Property Purchase or Sale Price

Property Purchase or Sale Price

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Overview

The property purchase price, i.e. the price the property was sold and purchased for, is shown in the Title Register for property sold after 1 April 2000. This article explains why it may sometimes not be shown and what is shown when the property is gifted rather than sold, or if it forms part of a larger transaction of properties.

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When the Purchase Price is Shown

The Land Registration Rules 2003, section 8 (2) introduced the legal requirement for the purchase price of a property registered after the commencement of the Land Registration Act 2002, for the entry in section B of the Title Register of the purchase price or value declared, and that the same should remain in the Register until there was a change in ownership or some other entry that would render the purchase price misleading. In practice, the Land Registry were already entering the purchase price for properties registered from 1 April 2000.

This rule applies to all properties save for those sold by lease granted for less than 7 years, or where there is less than 7 years outstanding.

Sample Title Register showing the entry of the Purchase Price

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 (20.12.2004)   Proprietor: John Jones of Suburban Road, Dacre, Harrogate HG4 4ZZ.

2 (20.12.2004)   The price stated to have been paid on 10 October 2003 was £230,000.

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Purchase Price and Market Value

There may be a number of reasons why the purchase price shown differs from the market value of the property at the time of purchase. For example, properties are often sold below market value in an auction or where the type of property is unique.

The market value is not shown, only the purchase price.

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Where a Property is Gifted

Where a property is registered following a gift from one person to another, the donee of the gift will declare its value as at the date of the gift, which will usually match that shown in the Stamp Duty Land Tax Document. Where the property is inherited the beneficiary will state the value shown in the grant of probate.

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Omitting the Purchase Price

The Land Registry will not include the purchase price if to do so would be misleading, e.g. the individual price paid for each property may not be shown where a portfolio of properties are all registered together, or where the property was purchased subject to an existing mortgage.