MCQS Flashcards
If a seller has suffered considerable output tax in refurbishing a property ready for sale, what can they do?
The property is exempt subject to the option to tax rated transaction.
If the seller opts to tax, they can charge VAT at the standard rate on the sale price.
The output tax charged on the sale can be offset against the input tax it has suffered to reduce its tax bill.
Where can you find information in respect of the roads over which access is needed to a property?
Adopted roads are contained within the results of the Enquiries of the Local Authority CON29
Where can I find information about planning permission?
Local land charges search LLC1
Enquiries of the local authority CON29
Contracts have been exchanged and the solicitor has conducted an OS1 search.
Following completion, the solicitor must register the land at the land registry, when must this take place?
Within 30 days of the result of the OS1, to avoid subsequent entries being made on the title which bind the purchaser.
When can a landlord withhold consent to the tenants proposed alterations without giving reasons?
If it’s an absolute prohibition against alterations.
What should the property developer do to protect the option agreement with the owner of a house?
Registration as a notice.
What is a local authority search?
A review of a property’s local records to identify any issues that could affect its value or legality.
What will happen if a buyer does not have the funds to complete the purchase on completion date?
(Standard conditions of sale are incorporated)
Seller will be entitled at any time after 2pm on the date to give the buyer a notice to complete which makes time of the essence and gives 10 working days for completion.
When should a solicitor apply to register a mortgage at the land registry?
The expiry of the priority period in the land registry search OS1
Is it acceptable to exchange contracts without having landlords consent to the assignment?
Yes as the landlords consent can be obtained 6months after the original completion date, failing which either party may rescind the contract by serving notice on the other.
What happens if a notice to complete has been served?
Parties must complete the transaction within 10 working days.
What does SCPC say about how the deposit is held under the contract?
Deposit will be 10% and will be held as stakeholder and the seller will not be able to spend it without the buyers consent before completion.
