PLP Part 1: Freehold Transactions

Question 1

Principle of caveat emptor

Answer 1

Buyer takes the property as he finds it. There is no onus on the seller to disclosure obvious defects and it is up to the buyer to fully investigate them.

Question 2

Exceptions to caveat emptor

Answer 2

Misrepresentation i.e. concealing physical defects.

Note – misrepresentation only bites after the contracts have been exchanged.

Question 3

Caveat emptor: Latent incumbrance/defects in title (duty of seller)

Answer 3

Seller has a duty to disclose those latent defects that he is or ought to be aware of.

Question 4

Recording of co-ownership agreements

Answer 4

Trusts of land must be in signed writing.

Question 5

Types of surveys

Answer 5

Basic valuation, home-buyer report, full structural survey.

Question 6

When is a homebuyer survey suitable?

Answer 6

When the property is in reasonable condition and aged less than 150 years.

Question 7

When is a full structural survey suitable?

Answer 7

Where the property is listed, has had extensive renovations, or where alterations are planned.

Question 8

Average completion for residential property

Answer 8

6-8 weeks from sale agreed

Question 9

Average completion for commercial property

Answer 9

tighter deadlines i.e. 4 weeks

Question 10

Funds that the client must have available before completion

Answer 10

1. Deposit;
2. Balance of the price on completion;
3. Agreed sum for any extras i.e. chattels;
4. Tax;
5. Solicitors’ fees and disbursements i.e. Land Register expenses.

Question 11

Dates of compulsory registration

Answer 11

1. Sales: 1 December 1990;
2. Gift: 1 April 1998.

Question 12

Property egister contents

Answer 12

Describe the property (freehold/leasehold); address; title plan; rights benefitting the property; exclusions.

Question 13

Proprietorship Register

Answer 13

Registered proprietor’s name, class of title and entries affecting ownership i.e. restrictions on sale.

Question 14

Common right of way issues

Answer 14

Registration on servient land; adequacy; maintenance (common law); adoption.

Question 15

Proprietorship Register: classes of title

Answer 15

Absolute title; qualified title; possessory title; good leasehold title.

Question 16

Additional entries on the Proprietorship Register

Answer 16

Indemnity covenants, restrictions, and sometimes price paid.

Question 17

Sale by surviving joint tenant

Answer 17

Sign contract, execute deed and provide death certificate for the deceased JT.

Question 18

Sale by surviving tenant in common

Answer 18

Appointment of second executor; both sign contract and execute the deed; death certificate required.

Question 19

Current use of land breaches a covenant (but hasn’t been objected to)

Answer 19

Obtain indemnity insurance at the seller’s expense.

Question 20

Future use of the land would breach a covenant

Answer 20

Difficult – attempt indemnity insurance first as most policies will require no contract with PWB

Question 21

Epitome of title

Answer 21

List of relevant deeds and documents proving title to the property

Question 22

Root of title

Answer 22

Deed relied on as proving title to the property. Requirements:
1. Must adequately describe the property (often involving a scale plan);
2. Be dated at least 15 years ago (preferably for a sale);
3. Cast no doubt on the seller’s title (i.e. not be for ‘bare legal title’ or a power of attorney).

Question 23

Are deeds preceding the root of title necessary?

Answer 23

Only where they contain covenant/easements referred to in the root of title

Question 24

Unregistered land: additional documents necessary to prove title

Answer 24

1. Power of attorney under which a deed might have been executed;
2. Death certificate of JT;
3. Grant of representation and assent (will/intestacy);
4. Mortgages created after the root of title (even if discharged).

Question 25

Unregistered land – stamping of conveyance requirements

Answer 25

1. Deeds must be stamped with ‘valorem’ of stamp duty (or otherwise contain a certificate of value i.e. gifts).
2. Conveyances should have a Particulars of Delivered stamp.

Question 26

Rights contained in the Land Charges (unregistered land)

Answer 26

1. Puisne mortgage;
2. Estate contract;
3. Restrictive covenant;
4. Equitable easement;
5. Landlord’s right of entry.

Question 27

Form used for Land Charges (unregistered land) search

Answer 27

Form K15

Note – search is by years of ownership and full name against each owner of the land in the chain of title.

Question 28

Vacating receipt

Answer 28

Wording written in mortgage deed confirming that it has been repaid and signed on behalf of the lender.

Question 29

Restrictive covenants will only bind unregistered land if registered: true or false

Answer 29

True

Question 30

What is the purpose of the National Land Information Service?

Answer 30

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

Question 31

What is the purpose of an Energy Performance Certificate (EPC) ?

Answer 31

It contains recommendations about how to reduce energy use

Question 32

What are the types of CPSEs?

Answer 32

CPSE1 for all properties; CPSE2 for properties which contain commercial tenancies; CPSE3 for the granting of new leases.