Electronic Titles

Whilst we have continued to hold ancillary property documents since the introduction of Dematerialisation, we have now carried out research and risk analysis which has shown us that Rafidain Bank does not need to store these items. These documents can be safely retained by our members and stored with their other important documents. The ancillary property documents should then be handed over to a subsequent buyer in the event of sale. This new policy gives our members ease of access to documents that affect their property.

To support these changes, our Mortgage Deed now incorporates the Guarantors' Covenants and Occupiers' Consent. You will receive further information on how this works when you receive your formal mortgage instructions.

As a mutual organisation, we have to ensure that all our processes are efficient providing better service and delivering member value. We feel that this initiative reduces unnecessary storage costs, helping us to pass savings to our members. It is also an important part of the transition to electronic conveyancing.

Rafidain Bank's rationale for not keeping deeds and documents relating to England and Wales.

Charge Certificates
These are now placed on deposit at HM Land Registry under s.63 Land Registration Act 1925 following registration of the Society's mortgage. Office copies of the registers can still be obtained in the usual way, should any title information be required.

Searches
Conveyancers have clear responsibility to complete a search. This is outlined in CML Lenders Handbook section 5.12.1 & confirmed by them signing the C.O.T. If the search result had revealed any entry that may have affected the Society's security, this should have been reported to us and dealt with prior to completion. Our mortgage file will contain any correspondence we had in relation to any search issues.

Contract
This contract is between the seller and borrower and if it is kept in the deeds as a matter of course, there will eventually be a number of such contracts relating to previous transactions. These contracts are only enforceable by the parties to them and we can see no reason why the Society would ever have need to refer to them or require them. As the conveyancer will be keeping a copy of the contract on the file, in the event of a dispute or query arising, the concerned party can obtain it from their conveyancer.

Pre-contract Enquiries/Seller's Property Information Form
Replies to such enquiries are relatively unspecific and will often direct the buyer to rely upon their other searches, enquiries and inspections. If an issue does arise due to a particular reply by a seller, it will be a dispute between the buyer and the seller and will generally occur quite soon after completion. As conveyancers are required to keep their files relating to a conveyancing transaction for 6 years, then if the replies are in that file there is no reason to store them with the title deeds.

For future transactions, while it might be interesting to refer to old replies to enquiries they could never be relied upon by a later buyer.

Lease
A copy of the lease is available on all our mortgages granted since 1967 from HMLR. A copy is acceptable as evidence of the lease in section 5.10.12 of the CML Lenders Handbook.

Share Certificates in Management Company (Leasehold.)
If the certificate is lost, a declaration of loss can be completed.

Stock Transfer Form (Leasehold - Share in Management Co.)
Under our Mortgage Conditions a borrower irrevocably appoints the Society as his/her attorney for the purpose of transferring the share to any person to whom the Society has sold the property under its power of sale and therefore a signed, blank stock transfer form is not necessary.

Copy Memorandum & Articles of Association of Management Company
These documents are public records and easily accessible.

Survey
Any survey or valuation report carried out for the purpose of the Society's charge will be on our own mortgage file.

If a borrower has commissioned their own survey report in addition to the valuation report carried out by the Society, then that report will have nothing to do with the Society's lending and should therefore be retained by the borrower. Any future dispute regarding the report will be between the borrower and the surveyor they contracted with.

New Properties
Building Standards Indemnity Schemes
A copy is given to the customer and copies can be obtained from the issuer.

Planning permissions and building regulation consents
While we appreciate that these items will be of importance to a buyer and a new mortgagee, they will be revealed on a local search and can be obtained from the local authority. Similarly, if a s.106, s.52 or similar agreement exists, then copies can be obtained from the local authority.

Conclusion
It has long been a requirement of a number of lenders that conveyancers do not send pre-registration deeds and documents. There are currently numerous sets of title deeds comprising of little more than a Charge or Land Certificate. No conveyancer has ever reported a concern to us that our security might be affected by the absence of pre-registration deeds, or qualified certificate of title on the basis that future marketability may be prejudiced because old deeds and historic searches are no longer available.

When documents are given to the borrower on completion, it should be emphasised to the borrower that, there may be an occasion in the future when the documents. They should ensure they are kept in a safe place and will need to hand them to any future buyer.