PLP Flashcards
If a buyer does not intend to continue breaching a covenant the seller is in breach of, is it necessary to request that the seller’s soliciotr obtains an indemnity policy?
No because the past breach is not continuing. A solution is not ndeed unless the PWB has complained about the breach of claimed for loss.
Does an epitome consist of copies or originals?
Copies
When might a covenant which is sufficient for end use not be sufficient for a buyer?
If the lane is really small so construcion traffic will not be able to fit / the covenant only permits motorcars and not construction traffic
As the buyer’s solicitor what will you and the lender’s solicitor do after exchange but before completion
- provide final form COT
- undertakings in relation to receiving the money
When is a chancel repair search advisable?
Church built pre-reformation (not a modern church)
When are qualified alteration covenants upgraded and effect
When? Alterations are improvements from T’s perspective
Effect: LL cannot unreasonably refuse consent
When is a certificate of lawfulness appropriate?
Planning Permission - doubt over whether work falls within GPDO so whether PP is needed.
Pre-completion searches if also acting for lender
- OS1 (or K15 if unregistered)
- Bankruptcy search against buyer (K16)
Test for qualifying tenancy under LTA for security of tenure
- Lease (including periodic tenancies)
- T must occupy at least part of premises (not underlet whole)
- For business purposes (includes charity)
Security of tenure notices
s25: LL (friendly or hostile)
s26: T (new tenancy)
s27: T (end within 3 months) - no prescribed form
Classes of Title
Title Absolute: Best (no issues with ownership)
Possessory Title: Physical possession but no deeds (squatter)
Qualified Title: known defect (covenants are missing)
Good Leasehold Title: Lack of evidence as to whether lease validly granted (e.g. freehold is unregistered)
Caution against first registration
Entered by someone who has an appropriate interest in unregistered land.
Effect: person is notified of any application for first registration
Appropriate CPSEs
Always CPSE 1
and
CPSE 3 (grant of lease)
CPSE 4 (assignment of lease)
Forms for seller to complete at start of transaction
TA6 Property Information
TA10 Fixtures and Fittings
Effect of Notice on registered title
Ensures the prioirty of the interest protected (Does NOT guarnatee the interest is valid or exists)
Unilateral notice should be removed before completion. Apply to LR. Beneficiary of notice has 15 business days to object to cancellation.
Client consent required for Formula C
Must obtain irrevocable consent (preferably in writing) because cannot refuse to exchange in period after give undertaking
Triggers for compulsory first registration
Transfer
Grant of registrable lease
Assent (transfer on death)
First legal mortgage
But if PRs sell, then buyer must apply for first registration within 2 months of completion.
Payment of SDLT process
Buyer submits SDLT1 to HMRC and pays tax within 14 days of completion
HMRC return SDLT 5 certificate.
Buyer sends SDLT 5 to LR with TR1
If wales, must submit and pay within 30 days and WRA is certificate
Docs to submit to LR after completion
AP1
TR1 / TP1
SDLT 5 / WRA certificate
DS1
Death Certificate
Ideally within 30 working days (priority period)
Docs to submit to LR on first registration
MUST be lodged within 2 months of completion:
1. FR1
2. DL
3. SDLT 5 / WRA
4. Eptiome + deeds + docs
5. Land charges searches
6. Death certificate
Operation of s19 and qualified covenants
Alterations: upgraded if alteration is an improvement
Use: Not upgraded (LL does not have to be reasonable) BUT if LL happy to consent cannot demand payment or increase rent (unless structural alteration)
Underlet: upgraded + any conditions must be reasonable + respond in reasonable time + written response
Assignment: upgraded + conditions must be reasonable + respond in reasonable time + written response.
- If conditions and circumstances are set out in lease they are automatically reasonable.
Undertakings in Code for Completion by POst
Seller’s sol gives following undertakings:
1. Complete when receive monies
2. Redeem mortgage and forward DS1 to buyer ASAP
3. Hold TR1 to buyer’s sol’s order
4. Post TR1 no later than end of working day after completion
Court powers to determine terms of new lease - security of tenure
- Rent: Market Rent
- Duration: max 15 years
- Any other: discretion - will change if ‘fair and reasonable’ to do so
New rent is payable from earliest date T or LL could have specified in notice (i.e. 6 months from date of service)
When is planning permission required
External words; or
material change of use (between classes OR sui generis (NOT within same class)
UNLESS
- GDPO; and
- No A4 restriction (LLC1)
What happens to a sublease if headlease is surrendered?
Subtenant becomes immediate tenant of LL on terms of sublease
Main residence relief CGT - limt on size
Only land up to 0.5 hectares is exempt (remainder will not be exempt)
Protection of beneficial interest
Register a restriction (not a notice)
Deemed date of disposal for CGT purposes (house sale)
Exchange
Standard Conditions - buyer occupation post exchange pre complation
SCs provide occupation is permitted provided the buyer is a licensee not a tenant
Latest draft transfer must be submitted to seller from buyer
8 working days before completion
National Land Information Service (NLIS)
Single point of enquiry for making pre-contract searches
Impact of a property being listed as an asset of community value
Cannot be sold unless community interest group is given an opportunity to make a bid for it
what must buyer check if buying a property from lender under power of sale
That power of sale has arisen
what restrictions can be ignored by buyer?
restriction requiring consent of current lender
Where does the practice that seller deduces title arise from?
Standard Conditions
Effect of TiC Restriction
It ensures that overreaching takes place before a transfer on sale can be registered
Root of title for leasehld
Assignment is fine - probably the most recent assignment that is 15 years old pre 1990 / 1998
what happens if fail to make first registration within 2 months
Transfer of legal title void (remains with seller)
beneficial title passes to buyer (seller holds on trust for buyer)
Apply to LR for premission to register retrospectively
What will LR do if you send mortgage deed to them without it being registered at CH?
Register it subject to a note referring to lack of registration at CH
Steps lender will take if an adult will live in house and mortgage is not in their name?
Ask adult to sign a declaration in favour of lender postponing rights in the house
If acting for buyer and lender, shoudl recommend adult gets ILA. Cannot advise themselves as conflict of itnerest. CAn proceed if adult declines to obtain ILA.
Purpose of UK Finance Mortgage Lenders’ Handbook
Provides a standard set of mortgage instructions to a solicitor acting for a lender
What happens if seller becomes bankrupt between exchange and completion
Contract is binding on trustee in bankruptcy (as predates bankruptcy proceedings)
On completion, trustee will transfer to buyer
Exhange by post - point at which it becomes legally binding
Legally binding once the second part of the contract is posted (e.g. seller posts signed counterpart to buyer)
When is it necessary to register contract between exchaneg and completion
Do not register unless long period of time (e.g over 6 weeks)
Can an OS1 priority period be extended?
No - the only option is carry out a fresh search (cannot be tacked onto the original period)
Company - methods of executing deeds
- 2 authorised persons
- Director + witness
Provision of Code for Completion by Post
Seller’s sol will send TA13 (replies to requisitions) at least 5 working days before completion
What is a TiC restriction called
Joint Proprietorship Restriction
Discharge on sale of part
DS3
What will the LR send on registration?
Title information document
completing sale and purchase of new build together?
Not possible to sychronise sale with new build purchase
When is NPV relevant?
Grant of lease only (not assignment)
Debts / service charge limitation period when iincluded in deed
Rent arrears = 6 years ALWAYS
unpaid service charge = 6 years UNLESS by deed in whcih case 12 years
Where is title type found in official copies?
Proprietorship register
When can LL recover monies from 3rd parties
Must serve notice within 6 months of payment becoming due otherwise cannot recover it
Competent LL
14 months remaining
time to serve counternotice - LL s26
2 months
