When buying a freehold property with possessory title, is there a risk that a third party may have a better class of title to the property and therefore it may be able to enforce its rights against the purchaser? Should a buyer consider title indemnity insurance?

A person may be registered with possessory title if the registrar is of the opinion that:

1. •

   the person is in actual possession of the land, or in receipt of the rents and Profits of the land, by virtue of the estate, and

2. •

   that there is no other class of title with which they may be registered

Possessory title is generally a result of:

1. •

   an Adverse possession claim against unregistered land, or

2. •

   an application for first registration where the owner cannot produce documentary evidence to title for some reason

Pursuant to section 11(7) of the Land Registration Act 2002:

‘Registration with possessory title has the same effect as registration with absolute title,