2. Investigating Title, Buyer's Pre-Contract Searches, Town/Country Planning, Buyer's Funding (Stage 2); Exchange of Contracts (Stage 3); and Pre-Completion (Stage 4)

Question 1

What will appear on the property register?

Answer 1

Rights which benefit the land, e.g. a right of way over neighbouring land, will appear as a notice in the property register.

Avoid answer choices which suggest a right benefitting property A is on the property register of the burdened property. They will use this to trick you into assuming it operates the same as a charge. It does not. A benefit can appear on the charges register of the burdened property, but not the property register.

Question 2

What will appear on the proprietorship register?

Answer 2

Any restrictions affecting title

Question 3

What must a seller’s solicitor do if they discover there has already been a triggering event in relation to unregistered property they are dealing with, and when?

Answer 3

Make an application to HMLR before drafting the contract

Question 4

What are the six pre-contract searches which are always carried out?

Answer 4

1. Local search
2. Drainage and water search
3. Environmental search
4. Index map search
5. Bankruptcy search (if buyer is borrowing)
6. Company search (if seller is a company)

Question 5

What two similarly named searches should not be confused, and what is the difference?

Answer 5

Local land charges register search and land charges register search.

Local land charges register search is a pre-contract search done by buyer to gather practical information.

Land charges register search is a pre-contract search done by buyer to investigate title and any third party rights

Question 6

Why is an environmental search important?

Answer 6

Because a buyer will be liable for paying for the clean up costs of any land they own which is contaminated, even if it was caused by the seller

Question 7

What are some location specific searches which might be needed?

Answer 7

1. Coal mining search
2. Chancel liability search (ancient obligation to upkeep a church)

Question 8

What is the commercial equivalent of the property information form?

Answer 8

Commercial Property Standard Inquiries

Question 9

On the exam, what should a planning issue not be confused with, and which takes priority?

Answer 9

A planning issue should not be confused with a title issue, and planning permission will not cure a title defect

Question 10

Under the Town and Country Planning Act 1990, planning permission is required for any development. In what two ways in development defined?

Answer 10

1. Building, engineering, mining or other operations with regard to land, or
2. Making any material change of use of any buildings or other land

Question 11

What is a permitted development?

Answer 11

A development which has deemed permission and is exempt from applying for express permission

Question 12

What are some examples of permitted developments, i.e. developments with deemed permission?

Answer 12

Small home extension, porch, fence, conservatory

Question 13

What is the effect of a local authority passing an Article 4 Direction?

Answer 13

It revokes the permitted development exception for the relevant area, meaning that all developments must be applied for

Question 14

What are the two types of express planning permission?

Answer 14

1. Outline
2. Detailed

Question 15

What is outline permission?

Answer 15

Broad permission to the principle of the development, (subject to any reserved matters which if part of the permission must be approved by the authority within three years)

Question 16

No longer than how long after the grant of outline permission (or the approval of reserved matters where relevant) must development begin?

Answer 16

Two years.

Therefore it could be five years before development needs to begin

Question 17

Where detailed, i.e. full permission is granted, within what time limit must development begin?

Answer 17

Three years

Question 18

What is the consequence of planning issues running with the land?

Answer 18

The buyer is liable for any planning issues relating to land they own

Question 19

Within what time limit of breach must a planning enforcement notice be served where it is regarding (1) unauthorised building works and (2) all other breaches, e.g. breach of conditions of planning?

Answer 19

1. Unauthorised building works: Four years
2. Other breaches: Ten years

Question 20

What is the extent of the listed status where a building is listed?

Answer 20

It covers everything within the curtilage

Question 21

Within what time limit of breach must a local authority bring an planning enforcement action regarding a listed building?

Answer 21

There is no time limit

Question 22

Even though a development might not need planning permission, what will all works require?

Answer 22

Compliance with building regulations

Question 23

Within what time limit of breach must a local authority bring an enforcement action regarding building regulations?

Answer 23

12 months

Question 24

Even though an building regulations enforcement can only be brought within 12 months, what is always available?

Answer 24

An injunction requiring the owner to comply with the regulations

Question 25

Where a buyer asks the seller to provide indemnity insurance for a planning or building regulations breach, even though the enforcement period has passed, what must not be done and why?

Answer 25

No contact should be made to local authorities, as this can negate the availability of such insurance as it would technically be after the breach

Question 26

Regarding planning in a commercial context, what is a use class?

Answer 26

A category of use describing the activities of the building, e.g.:

1. Commercial, business, and service, e.g. shop, restaurant
2. Learning and non-residential institution, e.g. museum, library
3. Local community, e.g. small shops, community hall

Planning permission generally required to change use class, even if no building work is being done.

Question 27

When planning permission is granted for a use class, is further permission needed to change the activity within the same use class?

Answer 27

Not unless actual building work is required to make that change

Question 28

Whilst some changes from one use case to another are allowed under permitted development, in what two situations will this not be available and changes to a use class will therefore require an application?

Answer 28

1. Conservation area
2. Listed building

Question 29

Regarding buyer’s funding of the property, whilst a solicitor cannot offer a financial opinion on the mortgage offer, what can they do?

Answer 29

Explain the general terms, e.g. length, interest rate, conditions, but not whether it is a good product or not

Question 30

What are the two functions achieved by the buyer’s solicitor submitting a clear Certificate of Title to the lender?

Answer 30

1. Confirms to lender that title is good and marketable
2. Requests a release of the mortgage advance

Question 31

What two steps does the process of perfecting the mortgage involve, and who does it?

Answer 31

Buyer’s solicitor will:

1. Apply to register the title to the property after completion
2. Ensure the lender’s legal charge is registered as a first legal charge on the Charges Register

Question 32

What should we look for on the exam which might not appear to trigger a registration requirement for unregistered property but actually does, and why?

Answer 32

A client mortgaging property they already own which has not previously been subject to a mortgage, because a first legal mortgage is a trigger for registration

Question 33

Regarding registered land, what search begins the priority period to complete registration free from intervening interests, and how long does this period last?

Answer 33

The OS1 or OS2 search will give a 30 day priority period

Question 34

Where there is a registration requirement which is triggered by mortgage completion concerning unregistered land, within what period must the buyer’s solicitor register the mortgage?

Answer 34

Two months

Question 35

If the buyer is a company, within what period must the mortgage be registered at Companies House?

Answer 35

21 days

Question 36

When is Formula A used for exchange and what is a quick way to remember this?

Answer 36

When one solicitor holds both signed parts of the contract.

Remembered because one solicitor is Away and the other is doing All the work

Question 37

When is Formula B used for exchange and what is a quick way to remember this?

Answer 37

When each solicitor hold their own client’s part of the contract.

Remembered because Both solicitors are working.

Question 38

When is Formula C used for exchange?

Answer 38

When there is a Chain of transactions

Question 39

How is the interest in a sale contract protected after exchange, where land is (1) registered and (2) unregistered?

Answer 39

Registered: Notice placed on the seller’s charges register

Unregistered: C(iv) estate contract land registered against the seller’s full name

Both are removed upon completion.

Question 40

How is a contract varied after exchange?

Answer 40

Both parties must exchange contracts again with the variation included in the new contract

Question 41

Finished with stage 3 (exchange of contracts) and on to stage 4 (pre-completion):

In a lease situation, what is the final version of a lease called, and what are its two parts?

Answer 41

An engrossment made up of the original and counterpart

Question 42

What should the buyer’s pre-completion searches not be confused with?

Answer 42

Pre-contract searches, e.g. local search or drainage search

Question 43

In the registered system, in the period between completion and registration, only what type of interest does the buyer have, why, and what must be done to protect this interest?

Answer 43

Only an equitable interest, because legal title in the registered system passes upon registration. The equitable title must be registered as a notice on the charges register of the property

Question 44

What are the two purposes of the official search carried out after exchange in the registered system?

Answer 44

1. Discover any new entries, e.g. new mortgages, requiring address before competition
2. Start the 30 day priority period to complete and register

Question 45

What occurs if there is an error in the official search certificate and what remedy is available?

Answer 45

Buyer is still bound by what should have been on the report, even if unaware of it, however they can claim an indemnity from HMLR

Question 46

In the unregistered system, what pre-completion searches are carried out?

Answer 46

Repeat the pre-exchange full land charges search against the full names of the landowner/seller for the full period of their ownership

Question 47

From this search, what is the priority period in the unregistered system in which to complete?

Answer 47

15 working days

Question 48

What are the four types of purchase deed?

Answer 48

1. Conveyance (unregistered)
2. Transfer (registered and unregistered)
3. Assignment (unregistered leasehold)
4. Assent

Question 49

What are the two types of form used when (1) whole of the land and (2) part of the land in a title is being transferred?

Answer 49

1. Whole: TR1 Form
2. Part: TP1 Form

Question 50

What is a licence to assign?

Answer 50

Document evidencing landlord’s consent to assignment under a lease

Question 51

Finished with stage 2 (pre-contract) and on to stage 3 (exchange of contracts):

What are three methods of exchange?

Answer 51

1. Person
2. Post
3. Phone (most common)