Outline of the Conveyancing Process Flashcards
What is the first step in a conveyancing transaction?
A) Buyer’s solicitor registers the property at the Land Registry
B) Buyer and seller exchange contracts
C) Buyer agrees on a price and instructs a solicitor
D) Seller’s solicitor repays the seller’s mortgage
C) Buyer agrees on a price and instructs a solicitor
📌 Explanation: The process begins with the buyer deciding to purchase and engaging a solicitor for legal work.
When does the buyer become legally bound to proceed with the purchase?
A) When the offer is accepted
B) When the mortgage funds are approved
C) On exchange of contracts
D) On completion
C) On exchange of contracts
📌 Explanation: At exchange, both parties are legally committed and can no longer withdraw without penalties.
What happens at completion?
A) The buyer’s solicitor sends the purchase money to the seller’s solicitor
B) The buyer and seller exchange contracts
C) The buyer’s solicitor pays Stamp Duty Land Tax (SDLT)
D) The seller moves out, but the buyer cannot yet move in
A) The buyer’s solicitor sends the purchase money to the seller’s solicitor
📌 Explanation: Completion is when the full purchase price is transferred, and ownership changes hands.
What is the final step in the conveyancing process?
A) Seller’s solicitor repays the seller’s mortgage
B) Buyer’s solicitor registers the buyer as the new owner at the Land Registry
C) Buyer pays the 10% deposit
D) Seller moves out of the property
B) Buyer’s solicitor registers the buyer as the new owner at the Land Registry
📌 Explanation: Legal ownership is only complete once the new owner is registered at the Land Registry.
Sarah is buying a house. Before exchanging contracts, she learns the property has no central heating.
What should her solicitor advise?
A) To renegotiate the price or reconsider the purchase
B) To proceed without any changes
C) That she must continue, as she has already made an offer
D) That the seller is legally required to install heating before completion
A) To renegotiate the price or reconsider the purchase
📌 Explanation: The buyer is not legally bound until exchange, so she can negotiate or withdraw.
John is selling his house. After exchanging contracts, he decides he no longer wants to sell.
What are the legal consequences?
A) John can withdraw at any time without penalty
B) John must refund the buyer’s deposit but faces no further penalty
C) John is legally bound and could be sued for breach of contract
D) The buyer must pay more money to compensate John
C) John is legally bound and could be sued for breach of contract
📌 Explanation: After exchange, neither party can withdraw without facing legal and financial consequences.
Alex buys a house and moves in before the completion date.
What is the legal issue?
A) There is no issue; he can move in anytime after exchange
B) This is a breach of contract unless the seller agrees
C) Alex must register the property before moving in
D) The seller can refuse to complete the transaction
B) This is a breach of contract unless the seller agrees
📌 Explanation: The buyer can only take possession after completion, unless otherwise agreed.
Lisa’s solicitor forgets to register her new property at the Land Registry.
What is the consequence?
A) Lisa is not legally recognized as the owner
B) Lisa must pay a penalty fine but still owns the property
C) The seller remains responsible for the property
D) The property automatically transfers to the government
A) Lisa is not legally recognized as the owner
📌 Explanation: Until registration is completed, legal ownership does not transfer.
David is buying a property with a mortgage. His solicitor discovers an old mortgage that was never removed from the records.
What should the solicitor do?
A) Ignore it, as old mortgages are not enforceable
B) Inform David and delay completion until the issue is resolved
C) Proceed, as the new lender’s mortgage will take priority
D) Cancel the purchase and sue the seller
B) Inform David and delay completion until the issue is resolved
📌 Explanation: A buyer should not complete a purchase if there is an existing mortgage on the property.
At what stage does the buyer typically pay the deposit?
A) When making the initial offer
B) On exchange of contracts
C) On completion
D) After registering the property at the Land Registry
B) On exchange of contracts
📌 Explanation: The buyer pays a deposit (usually 10%) at exchange, making the contract legally binding.
Who is responsible for paying off the seller’s mortgage after completion?
A) The buyer’s solicitor
B) The seller’s solicitor
C) The Land Registry
D) The mortgage lender
B) The seller’s solicitor
📌 Explanation: The seller’s solicitor uses the sale proceeds to pay off any outstanding mortgage on the property.
Which of the following must be done before completion?
A) The buyer must register the property with the Land Registry
B) The seller must transfer the title to the buyer
C) The buyer’s solicitor must conduct final pre-completion searches
D) The buyer must receive the keys to the property
C) The buyer’s solicitor must conduct final pre-completion searches
📌 Explanation: Pre-completion searches confirm that there are no last-minute issues before the buyer pays the purchase price.
Tom is buying a house. On completion day, his solicitor discovers that the seller has not yet moved out.
What should Tom’s solicitor do?
A) Proceed with payment and let Tom move in later
B) Refuse to complete until vacant possession is confirmed
C) Inform Tom that he must pay extra to evict the seller
D) Ignore the issue, as Tom is now the legal owner
B) Refuse to complete until vacant possession is confirmed
📌 Explanation: If the contract requires vacant possession, the seller must move out before completion.
Sophie is selling her house and has a related purchase. Her solicitor delays completion on her sale to ensure she can complete the purchase of her new home on the same day.
Why is this important?
A) Because Sophie must own both properties for one day
B) To prevent her from becoming homeless between transactions
C) To increase the buyer’s legal fees
D) Because the buyer cannot move in until Sophie buys her new home
B) To prevent her from becoming homeless between transactions
📌 Explanation: If Sophie sells first and her new purchase is delayed, she may be left without a home.
Emma is buying a house, and her solicitor discovers a restrictive covenant preventing any extensions to the property.
What should Emma’s solicitor do?
A) Ignore it, as restrictive covenants are rarely enforced
B) Inform Emma and check if she still wants to proceed
C) Remove the covenant from the title before completion
D) Proceed with completion, as the covenant only affects future owners
B) Inform Emma and check if she still wants to proceed
📌 Explanation: A restrictive covenant limits how the land can be used. The buyer must be aware, as it may affect future plans for the property.
