What is the purpose of a Certificate of Title?

• A. It evidences ownership of the property for the buyer.
• B. It acts as a request to the lender to enable advance of funds and confirms matters satisfactory and represents good loan security.
• C. It provides a schedule of fixtures and fittings.
• D. It confirms the property is free from all charges.

Answer: (B)

In a mortgage transaction, the Certificate of Title is used to provide the lender with assurance that the title to the property is satisfactory and can be relied on as security for the loan. It is a lender-facing statement prepared during the conveyancing process that confirms ownership aspects and other title matters so funds can be advanced, showing that the loan will be properly secured. It is not simply a record evidencing ownership for the buyer, nor a fixtures schedule, and it isn’t a guarantee that there are no charges—the title will show any charges registered against it.