Find the Purchase Price of a Property

Find the Purchase Price of a Property

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Overview

The purchase price is shown in the Title Register by law, although under exceptional circumstances it may be omitted by the Land Registry. This articles provides details.

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Title Register

There was a change in the law in 2003, which meant that the Land Registry, from April 2003, must show the purchase price of a property in the Title Register. The relevant law was Rule 8 (2) of the Land Registration Rules 2003. This says:

Rule 8 (2)   On first registration and on a subsequent change of proprietor, the registrar whenever practicable will enter in the proprietorship register the price paid or value declared and such entry will remain until there is a change of proprietor, or some other change in the register of title which the registrar considers would result in the entry being misleading.

The price is now shown in Section B of the Register as required, as in the following sample.

B: Proprietorship Register

This register specifies the class of title and identifies the owner. It contains any entries that affect the right of disposal.

Title Absolute

1   (15.02.2023)   PROPRIETOR: John Doe of Xmarket Place...

2   (15.02.2023)   The price stated to have been paid on 27 January 2023 was £575,000.

The reason for the price being shown from April 2000 rather than 2003 is that the Land Registry were already showing it from this date whenever a request was made to show it. When the Land Registration Rules were being discussed pre-enactment, the Lord Chancellor made the decision to include the price as this would accord with the practice of most other countries, including Scotland.

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Trigger for the inclusion of the Purchase Price

Rule 8 (2) provides 2 triggers:

1. A new registration (this would include a lease for more than 7 years)
2. A subsequent re-registration

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What is the Purchase Price

The actual sum paid for the property, as shown in the Transfer prepared by the purchaser’s solicitors, will be the sum shown.

Where the consideration for the purchase was something other than money, e.g. the natural love and affection of the vendor for the purchaser, i.e. a deed of gift, then the entry shown may be for the market value of the property rather than the actual purchase price. Sometimes an estimate of the market value cannot be obtained, in which case the Land Registry will assess the value based on the fee paid to them for the registration (the fee is paid on a sliding scale of values). This may result in wording similar to the following:

2   (15.02.2023)   The value as at 27.01.2023 was stated to be between £xxx and £yyy,

or

2   (15.02.2023)   The value as at 27.01.2023 was stated to be under (or over) £xxx.

Sometimes whatever amount the Land Registry enter may appear misleading, in which case the price will be omitted.

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Discounts

Discounts provided to the vendor, such as a cash back on completion or payment of the deposit by the vendor, will be deducted from the price shown, so that a sale of £200,000 with a deposit paid by the vendor of £20,000, would show as £180,000.