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, e.g., a Form A restriction.

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)

Local Dogs Eat Big Chunky Icecream

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 search done by buyer to gather practical information.

Land charges register search is a 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 is 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, e.g., e small home extensions within certain size limits, porches, fences, or conservatories.

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, e.g., permission for specific building materials. If there are reserved matters, there will have to be a full application within three years of the outline permission to obtain approval on those matters.

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 an enforcement notice?

Answer 18

If the local authority decides to take enforcement action for a planning breach, it must serve an enforcement notice.

(The enforcement notice must state the nature of breach, the steps required to remedy the breach, and the time limit to complete the required work.)

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

How can a Solictor acting for a buyer find out whether an enforcement notice has already been served on the seller of the property?

Answer 20

The solicitor acting for the client will find out about an enforcement notice during the pre-contract stage, when conducting the local search.

Question 21

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

Answer 21

The buyer is liable for any planning issues relating to land they own. The new buyer cannot rely on the fact that it was a previous owner who carried out the work without the required permission.

Question 22

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

Answer 22

The listing covers everything within the curtilage, meaning that besides the building itself, the garden and immediate area around the building are covered by rhetorical status.

Question 23

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

Answer 23

There is no time limit

Question 24

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

Answer 24

They will require compliance with building regulations.

Question 25

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

Answer 25

12 months

Question 26

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

Answer 26

An injunction requiring the owner to comply with the regulations

Question 27

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 27

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 28

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

Answer 28

A category of use describing the activities conducted in 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 29

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

Answer 29

Not unless actual building work is required to make that change

Question 30

Whilst some changes from one use class 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 30

1. Conservation area
2. Listed building

Question 31

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

Answer 31

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

Question 32

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

Answer 32

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

Question 33

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

Answer 33

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 34

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 34

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 35

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

Answer 35

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

Question 36

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 36

If the mortgage completion triggers first registration, then the buyers solicitor has 2 months to register the mortgage free from any intervening interests.

Question 37

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

Answer 37

21 days

Question 38

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

Answer 38

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 39

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

Answer 39

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

Remembered because Both solicitors are working.

Question 40

When is Formula C used for exchange?

Answer 40

When there is a Chain of transactions

Question 41

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

Answer 41

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 42

How is a contract varied after exchange?

Answer 42

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

Question 43

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 43

An engrossment made up of the original signed by the landlord and counterpart signed by the tenant.

Question 44

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

Answer 44

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

Question 45

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 45

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 46

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

Answer 46

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

Question 47

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

Answer 47

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 48

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

Answer 48

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

Question 49

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

Answer 49

15 days

Question 50

What are the four types of purchase deed?

Answer 50

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

Question 51

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 51

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

Question 52

What is a licence to assign?

Answer 52

Document evidencing landlord’s consent to assignment under a lease

Question 53

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

What are three methods of exchange?

Answer 53

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