Elements of Freehold Transactions Flashcards
Exchange of contracts:
Deposit paid (10%);
Both parties are bound to complete transaction on agreed completion date;
Buyer gains equitable interest in the property under a constructive trust:
BUT parties are free to withdraw before exchange.
Completion:
Balance purchase price paid;
Transfer deed completed;
Buyer entitled to register as the proprietor and gains legal ownership.
Property with registered title - at what point does legal title transfer?
Legal transfer does not occur until registered at HM Land Registry.
Property with unregistered title - at what point does legal transfer occur?
Legal transfer takes place on completion but becomes void if title not registered within 2 months.
Deduction of title: what documents does the seller’s solicitor produce for title to unregistered land?
Copy title deeds.
Deduction of title: what documents does the seller’s solicitor produce for title to registered land?
Official copies of the registers of title.
Who prepares the draft transfer deed (TR1) for approval by the seller’s solicitor?
The buyer’s solicitor. (Seller’s solicitor approves)
Who carries out OS1 searches and what is the significance of the OS1 search?
The buyer’s solicitor. OS1 ensures the buyer benefits from a priority period: it freezes the register giving the buyer a priority period to register the transfer.
What is synchronisation?
Imperative where a client has a related sale and purchase, synchronisation involves making sure the contracts on the sale are exchanged at the same time as the contracts on the purchase (with the same completion date).
Seller’s solicitor provides buyer’s solicitor with official copies of the registers of title to deduce title:
Official copies must be less than 6 months old - buyer’s solicitor checks this.
What are the OC1 and OC2 forms?
OC1: official copies and filed plan
OC2: official copies of documents referred to in the title
What is good root of title?
Unregistered land - seller’s solicitor must find good root of title - a document that:
Is at least 15 years old;
Deals with the whole of the legal and equitable interest in the property;
Provides an adequate and identifiable description;
Best document for a root of title is a conveyance - it provides double guarantee
What are the most common rights in the Land Charges Act system?
C(iv) - estate contract
D(ii) - restrictive covenant
D(iii) - equitable easement
F - home rights
What is the significance of a missing deed of covenant referred to in the root of title?
The Land Registry will register only a qualified title. May be an issue for secured lenders.
Registered land - co-ownership:
Equity follows the law.
Co-owners hold the equitable interest as joint tenants unless there is a Form A restriction in the proprietorship register.
