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SQE general > PLP WK 5 > Flashcards

PLP WK 5 Flashcards

1
Q

What is the primary focus of pre-completion searches?

A

Pre-completion searches aim to confirm both the buyer’s and lender’s ability to obtain clear title to the property according to the contract.

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2
Q

What is the purpose of an OS1 or OS2 search in registered land?

A

Conducted by the buyer’s solicitor, this search updates the official copies to identify any changes and secures a 30-working-day priority period. This ensures the buyer’s registration application takes priority over any others lodged during this period.

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3
Q

What search is conducted for unregistered land before completion, and what is its purpose?

A

A Land Charges Search (Form K15) is conducted against the seller at the Land Charges Registry. It identifies any encumbrances or adverse matters affecting the unregistered land and provides a 15-working-day priority period to complete the purchase.

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4
Q

What is the significance of the “search from date”?

A

It’s the date of the official copies provided during the transaction. The buyer’s solicitor uses this date to run the OS1 search to check for any changes since then.

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5
Q

Why is it crucial to carry out the OS1 search?

A

Failure to do so could lead to delays, increased costs, or professional negligence claims against the buyer’s solicitor.

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6
Q

How is priority achieved in unregistered land?

A

By completing the purchase within the 15-working-day priority period provided by the Land Charges search.

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7
Q

What is the purpose of a bankruptcy search (Form K16)?

A

This search protects the lender when the buyer relies on a mortgage.

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8
Q

When should company searches be conducted and why?

A

As close to completion as possible, because there’s no priority period for company searches.

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9
Q

What are requisitions on title?

A

These are questions raised by the buyer’s solicitor before completion to ensure a smooth process and resolve any final issues related to the property and title.

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10
Q

How have requisitions on title evolved?

A

They have shifted from specific questions based on title deeds to general pre-completion questions.

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11
Q

What form is commonly used for requisitions in residential transactions?

A

Law Society Form TA13, also known as “Completion Information and Undertakings.”

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12
Q

What forms might be used for requisitions in commercial transactions?

A

Firm-specific forms or Commercial Property Standard Enquiries (CPSE) forms, such as SCR (Solicitor’s Completion Requirements).

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13
Q

What key information is requested in TA13 regarding vacant possession?

A

Details about key collection or tenant payment authorisation for rental properties.

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14
Q

What is requested in TA13 concerning deeds and documents for unregistered properties?

A

A list of deeds and documents to be handed over at completion.

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15
Q

What does TA13 confirm about the completion process?

A

That it will adhere to the Law Society’s Code for Completion by Post.

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16
Q

What information does TA13 request about financial matters?

A

The seller’s solicitor’s client account details for transferring funds and the exact amount payable at completion.

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17
Q

What does TA13 ask about mortgages and charges?

A

Confirmation of any existing mortgages and an undertaking from the seller’s solicitor to redeem them upon completion.

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18
Q

Why is the seller’s solicitor’s undertaking to redeem mortgages crucial?

A

It ensures the mortgage is cleared, allowing the buyer to register their transfer.

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19
Q

What does the Law Society Code for Completion by Post require regarding mortgage redemption?

A

It mandates an undertaking from the seller’s solicitor to redeem the mortgage.

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20
Q

What is form DS1 used for?

A

It’s used by the lender to discharge the charge at the Land Registry, or it can be provided to the buyer’s solicitor for submission

21
Q

What is completion in a property transaction?

A

The final stage where the remaining purchase price (after deposit) is paid, and legal title is transferred to the buyer.

22
Q

How is completion typically conducted today?

A

Via post, following the Law Society Code for Completion by Post.

23
Q

What are the buyer’s solicitor’s key responsibilities on completion day?

A

Ensuring funds are ready, transferring the balance to the seller’s solicitor, and informing the client once completion is confirmed.

24
Q

What are the seller’s solicitor’s key responsibilities on completion day?

A

Confirming receipt of funds, dating the transfer deed, notifying the estate agent to release keys, and sending executed documents to the buyer’s solicitor.

25
Q

When does the risk in a property transaction transfer to the buyer?

A

Upon exchange of contracts.

26
Q

What is the purpose of a transfer deed (TR1)?

A

It’s a legal document that officially transfers ownership of a property from the seller to the buyer.

27
Q

Who typically drafts the transfer deed?

A

Traditionally the buyer’s solicitor, but it’s now common for the seller to provide a draft annexed to the contract.

28
Q

Which Land Registry form is used for transferring the whole of a freehold or leasehold title in registered land?

A

TR1

29
Q

What form is used for portfolio transfers?

A

TR5

30
Q

Can the TR1 form be used for unregistered land?

A

Yes, although a traditional conveyance is also acceptable.

31
Q

What information is included in Panel 4 of the TR1 form?

A

Transferor’s details, such as the seller’s name and company registration number (if applicable).

32
Q

What information is included in Panel 8 of the TR1 form?

A

The consideration, which refers to the monetary amount or other forms of value exchanged for the property.

33
Q

What is specified in Panel 10 of the TR1 form?

A

The declaration of trust, which indicates whether the buyers are holding the property as joint tenants or tenants in common.

34
Q

How is a transfer deed executed by an individual?

A

The individual signs the deed in the presence of a witness who provides their full name and address.

35
Q

How is a transfer deed executed by a company?

A

There are several methods, including using the company seal or signatures from directors or authorized individuals.

36
Q

What happens after both solicitors have agreed on the final version of the transfer deed?

A

Both solicitors arrange execution of the deed, but it’s held undated until completion.

37
Q

What constitutes failure to complete from the seller’s perspective?

A

The seller’s solicitor is unable to date the transfer deed because the seller hasn’t returned it or instructs them not to date it.

38
Q

What constitutes failure to complete from the buyer’s perspective?

A

The buyer’s solicitor can’t complete because the funds haven’t been received or the buyer has instructed them to withhold payment.

39
Q

According to the Standard Conditions of Sale (SCS), what happens if a party fails to complete on time?

A

They must pay interest on the delay at the rate specified in the contract or the Law Society interest rate if not specified

40
Q

How is the interest calculated for the buyer in case of delay?

A

On the purchase price minus the deposit.

41
Q

How is the interest calculated for the seller in case of delay?

A

On the full purchase price (applies only under SCS, not SCPC).

42
Q

What are common law damages in the context of property transactions?

A

Additional compensation claimed by the non-defaulting party to cover losses (e.g., moving costs) beyond the interest payable for delay.

43
Q

What is rescission in a property transaction?

A

It’s a legal remedy that cancels the contract, returning both parties to their pre-contractual positions.

44
Q

What is a notice to complete, and when can it be served?

A

A notice served by the non-defaulting party if the other party fails to complete. It makes time of the essence and requires completion within 10 working days.

45
Q

What are the seller’s remedies if the buyer fails to complete?

A

They can rescind the contract, forfeit the deposit (and any interest), resell the property, and claim contractual damages

46
Q

What are the buyer’s remedies if the seller fails to complete?

A

They can rescind the contract, demand a refund of the deposit (with interest), claim contractual damages, or pursue specific performance (forcing completion).

47
Q

What is Stamp Duty Land Tax (SDLT)?

A

A tax paid on freehold property purchases in England.

48
Q

What is Land Transaction Tax (LTT)?

A

A tax paid on freehold property purchases in Wales.

49
Q

How are SDLT and LTT calculated?

A

They are calculated on the purchase price using a tiered system, where higher portions of the price are subject to progressively higher rates.

SQE general (24 decks)

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