Pre-Completion Searches Flashcards
What is the main purpose of a pre-completion OS1 search in registered land?
A. To reveal planning permissions
B. To protect the buyer’s priority to register their title
C. To confirm the market value of the property
D. To identify boundary disputes
B. To protect the buyer’s priority to register their title
Explanation: The OS1 search provides a 30 working day priority period to register the buyer’s interest and prevents other applications from taking precedence.
What is the length of the priority period provided by a Land Registry OS1 search?
A. 15 calendar days
B. 15 working days
C. 21 calendar days
D. 30 working days
D. 30 working days
Explanation: The priority period from an OS1 search is 30 working days starting from the date the search is submitted.
What is the purpose of a K16 bankruptcy search before completion?
A. To check if the buyer is bankrupt and protect the lender
B. To reveal if the property is leasehold
C. To confirm SDLT has been paid
D. To ensure the seller has no criminal convictions
A. To check if the buyer is bankrupt and protect the lender
Explanation: A bankruptcy search (K16) is carried out on the buyer to ensure they are not subject to a bankruptcy order, especially when a lender is involved.
In a transaction involving unregistered land, which search provides a priority period for completion?
A. K15 land charges search
B. K16
C. OS2
D. Environmental search
A. K15 land charges search
Explanation: The K15 land charges search provides a 15 working day priority period for completing the purchase of unregistered land.
A buyer’s solicitor carries out an OS1 search on 2 May with a ‘search from’ date of 10 February. Completion is on 8 May. A third party applies to register a charge on 6 May. What will happen if the buyer registers on 15 May?
A. The third-party charge takes priority over the buyer’s transfer
B. The application is rejected as out of date
C. The buyer’s registration is refused as the title was previously searched
D. The buyer’s transfer will take priority over the third-party charge
D. The buyer’s transfer will take priority over the third-party charge
Explanation: As long as registration is made within 30 working days of the OS1 search, the buyer’s application takes priority over any other application.
A solicitor forgets to run an OS1 search before completion. The seller had secretly mortgaged the property after exchange. What is the likely outcome?
A. The buyer is still protected if the title was clear at exchange
B. The mortgage will be ignored due to seller misconduct
C. The buyer automatically takes priority
D. The seller’s new mortgage may take priority, and the solicitor may be professionally negligent
D. The seller’s new mortgage may take priority, and the solicitor may be professionally negligent
Explanation: Without an OS1 search, the buyer’s priority is not protected. The solicitor could be negligent for failing to carry out a basic safeguard.
In an unregistered land transaction, when must the buyer complete to maintain priority under a K15 search?
A. Within 10 calendar days
B. On the date of exchange
C. Within 15 working days of the search
D. After the application to the Land Registry
C. Within 15 working days of the search
Explanation: A K15 search gives a 15 working day priority period. Completion, not registration, must occur within that time to preserve priority.
A buyer is a limited company purchasing with mortgage finance. What searches should the buyer’s solicitor undertake before completion?
A. Only an OS1 and K15
B. OS1 and local authority search
C. OS2 and environmental search
D. OS1, K16 bankruptcy search, and company search against the buyer
D. OS1, K16 bankruptcy search, and company search against the buyer
Explanation: When acting for a lender, the solicitor must ensure the buyer is not bankrupt and has no pending insolvency. OS1 protects registration priority.
A seller registers a second mortgage on the property after exchange but before completion. The buyer’s solicitor had conducted an OS1 search five days before exchange. What is the consequence?
A. The second mortgage ranks equally with the buyer’s interest
B. The buyer cannot register the property at all
C. The seller’s mortgage will be cancelled by the Land Registry
D. The buyer’s registration will take priority if completed within the OS1 period
D. The buyer’s registration will take priority if completed within the OS1 period
Explanation: A valid OS1 search gives the buyer a 30 working day window to protect priority. Any later applications (like a fraudulent mortgage) cannot overtake it.
Why is a new K15 search not needed against previous owners in an unregistered land transaction?
A. Because it is covered by the OS1 search
B. Because entries against them do not affect the title once they cease to own the land
C. Because it is merged into the K16 search
D. Because such entries are automatically cancelled on sale
B. Because entries against them do not affect the title once they cease to own the land
Explanation: Land charges against previous owners no longer affect the land once they are no longer the legal owners. Only the seller needs a current K15 check.
What is the legal risk of completing a transaction without updating pre-completion searches after a delay in completion?
A. No risk if the buyer has signed the contract
B. The buyer’s lender must manually approve the title
C. Priority may be lost to a third party who registers in the interim
D. The Land Registry will reject the application by default
C. Priority may be lost to a third party who registers in the interim
Explanation: If the priority period from the OS1 or K15 has expired and the search is not re-done, third-party applications could override the buyer’s rights.
What is true of a company search carried out on a seller before completion?
A. It gives a 30-day priority
B. It must be registered with the Land Registry
C. It is done using form OS2
D. It gives no priority period and must be carried out just before completion
D. It gives no priority period and must be carried out just before completion
Explanation: Company searches provide no statutory protection or priority, so they must be performed as close to completion as possible to check for insolvency or charges.
