Transfer deeds are vital documents in property transactions. Whether you’re buying, selling, or transferring part of a property, understanding transfer deeds ensures you’re prepared for the full legal process. In this guide, we'll cover everything you need to know about how they work and the forms needed to make a property transfer official.
What is a transfer deed?
A transfer deed is a legal document that officially transfers ownership of a property from one party to another. It's a crucial part of the conveyancing process, providing a formal record of the change in ownership, signed by both the buyer and the seller (or other transferring parties).
The document is typically registered with the Land Registry in England and Wales, updating the official property records to reflect the new owner. Transfer deeds are essential whether transferring full ownership, a share of the property, or specific rights associated with the property.
What does a transfer deed do?
Without a properly executed and registered transfer deed, the legal transfer of property ownership is incomplete. A transfer deed serves a few other purposes, including:
Legally transferring property ownership: It acts as a formal agreement between parties.
Detailing rights and obligations: It specifies any conditions or agreements, such as shared responsibilities or retained access rights.
Recording the sale or gift of property: Whether the transfer is for a sale, inheritance, or gift, it outlines the nature of the transaction.
How is a transfer deed created?
Creating a transfer deed involves completing specific forms provided by the Land Registry. Solicitors or licensed conveyancers typically prepare these forms, though it is possible to complete them without professional help. The most common forms include TR1, TR2, and TP1, depending on the type of property transfer.
What is a TR1 form?
Form TR1 is the most commonly used transfer deed form for transferring the entire ownership of a property title from one party to another. It's required in typical property sales, gifts, or transfers between family members or business partners. This form records the change of ownership and includes details about the property, the transferring parties, and any new agreements or obligations. It is a legally binding document that must be completed accurately to avoid delays or legal issues during the registration process with the Land Registry.
Learn more in our guide to what is a TR1 form.
What is a TR2 form?
Form TR2 is specifically designed for the transfer of registered charges rather than property ownership. A registered charge is typically a mortgage or other form of security interest registered against the property. The TR2 form is used when a lender or other charge holder transfers their financial interest to another entity. This form ensures that the transfer of responsibility for the financial charge is officially documented and recognised by the Land Registry. While it is not commonly used in private property sales, it is vital in corporate or complex financial arrangements.
What is a TP1 form?
Form TP1 is used to transfer only part of a registered title rather than the whole property. It is commonly required when splitting a large property into smaller plots or transferring a portion of land to another party. TP1 forms are often used in land development projects, where sections of land are sold to different buyers. This form includes detailed information about the part being transferred, boundaries, rights of way, and any other rights or restrictions affecting the divided property. It must be accompanied by a plan outlining the specific area being transferred.
Learn more in our guide to what is a TP1 form.
TR1, TR2 and TP1 compared
Form | Purpose | When it’s used |
|---|---|---|
TR1 | Transfer of whole title | Standard property sale or gift |
TR2 | Transfer of registered charge | Assigning a mortgage or charge |
TP1 | Transfer of part of a title | Splitting property or land |
What information does form TR1 include?
Form TR1 is divided into several panels that require specific information to complete the transfer of ownership accurately. Each panel must be filled out accurately to ensure smooth processing. Errors or omissions can lead to registration delays and additional costs. Here’s a breakdown of key sections:
Panel 1 (Title Number): This is where the property’s Land Registry title number is recorded. Each registered property has a unique title number.
Panel 2 (Property Address): The full postal address of the property being transferred is entered here.
Panel 3 (Transferor): The current owner(s) or seller(s) of the property are listed in this section.
Panel 4 (Transferee): The name(s) of the new owner(s) or buyer(s) are recorded.
Panel 5 (Consideration): This section details the purchase price or value of the transaction if the transfer involves a sale or gift.
Panel 9 (Declarations of Trust): This section allows for a declaration of how the new owners will hold the property, whether as joint tenants or tenants in common.
Panel 10 (Additional Provisions): Any special agreements, such as covenants or restrictions, are detailed here.
Execution (Signatures): Both parties (and any witnesses) must sign the form to make it legally binding.
FAQs
Can you transfer deeds without a solicitor?
Yes, it’s possible to complete a transfer deed without a solicitor, especially for straightforward transactions, such as transferring property between family members. However, professional advice is highly recommended to avoid legal pitfalls and ensure the documentation complies with Land Registry requirements.
Who prepares the transfer deed?
Typically, a conveyancer or transfer of equity solicitor prepares the transfer deed. If you choose to do it yourself, the Land Registry provides guidance on completing the relevant forms. However, incorrect filings can delay the process and incur extra fees.
What happens after signing a transfer deed?
Once the transfer deed is signed, it must be registered with the Land Registry to complete the ownership change. The buyer’s solicitor usually handles this step, paying any applicable fees and taxes. The updated title will then show the new owner’s details.
Final thoughts
Understanding transfer deeds is essential when buying, selling, or gifting property. Knowing which form to use and how the process works can save time and reduce stress. For most transfers, working with a property solicitor ensures accuracy and compliance with legal requirements, but armed with the right knowledge, even private transfers can be managed effectively.