two things:
- “I haven’t done anything to encumber the property.”
- “I am not aware of anyone else doing so while I’ve been responsible for it.”
That’s all. The seller is not guaranteeing good, clean title. They may simply not know what’s lurking in the property’s history. Crucially, they do NOT guarantee a good and marketable title nor that unknown encumbrances do not exist.
This is common when the seller is:
- an executor handling a deceased owner’s estate,
- a mortgage lender selling a repossessed property,
- a trustee or receiver,
- or anyone who has never lived in or fully investigated the property.
Significance of the Difference between Full Time Guarantee and Limited Time Guarantee
| Full Title Guarantee (FTG) | Limited Title Guarantee (LTG) |
| Buyer gets strongest protection | Buyer faces more uncertainty. |
| Seller warrants good title and disclosure. | Seller only warrants against his own acts/knowledge. |
| Easier for Buyer to bring a claim if title proves defective | Harder to bring a claim as the Seller’s knowledge may be minimal |
It is important to note that LTG does not mean something is wrong with the Property—it just means the seller cannot promise as much. LTG increases risks of unknown restrictive covenant, missing rights of way, boundary issues and other third-party interests etc.
If I Am the Buyer, Will Limited Title Guarantee Prejudice My Rights?
Not necessarily, your fundamental property rights remain intact, but it places greater emphasis on your solicitor’s due diligence. Transactions with LTG are common and usually proceed safely when handled with proper care and investigation.
How to Cope With LTG as a Buyer
- Enhanced title investigation
Your solicitor must thoroughly review the Land Registry entries, historical documents, and any potential unregistered interests. - Searches and enquiries
Conduct full local authority, drainage, environmental, and additional searches if necessary. Ask targeted enquiries about boundaries, rights of way, occupiers, and works carried out. Your own investigation can also be valuable. - Indemnity insurance
Where risks cannot be fully assessed or eliminated, your solicitor may recommend tailored insurance to protect you.
Conclusion
FTG provides strong buyer protection, while LTG does not prevent you from acquiring secure ownership, it heightens the need for careful conveyancing, investigative searches, and often indemnity insurance. With proper legal advice and due diligence, buyers can confidently proceed with purchases that involve LTG.
If you’re dealing with a LTG or something about the title doesn’t look quite right, feel free to reach out to Lisa’s Law professional team. we can help you:
- understand the risks;
- decide what questions to ask the seller;
- evaluate whether indemnity insurance is appropriate; and
- understand what we should be checking for you.
Get in touch with Lisa’s Law today for expert conveyancing advice.
Have questions? Get in touch today!
Call our office on 020 7928 0276, we will be taking calls from 9:30am to 6:00pm.
Email us on info@lisaslaw.co.uk.
Or, use the contact form on our website. Simply enter your details and leave a message, we will get right back to you: https://lisaslaw.co.uk/contact/
For more updates, follow us on our social media platforms! You can find them all on our Linktree right here.
