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stage 1 (Final deck) > Prop prac > Flashcards

Prop prac Flashcards

1
Q

What are set of steps to follow when acting in the sale and/or purchase of a home for an owner-occupier called?

A

Law Society Conveyancing Protocol

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2
Q

How will a seller’s solicitor obtain the title deeds to a property that is mortgaged?

A

By giving an undertaking to the bank requesting the title deeds on the basis that the deeds are retained pending redemption of the mortgage

The undertaking will state that the solicitor not release the unregistered title deeds to the buyer until the seller is in a position pay off the seller’s mortgage on completion.

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3
Q

What is a latent defect?

A

an issue which is not apparent from physical inspection of the property

A latent defect must be disclosed by the seller in the contract. If a seller breaches their duty of disclosure, the buyer may have the right to withdraw from the contract after exchange and claim damages for losses

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4
Q

What are the different priority periods?

A

Registered title: 30 working days to complete and register

Unregistered land: 15 working days to complete
2 months to register

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5
Q

What is the amount of deposit required under the Standard Conditions of Sale?

A

10% of the same amount

But the buyer and seller may negotiate the deposit payable

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6
Q

What is a commons registration search?

A

The commons registration search is an optional part of the local search.

It is used to discover whether the property abuts or is adjacent to a town or village green in common land, that is, it will discover land that is designated for public use

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7
Q

What is included in a local search?

A

A local search has two parts:

the first part reveals whether there are registrations by the local authority in the local land charges register.

the second part is a standard set of enquiries of the local authority which include questions about roads fronting the property, public rights of way, and planning entries and building regulations relevant to the property

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8
Q

When does a planning permission lapse?

A

After 3 years

After planning permission is issued, the development must commence within three years of the date of the permission or it lapses

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9
Q

What is the enforcement period for building w/o planning permission?

A

The enforcement period for building without planning permission is four years (that is, if development is undertaken without permission, the local authority has four years to bring an enforcement action)

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10
Q

What is the enforcement period for unauthorised change of use?

A

10 years is the enforcement period for unauthorised change of use

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11
Q

What is a repayment basis mortgage?

A

repayment basis mortgage is one that includes an element of capital and interest in each payment. It is the most common type of mortgage. At the end of the mortgage term, the entire loan is paid off

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12
Q

What is the certificate of title?

A

The certificate of title is a document confirming that the title is good and marketable and acts as a request for the release of the mortgage advance

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13
Q

What priority period is conferred by a pre-completion search, namely the official search with priority against the whole of a registered title (OS1)?

A

30 working days

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14
Q

What is the effect of the notice to complete?

A

Service of the notice to complete makes time of the essence. If the defaulting party fails to complete within 10 working days, the innocent party can then rescind the contract

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15
Q

When must a notice be served to end a tenancy under the Landlord and Tenant Act 1954?

A

6-12 months before the tenancy ends

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16
Q

What are the 3 methods of completion?

A

personal attendance
post
agent
(PPA)

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17
Q

Where are notices and restrictions registered for registered land?

A

Notices: the Property Register (any rights benefit)

Restrictions: the Proprietorship Register

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18
Q

Where are encumbrances noted for registered land?

A

Charges register (eg: restrictive covenants)

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19
Q

What are the time limits for serving enforcement breaches?

A

4 years for unauthorised building works

10 years for all other breaches

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20
Q

What are the time limits for enforcement action of breaches of building regulation?

A

10 years (from date of breach)

(diff from breaches of planning permission; which is 4 and 10 yrs)

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21
Q

What are the time limits for registering a mortgage?

A

Registered land: 30 days

Unregistered land: 2 months

Company: 21 days (with a Certi of Registration of Mortgage from Companies House)

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22
Q

A seller has agreed to sell their property to a buyer at a price of £100,000. The buyer is getting a 95% mortgage. They have applied for the mortgage offer and it is awaited. The buyer meets a friend in the pub who tells them that the purchase will not go ahead because the buyer does not have a 10% deposit to offer.

Is the buyer’s friend correct?

Responses

A

No, because under the Standard Conditions of Sale, the buyer and seller may negotiate the deposit payable (10% is provided but is negotiable)

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23
Q

A seller and buyer exchanged contracts for the sale and purchase of the seller’s residential dwelling. The completion date is in two weeks’ time. They exchanged using the Standard Conditions of Sale (5th edition – 2018 revision) unamended. Yesterday the dwelling burnt down. The buyer thinks that he is not required to complete.

Is the buyer correct?

A

The buyer is incorrect; he will be required to complete because under the Standard Conditions of Sale, the buyer takes the risk in the property between exchange of contracts and completion. This means that the buyer is obliged to proceed with the purchase regardless of what happens to the property after exchange

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24
Q

Where should reference to the right-of-way appear on a title?

A

The Charges Register. The developer is interested in purchasing land which is subject to the burden of a right-of-way because another property enjoys an easement over that land. The burden of a right-of-way would appear on the Charges Register of the burdened title

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25
Q

A solicitor acting for a buyer has started their investigation of the unregistered title which has been provided by the seller’s solicitor. The buyer’s solicitor notes that there is a conveyance dated 5 June 1995 to the current seller contained in the epitome of title.

Which of the following best indicates how the buyer’s solicitor should proceed?

A

The best way for the buyer’s solicitor to proceed would be to return the epitome to the seller’s solicitor and require them to make an application for first registration of the title to the land.

The conveyance is dated after 1 December 1990, and it is clear from the facts that the title is still unregistered because they refer to the epitome of title. The conveyance dated 5 June 1995 was a trigger for first registration. Accordingly, requiring the seller to make the application for first registration is the appropriate response

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26
Q

A married couple have viewed a property which they are very interested in buying. However, they were concerned when they viewed the property to see that there were a number of horses roaming freely on the open grassland at the front of the property. They also noticed a number of local people walking their dog across the land.

What will the solicitor acting for the couple do to discover the nature of the activities which they observed?

A

The commons registration search is an optional part of the local search. It is used to discover whether the property abuts or is adjacent to a town or village green in common land, that is, it will discover land that is designated for public use.

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27
Q

When must development begin after planning permission in granted?

A

Within 3 years otherwise it lapses

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28
Q

How is an estate contract registered?

A

Regis land: Unilateral notice on the seller’s charges register

Unregis land: C(iv) land charge against seller’s full name

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29
Q

What is an engrossment?

A

Final version of a lease is called engrossment

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30
Q

When does title pass?

A

Regis land: When purchaser becomes registered at Land Registry

Unregi land: on completion

31
Q

What is the deadline for SDLT?

A

14 days (calendar NOT business) after completion

32
Q

After contracts were exchanged with respect to 10 acres of farmland, a conveyancing solicitor carries out a full land charges search and has noted that there is a C(i) puisne mortgage entry on the land charges search result.

What action would the buyer’s solicitor take with respect to this entry?

A

C(i) land charges entry denotes a second or subsequent charge not protected by the deposit of title deeds in the unregistered system. Thus, the seller’s solicitor will require an undertaking for the mortgage to be repaid (that is, redeemed) out of the sale proceeds and for the land charges entry to be removed

(required to redeem and not pay off as seller needs the money to pay first)

33
Q

When does the title of property pass?

A

for unregis: on completion

for regis: on registration with HMLR

34
Q

What are the statutory grounds for terminating a commercial lease that an LL has?

A
  1. Alternative acco
  2. LL requires whole prop (if sublet by tenant)
  3. LL intends to demolish or reconstruct
  4. LL intends to occupy

All these grounds are MANDATORY for the Court to refuse a new tenancy (these are non fault grounds and compensation is available)

35
Q

When does the Court have discretion to refuse to renew a commercial tenancy?

A
  1. Tenant’s failure to carry out repairing obligations
  2. Persistent delay in paying rent
  3. Tenant’s substantial breach of other obligations

(these are fault grounds)

36
Q

How are completion funds be transferred under the Law Society’s Conveyancing Protocol and the Code for Completion by Post?

A

The buyer’s solicitor will send funds by a bank transfer of cash.

37
Q

What is the time limit for registering a charge at Companies House?

A

21 days (NOT working days)

38
Q

If the solicitors do not agree otherwise, what method will be used to complete the transaction?

A

Post

The Law Society’s Conveyancing Protocol provides that completion will be by post in compliance with the Code for Completion by Post unless the solicitors agree otherwise

39
Q

A man has decided to sell his home in Sheffield so that he can retire to Christchurch in Dorset. The solicitors for the parties have agreed to use the Law Society’s Conveyancing Protocol and the Code for Completion by Post. Contracts have already been exchanged, which incorporate the Standard Conditions of Sale unamended.

what is a requirement under the Code after the sale proceeds are received?

A

The seller’s solicitor (as agent of buyer’s sol) will date the executed transfer and send it to the buyer’s solicitor by first class post or document exchange no later than the DAY after completion.

40
Q

A first-time buyer has put in an offer to buy a property which has recently been extended by the seller. The first-time buyer has instructed her solicitor and has paid money on account of searches. The first-time buyer is very cautious and wants to be sure that all is in order regarding the extension. She telephones her solicitor to discuss this point.

How would the solicitor find out more detail about the extension and the documentation relating to it?

A

From looking at the Property Information Form and the results of a local search

To find out more about the extension, the solicitor would look at the Property Information Form (‘PIF’) and the results of a local search. The seller should disclose the fact that they have carried out building works on the PIF. Details of the planning and building regulation documentation will be revealed by the local search

41
Q

If the seller has to pay CGT, when must it be paid?

A

Within 60 days from the completion date

42
Q

Under the Standard Conditions of Sale, are the purchase price and the contents price are exclusive of VAT?

A

No

They include VAT

43
Q

Is a commercial lease exempt from tax?

A

Generally yes

but a landlord may elect to tax in order to recover input tax

44
Q

What is a full title guarantee?

A

The seller is entitled to sell the property and will do all in their power to transfer the title to the buyer free from all charges or encumbrances other than those disclosed

(a limited title guarantee warrants that they have not created any charges or granted any rights during their period of ownership that have not been disclosed)

45
Q

Under the Standard Conditions of Sale, if the parties have not included a completion date, when will completion be held?

A

20 working days after exchange

46
Q

What form is annexed to a conveyancing contract to indicate personal property that is included or excluded from the sale?

A

A fittings and contents form

47
Q

What are the optional enquiries of local authority?

A

Road proposals, gas pipelines, house in multiple occupation, environmental pollution notices, prop abuts common land and village green

48
Q

which search reveals the current and former use of the land?

A

environmental search

49
Q

How does a buyer’s solicitor typically carry out a bankruptcy search?

A

through HMLR’s online portal

(bankruptcy search is BOTH a pre-contract and pre-completion search by the buyer’s sol)

50
Q

Where would the solicitor for a buyer of commercial property look to find information about the property’s boundaries, the condition of the property, fire safety information, planning regulations, and the like?

A

The response from the seller’s solicitor to the Commercial Property Standard Enquiries (CPSE) that the buyer’s solicitor would send to the seller’s solicitor

51
Q

What is the maximum age for pre-completion searches at the date of completion, other than HMLR priority searches, required by the UK Finance Mortgage Lender’s Handbook?

A

6 months

52
Q

What is an engrossment?

A

The final version of a lease prepared by the landlord’s solicitor and including an original signed by the landlord and the counterpart signed by the tenant.

53
Q

What is the minimum amount of time an innocent party must give the other party to complete under a notice to complete?

A

10 working days

54
Q

Under the Standard Conditions of Sale, when may an innocent party seek rescission of the contract?

A

Whenever there has been a misrepresentation by the other party

Whenever there has been a misdescription of the property by the other party and the innocent party would be taking something substantially different to what was expected (both rescission and damages available)

When the landlord’s consent is required and the licence to assign is not forthcoming.

Fraud or recklessness

55
Q

Which Commercial leases are exempt from the security of tenure provisions under the Landlord and Tenant Act 1954 (Part ll)?

A

leases for a maximum period of 6 months

56
Q

When must the landlord serve the tenant with a health warning notice?

A

At least 14 days before completion of the lease

57
Q

How long does a LL have to inform the tenant whether they intend to agree to a new lease after a S-26 notice by the tenant?

A

2 months

58
Q

A solicitor is acting for a client in relation to the purchase of a property. The buyer and seller agree a 10% deposit on exchange of contracts and that a solicitor will hold the deposit as agent for the seller.

Under this agreement, which solicitor will hold the funds and what is the consequence of the deposit being held by a solicitor as agent for the seller?

A

The seller’s solicitor will hold the deposit and may pay over the deposit to the seller immediately after exchange.

(standard conditions provide for stakeholder)

59
Q

When is deposit paid over when held as a stakeholder?

A

On completion

(when held as agent, its paid after exchange)

60
Q

What is the different types of title gurantees?

A

A full title guarantee includes a guarantee that the seller is entitled to sell the property, that they will do all in their power to transfer the purported title to the buyer, and that they are selling the property free from all charges or encumbrances other than those disclosed in the contract.

This type of guarantee is generally given by a seller who owns the full legal and equitable interest in the property and has lived at the property

A limited title guarantee is narrower in scope than a full title guarantee; in it, the seller merely warrants that the seller has not created any charges or granted any rights during their period of ownership that have not been disclosed in the contract. A limited title guarantee is typically given by a seller with less knowledge or involvement with the property and is most appropriate when, for example, the seller is a personal representative

No title guarantee would be given by a seller who has no knowledge of the property at all, for example, a mortgagee in possession

61
Q

What kind of searches are conducted after contract completion?

A

Unregis land: full land charges search

Regis land: official search with priority

62
Q

In a Protocol transaction, who prepares the contract package?

A

the seller’s solicitor will draft the contract and send the contract package to the buyer’s solicitor.

The contract package will comprise: the draft contract in duplicate; the Property Information Form and Fittings and Contents Form, both completed by the seller; a copy of the seller’s title (or epitome of title if the title is unregistered), any other relevant title documents, and title plan; and any guarantees or planning permissions

63
Q

When are two administrators required to apply for a grant of representation?

A

When there is a minor beneficiary

64
Q

What are the requirements of a health warning?

A

A landlord may contract out (that is, opt out) of the security of tenure protections given a tenant under the Landlord and Tenant Act 1954 (Part II) only if the three statutory requirements are satisfied.

First, at least 14 days before the tenant completes the lease, the landlord must give what is called a ‘health warning’ – a notice to the potential tenant explaining what the security of tenure is, that the potential tenant is giving up these rights, the consequences of giving up these rights, and that the tenant should seek professional advice.

Second, the tenant must sign a declaration confirming that they have received the warning and that they agree to contracting out of the Act and the consequences of doing so.

And finally, the lease must contain a reference to the health warning, the declaration, and the agreement to contract out

65
Q

A buyer has agreed to purchase a residential leasehold flat. The solicitors for the seller and the buyer are using the Law Society’s Conveyancing Protocol and the Code for Completion by Post.

Which warranties will the seller’s solicitor give pursuant to the Protocol?

A

That the solicitor is authorised to act by the true seller

66
Q

When is statutory compensation available to a tenant?

A

if the ground serving as the basis for termination is not the fault of the tenant, statutory compensation is available unless other suitable premises are available

67
Q

A paralegal in a busy conveyancing department is working in the pre-completion team. Their principal has taken the afternoon off and has left a note for the paralegal requesting that they apply for the mortgage advance. The paralegal has looked through the file and is not sure how to do this.

What should the paralegal do to comply with their principal’s request?

A

To apply for a mortgage advance, a certificate of title (‘CoT’) is submitted to the lender. A CoT involves the solicitor confirming a series of statements which confirm to the lender that the title is good and marketable. The CoT also acts as a request for drawdown of the mortgage advance.

68
Q

What kind of tenancies fall outside the scope of Tenant Act 1954 (Part II) (‘1954 Act’) ?

A

The 1954 Act does not apply to fixed-term tenancies which do not exceed six months

69
Q

A man has instructed a solicitor to act in relation to the sale of the man’s house. The Contract Incorporating the Standard Conditions of Sale (5th edition – 2018 revision) will be used, unamended. The buyer is offering a 10% deposit on exchange of contracts. The seller has a related purchase in which he is buying a holiday home in France and he wishes to use the deposit towards this purchase.

Can the seller use the deposit for his related purchase?

A

No, because the standard conditions of sale permit the use of a deposit for a related purchase of a property only for the seller’s residence in England and Wales.

70
Q

A limited company is buying the freehold of a commercial unit. The seller’s solicitor has sent the contract package to the buyer company’s solicitor.

Which document in the contract package will give the buyer company practical information about the property, such as disputes and notices?

A

It is clear from the question that this is a commercial transaction. In a commercial transaction, such information is included in the Commercial Property Standard Enquiries; the Property Information Form

71
Q

A lease of a commercial factory unit contains the following clause:

‘The tenant must not assign the whole or part of the demised premises to any person whatsoever without the prior written consent of the landlord’.

What is the name of the document which gives effect to the above clause?

A

A licence to assign is the document by which a landlord gives formal consent to an outgoing tenant to assign the lease

72
Q

A solicitor is acting for a first-time home buyer who will be financing her purchase with a mortgage. The conveyance is taking place under the Law Society Conveyancing Protocol (the ‘Protocol’). The buyer is anxious to see a copy of the contract and asks her solicitor when this will be ready.

In a Protocol transaction, who prepares the contract package?`

A

In a Protocol transaction, the seller’s solicitor will draft the contract and send the contract package to the buyer’s solicitor. The contract package will comprise: the draft contract in duplicate; the Property Information Form and Fittings and Contents Form, both completed by the seller; a copy of the seller’s title (or epitome of title if the title is unregistered), any other relevant title documents, and title plan; and any guarantees or planning permissions.

73
Q
A

stage 1 (Final deck) (17 decks)

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