A Certificate of Title is a legal document prepared by a borrower’s solicitor, confirming that the property has good and marketable title, suitable for securing finance. It sets out key title issues, rights, restrictions, and confirms legal ownership. In UK property development finance, lenders rely on this certificate before releasing funds, especially for senior and mezzanine debt. It offers assurance that the security is enforceable and that no material title issues could affect the property’s use or value. The document is typically addressed to the lender and forms part of the legal due diligence process.
In practice, a Certificate of Title forms a critical link between legal due diligence and funding completion, giving lenders confidence that the property can provide effective security for the proposed facility. As part of the wider framework of Property and Title Related matters, it helps identify issues such as restrictive covenants, easements, leasehold provisions, or title defects that may influence lending decisions. The document is particularly important where funding is provided through Senior Debt 1st Charge facilities, as the lender’s security position depends on the validity and enforceability of the title being certified. Any qualification or exception raised within the certificate may lead to additional conditions, legal undertakings, or amendments before funds are released.
View glossary entry