CRITICAL APPROACHES TO PROPERTY LITIGATION Flashcards by Jack-Dean Thomas

A farmer is selling his freehold farm which he acquired in 1979. He has handed the unregistered title deeds to his solicitor, but there is one small field to which he has no deeds. He confirms that he has farmed that field since 1979 without anyone else’s permission. The solicitor has recommended that an application be made to HM Land Registry for voluntary first registration of title to the field.

Which of the following best describes the class of title which is likely to be granted if the field is registered?

a) Absolute.

b) Possessory.

c) Qualified.

d) Good leasehold.

e) No class of title.

B) Possessory

This is because a possessory title will normally be granted at the time of first registration of the title to the land where the unregistered title was based either on adverse possession or on title deeds which had been lost or destroyed.

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A solicitor is acting for the buyer of a country cottage built around 150 years ago. Access to the cottage from the nearest public highway is over an unadopted track which has unregistered title. The seller has produced satisfactory evidence to establish that the cottage has the benefit of a prescriptive right of way over the track. However, the registered title to the cottage makes no mention of any such right of way.

Which of the following statements correctly describes the advice which the solicitor should give to the client regarding the access over the track?

a) The right must be completed by registration in the title to the cottage, otherwise it is ineffective at law.

b) The right is not registrable in the title to the cottage as it was created by prescription and can therefore only exist in equity.

c) The right takes effect as a legal easement for the benefit of the cottage even though it is not registered in the title to the cottage.

d) The right takes effect as a legal easement but must be registered in the title to the cottage in order for the benefit to pass to subsequent owners.

e) The right must be registered as a land charge in order to be effective and bind the owners of the unregistered track.

c) The right takes effect as a legal easement for the benefit of the cottage even though it is not registered in the title to the cottage.

This is because a prescriptive easement takes effect as a legal easement even though it is not created by an express grant and has not been registered.

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A building company is purchasing a plot of development land which it intends to use for residential housing. The land has registered freehold title. The official copy register entries of the title show that the land is registered with a possessory class of title.

Which one of the following statements concerning possessory class of title is correct?

a) It is only granted where the applicant for first registration was able to produce title deeds, but these were not sufficient to show a good holding title.

b) It can be granted only if the applicant for first registration is in actual possession of the land or in receipt of the rents and profits from it (s9(5) Land Registration Act 2002).

c) It has the same effect as absolute title, except that it is subject to the adverse possession of a third party subsisting at the time of first registration.

d) It is a permanent class of title granted at the time of first registration and cannot subsequently be altered.

e) It is only granted in cases where the applicant for first registration was in adverse possession of the land.

b) It can be granted only if the applicant for first registration is in actual possession of the land or in receipt of the rents and profits from it (s9(5) Land Registration Act 2002).

A possessory title can subsequently be upgraded to an absolute title if the title has been registered for at least 12 years and the proprietor is still in possession or (in cases of ‘lost deeds’) the missing title deeds have been found.

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A businessman is proposing to take a short lease of an office suite for a term of four years. The lease is to be at a market rent and with a premium of £500 for the grant of the lease. He wishes to keep the costs low and asks his solicitor whether an oral lease would be sufficient to create a legal lease.

Which one of the following statements best describes whether an oral lease would suffice?

a) An oral lease would be sufficient to create a legal lease because the lease is for a term of less than five years for no premium.

b) An oral lease would not be sufficient to create a legal lease because although it is a short lease there is a premium payable.

c) An oral lease may possibly be sufficient to create a legal lease, depending upon whether or not the landlord’s reversionary title is registered.

d) An oral lease would be sufficient to create a legal lease because the lease is for a term not exceeding seven years and is not therefore registrable at HM Land Registry.

e) An oral lease would not be sufficient to create a legal lease because the term is for a period exceeding three years.

This is because a lease for a term of more than three years, taking effect immediately and reserving the best rent reasonably available, must be made by deed if it is to take effect as a legal lease (s52(1) Law of Property Act 1925). As the lease will not be for a term exceeding seven years, it will not have to be registered at HM Land Registry in order to take effect at law (s27 Land Registration Act 2002). It may, however, be protected by entry of a notice in the register of the landlord’s title, as it is for a term exceeding three years (s33(d) Land Registration Act 2002). However, even if such a notice is not entered, the lease will be protected as an overriding interest (Sch 3, para 4, Land Registration Act 2002).

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A solicitor is acting for the buyer of a lodge, which originally formed part of a large estate but was sold off several years ago. The lodge has a registered title, but there is no entry in the register relating to any easements over the remainder of the estate. The buyer’s solicitor raises a pre-contract enquiry about this with the seller’s solicitor, who responds that the lodge has the benefit of any easements implied under s62 of the Law of Property Act 1925.

Which one of the following statements best describes when s62 will operate on a sale of part of an estate?

a) Only where there has been prior diversity of occupation of the land transferred and the land retained.

b) Only where there is no contrary intention expressed in the transfer that s62 is not to operate.

c) Only where the title to the estate is unregistered, because s62 does not apply to registered land.

d) Only where the transfer expressly provides for s62 to operate.

e) Only where there has been no prior diversity of occupation of the land transferred and the land retained.

b) Only where there is no contrary intention expressed in the transfer that s62 is not to operate.

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A couple are buying a house and attend a meeting with their solicitor to go through the purchase documentation. The house has a registered title and their solicitor shows them the title plan and explains its significance.

Which one of the following statements is correct in relation to most title plans?

a) It shows the precise position of the legal boundaries of the registered title.

b) It shows the title numbers of any adjoining registered titles over which the property has the benefit of easements.

c) It shows the general position of the legal boundaries of the registered title.

d) It shows whether any roads adjoining the property are registered under their own title number.

e) It shows the physical nature of the legal boundaries of the registered title.

c) It shows the general position of the legal boundaries of the registered title.

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A recently married couple are buying a new house together in their joint names. One of them has no children; the other has children from a previous marriage, to whom she would like her interest in the property to pass after her lifetime. The couple are contributing unequal amounts towards the purchase price and want their respective interests in the property to reflect those contributions.

What would be the most appropriate way for the couple to hold the legal and beneficial ownership of the property in these circumstances?

a) They should hold the legal estate as joint tenants and should also hold the beneficial interest as joint tenants.

b) They should hold the legal estate as joint tenants but should hold the beneficial interest as tenants in common in specified shares.

c) They should hold the legal estate as tenants in common and should also hold the beneficial interest as tenants in common in unequal shares.

d) They should hold the legal estate as tenants in common but should hold the beneficial interest as joint tenants.

e) They should hold the legal estate as joint tenants but should hold the beneficial interest as tenants in common in equal shares.

b) They should hold the legal estate as joint tenants but should hold the beneficial interest as tenants in common in specified shares.

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A solicitor is acting for the buyer of a freehold house which has a registered title. The buyer is currently living in rented accommodation and has no property to sell. They are funding the purchase partly with a mortgage loan. The seller has an existing mortgage on the house.

Which of the following statements correctly describes the normal sequence of the key steps which will be taken by the buyer’s solicitor?

a) Approve draft contract; receive mortgage offer; exchange contracts; prepare draft transfer.

b) Obtain redemption figures for existing mortgage; carry out all searches; exchange contracts; approve draft transfer.

c) Carry out pre-contract searches; exchange contracts; receive mortgage offer; prepare completion statement.

d) Carry out pre-completion searches; exchange contracts; pay stamp duty land tax; send balance of purchase price to seller’s conveyancer.

e) Exchange contracts; receive mortgage offer; redeem existing mortgage; pay stamp duty land tax.

a) Approve draft contract; receive mortgage offer; exchange contracts; prepare draft transfer.

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A couple are buying a house on a popular housing estate which was built around 20 years ago. They know the property needs some minor repairs and redecorating but other than that they do not intend to make any changes to it. They are obtaining a mortgage from their bank to fund the purchase. They are considering what type of survey might be appropriate.

Which one of the following would be most appropriate in the circumstances?

a) A full structural survey.

b) A mortgage valuation report.

c) A homebuyer’s valuation and survey report.

d) A survey commissioned by the mortgage lender.

e) No survey.

c) A homebuyer’s valuation and survey report.

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The owner of a large Grade II listed property has just sold part of his garden to a developer, who intends to build several new houses on the land. The land comprises an area of 1 hectare. The owner has owned and lived in the property as his home for over ten years. He has already used his full capital gains tax (CGT) annual allowance on the sale of other assets. He wishes to know whether the principal private residence exemption will apply to his capital gain arising from the sale.

Which of the following statements best describes the position regarding CGT on any gain made by the owner on the sale?

a) The whole gain will be exempt because the area of the land does not exceed the statutory limit of 1 hectare.

b) The whole gain will be exempt because the past use of the whole area of the land has been residential and this will continue to be the case following the sale.

c) One half of the gain will be exempt because it relates to the area of land within the statutory limit of 0.5 hectare; the remainder will not be exempt.

d) None of the gain will be exempt because the area of the land exceeds the statutory limit.

e) The whole gain will be exempt because the land forms part of the garden of a Grade II listed building.

c) One half of the gain will be exempt because it relates to the area of land within the statutory limit of 0.5 hectare; the remainder will not be exempt.

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A property investor owns a portfolio of properties and is selling a house which he bought as a buy-to-let nine months ago. The house has been let throughout his period of ownership. He is concerned as to whether, for capital gains tax (CGT) purposes, the principal private residence exemption will apply to the gain he will make on the sale.

Which one of the following statements best describes the position regarding CGT on the sale?

a) There will be no CGT payable because non-residence up to the first 12 months of ownership does not preclude the exemption from applying.

b) There will be CGT payable because the exemption does not apply to a buy-to-let property which has not been used by the seller as their residence.

c) There will be no CGT payable because non-residence for up to the last nine months of ownership does not preclude the exemption from applying.

d) There will be CGT payable because the exemption does not apply where the seller owns more than one residential property at the same time.

e) There will be no CGT payable because the house has been occupied for residential purposes throughout and the exemption will therefore apply.

b) There will be CGT payable because the exemption does not apply to a buy-to-let property which has not been used by the seller as their residence

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An unmarried couple are buying a new house to live in together. They are having a small mortgage and are contributing equally to the balance of the purchase price. They have agreed that the name of only one of them should appear on the registered legal title. The buyer whose name will not be on the legal title has asked their solicitor how they can protect their beneficial interest.

Which one of the following statements best describes the step which that buyer can take to protect their beneficial interest?

a) Register themselves as a joint beneficial owner.

b) Register an agreed notice.

c) Register a caution.

d) Register a restriction.

e) Register a C(iv) land charge.

d) Register a restriction

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A firm of solicitors has just been instructed to act in a commercial property transaction. The firm has not previously acted for the client. A trainee conveyancer is assisting in the matter and as part of their development they ask their supervising partner about the position regarding complaints under the SRA Standards and Regulations (SRASR).

Which one of the following statements best describes a requirement regarding the firm’s complaints procedure?

a) It must be in the form set out in the appendix to the SRASR.

b) It must be brought to the attention of the client at the time of engagement.

c) It must be set out in a form approved by the Law Society.

d) It may contain provision for reasonable costs to be charged by the firm for unjustified complaints.

e) It must provide for a decision on the complaint to be made by a partner and for this to be final and binding.

b) It must be brought to the attention of the client at the time of engagement.

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The owner of a commercial property has just completed their sale of a buy to let property. The terms of the sale were originally agreed in February and contracts were exchanged in March. Completion took place in May and the transfer to the buyer was registered in June. The seller asks their solicitor to confirm the date of the disposal for capital gains tax (CGT) purposes.

Which one of the following statements best describes the deemed date of disposal for CGT purposes?

a) The date the buyer’s offer was accepted by the seller.

b) The date of exchange of contracts.

c) The date the balance of the purchase price was paid upon completion.

d) The date nominated in writing by the seller to HM Revenue and Customs.

e) The date the transfer to the buyer was registered at HM Land Registry.

b) The date of exchange of contracts.

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A solicitor is acting for a recently married couple who are buying a new house together. They have each been married before and one of them has children from a previous marriage. They will be contributing unequal amounts to the purchase and will be funding the remainder of the purchase price by way of a mortgage loan. The solicitor has read the Law Society Practice Note on joint ownership and will be meeting with the couple shortly to discuss their purchase, including their co-ownership of the property.

Which one of the following statements best describes a recommendation of the practice note?

a) Expressly limiting advice to that relating to the legal estate only, not the equitable interests.

b) Confirming that the beneficial interests must always be held as beneficial tenants in common where the contributions to the purchase price are unequal.

c) Clarifying how the beneficial interests are to be held and advising as to the use of a declaration of trust.

d) Advising that a trust of land will arise at the time of purchase and its terms cannot be subsequently altered.

e) Declining to give advice as to joint ownership in circumstances where the clients are unlikely to wish to hold the beneficial interests as beneficial joint tenants.

c) Clarifying how the beneficial interests are to be held and advising as to the use of a declaration of trust. correct

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The buyer of a house has attended an initial meeting with his solicitor to confirm his instructions. At the meeting, the solicitor explains that his firm will be adopting the Law Society Conveyancing Protocol (LSCP) in relation to the transaction.

Which one of the following statements in relation to the LSCP is correct?

a) Its adoption in residential property transactions is compulsory for all firms of solicitors.

b) It is a quality accreditation scheme which seeks to ensure firms operate to consistently high standards.

c) It can be adopted only by firms of solicitors which are members of the Conveyancing Quality Scheme (CQS).

d) Its adoption does not mean compliance takes precedence over the obligation to act in the client’s best interests.

e) If one party’s solicitor will not be adopting it, this precludes the other party’s solicitor from doing so during the transaction.

d) Its adoption does not mean compliance takes precedence over the obligation to act in the client’s best interests.

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A house was purchased by four friends, A, B, C and D, some years ago. They originally held as beneficial joint tenants. Notice of severance was served upon the other co-owners by D, who died shortly afterwards having left his beneficial share to C. Recently, C died intestate and A and B have decided to sell the house. A and B ask their solicitor to explain what share of the proceeds of sale they will jointly be entitled to.

Which one of the following statements correctly describes their share of the proceeds of sale?

a) 100 per cent.

b) 75 per cent.

c) 66.66 per cent.

d) 50 per cent.

e) 25 per cent.

b) 75 per cent

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The owner of a freehold house is selling the property for £250,000. It was bought five years ago for £200,000 and has been used as a buy-to-let property throughout. Contracts for the sale have just been exchanged. The owner spent £10,000 on an extension to the property and will have incurred a total of £4,700 in costs for the original purchase and the subsequent sale of the house. The owner is a higher rate taxpayer and has not made any other capital gains in the current tax year.

How much capital gains tax (CGT) liability, based on these facts, will the owner incur on completion of the sale?

a) None, because the house has been used as a private residence throughout.

b) £5,274.

c) £8,204.

d) £6,000.

e) £14,000.

c) £8,204.

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A company is selling a commercial building and its solicitor has already issued a draft contract to a prospective buyer. The company now instructs that it wishes a draft contract to be issued to another prospective buyer, so that there will be a ‘contract race’.

Which one of the following statements represents best practice as to whether the solicitor may act in a contract race?

a) The solicitor cannot act because it would impose an unfair burden upon the prospective buyers and cause them potentially wasted costs.

b) The solicitor can act provided the client confirms its instructions in writing that it wishes to deal with more than one buyer at the same time.

c) The solicitor can act because it is a commercial transaction and the buyers can therefore be expected to understand the implications.

d) The solicitor can act provided all buyers are immediately informed that there is a contract race and the client gives consent to this disclosure.

e) The solicitor cannot act unless the seller agrees to indemnify the unsuccessful party for any wasted legal costs they incur.

d) The solicitor can act provided all buyers are immediately informed that there is a contract race and the client gives consent to this disclosure.

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Contracts have just been exchanged on the sale of a residential property. A 10 per cent deposit has been paid by the buyer’s solicitor to the seller’s solicitor. The contract incorporates the Standard Conditions of Sale (5th edn, 2018 revision) and contains no special conditions as to the deposit. The seller has a related purchase and also has an existing mortgage on the property she is selling.

Which one of the following statements is correct as to how the deposit is to be held by the seller’s solicitor?

a) The entire deposit will be held as agent of the seller and can therefore be released to her immediately.

b) All or part of the deposit may be used as a deposit on the seller’s related purchase, with the balance held as stakeholder until completion.

c) The entire deposit will be held as stakeholder and cannot be released to the seller until completion.

d) All or part of the deposit may be used to discharge the seller’s mortgage prior to completion, with the balance held as stakeholder until completion.

e) One half of the deposit may be held as agent of the seller and can therefore be released to her immediately; the balance must be held as stakeholder until completion.

b) All or part of the deposit may be used as a deposit on the seller’s related purchase, with the balance held as stakeholder until completion.

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A seller’s solicitor has submitted a draft contract for the sale of a property to the buyer’s solicitor. The seller is the sole legal and equitable owner of the property. The buyer’s solicitor is checking through the draft contract.

Which type of title guarantee would normally be inserted into the draft contract in these circumstances?

a) Limited title guarantee.

b) Legal title guarantee.

c) Unlimited title guarantee.

d) Full title guarantee.

e) No title guarantee.

d) Full title guarantee.

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The owner of a freehold house is selling the property, which is free of any mortgage or lease. Contracts have just been exchanged, with completion in a month’s time. The buyer has requested permission to start moving into the property during the intervening period. The contract utilises the Standard Conditions of Sale (5th edn, 2018 revision) and there are no special conditions relating to occupation of the property by the buyer pending completion.

Which one of the following statements best describes the position under the Standard Conditions of the contract regarding such occupation?

a) The Standard Conditions contain no provisions relating to such occupation.

b) The Standard Conditions provide that such occupation will be permitted on the basis that the buyer is a licensee not a tenant.

c) The Standard Conditions provide that such occupation will be permitted on the basis that the buyer is a tenant at will.

d) The Standard Conditions provide that such occupation will be permitted on the basis that the buyer is now the beneficial owner.

e) The Standard Conditions provide that no such occupation will be permitted.

b) The Standard Conditions provide that such occupation will be permitted on the basis that the buyer is a licensee not a tenant.

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An accountant is acting as executor of their deceased client’s estate and is selling a property owned by the deceased. The executor’s solicitor has advised that the contract should provide for the executor to sell with limited title guarantee.

Which one of the following statements best describes the correct reason for that advice?

a) The executor has no capacity to give a full title guarantee but is able to give a limited title guarantee.

b) The executor’s authority is limited to the extent of the assets within the deceased’s estate and their title guarantee should therefore be limited accordingly.

c) The executor will have only limited personal knowledge of the property and should therefore give only a limited title guarantee.

d) The executor is a member of a firm of accountants which is a limited liability partnership and their title guarantee should therefore be limited to reflect this.

e) The executor holds the property in a limited capacity and should therefore give only a limited title guarantee.

c) The executor will have only limited personal knowledge of the property and should therefore give only a limited title guarantee. correct

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A couple are selling their home, which is registered in their joint names, and contracts are to be exchanged soon. Their daughter, aged 19, currently lives with them at the property. The buyer will be taking out a mortgage to assist in his purchase of the property. The daughter’s occupation has been disclosed in the Property Information Form TA6. The buyer’s solicitor has agreed with the sellers’ solicitor the step which will be required in relation to the daughter.

Which one of the following statements best describes the step which will be required in relation to the daughter?

a) She must vacate the property prior to exchange of contracts so that there is no risk of her occupation binding the buyer.

b) She must transfer all rights she may have in the property to the buyer on completion.

c) She must sign the contract to agree to release all rights she may have in the property and to vacate on completion.

d) She must sign a declaration postponing any rights she may have in the property in favour of the buyer’s mortgage lender.

e) She must be added as a co-party to the transfer and execute it as a deed.

c) She must sign the contract to agree to release all rights she may have in the property and to vacate on completion.

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Contracts have just been exchanged for the sale of a flat. Completion is to take place on a date which falls ten working days after the date of exchange. The contract incorporates the Standard Conditions of Sale (5th edn, 2018 revision) (SCS). The buyer's solicitor now needs to submit the draft transfer to the seller's solicitor. Which one of the following is the minimum period before the completion date within which the draft transfer must be submitted? a) Seven working days. b) Eight working days. c) Ten working days. d) Twelve working days. e) Fifteen working days.

b) Eight working days.

A draft contract for the sale of a residential property has just been submitted to the buyer's solicitor. The contract incorporates the Standard Conditions of Sale (5th edn, 2018 revision). When checking the draft, the buyer's solicitor notices that the specified 'Contract rate' is 10 per cent and intends to suggest an amendment to this. Which one of the following statements best describes the rate which would normally be specified in such a contract? a) Four per cent. b) Five per cent. c) The Bank of England base rate. d) Four per cent above the base rate of a specified high street bank. e) The Solicitors Regulation Authority rate.

d) Four per cent above the base rate of a specified high street bank.

A solicitor is acting for the buyer of a field for £10,000. The contract incorporates the Standard Conditions of Sale (5th edn, 2018 revision) (SCS) and the parties are ready to exchange. Given the small scale of the transaction, the seller's solicitor has suggested dispensing with a specified completion date in the special conditions. Which one of the following statements best describes the effect of doing so? a) Completion will be deemed to be required within a reasonable time, not exceeding 30 days from the date of exchange. b) The contract will be void for uncertainty. c) Completion will take place when a date has been mutually agreed in writing by the parties following exchange. d) The contract will be valid but unenforceable. e) Completion is to take place 20 working days after the date of the contract.

e) Completion is to take place 20 working days after the date of the contract.

A residential conveyancing transaction is nearing exchange. The draft contract prepared by the seller's solicitor incorporates the Standard Conditions of Sale (5th edn, 2018 revision) (SCS). The contract document incorporates the normal pre-printed Special Condition 6, which relates to representations and which applies except in cases of fraud or recklessness. Which one of the following statements best describes the effect of this special condition? a) Neither party may rely on any representations made by the other, whether written or oral. b) Either party may rely upon any representations made by the other, provided these were made in writing. c) The seller may rely upon any representations made by the buyer, provided they were communicated by the buyer's solicitor. d) The buyer may rely upon any representations made by the seller, even if these were made orally. e) Either party may rely upon any representations made by the other, whether written or oral.

b) Either party may rely upon any representations made by the other, provided these were made in writing.

The owner of a commercial unit is selling the property. Her solicitor has sent to her the Commercial Property Standard Enquiries form CPSE.1, so that she can consider the replies which are to be given. In response to certain of the enquiries, the owner suggests inserting 'not as far as the seller is aware'. The giving of such a response has been considered by the courts in case law. Which one of the following statements best describes the effect of that case law? a) Such a response is not permitted and the seller must instead respond definitively. b) Such a response implies a warranty that there is nothing for the seller to disclose. c) Such a response signifies that the seller has a matter to disclose but is unwilling to disclose it. d) Such a response carries automatic relief from liability for the seller even the response is shown to be inaccurate. e) Such a response implies that the seller has made all reasonable investigations before giving the response.

e) Such a response implies that the seller has made all reasonable investigations before giving the response. correct

A solicitor is acting for the buyer of a freehold house. The title was first registered some years ago and the house has been sold twice since then. Contracts have been exchanged. The contract incorporates the Standard Conditions of Sale (5th edn, 2018 revision) (SCS). The solicitor is preparing the draft transfer and is considering whether it is necessary to include an indemnity covenant by the buyer in respect of covenants referred to in the charges register. Which one of the following would the solicitor need to check before deciding whether to include an indemnity covenant? a) What class of title is shown in the proprietorship register of the registered title. b) Whether there was an indemnity covenant given in the conveyance which triggered first registration. c) What type of title guarantee is to be given by the seller in the transfer. d) Whether there is an indemnity covenant by the seller in the charges register of the registered title. e) Whether there is a condition in the contract in respect of the inclusion of an indemnity covenant in the transfer.

e) Whether there is a condition in the contract in respect of the inclusion of an indemnity covenant in the transfer.

The two executors of a deceased sole owner of a house are selling the property in their capacity of personal representatives. The contract has been prepared for signature, in readiness for exchange of contracts. Which one of the following statements best describes whether either or both of the executors will need to sign the contract? a) It is obligatory for both executors to sign a single copy of the contract. b) It is permissible for one executor to sign the contract provided they have the authority of the other to do so. c) It is necessary for each executor to sign a separate but identical copy of the contract. d) Neither executor needs to sign the contract as the solicitor will automatically have authority to sign on their behalf. e) Neither executor needs to sign the contract as the sale automatically falls within their powers as executors.

b) It is permissible for one executor to sign the contract provided they have the authority of the other to do so.

The owner of a dilapidated house is selling the property. They already have a number of interested buyers, but have not yet decided whether to sell the property by private treaty or at a public auction. The seller discusses the sale with their solicitor and asks about the form of contract required, as they would like to keep the costs low. The solicitor explains that certain requirements for a contract for the sale of land are imposed by statute. Which one of the following statements correctly describes an aspect of those statutory requirements? a) The contract may be made orally or in writing, provided it incorporates all the agreed terms. b) Once a valid contract has been entered into, its terms cannot be subsequently varied. c) The seller and buyer must sign the contract in duplicate, so that each has a fully signed copy of the contract on exchange. d) The requirements apply to contracts by private treaty but not to contracts by public auction. e) A contract in writing must fully set out all the agreed terms, as incorporation of a document by reference is not permitted.

d) The requirements apply to contracts by private treaty but not to contracts by public auction.

The executors of the deceased owner of a house are selling the property. The property is in a rural area and was originally purchased by the deceased owner in the 1970s. The executors are currently unable to locate any title documents for the property. What would be the purpose of carrying out an official search of the index map in respect of the property? a) To ascertain the whereabouts of the unregistered title deeds to the property. b) To identify whether the whole or any part of the property has a registered title. c) To confirm whether the executors are now the registered owners of the property. d) To provide an official copy of the title plan for the registered title to the property. e) To provide a priority period for an application for first registration by the executors.

b) To identify whether the whole or any part of the property has a registered title

A house-building company is purchasing land for development from an engineering company which has owned the land for many years. The land has a registered title. A local authority search in Form CON29 has already been carried out. Which one of the following additional pre-contract searches would be required in consequence of these specific circumstances? a) Environmental search. b) Flood search. c) Commons registration search. d) Limestone mining search. e) Clay mining search.

a) Environmental search.

The owner of a freehold house, which she bought around seven years ago, now wishes to sell the property. It is a Grade II listed property. The owner is unsure as to the rules regarding an Energy Performance Certificate (EPC) for the property. Which one of the following statements relating to an EPC is correct? a) It is required in relation to all residential properties. b) It gives a property an energy efficiency rating from 1 to 7. c) It contains recommendations about how to reduce energy use. d) It is valid for five years. e) It must be obtained as soon as possible after exchange of contracts.

c) It contains recommendations about how to reduce energy use.

A solicitor is acting for the buyer of a commercial unit and is just about to undertake a local search in respect of the property. The buyer asks their solicitor to explain what a local search involves. Which one of the following describes the two main parts of a local search? a) Land charges search and physical inspection of the property. b) Commons registration search and water company search and enquiries. c) Local land charges search and standard enquiries of the local authority. d) Search of the planning charges register and enquiries of the Land Registry. e) Search of the index map and optional enquiries of the local authority.

c) Local land charges search and standard enquiries of the local authority.

A solicitor has been instructed by the buyer of a parcel of land. At their initial meeting, the solicitor mentions to the buyer that they will be utilising the services of the National Land Information Service (NLIS). The buyer has not heard of the NLIS before and asks for further details. Which one of the following best describes the explanation the solicitor should give to the buyer as to the role of the NLIS? a) It provides title information in relation to land owned by government departments and local authorities. b) It provides a centralised database for town and country planning matters. c) It provides a single point of enquiry for making pre-contract searches. d) It provides national valuation data for residential and commercial properties. e) It provides a record of information relating to the ownership of unregistered land.

c) It provides a single point of enquiry for making pre-contract searches.

A local property firm regularly receives referrals from a firm of surveyors in the same area. One of the partners at the firm of surveyors wishes to put a formal fee-sharing arrangement in place with the firm regarding any clients they refer to the law firm to carry out their residential conveyancing. What must the law firm do in these circumstances to ensure they are not in breach of the SRA Code of Conduct for Solicitors (CCS)? a) Ensure that the surveyors only refer their clients to your firm. b) Ensure the surveyor supplies you with their client lists so that you can contact them directly to promote your legal services. c) Ensure the fee-sharing arrangement is confidential between the firm and the surveyor. d) Ensure that the clients are informed of the fee-sharing arrangement in writing. e) Ensure the agreement is reciprocal. The firm must always refer clients to the surveyors.

d) Ensure that the clients are informed of the fee-sharing arrangement in writing.

A businessman is buying a freehold commercial unit in London, which has an unregistered title. The land on which the unit is built was previously owned by a company until 1980. The land has previously been used for a variety of different purposes, including engineering. The unit is currently owned by a local authority, which bought it in 1980. Which one of the following statements best describes a group of pre-contract searches which will need to be undertaken for this property? a) Company search, environmental search, coal mining search. b) Environmental search, local authority search, index map search. c) Local authority search, tin mining search, environmental search. d) Coal mining search, clay mining search, company search. e) Index map search, coal mining search, limestone mining search.

b) Environmental search, local authority search, index map search.

A solicitor is acting for the buyer of a house which has a registered title. The house was first registered in 2004 following a sale. The house was the subject of a further sale which was registered in 2012. The house is built on land which is near the church within a Church of England parish. There is no entry in the register as to chancel repair liability. Which one of the following statements best describes whether the buyer's solicitor would need to carry out a chancel repair liability search? a) There would be no need to carry out a chancel repair liability search because the title was registered under the Land Registration Act 2002. b) A chancel repair liability search should be carried out because chancel repair liability will take effect as an overriding interest in relation to a transfer to the buyer. c) There would be no need to carry out a chancel repair liability search because there has been a registered transfer on sale subsequent to first registration of title. d) There would be no need to carry out a chancel repair liability search because no entry has been made in the register in respect of any chancel repair liability. e) A chancel repair liability search should be carried out because there has been no registered transfer on sale after 12 October 2013.

e) A chancel repair liability search should be carried out because there has been no registered transfer on sale after 12 October 2013.

A solicitor is acting for a client in the purchase of a house for £250,000 and has just received the local land charges official search certificate from the local authority. The client asks the solicitor about the extent to which the accuracy of the official search certificate can be relied upon. Which one of the following statements best describes the position in relation to such a search certificate? a) The official search certificate is relied upon at the buyer's own risk and no liability can attach to the local authority. b) The official search certificate is guaranteed by the local authority as at the date of the local search result. c) The official search certificate is guaranteed by HM Land Registry. d) The official search certificate is guaranteed by the local authority for a period of six months from the date of issue. e) The official search certificate is guaranteed by the local authority but only to a maximum liability of £50

b) The official search certificate is guaranteed by the local authority as at the date of the local search result.

A solicitor is acting for the buyer of a house from a married couple. The buyer is obtaining a mortgage from a building society. The completion date has been agreed and the parties are in a position to exchange contracts. The buyer's solicitor advises the buyer that a physical inspection of the house prior to exchange would be advisable. Which one of the following statements in relation to such an inspection is correct? a) It enables a check to be made for the existence of any covenants which could affect the property. b) It is carried out by the buyer's solicitor. c) It enables a check to be made as to who is in actual occupation of the property. d) It is carried out by the buyer's mortgage lender. e) It enables the buyer's mortgage lender to make a final decision as to whether to make a mortgage offer to the buyer.

c) It enables a check to be made as to who is in actual occupation of the property.

The buyer of a property intends to build a large extension at the rear, once they have completed their purchase. When they meet with their solicitor to go through the purchase documentation prior to signing the contract, the solicitor advises that there is a particular matter revealed by the local search which will need further investigation as regards the proposed extension. Which one of the following statements best describes that particular matter? a) The property is situated within a smoke control area. b) The property adjoins common land. c) A public footpath runs near to the property. d) The property is not a listed building. e) A tree preservation order relates to a tree at the property.

e) A tree preservation order relates to a tree at the property.

A solicitor is acting for a company which is buying a development site. The site was previously used for industrial purposes prior to its purchase as vacant land by the seller. The solicitor has carried out an environmental search which reveals the site is affected by contamination. The company is concerned by this and asks its solicitor whether further investigation as to its potential liability for remediation costs is necessary before it commits to buying the site. Which one of the following statements best describes whether such further investigation is necessary? a) Further investigation as to potential liability for remediation costs is not necessary because only the original polluter can be liable. b) Further investigation as to potential liability for remediation costs is necessary because the buyer will automatically be liable if it becomes the new owner. c) Further investigation as to potential liability for remediation costs is not necessary because only the local authority can be liable. d) Further investigation as to potential liability for remediation costs is necessary because the buyer will potentially be liable if it becomes the new owner. e) Further investigation as to potential liability for remediation costs is not necessary because only the seller can be liable.

d) Further investigation as to potential liability for remediation costs is necessary because the buyer will potentially be liable if it becomes the new owner.

A mortgage lender is intending to take repossession proceedings in respect of a property over which it has a registered charge, so that it can then sell the property. The house has a registered title and there is a sole registered proprietor. As an initial step, the lender carries out an application to HM Land Registry using Form HR3. Which one of the following statements best describes the purpose of such an application? a) To obtain an official copy of the mortgage deed. b) To enter a restriction in the register to prevent any disposition by the current proprietor . c) To enter a notice in the register as to the repossession proceedings. d) To search the register as to whether any home rights notice has been registered or applied for. e) To register the lender as proprietor of the property.

d) To search the register as to whether any home rights notice has been registered or applied for. correct

A building company is buying a parcel of land for residential development. Its solicitor has carried out pre-contract searches, which reveal that part of the land is registered under the Commons Registration Act 1965. Which one of the following statements best describes why further enquiries will need to be made regarding this registration? a) To ascertain whether the commons registration relates to the land being registered as a town or village green. b) To clarify whether the land has the benefit of any rights of common over adjoining land. c) To identify whether the land has a registered commonhold title. d) To check whether the land is subject to any rights over common parts in favour of a management company. e) To establish whether the title to the land is vested in a number of individuals as tenants in common.

a) To ascertain whether the commons registration relates to the land being registered as a town or village green.

A married couple are buying a country cottage which had significant improvement work carried out on it five years ago. The pre-contract searches and enquiries have revealed a planning permission and listed buildings approval for the improvement work but not any building regulations consent. The cottage is Grade II listed. Will further enquiries need to be made by the buyers' solicitor regarding building regulations consent? a) No, because the planning consent is deemed to also provide building regulations consent. b) Yes, because an insurance or indemnity policy is not available in cases where building regulations consent has not been obtained. c) No, because unlike the position in relation to breaches of planning control, breaches of building regulations cannot be the subject of enforcement proceedings. d) Yes, because there is no time limit for taking enforcement proceedings for breach of building regulations. e) No, because the property is a listed building and therefore building regulations consent is not required.

D) Yes, because there is no time limit for taking enforcement proceedings for breach of building regulations. correct

A company is buying a public house to add to its portfolio of pubs. It is a long-established pub which has served the nearby village for over 200 years. The local search carried out by the company's solicitor has revealed that it is listed as an asset of community value. Which of the following statements correctly describes the effect of this listing? a) The property cannot be sold without the prior written consent of the local authority. b) The property cannot be sold unless a community interest group is given the opportunity to make a bid for the property. c) The property cannot be substantially altered unless consent is granted by the local planning authority under the Localism Act 2011. d) The property cannot be leased to a third party for a term exceeding seven years whilst it remains listed. e) The property cannot be used for any purpose other than as a public house.

b) The property cannot be sold unless a community interest group is given the opportunity to make a bid for the property.

An accountant is buying a commercial property in England, currently used by an estate agency business. The buyer intends to use the property for her accountancy business. She wishes to know whether she will need to obtain planning permission in relation to her proposed use of the property. Will the buyer need to obtain planning permission for her proposed change of use? a) Yes, because it will be a material change of use for planning purposes. b) No, because the proposed use is within the same use class as the current use. c) Possibly, depending upon whether or not it is a permitted development right. d) Yes, because it involves a change from one use class to another. e) No, because the proposed change of use is not detrimental to the locality in which the property is situated.

b) No, because the proposed use is within the same use class as the current use.

Last year a couple bought a house which had significant improvement work carried out on it six years ago. The pre-contract searches and enquiries revealed a planning permission for the improvement work and their solicitor took no further action. The local planning authority has now threatened enforcement proceedings as it transpires that no building regulations consent was obtained for the improvements. Which one of the following best describes the effect of relevant case law in these circumstances? a) It confirms that planning matters are not within the retainer of a buyer's solicitor unless expressly agreed otherwise. b) It confirms that there is a four-year time limit for enforcement proceedings for breaches of building regulations. c) It confirms that a breach of building regulations takes effect as an overriding interest and is binding on a subsequent buyer of the property. d) It confirms that a mortgagee's solicitor owes no duty of care to the mortgagee in relation to planning matters. e) It confirms that a buyer's solicitor will have acted negligently if they fail to take all reasonable steps to obtain copies of building regulations consents.

e) It confirms that a buyer's solicitor will have acted negligently if they fail to take all reasonable steps to obtain copies of building regulations consents.

A solicitor is acting for the buyer of a house in England, which the buyer may wish to extend in future years. The replies to the standard enquiries of the local authority in Form CON29 has revealed the following entry: ‘The property is within an area subject to an Article 4 Direction in respect of all building operations.' Which one of the following statements best describes the effect of this direction? a) It prevents any building works being carried out upon the house and no planning permission will be granted. b) It permits any building works to be carried out upon the house without the need to obtain express planning permission. c) It prevents any building works being carried out upon the house without planning permission having been granted. d) It confers permitted development rights allowing building works to be carried out upon the house within specified limits. e) It imposes standard conditions to be included in any planning permission for the carrying out of building works upon the house.

c) It prevents any building works being carried out upon the house without planning permission having been granted.

The executors of the deceased sole owner of a property have agreed a sale of the property to a buyer. The property is freehold and has a registered title. The deceased owner is currently still shown as the registered proprietor. What evidence of the executors' authority to deal with the deceased's estate will be required by the buyer's solicitor? a) A copy of the deceased owner's will to confirm that the sellers are the duly appointed executors in the will. b) A copy of the deceased owner's death certificate, to confirm that the authority of the executors has therefore arisen under the deceased owner's will. c) A certified copy of the grant of probate to the deceased owner's estate, to confirm that the sellers (as the executors) have obtained a grant of representation. d) Official copies of the register showing that the sellers (as the executors) have been registered as proprietors in place of the deceased owner. e) A certificate from the solicitor acting for the sellers confirming that they have (as the executors) obtained a grant of probate to the deceased owner's estate.

c) A certified copy of the grant of probate to the deceased owner's estate, to confirm that the sellers (as the executors) have obtained a grant of representation

A property with unregistered title is being sold. The epitome of title consists of a conveyance dated 1 June 1987 in favour of the current owner. It contains a clearly worded description of the property and confirms that the current owner owns the property for their own sole benefit. It was executed by the attorney of the then seller and was correctly stamped for stamp duty purposes. The buyer's solicitor has raised a requisition on title, on the basis that the 1987 conveyance on its own does not constitute a good root of title. Which one of the following is the reason for the requisition in relation to the 1987 conveyance? a) Because it is of insufficient age. b) Because it does not deal with the whole legal and equitable interest in the property. c) Because it casts doubt on the title. d) Because it does not contain an adequate description of the property. e) Because a root of title must be in favour of someone other than the current seller.

c) Because it casts doubt on the title.

A property with unregistered title is being sold. The epitome of title consists of a conveyance dated 1 August 1986 by a company in favour of the current owner. It is a good root of title. However, this conveyance contains (a) a recital that the property had been conveyed to the company by a conveyance dated 5 October 1970 and (b) a covenant for indemnity in respect of restrictive covenants contained in a conveyance dated 9 March 1965. To which, if any, of the earlier conveyances will the buyer's solicitor be entitled to a copy? a) Both the 1970 conveyance and the 1965 conveyance. b) The 1970 conveyance but not the 1965 conveyance. c) The 1965 conveyance but not the 1970 conveyance. d) Neither the 1970 conveyance nor the 1965 conveyance. e) Either the 1970 conveyance or the 1965 conveyance, but not both.

c) The 1965 conveyance but not the 1970 conveyance The 1970 conveyance is pre-root and is not relevant to the title. The buyer is not therefore entitled to request a copy of this.

A man is buying a cottage built in 1900 and extended in 1990. The title to it was registered in 1940 and the charges register contains a restrictive covenant imposed in 1955 requiring the written consent of the owner of the adjoining land to any building work on the cottage. The seller has confirmed there is no written consent to the extension to the cottage. Which of the following is a valid option available to the buyer in these circumstances? a) Ask the seller to seek retrospective consent and, if this is refused, to obtain indemnity insurance for the breach of covenant. b) Take no action because the breach of covenant occurred more than four years ago and therefore no enforcement action can now be taken. c) Ask the seller to apply to the Upper Tribunal (Lands Chamber) for an order that the covenant be removed from the title. d) Take no action because the cottage was built prior to the imposition of the covenant and therefore any extension to the cottage will not have required consent. e) Check to see if the covenant was protected as a D(ii) land charge and if it was not, take no further action as it will now be void.

c) Ask the seller to apply to the Upper Tribunal (Lands Chamber) for an order that the covenant be removed from the title. The title to the cottage was registered at the time the covenant was imposed, so registration as a land charge would not have been appropriate. The covenant appears in the registered title and so will be binding.

A solicitor is acting for the buyer of a house which has a registered title and is being sold by a building society as a mortgagee in exercise of its power of sale. The mortgagee's charge is the first registered charge. There is also a second registered charge in favour of a different mortgage lender. Which of the following steps will need to be taken by the buyer's solicitor? a) Check that the mortgagee's charge contains an express power of sale. b) Confirm that the mortgagee's power of sale has arisen. c) Confirm that the mortgagee's power of sale has become exercisable. d) Obtain a discharge of the second registered charge in Form DS1. e) Ensure that a vacating receipt is endorsed onto the second charge.

b) Confirm that the mortgagee's power of sale has arisen. A sale by a mortgagee in exercise of its power of sale automatically discharges any subsequent mortgages.

A solicitor is acting for the buyer of a leasehold flat which forms part of a block maintained by a management company. The sellers have an existing mortgage on the flat. The elderly mother of one of the sellers lives in the flat. The flat has a registered title and there are a number of restrictions in the proprietorship register which relate to registration of any disposition of the flat. Which one of the following restrictions can be disregarded by the buyer's solicitor prior to completion of the client's purchase? a) A restriction requiring the consent of the existing mortgagee. b) A restriction protecting the beneficial interests of the sellers as tenants in common. c) A restriction requiring a certificate from the management company. d) A restriction requiring the consent of the mother. e) A restriction requiring the consent of the landlord.

a) A restriction requiring the consent of the existing mortgagee.

A man is buying a freehold commercial unit which has a registered title. The sellers are two private individuals. The official copy of the register reveals a unilateral notice which is stated to protect an equitable charge of the property. The buyer has asked his solicitor to advise on the effect of the unilateral notice, if he went ahead with his purchase with the unilateral notice still in the register and with no undertaking being obtained from the sellers' solicitor to arrange for its removal. Which one of the following statements is correct as to the effect of the unilateral notice in such circumstances? a) It will prevent the transfer to the buyer being registered unless the equitable chargee consents. b) It will not prevent the transfer to the buyer being registered, but the property will remain subject to the equitable charge. c) It will prevent the transfer to the buyer being registered, unless the transfer is executed by at least two joint proprietors so that the equitable charge is overreached. d) It will be removed on completion of the sale, because the charge is an equitable charge not a registered legal charge and so the buyer will take free of it. e) It will prevent the transfer to the buyer being registered, but only if the equitable charge was created by deed.

b) It will not prevent the transfer to the buyer being registered, but the property will remain subject to the equitable charge.

A first-time buyer is buying a freehold house from the survivor of two co-owners. The house has a registered title, with the seller and his late wife being shown as the proprietors. There is no restriction in the register. The seller's son is the executor of the deceased co-owner's estate. The draft contract shows the surviving co-owner as the seller. Which one of the following steps should the buyer's solicitor take to ensure the buyer can be registered as proprietor following completion? a) Insist that a co-trustee be appointed to sell the house jointly with the surviving co-owner. b) Obtain a copy of the deceased co-owner's death certificate so that this can be lodged with the application for registration. c) Ensure that the executor is added as a party to the transfer of the house to the buyer. d) Request that a memorandum of the sale be endorsed on the grant of probate to the deceased co-owner's estate. e) Require the executor to execute an assent of the deceased co-owner's beneficial interest in the property to the seller.

b) Obtain a copy of the deceased co-owner's death certificate so that this can be lodged with the application for registration. There is no 'joint proprietorship' restriction in the register to indicate that the property was held as beneficial tenants in common. As the surviving beneficial joint tenant, the seller is now the sole owner of the property as the deceased joint tenant's beneficial interest has vested in him automatically—no express assignment is necessary.

The survivor of co-owners is selling her freehold house, which has unregistered title. The house was purchased some years ago by the seller and her late husband and the conveyance to them recites that they held as beneficial joint tenants. The buyer's solicitor has a copy of the husband's death certificate and has checked that there is no memorandum of severance on the conveyance and no bankruptcy land charges registered against the co-owners. The seller's daughter is the executor of the late husband's estate. Which one of the following steps would need to be taken to safeguard the buyer in these circumstances? a) Request that a memorandum of the husband's death be endorsed on the conveyance to the co-owners. b) Ensure that the executor acts jointly with the surviving co-owner in the sale of the house. c) Insist the transfer to the buyer contains a declaration that the seller is now solely and beneficially entitled to the house. d) Obtain a copy of the grant of probate to the husband's estate, to be lodged with the application for registration of the transfer. e) Require the seller to apply for first registration of title so that she can sell as sole legal owner.

c) Insist the transfer to the buyer contains a declaration that the seller is now solely and beneficially entitled to the house. The legal estate will, on the husband's death, have vested in the seller as the surviving legal joint tenant.

A solicitor is preparing an epitome of title for the sale of a property which has an unregistered title. The seller is a limited company. Which one of the following searches would it be best practice to include within the epitome? a) Land charges search certificates against the names of the previous estate owners referred to within the epitome. b) Index map search certificate in relation to the property. c) Bankruptcy land charges search certificates against the names of any private estate owners referred to within the epitome. d) Company search certificate against the name of the seller. e) Probate Registry search results against the names of any deceased estate owners referred to within the epitome.

a) Land charges search certificates against the names of the previous estate owners referred to within the epitome. Although sometimes relevant in relation to a transaction involving a sale by the personal representatives of a deceased owner, this is not a search result which it would be appropriate to include within an epitome.

A trainee solicitor is acting for the seller of a residential freehold property with registered title and has asked their supervising partner where the responsibility of the seller to deduce title to the property to the buyer derives from. Which one of the following explanations should the partner give? a) The law relating specifically to registered land. b) Land Registry practice guidance. c) The UK Finance Mortgage Lenders' Handbook. d) The general statutory law of property. e) The Standard Conditions of Sale (5th edn, 2018 revision).

e) The Standard Conditions of Sale (5th edn, 2018 revision). This is because SC 4.1 imposes an obligation on the seller to provide the buyer with proof of their title and of their ability to transfer it or procure its transfer.

The owner of a house, which has unregistered title, is selling the property to a buyer. The seller's mother contributed part of the purchase price when the seller bought the property several years ago. The title deeds are in the seller's sole name, but the mother was granted a right to reside in the property for her lifetime. The seller and their mother both currently reside in the house. Which one of the following statements best describes the legal position regarding the mother's interest in the house? a) It constitutes an interest under a trust of land which will be binding on the buyer if protected by a land charge. b) It constitutes a legal estate which will be binding on the buyer. c) It constitutes a legal interest which will be binding on the buyer only if they have notice of the interest. d) It constitutes a personal right which cannot be binding on the buyer. e) It constitutes an equitable interest which will be binding on the buyer only if they have notice of the interest.

e) It constitutes an equitable interest which will be binding on the buyer only if they have notice of the interest.

The seller of a property is the survivor of two co-owners who held the property as an investment as beneficial tenants in common. The deceased co-owner's son is the executor of his estate. The title to the property is registered and a co-ownership restriction appears in the proprietorship register. Which one of the following best describes the effect of such a restriction? a) It prevents registration of a transfer on sale without the written consent of the deceased co-owner's executor. b) It ensures that overreaching takes place before a transfer on sale can be registered. c) It prevents registration of a transfer on sale without the consent of the beneficiary of the deceased co-owner's share. d) It requires the deceased co-owner's executor to be registered jointly with the surviving co-owner prior to any transfer on sale. e) It prevents registration of any transfer on sale without an order of the court authorising the sale.

b) It ensures that overreaching takes place before a transfer on sale can be registered.

A solicitor is acting for a company in its purchase of a commercial property that has a registered title. The solicitor has obtained official copies of the register and the documents referred to in it and has discussed these with the managing director of the company. The managing director has asked the solicitor about the status of these official copies. Which one of the following best describes the extent to which official copies are admissible in evidence? a) They are not admissible, as they are only copies not originals. b) They are admissible, but only if certified by a solicitor. c) They are admissible to the same extent as the originals. d) They are admissible, but only if ratified by the court. e) They are admissible provided they are less than six months old.

c) They are admissible to the same extent as the originals.

A house originally formed part of a larger property but was sold off to the current owner some years ago. The seller, at the time of the 'sale off' conveyance of the house, retained the remainder of their property. The current owner is now selling the house. The buyer's solicitor is investigating the unregistered title to the house, as shown in the epitome of title. Which one of the following statements best describes what the buyer's solicitor would expect to find? a) That the originals of the 'sale off' conveyance and any prior title deeds will be handed over on completion. b) That there is a memorandum of the 'sale off' endorsed upon the 'sale off' conveyance itself. c) That there is an undertaking by the seller's solicitor attached to the 'sale off' conveyance, to produce certified copies of any relevant prior title deeds on request. d) That certified copies of all of the title deeds referred to in the epitome of title will be handed over on completion. e) That there is an acknowledgement for production by the then seller within the 'sale off' conveyance, in respect of the originals of any prior title deeds.

e) That there is an acknowledgement for production by the then seller within the 'sale off' conveyance, in respect of the originals of any prior title deeds.

A solicitor acting for the seller of a property advises their client that there is a unilateral notice (UN) in the registered title. The UN is expressed to protect a previous contract for sale which the seller claims was rescinded some time ago. The seller has had no contact with the beneficiary of the UN since then. The solicitor advises their client, as seller, to apply for cancellation of the UN by lodging Form UN4 at HM Land Registry. Which one of the following statements best describes the effect of an application on Form UN4? a) It will be successful immediately, irrespective of whether or not the beneficiary is aware of the application. b) It will be automatically rejected by HM Land Registry if the beneficiary objects to the application. c) It will be successful only if the beneficiary consents to the cancellation. d) It will be immediately rejected by HM Land Registry if not accompanied by the written consent of the beneficiary. e) It will automatically be successful if the beneficiary does not object to the application.

e) It will automatically be successful if the beneficiary does not object to the application.

A company is selling an unregistered leasehold property which it has owned for many years. The lease was granted in 1980 and was assigned to the company in 1985. The person who sold the lease to the company had themselves taken an assignment of the lease in 1982. The company created a mortgage on the property in favour of its bank in 1986. The title to the freehold reversion is unregistered. The solicitor acting for the company is preparing an epitome of title. Which one of the following documents would constitute the most appropriate root of title? a) The conveyance of the freehold estate to the original landlord. b) The lease. c) The 1982 assignment of the lease. d) The 1985 assignment of the lease. e) The 1986 mortgage.

d) The 1985 assignment of the lease.

In 2007, a farmer bought a freehold field with an unregistered title from a neighbour. The conveyance to the farmer 'triggered' compulsory first registration of title. The farmer did not use a solicitor to act for them in the purchase and failed to apply for first registration. The farmer now wishes to sell the field and this time instructs a solicitor to act for them. The solicitor points out the problem regarding first registration. Which one of the following statements in relation to the failure to apply for first registration is correct? a) The conveyance to the farmer is void and they lose all their legal title and beneficial interest in relation to the field. b) The original seller retains the unregistered legal title to the field, but the farmer holds the beneficial interest in the field. c) The original seller must pay the costs of the farmer in respect of any re-conveyance of the field to the farmer. d) The farmer has retained an unregistered legal title to the field, which they can sell to a buyer. e) The time limit for an application for compulsory first registration by the farmer has expired and cannot now be extended.

b) The original seller retains the unregistered legal title to the field, but the farmer holds the beneficial interest in the field.

A recently qualified teacher is buying a newly built house in Wales. He will need mortgage finance to fund his purchase. He would like a type of mortgage which guarantees that at the end of the mortgage term he will have repaid the full amount that he originally borrowed, with interest, and that he will have no further liability under the mortgage. Which type of mortgage would be the most appropriate in these circumstances? a) Repayment mortgage. b) Endowment mortgage. c) Pension mortgage. d) Interest-only mortgage. e) 'Help to Buy' equity loan.

a) Repayment mortgage.

A solicitor is acting for the buyer of a house at a price of £150,000, the majority of which is being funded by a mortgage loan. The solicitor also acts for the mortgage lender. The buyer has just instructed that the house is being purchased from a relative and that the price has been amended to £120,000 plus £30,000 for fittings and contents. The solicitor now has suspicions regarding mortgage fraud, but has not discussed this with the client or obtained authority to any disclosure of information, although none of the information is subject to legal professional privilege. What action should the solicitor take as a result of their suspicions? a) Report the matter immediately to the mortgage lender. b) Ask the client for a full explanation for the amended instructions and consent to disclose this to the mortgage lender. c) Cease to act for the client immediately. d) Continue acting for the client, but enter a note of the suspicions on the file in case of any future query. e) Take no action because there is no proof of mortgage fraud.

b) Ask the client for a full explanation for the amended instructions and consent to disclose this to the mortgage lender.

A limited company has just completed its purchase of a commercial property, with a mortgage from its bank. The mortgage has not been registered at Companies House, but has been sent with the application to HM Land Registry to register the company's purchase of the property. What action will the Land Registry take in respect of the mortgage as a result? a) Refuse to register the mortgage in the register of title, as it is void for want of registration at Companies House. b) Arrange for the mortgage to be registered at Companies House and then register it in the register of title. c) Register the mortgage in the register of title without any reference to registration at Companies House. d) Enter an agreed notice in the register in respect of the mortgage, to reflect the fact it has taken effect as an equitable charge. e) Register the mortgage in the register of title subject to a note referring to the lack of registration at Companies House.

e) Register the mortgage in the register of title subject to a note referring to the lack of registration at Companies House.

A couple are buying a house with the assistance of a mortgage loan. Their adult son will be living with them at the house. The contract incorporates the Standard Conditions of Sale (5th edn, 2018 revision). The couple's solicitor is also acting for the mortgage lender and has received its standard mortgage instructions. Which one of the following best describes the step the lender will require the solicitor to take in relation to the son? a) Check that the son has signed the 'occupier's consent' in the special conditions in the contract. b) Require the son to sign the transfer of the house in Form TR1. c) Ensure the son signs the mortgage deed as a co-mortgagor jointly with his parents. d) Ask the son to sign a letter confirming he will be only a licensee at the house. e) Ensure the son signs a declaration in favour of the lender postponing any rights he may have in the house.

e) Ensure the son signs a declaration in favour of the lender postponing any rights he may have in the house.

A married couple are buying a house with the assistance of a mortgage loan. Their son, aged 19, will be living with them at the house following completion. The lender's mortgage conditions require the son, as a non-owning occupier, to sign a declaration postponing any interest he might have to that of the lender. The couple's solicitor is also acting for the lender. Which one of the following statements best describes the action the solicitor should take in respect of the son? a) Advise the son in relation to the declaration, because he is a member of the buyers' family and so there will be no conflict of interest. b) Recommend that the son obtain independent legal advice before signing the declaration and, if he declines to do so, stop acting for the buyers as there will be a conflict of interest. c) Advise the son in relation to the declaration, provided the buyers consent to this, so that there will be no conflict of interest. d) Recommend that the son obtain independent legal advice before signing the declaration and, if he declines, refuse to give him advice because there will be a conflict of interest. e) Advise the son in relation to the declaration, as he will be a co-occupier and an instructing client in respect of the purchase and so there will be no conflict of interest.

d) Recommend that the son obtain independent legal advice before signing the declaration and, if he declines, refuse to give him advice because there will be a conflict of interest.

The buyer of a house is funding their purchase with the assistance of a mortgage loan. They have instructed a solicitor and has asked whether the solicitor will also be able to act for the mortgage lender. Which one of the following statements best describes whether the solicitor will be able to act for both parties? a) The solicitor will be able to act for both parties, provided the mortgage is in a standard form approved by HM Land Registry. b) The solicitor will not be able to act for both parties if lending forms a regular part of the lender's business activities. c) The solicitor will not be able to act for both parties, because the property is not intended to be used for commercial purposes only. d) The solicitor will be able to act for both parties where there is no conflict of interests between the parties, and no significant risk of such a conflict occurring. e) The solicitor will be able to act for both parties, if the certificate of title is in the form approved by the SRA and Council of Mortgage Lenders.

d) The solicitor will be able to act for both parties where there is no conflict of interests between the parties, and no significant risk of such a conflict occurring.

The owner of a house with unregistered title is proposing to take out a loan from their building society, to be secured on the property as a second mortgage. There is already a small mortgage on the property in favour of their bank, which will remain in place. Which one of the following statements best describes the legal position regarding the owner's proposal? a) The owner is unable to grant a second mortgage because the title deeds are held by the first mortgagee. b) The owner may grant a second mortgage, but it will need to be protected by registration as a local land charge. c) The owner may not grant a second mortgage unless the title is first registered, so that the new mortgage can then be completed by registration. d) The owner may grant a second mortgage provided they deposit the title deeds with the second mortgagee. e) The owner may grant a second mortgage, but it will need to be protected by registration as a Class C(i) land charge.

e) The owner may grant a second mortgage, but it will need to be protected by registration as a Class C(i) land charge.

A solicitor is acting for the buyer of a freehold commercial property which has a registered title. The purchase is being funded largely by a mortgage loan from a bank, for which the buyer's solicitor is also acting. The buyer's solicitor will need to submit a City of London Law Society (CLLS) certificate of title to the mortgage lender. Which one of the following statements in relation to such a certificate is correct? a) It deduces the title to the property to the lender so that it can decide whether the property will provide adequate security. b) It is used only for property transactions relating to properties situated in the City of London. c) It contains standard statements relating to the property, which are qualified by any disclosures set out in the certificate. d) It may be used only by solicitors whose principal office is situated in the City of London. e) It is used to provide copies of a registered title to the mortgage lender, to confirm that its mortgage has been registered.

c) It contains standard statements relating to the property, which are qualified by any disclosures set out in the certificate.

A husband is seeking to mortgage the matrimonial home in order to raise additional finance to invest in his business. The house, which was purchased recently, is registered in the joint names of the husband and his wife. A solicitor has been instructed to act for the couple and for the mortgage lender. The solicitor is concerned to ensure he takes the correct steps in relation to the wife, in accordance with the guidelines set out by the House of Lords in case law. Which one of the following statements best describes one of those guidelines? a) A solicitor must never act for both the husband and the wife in relation to the matter. b) A solicitor's advice to the wife can be given verbally by telephone, provided it is then confirmed in writing. c) A solicitor's advice to the wife should not cover financial information, as that is outside the scope of their retainer. d) A solicitor must meet the wife face to face in the absence of the husband. e) A solicitor's advice to the wife should be phrased in clear technical terms so that there can be no misunderstanding.

d) A solicitor must meet the wife face to face in the absence of the husband.

A single parent with a young child is buying a house with the assistance of a loan from a mortgage lender. She is concerned to ensure that if she should die during the term of the mortgage, the loan will be repaid. Which one of the following best describes a method of achieving this? a) Ensure the loan is taken out under the government Help to Buy scheme. b) Require a mortgage guarantee policy in respect of the loan. c) Arrange for the mortgage to be underwritten by the government mortgage guarantee scheme. d) Build up a reserve fund out of each month's salary. e) Take out a mortgage protection policy in respect of the loan.

e) Take out a mortgage protection policy in respect of the loan.

A solicitor is acting for a couple who are buying a property with the assistance of a mortgage from a high street lender. The solicitor is also acting for the mortgage lender. The UK Finance Mortgage Lenders' Handbook (the Handbook) will apply. Which one of the following statements best describes the purpose of the Handbook? a) It contains guidance for lenders in deciding whether to offer a mortgage to a prospective borrower. b) It lists details of all duly authorised mortgage lenders, who must comply with the rules set out in the Handbook. c) It sets out the rights and obligations of the borrower and must be drawn to their attention by the borrower's solicitor. d) It provides a standard set of mortgage instructions to a solicitor acting for a lender. e) It comprises precedent mortgage deeds for specified lenders, the relevant version of which must be signed by the borrower.

d) It provides a standard set of mortgage instructions to a solicitor acting for a lender.

A solicitor is acting for the buyer of a property. The buyer is obtaining a mortgage from a lender to assist in funding the purchase. Part of the property has a registered title and the other part has an unregistered title for which the unregistered deeds are available. The solicitor explains to the buyer that this will need to be reflected in the way in which the purchase is dealt with. Which one of the following best describes a feature of how this purchase will need to be dealt with? a) The buyer will need to ensure that the seller applies for voluntary first registration of the unregistered title. b) There will need to be two separate contracts—one for the registered land and the other for the unregistered land. c) The buyer's solicitor will need to check with the mortgage lender whether this situation is acceptable to it. d) There will need to be a transfer of the registered land and a conveyance of the unregistered land in favour of the buyer. e) There will need to be a single mortgage deed to secure the mortgage loan upon both the registered land and the unregistered land.

e) There will need to be a single mortgage deed to secure the mortgage loan upon both the registered land and the unregistered land.

A company incorporated in England and Wales, which owns a factory that has a registered title, is obtaining a loan from its bank. The bank has stipulated the loan must be secured by a second legal charge on the factory. There is a first legal charge in the register together with a restriction requiring the first chargee's consent to the registration of any disposition of the title. That consent has not been obtained. The company wishes the loan to be completed quickly. Which one of the following steps should the company's solicitor now take, in the absence of a consent from the first chargee under the restriction? a) Complete and then register the new charge at the Companies Registry, so that it takes effect as a legal charge even though it cannot be registered at HM Land Registry. b) Complete and then ignore the restriction because the new charge is not a 'disposition' and register the new charge at HM Land Registry. c) Complete and then register the new charge as a C(i) land charge at the Land Charges Registry to reflect the fact it is a puisne mortgage. d) Complete and then register the new charge by entry of a unilateral notice in the register, as this will not be caught by the terms of the restriction. e) Delay completion, report the matter to the bank and seek its instructions as to how it wishes to proceed.

e) Delay completion, report the matter to the bank and seek its instructions as to how it wishes to proceed.

A businessman is buying a commercial unit built on registered land. Contracts have just been exchanged with a delayed completion date, to accommodate the existing owner who needs some extra time to relocate his own business. Completion is due to take place three months from the date of exchange. What should the buyer's solicitor now do to protect the priority of their client's contract during the period prior to completion? a) Obtain an undertaking from the seller's solicitor that the seller will not exchange contracts with any other party during that period. b) Register the contract as a C(iv) land charge at the Land Charges Registry. c) Ensure that the deposit is held by the seller's solicitor as stakeholder. d) Apply for entry of an agreed notice in the register in respect of the contract. e) Carry out an immediate official search with priority in respect of the seller's title.

d) Apply for entry of an agreed notice in the register in respect of the contract.

A company has just completed its purchase of a freehold commercial property, which has a registered title. The purchase has been funded by a loan from the company's bank, secured by a legal charge on the property. Which of the following statements is correct in relation to registration of the legal charge? a) It must be registered at HM Land Registry but does not need to be registered at Companies House, because the title to the property is registered. b) It must be registered at both HM Land Registry and Companies House, because each registration fulfils a different purpose. c) It must be registered at Companies House but does not need to be registered HM Land Registry, because the mortgagor is a company. d) It does not need to be registered at either HM Land Registry or Companies House, because the legal charge takes effect at law immediately if it is executed using the company seal of the company. e) It must first be registered at Companies House, which will mean it is then automatically registered at HM Land Registry.

b) It must be registered at both HM Land Registry and Companies House, because each registration fulfils a different purpose

A property developer is buying land for commercial development, which is being partly funded by a mortgage loan. He has instructed the same solicitor that he has used many times in the past when buying and selling properties for development. The solicitor is also acting for the lender. The transaction is nearing exchange of contracts and the solicitor needs to provide a report to the client regarding his purchase. Which one of the following statements reflects recommended practice in giving such a report? a) The report should be limited to matters of title, as this reflects the scope of the solicitor's retainer. b) The report must be made in writing—a verbal report is insufficient. c) The report may be tailored to reflect the fact the buyer is an experienced commercial client. d) The report relates to development land and should therefore include advice on the commercial viability of the purchase. e) The report need not cover the mortgage loan, as this will be covered in the report on title sent to the lender.

c) The report may be tailored to reflect the fact the buyer is an experienced commercial client.

The buyer of a house, which has a registered title, has recently exchanged contracts. The purchase price is the full market value and the buyer has no connection with the seller. The buyer's pre-completion official search of the seller's title reveals that, since the date of exchange of contracts, the seller has been made bankrupt and a bankruptcy notice and bankruptcy restriction have been registered in their title. Which one of the following statements correctly reflects the effect of the bankruptcy upon the buyer's purchase? a) The contract is now void because the effect of the bankruptcy is to rescind it. b) The contract is voidable because of the bankruptcy and the trustee in bankruptcy may apply for it to be set aside by the court. c) The contract is valid notwithstanding the bankruptcy and on completion the seller must transfer the property to the buyer. d) The contract is binding on the trustee in bankruptcy and on completion the buyer should take a transfer of the property from the trustee. e) The contract can only be enforced if the court makes an order ratifying it and vesting the property in the buyer.

d) The contract is binding on the trustee in bankruptcy and on completion the buyer should take a transfer of the property from the trustee. correct

A solicitor is acting for the seller of a property and has previously sent the draft contract and related documents to the buyer's solicitor. The sale is nearing exchange of contracts and an early completion. Contracts will be exchanged using Law Society Formula C. The seller's solicitor holds a signed contract and an executed TR1. The solicitor witnessed their client's signature of the TR1. The buyer has a related sale of a property. Which one of the following steps will involve the giving of a professional undertaking by the seller's solicitor to the buyer's solicitor? a) The submission of the draft contract to the buyer's solicitor. b) The provision of official copies of the seller's registered title to the buyer's solicitor as evidence of title. c) The sending of the Property Information Form, containing replies, to the buyer's solicitor. d) The 'release' of the seller's part contract to the buyer's solicitor on exchange of contracts under Formula C. e) The witnessing of the seller's signature of the TR1.

d) The 'release' of the seller's part contract to the buyer's solicitor on exchange of contracts under Formula C.

A buyer has just exchanged contracts on her purchase of a vacant freehold residential property. She is funding the purchase entirely from her own savings. The contract incorporates the Standard Conditions of Sale (5th edn, 2018 revision) and contains no special conditions as to risk and insurance. Which one of the following statements best describes the effect of exchange of contracts on the risk and insurance in respect of the property? a) The risk remains with the seller, who remains responsible for continuing to insure the property. b) The risk remains with the seller, but the buyer is responsible for insuring the property as from the date of exchange. c) The risk passes to the buyer as from the date of exchange, but the seller remains responsible for continuing to insure the property. d) The risk passes to the buyer as from the date of exchange and the buyer is responsible for insuring the property as from that date. e) The Standard Conditions are silent on the risk and insurance and either or both of the parties may choose to insure the property if they so wish.

d) The risk passes to the buyer as from the date of exchange and the buyer is responsible for insuring the property as from that date.

A couple are buying a house from an elderly owner. Contracts have been exchanged. However, before the completion date the seller dies. The couple are concerned about the effect of this upon their purchase. Which one of the following statements best describes the effect of the seller's death upon the contract? a) The contract is now void. b) The contract is voidable at the option of the seller's personal representative(s). c) The contract is voidable at the option of the buyers. d) The contract remains valid and is binding upon seller's personal representative(s). e) The contract will be valid provided it is ratified by the public trustee.

d) The contract remains valid and is binding upon seller's personal representative(s). correct

A solicitor is about to exchange contracts on their client's purchase of a property using Law Society Formula C, as the purchase forms part of a 'chain' of transactions. The seller's solicitor has confirmed that they are happy to use this formula for exchange. Which one of the following statements in relation to an exchange of contracts using Formula C is correct? a) The exchange must be dealt with by exactly the same solicitor on each side throughout in order to ensure consistency. b) The buyer's solicitor must have their client's irrevocable authority to exchange using Formula C. c) If contracts are not exchanged on the day Formula C is initiated, the exchange may be 'held over' to the next working day. d) On exchange, the deposit on each contract in the 'chain' must be held as stakeholder. e) The buyer's solicitor undertakes to send the buyer's signed part contract to the seller's solicitor within two working days from the date of exchange.

b) The buyer's solicitor must have their client's irrevocable authority to exchange using Formula C.

A farmer is buying a small piece of land from his neighbour for £3,000. Due to the small value of the transaction, it has been agreed that exchange of contracts will be effected by post. The buyer's solicitor has sent his client's signed part of the contract and the deposit to the seller's solicitor in readiness for exchange. Which one of the following statements best describes the stage at which the contract will become legally binding in these circumstances? a) When the buyer's contract is posted to the seller's solicitor. b) When the buyer's contract is received by the seller's solicitor. c) When the seller's contract is posted to the buyer's solicitor. d) When the seller's contract is received by the buyer's solicitor. e) When the buyer's solicitor acknowledges receipt of the seller's contract to the seller's solicitor in writing.

c) When the seller's contract is posted to the buyer's solicitor.

Two friends are purchasing a house forming part of a newly built residential estate, which has a registered title. They are purchasing the first house to be built on the estate. Their solicitor has asked them to call in to the office to sign the purchase deed. Which form of purchase deed will be used in this particular case? a) TR1. b) DS1. c) TP1. d) AP1. e) FR1.

c) TP1.

A solicitor is acting for the buyer of a newly built leasehold flat from a building company. The company's freehold title is registered. The purchase is being funded partly by a mortgage loan. The solicitor also acts for the mortgage lender. Contracts have now been exchanged. Which combination of pre-completion searches will be appropriate in this transaction? a) OS1 search; company search; K15 search. b) CON29 search; K16 search; OS2 search. c) Company search; OS2 search; K16 search. d) K15 search; CON29 search; OS3 search. e) LLC1 search; search of the index map; HR3 search.

c) Company search; OS2 search; K16 search.

A solicitor is acting for the buyer of a freehold field forming part of the seller's farm, which has unregistered title. Contracts have been exchanged and the buyer's solicitor will shortly be preparing the draft purchase deed. The contract provides that the seller will be imposing covenants in respect of the field, for the benefit of the land they are retaining. Which one of the following would be appropriate for the buyer's solicitor to use when drafting the purchase deed? a) Conveyance. b) Deed of assignment. c) Deed of partition. d) Form TR1. e) Deed of covenant.

a) Conveyance.

A seller is selling a freehold house which was owned by himself and his late wife as beneficial joint tenants. The buyers are purchasing as beneficial tenants in common in equal shares and are having a mortgage loan. The title to the bungalow is registered and the purchase deed has been prepared in Form TR1 ready for signature. Which one of the following statements correctly describes who will need to execute the Form TR1? a) Only the seller and the personal representative of his deceased wife. b) Only the seller and the buyers. c) Only the buyers and the buyers' lender. d) Only the seller. e) Only the buyers.

b) Only the seller and the buyers.

A couple are selling their freehold house which has a registered title. There is a small mortgage on the property. They are moving into rented accommodation and so have no property to buy. They have instructed a solicitor to act for them in their sale. The buyers have no related sale. Which of the following statements correctly describes a sequence of steps which will normally be taken by the sellers' solicitor prior to completion? a) Approve draft contract; exchange contracts; obtain redemption statement. b) Prepare draft contract; exchange contracts; approve draft transfer. c) Discharge clients' mortgage; exchange contracts; carry out pre-completion searches. d) Pay estate agents' fees; exchange contracts; prepare financial statement for clients. e) Obtain redemption statement; exchange contracts; prepare draft transfer.

b) Prepare draft contract; exchange contracts; approve draft transfer.

A solicitor is acting in the purchase of a house, which has an unregistered title, from a divorced man. Contracts have previously been exchanged with a completion date two months later. The buyer's solicitor protected the contract by registration. The seller's solicitors omitted to provide a land charges search against the name of the seller with the contract bundle. The pre-completion K15 land charges search against the name of the seller reveals a C(i) land charge entry. Which one of the following best describes what the buyer's solicitor would need to do in relation to this entry? a) Take no action as the entry relates to the buyer's contract, which has been protected as an estate contract. b) Ensure that the seller's solicitor gives an undertaking to discharge the puisne mortgage to which the entry relates upon completion. c) Check that the entry relates to a restrictive covenant disclosed in the epitome of title. d) Require the entry to be cancelled on or before completion, as it relates to the statutory right of occupation of the seller's former wife. e) Raise a requisition with the seller's solicitor as to the financial status of the seller, as the entry relates to bankruptcy proceedings.

b) Ensure that the seller's solicitor gives an undertaking to discharge the puisne mortgage to which the entry relates upon completion.

A solicitor is acting for the buyer of a property which has a registered title. The buyer is having a mortgage loan from a high street lender. The buyer's solicitor is about to submit a pre-completion official search of the register with priority at HM Land Registry using Form OS1. In whose names(s) should the official search be made? a) The buyer only. b) The buyer and the lender jointly. c) The lender only. d) The buyer's solicitor only. e) The seller only.

c) The lender only.

A solicitor is acting for the buyer of a property with registered title. Completion is due to take place shortly and the solicitor has received the result of their official search of the register with priority. Which one of the following statements correctly describes the priority period conferred by the official search? a) Fifteen working days. b) Two months. c) Thirty working days. d) One month. e) Ten business days.

c) Thirty working days.

A businesswoman is buying a commercial property from a limited company. The property has a registered title and contains no entries in respect of mortgages or any insolvency of the company. Would a pre-completion company search need to be carried out by the buyer's solicitor in these circumstances? a) Yes, because it will reveal any mortgages which have been registered at the Companies Registry and will bind the buyer if not discharged. b) No, because such a search is only appropriate in relation to a property which has unregistered title. c) Yes, because the Standard Conditions of Sale (5th edn, 2018 revision) expressly require a buyer to carry out such a search prior to completion. d) No, because the Land Registration Act 2002 expressly provides that such a search is not required in relation to a registered title. e) Yes, because it will confirm whether or not the company has been struck off and therefore whether it still exists.

e) Yes, because it will confirm whether or not the company has been struck off and therefore whether it still exists.

A solicitor is acting for a couple in their purchase of a house which has a registered title. Exchange of contracts and completion was due to take place shortly, but has just been unexpectedly delayed by two weeks. The solicitor had already carried out an official search with priority, but the priority period of that search certificate will expire in a week's time. Which one of the following statements best describes whether the priority period of that official search certificate can be extended? a) The priority period of that official search certificate cannot be extended because each such search has a fixed priority period. b) The priority period of the official search certificate can be extended by paying an additional fee to HM Land Registry before the existing search expires. c) The priority period of the official search certificate cannot be extended unless HM Land Registry exercises its discretion to allow a single one-off extension. d) The priority period of the official search certificate can be extended by making a fresh search before the existing search expires. e) The priority period of the official search certificate can be extended provided no one else has made an official search with priority in the interim.

a) The priority period of that official search certificate cannot be extended because each such search has a fixed priority period.

A solicitor is acting for a couple in their purchase of a house which has a registered title. Completion is due to take place shortly and the solicitor has carried out an official search with priority. When the couple meet their solicitor to sign the purchase transfer deed, they ask why such a search is necessary. Which one of the following statements best describes the purpose of an official search with priority? a) It gives the transfer priority over all other unprotected interests, whether or not the transfer is registered at HM Land Registry on completion. b) It gives the transfer priority over any existing overriding interests which affect the registered title. c) It confers a priority period within which the transfer must be registered, to prevent any third party interest gaining priority. d) It gives the transfer priority over any registered or unregistered equitable interests affecting the registered title. e) It provides updated official copies of the register, which have priority over any earlier official copies.

c) It confers a priority period within which the transfer must be registered, to prevent any third party interest gaining priority.

A company registered in England and Wales is buying a freehold commercial property, which has a registered title. Completion is due to take place shortly and the company's solicitor has prepared the transfer in Form TR1. This needs to be executed by the company and its solicitor has confirmed that this can be done using one of the two methods authorised by the Companies Act 2006, rather than by using the company seal. Which one of the following statements best describes the two methods authorised by the Companies Act 2006? a) Signature by two authorised signatories or by a director of the company in the presence of a witness who attests the signature. b) Signature by a duly appointed attorney or by a senior manager of the company if authorised by a special resolution of the company. c) Signature by two directors or by a director and secretary of the company if so permitted by the articles of association. d) Signature by one authorised signatory or by the secretary of the company, in each case in the presence of a director who countersigns the deed. e) Signature by the managing director or by the chairperson of the company, provided the authority to do so has not been excluded by the articles of association.

a) Signature by two authorised signatories or by a director of the company in the presence of a witness who attests the signature.

A couple are moving house. They are selling their existing house for £100,000, upon which there is a mortgage of £50,000. The solicitor's costs on the sale will be £400 and the estate agent's fees will be £1,000. The purchase price of their new property is £125,000 and the solicitor's costs on the purchase will be £600. The couple are having a new mortgage of £70,000 to assist with their purchase and will fund the balance from their own savings. Their solicitor is ready to exchange contracts but wishes to check that they have sufficient funds available for the balance. Which one of the following figures, based on the facts given, correctly states the balance payable by the couple? a) £1,400. b) £1,000. c) £2,000. d) £7,000. e) £6,000.

d) £7,000.

A couple are buying a flat with the aid of a mortgage from a high street mortgage lender. Contracts have been exchanged and their solicitor has just carried out a bankruptcy search against the couple's names in Form K16. The search result is clear, but the solicitor checks to see if there is any priority period conferred by the search, within which completion needs to take place. What is the priority period, if any, of a K16 search result? a) No priority period is conferred by such a search. b) Ten days. c) Fifteen working days. d) Thirty business days. e) An unlimited priority period is conferred by such a search.

c) Fifteen working days.

A solicitor is acting for the seller of a property. Contracts have been exchanged with the buyer's solicitor and the sale is due to be completed shortly. The buyer is having a mortgage loan. The seller has an existing mortgage which will be discharged out of the proceeds of the sale. Both solicitors have agreed to adopt the Law Society Code for Completion by Post. Which one of the following is a provision of the Law Society Code for Completion by Post? a) The seller's solicitor must provide to the buyer's solicitor replies to the Completion Information and Undertakings Form (TA13) at least five working days before completion. b) The seller's solicitor must formally confirm that they have been appointed the authorised agent of the buyer's solicitor for completion. c) The buyer's solicitor must send the completion monies to the seller's solicitor by the means previously agreed in writing between them. d) The seller's solicitor will, upon receipt of the completion monies, hold the deeds and documents to the order of the buyer's solicitor. e) The buyer's solicitor will pay all reasonable costs incurred by the seller's solicitor in effecting completion by post.

a) The seller's solicitor must provide to the buyer's solicitor replies to the Completion Information and Undertakings Form (TA13) at least five working days before completion

Three friends have just completed their joint purchase of a house. They have contributed unequal amounts to the purchase price and have decided to hold the property as beneficial tenants in common in the shares specified in a trust deed they have signed. The TR1 refers to this fact in the 'declaration of trust' panel. An application for registration of the purchase has just been submitted to HM Land Registry. A copy of the trust deed is lodged with the application. Which of the following steps will HM Land Registry take in respect of the co-ownership when completing the registration? a) Register the trust deed in the property register. b) Enter a 'joint proprietorship' restriction in the proprietorship register. c) Record the buyers' beneficial shares in the charges register. d) Make no entry because trusts must be kept off the register. e) Record the respective contributions to the purchase price as part of the 'price paid' entry in the register.

b) Enter a 'joint proprietorship' restriction in the proprietorship register.

A limited company has just completed its purchase of a commercial property. The purchase has been funded by a mortgage loan from the company's bank. Prior to completion an OS1 search was carried out. The executed transfer in Form TR1 has been received from the seller's solicitor and now needs to be registered at HM Land Registry, along with the new bank mortgage. Which of the following statements relating to the registration is correct? a) The application made to HM Land Registry can include an application for registration of the bank mortgage at Companies House at the same time. b) The transfer will take effect at law whether or not registered, but the buyer will not be shown as the proprietor in the register until registration has been effected. c) If the transfer is registered outside the priority period of the OS1 search, the buyer may be bound by any new third party interests registered in the interim. d) If not registered within two months from the date of completion, the transfer will become void and the seller will have to execute a fresh transfer. e) If the bank mortgage is not registered at Companies House first, it will not be possible to register it at HM Land Registry.

c) If the transfer is registered outside the priority period of the OS1 search, the buyer may be bound by any new third party interests registered in the interim.

A young couple have just bought a house on a new residential estate from a developer. The developer's title to the estate, of which the buyer's house forms part, is subject to a mortgage. Which one of the following methods will be appropriate to discharge the developer's mortgage in respect of the house? a) DS1. b) DS3 c) Mortgage vacating receipt. d) Electronic discharge. e) Undertaking given by the developer's solicitor.

b) DS3

A firm of solicitors has just completed its client's purchase of a property with registered title. In April, prior to completion, the firm carried out an OS1 search to protect the client's purchase. The priority period of the search expired on 15 May. The transfer in Form TR1 is dated 11 May and was lodged for registration on 12 May. An application to register a unilateral notice in respect of a charging order dated 9 May on the seller's property was lodged on 10 May. Which of these two applications has priority? a) The buyer's application because the OS1 search was carried out before the charging order was created. b) The unilateral notice application because the charging order was created before the date of the transfer to the buyer. c) The buyer's application because it was lodged for registration within the priority period of the OS1 search. d) The unilateral notice application because it was lodged prior to the date of the buyer's application. e) The unilateral notice application because it was lodged prior to the date of the transfer to the buyer.

c) The buyer's application because it was lodged for registration within the priority period of the OS1 search.

A property investor is purchasing a freehold residential property in England, which she intends to use as a buy to let property. The purchase price is £310,000. She is a UK resident and already owns a number of properties as part of her property business. This property will be an additional property for her portfolio. How much stamp duty land tax (SDLT) will be payable on the purchase? a) £18,500. b) £4,800. c) £24,800. d) £12,300. e) £3,000.

d) £12,300

A buyer has recently completed their purchase of a property. The registered title contains an existing registered charge which the seller's solicitor undertook to discharge on completion and supply a Form DS1. There is no restriction in the register. The buyer has a new mortgage in favour of their own lender. The application for registration of the transfer to the buyer and the new mortgage has been sent to HM Land Registry, but without the DS1 as that has not yet been received from the seller's solicitor. Which one of the following best describes what the effect of the Land Registry 'early completion' policy will be on the application for registration? a) The Land Registry will reject the application and the buyer will have to reapply when the Form DS1 becomes available. b) The Land Registry will complete the application by registering the transfer and the new mortgage, but will leave the existing charge in the register. c) The Land Registry will 'stand over' the application and send a requisition for Form DS1 to be lodged. d) The Land Registry will complete the application by registering the transfer but not the new mortgage, leaving the existing charge in the register. e) The Land Registry will complete the application and remove the existing charge from the register, provided a copy of the seller's solicitor's undertaking is lodged with the application.

b) The Land Registry will complete the application by registering the transfer and the new mortgage, but will leave the existing charge in the register.

A company has just taken a new lease of a commercial unit for a term of three years and has entered into possession. The lease contains easements over the landlord's adjoining property. The title to the landlord's reversionary title is registered. Which one of the following statements best describes what action will need to be taken regarding registration of the new lease? a) Register the new lease with its own title and enter a notice of the lease in the landlord's title. b) Enter a notice of the lease in the landlord's title, albeit the lease itself is not registrable . c) Enter a notice of the easements in the landlord's title even though the lease itself is not registrable. d) Make no application, as the lease is not registrable and will take effect as an overriding interest. e) Register the new lease with its own title but make no entry in the landlord's title as the lease will be an overriding interest.

c) Enter a notice of the easements in the landlord's title even though the lease itself is not registrable

A company is selling a field forming part of its farm, although it is retaining the rest of the farm. The farm has an unregistered title. The entire farm was conveyed to the company by a single conveyance in 1970. The sale is due to be completed shortly and completion will be effected by post. Which one of the following statements best describes the title documents which the buyer's solicitor will expect to receive on completion? a) All of the original title deeds to the farm including the conveyance to the company. b) The originals of the root of title deed to the farm and any subsequent deeds. c) The originals of the pre-root of title deeds to the farm and certified copies any subsequent deeds. d) An epitome of title marked as examined against the original title deeds to the farm. e) Official copies of the original title deeds to the farm obtained from HM Land Registry.

d) An epitome of title marked as examined against the original title deeds to the farm.

The sale of a residential property is due to be completed shortly. The transaction is being conducted under the Law Society Conveyancing Protocol. The buyer's solicitor wishes to complete by post. Which one of the following statements in relation to completion of this transaction by post is correct? a) The Law Society Code for Completion by Post will apply provided both parties' solicitors agree to this. b) The transaction cannot be completed by post, but the buyer's solicitor can appoint a third party to act as their agent. c) The Protocol Code for Completion by Post will apply unless both parties' solicitors agree otherwise. d) The transaction cannot be completed by post, but it can instead be completed electronically. e) The Law Society Code for Completion by Post will apply unless both parties' solicitors agree otherwise.

e) The Law Society Code for Completion by Post will apply unless both parties' solicitors agree otherwise.

A solicitor is acting for the buyer of a property which has a registered title. The purchase has just been completed and the solicitor has applied to HM Land Registry for registration of both the transfer to the buyer and also the new mortgage on the property to the buyer's lender. Which one of the following statements best describes what the solicitor will expect to receive on completion of the registration? a) Nothing, because registered titles are now held electronically. b) A land certificate. c) A title information document. d) A charge certificate. e) A certificate of registration.

c) A title information document

A solicitor has just completed a client's purchase of a freehold house. The title to the property is registered and the solicitor is preparing the application to HM Land Registry for registration of the client's purchase. Which one of the following forms would be used to make the application? a) Form OC1. b) Form OS1. c) Form FR1. d) Form AP1. e) Form DS1.

d) Form AP1

A buyer has exchanged contracts for the purchase of a property which has an unregistered title. The buyer's solicitor claims that certain entries revealed in the pre-completion land charges search cast doubt on the seller's title. The seller's solicitor disputes this. The buyer wishes to proceed with their purchase, but also wants this title issue resolved before doing so. Which of the following best describes the remedy available to the buyer to have the title issue determined by the court? a) Injunction. b) Award of damages. c) Rescission. d) Vendor and purchaser summons. e) Order for rectification.

d) Vendor and purchaser summons.

The solicitor acting for the buyer of a property has just served a notice to complete on the seller's solicitor. The contract being used for the transaction incorporates the Standard Conditions of Sale (5th edn, 2018 revision) and there are no additional special conditions. What is the purpose of a notice to complete? a) To suggest a date for completion for insertion into the contract in readiness for exchange of contracts. b) To remind the seller's solicitor that the completion date is coming up, where the contract provided for a delayed completion. c) To make time of the essence in a case where the seller has failed to complete on the date specified in the contract. d) To give notice of a claim for damages in cases where the seller is in breach of contract for delay in completing. e) To give notice of rescission of the contract, where the seller is in breach of a major term of the contract by failing to complete.

c) To make time of the essence in a case where the seller has failed to complete on the date specified in the contract.

The seller of a property with a registered title has exchanged contracts for the sale. The contract provides that payment of 15 per cent of the purchase price can be deferred for two months. The remaining 85 per cent must be paid on completion. Completion has just taken place on the agreed date. Which one of the following statements in relation to the provision in the contract for deferred payment is correct? a) It gives rise to a lien in favour of the seller. b) It prevents the legal title to the property vesting. c) It must be protected by registration as a legal charge. d) It may be enforced by the grant of an injunction. e) It must be protected in its own right as a C(iv) land charge.

a) It gives rise to a lien in favour of the seller

Contracts have been exchanged in respect of the sale of a parcel of land. The contract utilises the Standard Conditions of Sale (5th edn, 2018 revision) (SCS). The title is registered. An issue has arisen regarding one of the terms of the contract, which does not reflect the intention of the parties. Which one of the following statements correctly describes a method of rectifying the contract? a) By verbal agreement between the parties. b) By application to the Upper Tribunal (Lands Chamber). c) By application to the court. d) By application to HM Land Registry. e) By application to the Law Society under the SCS.

c) By application to the court.

Contracts have been exchanged for the sale of a factory unit, with completion fixed for the end of the month. The contract incorporates the Standard Commercial Property Conditions (3rd edn, 2018 revision). The seller is worried about whether the buyer will complete and has heard that it is possible for a party who is ready, willing and able to complete to serve a notice to complete. The seller asks their solicitor to clarify the position. Which one of the following best describes when and by whom a notice to complete could be served? a) By either party at any time before the date fixed for completion. b) Only by the seller on or after the date fixed for completion. c) By either party at any time on or after the date fixed for completion. d) Only by the buyer at any time before the date fixed for completion. e) Only by the seller at any time after the date fixed for completion.

c) By either party at any time on or after the date fixed for completion.

The buyer of a property has failed to complete, notwithstanding service of a notice to complete by the seller's solicitor. The contract incorporates the Standard Conditions of Sale (5th edn, 2018 revision). The seller has rescinded the contract and wishes to know whether they can make a claim against the buyer, either under the terms of the contract or by taking court proceedings. Which one of the following statements best describes the position regarding a claim by the seller? a) The seller can only make a claim under the terms of the contract, because the position is now governed exclusively by SC 7.4. b) The seller can only make a claim by taking court proceedings, because the contract has now been rescinded and their rights under its terms can no longer be exercised. c) The seller can forfeit the buyer's deposit under the contract, but any other claim must be made taking court proceedings. d) The seller can make a claim under the terms of the contract and by taking court proceedings, but any court damages must take account of any compensation paid under the contract. e) The seller can make a claim by taking court proceedings, but only if they have exhausted her remedies under the terms of the contract.

d) The seller can make a claim under the terms of the contract and by taking court proceedings, but any court damages must take account of any compensation paid under the contract.

A solicitor recently acted for the buyer of a house which had been built three years ago. The seller had bought the house from the developer when it was newly built. The client is worried because a very large crack has just occurred in the exterior wall of the house. She has asked her solicitor whether she would be able to claim under the NHBC 'Buildmark' scheme which was applied to the property when it was originally built. Which one of the following statements best describes the position of the buyer under the NHBC 'Buildmark' scheme? a) She will have no claim as only the original buyer of a new property can claim under the scheme, not a subsequent owner of the property. b) She will have no claim because the scheme covers major structural defects only for the first two years after the house was built. c) She will have a claim provided the cover under the scheme was expressly assigned to her when she bought the property from the original buyer. d) She will have no claim as the scheme covers only minor defects and repairs, but she may be entitled to reimbursement of her legal expenses. e) She will have a claim because major structural defects are covered for the full ten years of the scheme and she is the current owner.

e) She will have a claim because major structural defects are covered for the full ten years of the scheme and she is the current owner.

The seller of a commercial property has instructed a solicitor to act for them. At the initial interview, the seller asked about the costs involved and discussed these with the solicitor. Following the initial interview, the solicitor wrote to the client with information regarding the firm's costs in respect of the sale. Which one of the following statements is correct in relation to the solicitor's fees? a) If VAT is not referred to in an estimate of fees, the client should assume the estimate is exclusive of any VAT. b) If a fixed fee rather than an estimate is agreed with the client, it is impliedly variable if circumstances significantly change. c) If an estimate of fees is given, it is impliedly variable and so it is not necessary to inform the client in advance of any change. d) A fixed fee should be agreed with the client at the outset of the conveyancing transaction. e) An estimate of fees should include a breakdown between fees and VAT on those fees, not a combined figure.

e) An estimate of fees should include a breakdown between fees and VAT on those fees, not a combined figure.

A couple are buying a newly built house on a residential development. The replies to the standard enquiries of local authority in Form CON29 and the drainage and water search in Form CON29DW reveal that neither the roads nor the drains and sewers serving the estate are currently adopted. The buyer's solicitor has checked the pre-contract documentation to confirm that the developer has entered into the appropriate adoption agreements. Which one of the following statements best describes the appropriate types of adoption agreement in this case? a) Agreements under s40 of the Roads Act 1920 and s35 of the Water Act 2014. b) Agreements under s2 of the Highways (Amendment) Act 1980 and s54 of the Drainage Act 1950. c) Agreements under s24 of the Adoption of Roads Act 1959 and s27 of the Sewers Act 1849. d) Agreements under s5 of the Public Roads Act 1975 and s14 of the Water Act 1989. e) Agreements under s38 of the Highways Act 1980 and s104 of the Water Industry Act 1991.

e) Agreements under s38 of the Highways Act 1980 and s104 of the Water Industry Act 1991.

An assistant solicitor has been acting for a client in their sale and purchase. The solicitor's firm is a partnership. In the course of the sale and purchase transactions, the solicitor has given professional undertakings in relation to exchange of contracts and also in relation to the redemption of the client's existing mortgage. Which one of the following statements regarding the solicitor's undertakings is correct? a) A professional undertaking must always be complied with within a reasonable time. b) A professional undertaking must only be given in writing, not verbally. c) Only a partner in the solicitor's firm can give a professional undertaking. d) If an undertaking is given, every partner in the firm is responsible for ensuring compliance. e) If an employee gives an undertaking in the name of the firm, it is binding on the employee personally but not on the partners.

d) If an undertaking is given, every partner in the firm is responsible for ensuring compliance.

The owner of a large residential freehold property is selling off the rear half of the garden as a building plot. The property has a registered title. The plot is bounded at the rear by farmland and on each side by existing houses. The seller will be retaining the remainder of the property and continue to live there. The seller's solicitor is preparing the draft transfer of part which is to be annexed to the contract. Which one of the following statements best describes a provision that will need to be included in the draft transfer? a) A grant of rights of light and air over the retained land in favour of the plot. b) An acknowledgement for production by the transferor in respect of any retained title documents. c) A right of way over the retained land for the benefit of the plot in order to gain access to the public highway. d) A covenant to erect a close-boarded fence along the entire boundary between the plot and the retained land. e) An express grant of any rights over the retained land which would otherwise be implied in favour of the plot.

c) A right of way over the retained land for the benefit of the plot in order to gain access to the public highway.

A client wishes to leave the country and retire to Spain. She wishes to sell her property as quickly as possible and will accept a competitively low price. A solicitor is instructed to carry out the conveyance when the purchaser suddenly pulls out. The solicitor has decided that he would like to purchase the property for his step-daughter's 21st birthday in four weeks. It would be a cash purchase. Can the solicitor continue to act for the client in these circumstances? a) Yes, as he can rely on the substantially common interest requirement, as both parties require a quick conveyance. b) No, as this would be a client conflict of interest. c) Yes, if the client is willing to provide informed consent in writing. d) Yes, as the solicitor is purchasing the property for his step- daughter and not himself. e) No, as there is an own interest conflict here.

e) No, as there is an own interest conflict here.

A company is selling its lease of a commercial property which was granted to it in 2020. There are ten years remaining of the term of the lease, which contains various covenants on the part of the tenant in favour of the landlord. The landlord has granted a licence to assign, without requiring the tenant to enter into an authorised guarantee agreement. What will be the effect of the assignment upon the company's continuing liability under the tenant's covenants in the lease? a) It will cease to be liable as from the date of the assignment to the assignee. b) It will remain liable as from the date of the assignment to the assignee for the remainder of the term of the lease. c) It will cease to be liable upon the expiry of an agreed period (of up to five years) as from the date of the assignment to the buyer. d) It will remain liable as from the date of the assignment to the buyer but only for so long as the lease remains vested in the buyer as assignee. e) It will remain liable for a further period equal to the period of its own ownership of the lease prior to the date of the assignment to the buyer.

a) It will cease to be liable as from the date of the assignment to the assignee.

A developer has agreed terms for the grant of a lease of a newly built commercial unit, forming part of a new business park. The lease is for a term of ten years and will be registrable at HM Land Registry. The lease is being drafted by a conveyancing assistant and their supervising partner has instructed that the draft lease will need to include 'the prescribed clauses'. Which one of the following statements best describes a prescribed clauses lease? a) It is a lease containing standard terms and conditions which have been prescribed under the Standard Conditions of Sale (5th edn, 2018 revision). b) It is a lease containing a set of prescribed clauses at its start which contain information required by HM Land Registry when registering the lease. c) It is a lease which incorporates standard clauses prescribed by one of the Law Society's short-form model commercial leases. d) It is a lease which incorporates various standard leasehold easement and covenant clauses prescribed by the Land Registration Rules 2003. e) It is a lease containing standard clauses prescribed by the landlord for inclusion in all leases of units within the development.

b) It is a lease containing a set of prescribed clauses at its start which contain information required by HM Land Registry when registering the lease.

The tenant of a long commercial lease has agreed the sale of their lease to a buyer. The lease has a registered title and is subject to a registered charge in favour of the tenant's bank. The lease contains a covenant against alienation of the lease by the tenant without the prior written consent of the landlord. Which one of the following best describes the document which will be needed to enable the sale of the lease to be completed? a) A consent in writing from the current tenant's bank. b) A licence to underlet from the landlord. c) An authorised guarantee agreement from the buyer in favour of the landlord. d) A licence to assign from the landlord. e) A deed of covenant between the landlord, the tenant and the bank.

d) A licence to assign from the landlord.

The tenant of a leasehold commercial property wishes to assign the lease to a third party. The lease was granted in 2010. The tenant asks their solicitor for advice about obtaining a licence to assign from the landlord. Which one of the following statements regarding a licence to assign is correct? a) If the lease does not contain an express restriction on alienation, the landlord's consent to assign is impliedly required, but cannot be unreasonably withheld. b) A licence to assign can include a direct covenant by the assignee, in favour of the landlord, to comply with the tenant's covenants in the lease for the residue of the term. c) The grant of licence to assign may be made conditional upon the existing tenant entering into an authorised guarantee agreement, but only if the lease expressly provides for this. d) If the lease contains an express restriction on alienation without consent but does not refer to reasonableness, the landlord's consent to assign can be unreasonably withheld. e) No licence to assign will be required if the existing tenant enters into an authorised guarantee agreement with the landlord contemporaneously with the assignment.

b) A licence to assign can include a direct covenant by the assignee, in favour of the landlord, to comply with the tenant's covenants in the lease for the residue of the term.

The tenant of an existing commercial lease has agreed a sale of the lease to a third party. The lease contains a covenant against alienation without the landlord's consent. The tenant has instructed a solicitor and asks whether they will have any liability under the lease after they have assigned it. Their solicitor explains that this will depend upon whether or not the tenant has to enter into an authorised guarantee agreement (AGA). Which one of the following statements best describes the type of lease where a tenant may be required to enter into an AGA? a) A lease created prior to 1 January 1995. b) A lease of commercial property, whenever created. c) A lease which expressly provides for this, whenever created. d) A lease created on or after 1 January 1996. e) A lease for a term exceeding seven years, whenever created.

d) A lease created on or after 1 January 1996.

A businesswoman is taking a lease of a unit in a newly built commercial block. She meets with her solicitor to go through the draft lease. The solicitor advises that the maintenance of the block will be carried out by a management company, and that there is a requirement for each tenant to contribute to a sinking fund held by the management company. The businesswoman asks the solicitor to explain what is meant by a sinking fund. Which one of the following statements best describes the nature of a sinking fund? a) It is a reserve fund to cover the cost of any major work that might arise from time to time. b) It is an income fund to cover the annual costs of running the management company. c) It is a variable fund to cover the cost of routine maintenance and repairs by the management company. d) It is a discretionary fund which may be used to assist a tenant whose flat goes down in value. e) It is a capital fund to cover the diminution in value of the wasting assets of the management company over time.

a) It is a reserve fund to cover the cost of any major work that might arise from time to time.

The tenant of an office unit is selling their lease. The alienation provisions in the lease require a licence to assign to be obtained from the landlord. The tenant asks their solicitor for advice regarding such a licence. Which one of the following statements in relation to a licence to assign is correct? a) It is normally prepared by the assignee's solicitor. b) It will usually include a direct covenant between the assignee and the landlord. c) It will not normally need to include the existing tenant as a party to it. d) It will be subject to stamp duty land tax if it is made by deed. e) It must be registered at HM Land Registry in order to take effect at law.

b) It will usually include a direct covenant between the assignee and the landlord.

The landlord of a commercial property has consulted their solicitor regarding the lease, which was granted in 2015. The landlord is concerned that there are existing breaches of the tenant's repairing obligations in the lease because the tenant has not been properly maintaining the property, and that there could be further breaches in the future. The solicitor advises that it is first necessary to check whether a 'Jervis v Harris' clause applies to the lease, as this will enable the landlord to serve notice of the breach on the tenant and carry out the necessary remedial works if the tenant fails to do so. Which one of the following statements in relation to such a clause is correct? a) If the clause is not expressly set out in the lease, it will be implied provided the lease was granted after 1995. b) The landlord must serve notice of the breach upon the tenant and this notice may also specify anticipated future breaches. c) The landlord can carry out the remedial works immediately after notice of the breach is served upon the tenant. d) The landlord may recover the cost of the remedial works from the tenant as a debt rather than as damages. e) There is no test of reasonableness applicable to such a clause because it confers a contractual, not a statutory, right.

d) The landlord may recover the cost of the remedial works from the tenant as a debt rather than as damages.

The landlord of a commercial property has consulted their solicitor regarding the tenant's rent arrears. The tenant is a company and the rent arrears (which are not COVID-19 related) are currently £13,000. The solicitor advises that service of a statutory demand may be an option to obtain payment of the rent arrears. Which one of the following statements in relation to a statutory demand is correct? a) A statutory demand must be sealed by the court before being served on the tenant. b) A statutory demand can only be served in accordance with the provisions of the Law of Property Act 1925. c) The amount owed by the tenant and demanded in the statutory demand must be more than £5,000. d) The tenant must pay the rent arrears specified in the statutory demand within 14 days of service of the demand. e) If the tenant fails to pay the rent arrears by the required date, the landlord may petition for the winding up of the company.

e) If the tenant fails to pay the rent arrears by the required date, the landlord may petition for the winding up of the company.

The tenant of a commercial property wishes to improve the property by extending the existing building. The lease contains a provision requiring the landlord's consent to any alterations. The tenant consults their solicitor regarding this. Which one of the following statements in relation to the landlord's consent is correct? a) If planning permission for the extension is obtained, the landlord must give consent to the alterations. b) If the use of the property will remain the same throughout, the landlord must give consent to the alterations. c) The landlord's consent will not be required if the extension falls within the relevant General Permitted Development Order. d) The landlord may not charge a premium for granting consent to the alterations, although they may claim their reasonable costs. e) If the landlord gives consent to the alterations, planning permission will not be required unless it is a listed building.

d) The landlord may not charge a premium for granting consent to the alterations, although they may claim their reasonable costs.

The current tenant of a commercial leasehold property wishes to alter the premises for specific purposes in connection with their specialist business. The lease requires the landlord's consent to any proposed alterations, such consent not to be unreasonably withheld. The landlord does not have any objection to the alterations in principle, but wishes to avoid the risk of any adverse effect on rent after the current tenant's lease ends and they vacate the premises. The landlord asks their solicitor whether there is a method of avoiding this risk. Which one of the following best describes a method of how this risk can be avoided when giving consent to the alterations? a) By requiring a rent deposit deed from the tenant to cover any consequential reduction in future rents. b) By taking a covenant from the tenant to re-instate the premises when the lease comes to an end. c) By obtaining an indemnity from the tenant to compensate the landlord for any consequential reduction in future rents. d) By amending the rent review provisions in the lease to take account of the current and any future effect of the alterations. e) By obtaining an undertaking from the tenant to make any alterations required by a new tenant when the current lease ends.

b) By taking a covenant from the tenant to re-instate the premises when the lease comes to an end.

A tenant of a ground-floor shop consults their solicitor regarding any potential liability to repair the shop premises following a fire which started accidentally in another part of the landlord's property. Under the terms of the lease, the tenant is responsible for keeping the interior of the shop in repair, but the landlord is responsible for insuring the building of which the shop forms part. The landlord's insurance covers accidental damage by fire. The solicitor explains that the tenant's liability will depend upon the inter-relationship between the repair and insurance provisions in the lease. Which one of the following statements best describes the effect of that inter-relationship in a standard commercial lease? a) The tenant will have no liability to repair as the damage was caused by an insured risk. b) The tenant's liability to repair will be reduced rateably depending upon the amount of insurance money paid out. c) The liability for repair will be apportioned equally between the landlord and the tenant. d) The tenant will have full liability to repair notwithstanding the damage was caused by an insured risk. e) The tenant's liability to repair will be the subject of negotiation between the landlord, the tenant and the insurer.

a) The tenant will have no liability to repair as the damage was caused by an insured risk.

A solicitor is acting for a company in its acquisition of a new commercial lease of an office suite ('the office'), which forms part of a newly constructed building ('the building') comprising a number of similar office suites. The solicitor has just received the draft lease for approval. Which one of the following best describes the provisions for insurance and repair which the solicitor would expect to see in the draft lease? a) The tenant is to insure the office and repair the interior and the exterior and main structure of the office. b) The landlord is to insure the building and repair the interior and the exterior and main structure of the building. c) The landlord is to insure the building and repair the exterior and main structure of the building, but the tenant is to repair the interior of the office. d) The tenants of all the offices in the building are to collectively insure the building and repair the interior and the exterior and main structure of the building. e) The tenants of all the offices in the building are to collectively insure the building and repair the interior, but the landlord is to repair the exterior and main structure of the building.

c) The landlord is to insure the building and repair the exterior and main structure of the building, but the tenant is to repair the interior of the office.

A company is negotiating to take a grant of a new lease of a factory for a term of 15 years. The landlord's solicitor has sent a draft lease for approval. The company is concerned to ensure that it will be able to assign the lease in the future. Which one of the following best describes the effect on alienation of s19(1)(a) of the Landlord and Tenant Act 1927? a) In the absence of an express clause permitting alienation, s19(1)(a) implies such a clause into the lease. b) If the lease contains a clause permitting assignment with the landlord's consent but does not refer to reasonableness, s19(1)(a) implies a proviso that such consent is not to be unreasonably withheld. c) If the draft lease does not contain a clause permitting assignment with the landlord's consent, s19(1)(a) entitles the prospective tenant to insist that such a clause be inserted. d) If the lease contains a clause permitting assignment but does not refer to any need for the landlord's consent, s19(1)(a) implies a proviso that such consent is required. e) If the lease contains a clause permitting assignment with the landlord's consent but does not refer to costs, s19(1)(a) implies a proviso that the tenant will pay the landlord's reasonable costs.

b) If the lease contains a clause permitting assignment with the landlord's consent but does not refer to reasonableness, s19(1)(a) implies a proviso that such consent is not to be unreasonably withheld.

A company is proposing to take a grant of a new lease of a small factory unit built around 20 years ago. As the tenant, the company will be responsible for repairing the factory unit. The company's solicitor has recently received the draft lease from the landlord's solicitor. Which one of the following forms of repairing covenant would usually be the least onerous for the tenant? a) To keep the demised premises in good and substantial repair. b) To put and keep the demised premises in good repair. c) To maintain the demised premises to a reasonable standard of repair. d) To maintain the demised premises to their current standard of repair. e) To put and maintain the demised premises in repair to a standard reasonably required by the landlord.

d) To maintain the demised premises to their current standard of repair.

A solicitor is acting for a landlord which has just agreed the grant of a lease of the first unit in a new shopping centre. The lease will be for a term of eight years. The landlord is concerned to keep confidential the terms of the lease relating to the initial rent and the rent review provisions, so that these are not available for other prospective tenants in the shopping centre to see. Which one of the following statements best describes the steps to be taken to keep the relevant terms confidential? a) Ensure that the relevant terms are redacted from the copy lease when application is made to HM Land Registry for registration of the lease. b) Make a request to the Information Commissioner for permission to keep the relevant terms confidential and redact these from any copy of the lease available for public inspection. c) Omit the relevant terms from the lease itself and record these in a side letter signed by each party which is supplemental to, but separate from, the lease. d) Ensure that an application is made to HM Land Registry for the filed copy lease to be designated an exempt information document, with the relevant terms redacted. e) Require the tenant to enter into a separate covenant with the landlord to the effect that the tenant will not disclose the terms of the lease to any third party.

d) Ensure that an application is made to HM Land Registry for the filed copy lease to be designated an exempt information document, with the relevant terms redacted.

The landlord of a commercial property is concerned that the tenant is in arrears with the payment of the rent. The quarterly rent is currently one month overdue. The Commercial Rent (Coronavirus) Act 2022 does not apply to the arrears. The landlord asks their solicitor about the possibility of forfeiture of the lease if this situation continues. Which one of the following statements best describes the position in relation to forfeiture for non-payment of rent? a) The landlord must always make a formal demand for the unpaid rent. b) The tenant cannot apply for relief from forfeiture for non-payment of rent. c) The rent must have been unpaid for more than six months before a landlord can forfeit the lease. d) The landlord can only forfeit for breaches of covenant other than non-payment of rent. e) The landlord can forfeit the lease either by commencing court proceedings or by peaceable re-entry.

e) The landlord can forfeit the lease either by commencing court proceedings or by peaceable re-entry. correct

The tenant of a leasehold commercial property has entered into an agreement to grant a new underlease to a third party. The agreement incorporates the Standard Commercial Property Conditions (3rd edn, 2018 revision) (SCPC). The consent of the landlord under the existing lease is required to any underletting. Under the agreement, the standard conditions contain the relevant provisions relating to such consent. Which of the following statements best describes a relevant provision of the SCPC? a) The proposed undertenant must apply for the landlord's consent at their own expense. b) The existing tenant may rescind the agreement if unconditional consent is not obtained from the landlord despite all reasonable efforts to do so. c) The existing tenant must apply for the landlord's consent, but at the expense of the proposed undertenant. d) Either party may rescind the agreement if the landlord's consent is not obtained and no declaration has been obtained from the court that consent has been unreasonably withheld. e) The parties must apply jointly for the landlord's consent at their joint expense.

d) Either party may rescind the agreement if the landlord's consent is not obtained and no declaration has been obtained from the court that consent has been unreasonably withheld

The grant of a lease of a commercial unit on a new retail park is to be completed shortly. It is the first unit on the park to be leased and the landlord has offered the tenant certain concessions as to the rental terms. The landlord does not wish the terms of those concessions to be publicly available following completion of the lease. The landlord's solicitor has advised that an application be made to HM Land Registry to designate the lease an 'exempt information document' (EID). Which one of the following best describes the basis upon which the lease could be designated an exempt information document? a) It contains 'financial information'. b) It contains 'personal information'. c) It contains 'commercially sensitive' information. d) It contains 'prejudicial information'. e) It contains 'private information'.

d) It contains 'prejudicial information'.

A solicitor is acting for a corporate landlord in the grant of a new lease of a unit on its newly built retail park. The solicitor has agreed with the client that the Code for Leasing Business Premises in England and Wales (1st edn) (the Code) is to be adopted in the grant of the new lease. Which one of the following statements in relation to the Code is correct? a) The Code is published by the Law Society for use in all commercial lease transactions. b) Adoption of the Code is compulsory for corporate landlords and their solicitors when granting a new lease. c) The Code contains a full precedent form of lease which must be used when granting a new lease of business premises. d) The Code seeks to improve the quality and fairness of negotiations on lease terms and make drafting more efficient. e) Adoption of the Code guarantees a new lease can be registered with absolute leasehold title at HM Land Registry.

d) The Code seeks to improve the quality and fairness of negotiations on lease terms and make drafting more efficient

A solicitor is acting for the landlord of a new commercial building, who intends to grant leases of individual units within the building. The landlord does not wish to undertake responsibility for maintaining the exterior and main structure of the building, or for insuring it. The landlord has instructed its solicitor to make appropriate provision in the leases of the individual units to reflect this: this is to include the first lease to be granted, the final lease and all the other leases. Which one of the following best describes the provision that each lease should make for responsibility for maintenance and insurance? a) Make no provision, so as to give the tenants the flexibility to make their own arrangements. b) Make provision for the tenant of the first lease to be responsible, and to recoup the cost from the other tenants. c) Make provision for a management company to be responsible, with the tenants being the shareholders. d) Make provision for each tenant to be responsible, but only in respect of their own unit. e) Make provision for the tenant of the final lease to be responsible, and to recoup the cost from the other tenants.

c) Make provision for a management company to be responsible, with the tenants being the shareholders.

A sole trader is proposing to take an assignment of an existing lease of commercial premises. The lease is for 20 years, with 16 years unexpired, and includes a requirement for open market rent reviews every five years. The sole trader asks their solicitor for advice regarding the rent review provisions. Which of the following statements represents a default provision of the lease unless the contrary is expressed? a) Time is of the essence for the landlord to trigger a rent review. b) The rent is to be reviewed on an 'upwards only' basis. c) Tenant's improvements must be taken into account. d) The assumptions referred to in the Landlord and Tenant Act 1954 will all apply. e) The landlord's notice to trigger a rent review must specify a suggested new rent.

c) Tenant's improvements must be taken into account

A businesswoman is proposing to take a new 15-year lease of office premises. She would like to make sure the alienation clause in the new lease will give her the broadest right to assign the lease at a later date, if she subsequently wishes to move to different premises. Which one of the following types of alienation clause would best achieve this outcome? a) Not to assign to a corporate assignee. b) Only to assign the lease within the first ten years of the term. c) Not to assign before first offering a surrender to the landlord. d) Only to assign the lease during the last five years of the term. e) Not to assign the lease unless the consent of the landlord has been obtained.

e) Not to assign the lease unless the consent of the landlord has been obtained.

A solicitor has been instructed by a corporate landlord to act in the grant of a new underlease of an office unit within a property which is still being constructed. A prospective corporate tenant has been found, although the terms of the new lease are still being finalised. The prospective tenant is obtaining mortgage finance to fund the premium payable for the grant of the underlease. The landlord discusses with its solicitor whether it would be appropriate to prepare an agreement for lease or proceed straight to the grant of the lease. Which one of the following statements best describes why an agreement for lease would be advisable? a) The parties are still negotiating the terms of the proposed underlease. b) The property to be demised is still being constructed by the landlord. c) The proposed landlord and tenant are each corporate bodies. d) The proposed underlease relates to a non-residential, rather than a residential, property. e) The proposed tenant is obtaining mortgage finance to fund the acquisition of the underlease.

b) The property to be demised is still being constructed by the landlord.

The tenant of a commercial property has agreed terms for the grant of an underlease to a third party. The existing lease has a registered title and contains provisions relating to alienation. These include a requirement to obtain licence to underlet from the landlord and an absolute prohibition upon alienation of part of the property demised in the lease. The landlord has agreed to grant a licence in principle, but only if the proposed underlease is of the whole of the property, not merely part of it. Which one of the following statements best describes why a landlord would wish to prohibit an underlease of part of the property? a) It would breach the terms of the Landlord and Tenant Act 1954, which prohibits the grant of an underlease of part. b) It could entitle the undertenant to security of tenure under the Landlord and Tenant Act 1954 when the existing lease expires. c) It could enable the existing tenant to obtain a higher rent than that they currently pay to the landlord under the existing lease. d) It would prejudice the privity of contract between the landlord and the tenant under the existing lease. e) It would breach the terms of the Land Registration Act 2002, which prohibits any underlease of part of a registered lease.

b) It could entitle the undertenant to security of tenure under the Landlord and Tenant Act 1954 when the existing lease expires.

A solicitor is acting for the buyer of a leasehold unit in a newly built commercial development. The lease will be for a term of ten years. The developer is a company with an unregistered freehold title. The agreement for lease incorporates the Standard Commercial Property Conditions (3rd edn, 2018 revision) (SCPC). Which one of the following statements best describes the developer's obligation to deduce its freehold title to the buyer under the SCPC? a) The developer is under no obligation to deduce its freehold title. b) The developer must deduce its freehold title in accordance with s44 of the Law of Property Act 1925. c) The developer must deduce its freehold title to the reasonable satisfaction of the buyer's solicitor. d) The developer must deduce its freehold title in accordance with Sch 10 to the Land Registration Act 2002 e) The developer must deduce a freehold title which will enable the buyer to register the lease with an absolute title.

e) The developer must deduce a freehold title which will enable the buyer to register the lease with an absolute title.

The landlord of a commercial unit is intending to grant a lease of the unit. They meet with their solicitor to discuss the terms of the proposed lease. They ask their solicitor about the other types of rent review clause which are available, as an alternative to use of an 'open market' rent review clause. Which one of the following statements best describes a group of alternative recognised forms of rent review clause? a) Fixed increase/index linked/turnover. b) Mortgage linked/flexible increase /profitability. c) Securitised/negotiated increase/interest-rate linked. d) Dependant increase/discounted/performance linked. e) Relative increase/value linked/comparability.

a) Fixed increase/index linked/turnover

The tenant of an existing lease of a commercial property is selling their lease. The rent under the lease is payable in advance on the 'usual quarter days'. The tenant is up to date with the payment of rent and so there will need to be an apportionment of the current quarter's rent on completion of the assignment to the buyer. Which one of the following statements correctly describes the 'usual quarter days' in relation to rent payable under a lease? a) 1 January, 1 April, 1 July, 1 October. b) 31 March, 30 June, 30 September, 31 December. c) 30 January, 29 April, 31 July, 30 October. d) 25 March, 24 June, 29 September, 25 December. e) 15 January, 15 April, 15 June, 15 October.

d) 25 March, 24 June, 29 September, 25 December.

A businessman runs a small manufacturing business. Due to expansion of his business, he is now purchasing an additional freehold commercial unit, which is next to the existing unit he purchased a couple of years ago. The unit is situated in England. The purchase price is £225,000. How much stamp duty land tax (SDLT) will be payable on the purchase? a) £4,500. b) £1,500. c) £0. d) £10,250. e £13,250.

b) £1,500.

A solicitor is acting for the buyer of a commercial property. Contracts have been exchanged and completion is due to take place tomorrow. The contract incorporates the Standard Commercial Property Conditions (3rd edn, 2018 revision) (SCPCS) and contains no special conditions relating to the time for completion. What is the latest time for completion under the standard conditions of the contract where the seller is not in default? a) 12 am. b) One hour before close of business of the seller's solicitor. c) 2 pm. d) One hour before close of business of the seller's solicitor's bank. e) 1 pm.

c) 2 pm.

A property investor, who is the sole legal and beneficial owner of a portfolio of residential properties for rental purposes, has contracted to buy a new house in England for £510,000, which he intends to rent out like the rest of the properties in his portfolio. He has asked his solicitor whether he will have to pay any Annual Tax on Enveloped Dwellings (ATED) on the new house. The solicitor has confirmed he will not have to do so. Which one of the following statements best describes the correct reason for the solicitor's response? a) ATED is not payable by a sole owner who is an individual. b) ATED is only payable on properties with a value exceeding £600,000. c) ATED is not payable on a property used for residential purposes. d) ATED is not chargeable on buy to let properties. e) ATED is not chargeable if the owner paid stamp duty land tax (SDLT) when they bought the property.

a) ATED is not payable by a sole owner who is an individual. correct

A property investor recently purchased a commercial unit and has just completed the grant of a new lease of the unit to a tenant. Prior to completion of the lease, the landlord exercised the option to tax for VAT purposes. The rent is £10,000 per annum and the lease contains a covenant by the tenant to pay VAT in addition to the rent. There was no agreement for lease. Which one of the following statements best describes the position in relation to VAT on the rent under the lease? a) The rent is deemed to be exclusive of VAT and the tenant must in addition pay the VAT on the rent. b) The rent is deemed to be VAT inclusive and no further VAT can be claimed from the tenant. c) The rent is deemed to be VAT inclusive, but the VAT paid by the landlord can be reclaimed from the tenant. d) The rent is deemed to be inclusive of VAT, but by exercising a further option to tax the landlord can reclaim the VAT from the tenant. e) The rent is deemed to be exclusive of VAT provided the landlord exercises a confirmatory option to tax and the tenant must then pay VAT on the rent.

b) The rent is deemed to be VAT inclusive and no further VAT can be claimed from the tenant.

A company is selling a freehold commercial property which was built two years ago. The company has not exercised an option to tax for VAT purposes in respect of the property. Contracts have just been exchanged with the buyer. The contract incorporates the Standard Commercial Property Conditions (3rd edn, 2018 revision) and contains no special conditions in respect of VAT. Which one of the following statements best describes the position as to the payment of VAT on the purchase price upon completion? a) There will be no VAT payable by the buyer on the purchase price because the property is a 'new' building for VAT purposes. b) The standard conditions provide that the purchase price is deemed to be inclusive of VAT and so no further VAT on it is payable by the buyer. c) There will be no VAT payable by the buyer on the purchase price because the company has not exercised the option to tax in respect of the property. d) The Standard Conditions provide that the purchase price is deemed to be exclusive of VAT and VAT on it is payable by the buyer. e) There will be no VAT payable by the buyer on the purchase price because the use of the property is commercial and the sale will therefore be an exempt supply.

d) The Standard Conditions provide that the purchase price is deemed to be exclusive of VAT and VAT on it is payable by the buyer.

A large national company is looking to acquire an additional leasehold commercial property in England. The managing director of the company asks their solicitor for advice regarding the stamp duty land tax (SDLT) implications, including the effect of the Net Present Value (NPV) of the rent for such a property. When is NPV relevant for SDLT purposes? a) On the grant of a new lease only. b) On the grant of a new lease or the assignment of an existing lease. c) On the assignment of an existing lease only. d) On the grant of a new lease or the surrender of an existing lease. e) On the surrender of an existing lease only.

a) On the grant of a new lease only.

A multinational company has just taken a grant of a new underlease of a commercial property in England. The Net Present Value (NPV) of the rent is £5,100,000. How much SDLT will be payable on the rent? a) £52,000. b) £250,000. c) £50,500. d) £102,000. e) £51,000.

c) £50,500.