Classes of Titles

Farida Hashim
Trainee Solicitor

Introduction

When you encounter a title register, particularly in section B, you’ll notice the term “class of title.” This classification reflects the Land Registry’s confidence level in establishing ownership during property registration. There are three classes of titles, with an additional title for leasehold properties only. They are absolute titles, qualified titles, possessory titles, and good leasehold titles.

Absolute Title

An absolute title, written in a title register as ‘title absolute’, refers to a type of title that provides the owner with the highest level of ownership rights and security. Absolute title is considered as the best and strongest form of property ownership as it provides that the ownership cannot be legally contested or claimed against. That could either be an absolute leasehold or an absolute freehold title.

Leasehold ownership usually involves restrictions on the leaseholder, such as a limited term and payment of rent, however an absolute leasehold title grants the leaseholder exclusive rights over the property for the specific term. The absolute leaseholder has substantial rights which include the right to occupy and use the property, as well as selling the property, in which case would be selling the lease to another person.

Absolute leasehold titles are usually more common for flats and apartments as when the property is held on a lease it means that you own the property, the flat, for a specific period but you do not own the land it sits on. Usually, the freeholder would be the property management company, meaning that they are the ones that own the actual land, and you would be holding only the flat on lease.

An absolute freehold title is straightforward. It means that as an owner you possess ALL rights over the property with the land it sits on. As stated before, this is the strongest type of title ownership because no other person can contest or claim title over your property.

Qualified Titles

Qualified titles are the least desirable and are extremely rare. It occurs when there is a defect in the title that cannot be disregarded, and it can be registered for either freehold or leasehold properties.

If a transfer breaches a trust, the title registers as qualified, granting ownership subject to beneficiaries’ equitable interests.

Possessory Titles

Owners typically receive possessory title when they claim the land through adverse possession. More commonly, owners receive it because they lack documents proving ownership, often due to lost or destroyed title deeds. Possessory title remains rare and applies to both freehold and leasehold properties.

Good Leasehold

The Land Registry grants good leasehold title when it accepts the leasehold title but not the freehold title. In contrast, it grants absolute title when it accepts both leasehold and freehold titles. For example, a property registers as good leasehold if the applicant registers it as leasehold but cannot provide evidence of the unregistered freehold title.

A good leasehold title can be vulnerable to dispute, which can arise if someone claims the freehold title and proves that the original party that granted the lease had no right to do so.

Conclusion

In conclusion, out of the four possible classes of titles which are absolute, qualified, possessory, or good leasehold, it is best to have an absolute title as it provides the most security over the ownership of the property. A class of title can potentially be upgraded, however there has to be sufficient evidence to prove your claim to the Land Registry.

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