7. Legal Aspects Of Property Purchase Flashcards
What is a licenced surveyor?
Alternative to a solictor. Qualified in conveyancing only, but not other legal matters
Are legal fees refundable?
Solicitor’s own fees may be partly refundable if the sale doesn’t go through, but search fees are non-refundable.
What is professional negligence?
Where a legal professional fails to rpovide a duty of care.
What must a client prove to establish that professional negligence has taken place?
- Duty of care has been owed and breached
- Loss, damage or inconvenience has been caused as a result
What is the Law Society? What is its role?
A professional body of sols. Provides strict standards & takes disciplinary action if these are not met
Who does a solicitor’s professional indemnity insurance protect?
Their clients. It does not protect sols from financial repercussion from professional negligence.
What is the document that is formed as a result of the investigations of title?
COT
What 3 things does the COT need to establish?
- Property is what it is claimed to be
- Vendor has legal ability to sell
- Property is free from restrictions which would inhibit the sale
What can be done if a solictor’s searches find that the title is defective?
Insurance can be taken out against defective titles, either to protect the buyer, the lender or both
What is a Puisine Mortgage? What does this mean for the lender?
When the lender lends against unregistered property and they do not possess the title deeds. As a reult, their rights would be the same as a second charge holder on unregistered land
When are Land Registry Searches needed? What is included in the searches? (3)
Needed for registered property
1. Property Register
2. Proprietry Register
3. Charges Register
When are Land Charges Registry Searches needed? What do they check for? (2)
Needed for unregistered property
1. Puisine Mortgages
2. Spousal interest
What do the Local Land Charges Registry and local authority enquiries search for? (2) Which one of these is in the process of being moved to another register?
- Obligations and restrictions - being moved to land registry since 2018
- Town planning and road changes
When are bankruptcy searches conducted? (2)
- By lender against borrower
- sometimes against vendor to see if they are legally able to receive the funds
What is Commons registration used for?
To check for commonly owned property, e.g. village greens, land belonging to the lord of the manor, undeveloped countryside etc
Which type of mortgage might solictor’s searches not be needed for? What happens instead?
Remortgages - lenders will sometimes allow the borrower’s solictors to arrange search indemnity insurance instead. This protects both the lender and borrower.
Who is responsible for filling out the property information form? What information does it include?
The Vendor.
Provides info on what is included with the property, as well as utility services, disputes/sharing arrangements with neighbours, changes/planning, guarantees, fixtures and fittings etc
What is the name for the contract between the lender and the borrower?
The mortgage deed
What is the name of the contract exchanged between the buyer and vendor?
The sales contract
What events occur simultaneously with the exchange of contracts? (4)
- Deposit is paid
- Completion date agreed
- Settlement figures obtained (for outstanding mortgages)
- Signing of the mortgage deed
At what point does the buyer become the legal owner of the property and does the lender get a legal charge?
On completion
How long does the buyer’s sol have to file a tax return for SDLT?
14 days from completion
What are disbursements?
Expenses paid for by the solicitors on the buyer’s behalf, e.g. search fees, registration fees, stamp duty
When does the buyer have to pay the solictor for fees and disbursements?
Post completion
