property

Question 1

building regulations

Answer 1

concerned with health and safety aspects of building works.

absence of it means the buyer does not know if the works have ben carried out in a way that protects the structural stability of the building.

local authority can obtain an injunction at any time if the works are unsafe.

the works will not require planning permission if they are internal but they still require building regulation consent.

the local authority only has 12 months to serve an enforcement notice

Question 2

planning permission

Answer 2

time limit for prosecution = 2 years after completin - can seek an injunction at any time.

Question 2

buyer beware

Answer 2

applies to property transactions in respect of physical defects.

the seller does not need to disclose.

Question 3

enquiries

Answer 3

1. to check if the road is a if something is a public highway
   - replies to standard enquries from the local authority (CON29)
2. local land charges search ]- provides detaisl of any financial charges or restrictions on land that have been imposed by public authorities under statute e.g. planning consents tree preservation orders and conservation area designation orders.

Environmental risk assessment will reveal whether the property is at risk of being contaminated land.

Chancel repair search will reveal whether the property is in a parish where the owners of the property could be liable to pay the cost of repairing the chancel of the parish church

Question 4

circumstantial evidence

Answer 4

according to r v sirdar if a case depends on circumstantial evidence and not direct evidence there will only be no case to answer where the evidence is not capable in law of supporting a conviction.

Question 5

test for direct evidence

Answer 5

there is a case for the person to answer because no matter how weak or tenuous the prosecution evidence is, it is still capable of supporting a conviction in law

Question 6

suspended sentences

Answer 6

the triggering of a suspended sentence is not dependant

Question 7

old vat properties v new vat proeprties

Answer 7

if the property is more than 3 years old - it is classified as an old commercial building for vat purposes.

this is an exempt supply but can exercise discretion to tax.

zero rates = subject to 0% vat tax whereas exempt are not subject to vat

Question 7

parole lease exception

Answer 7

can include a periodic tenancy if each period of the least is less than 3 years.

Question 8

s14 trusts of land and appointment of trustees

Answer 8

any person who is a trustee or has an interest in oroeprty subject to the trust may make an application to the court and the court may make such order as it thinks fit.

the court must have regard to various factors

if any factor is to be given greater wirght it is the interest of a secured creditor.

the applciation does not require consent of trustees and the court should consider the wishes of beneficiaries.

Question 9

enforcement notices

Answer 9

• the period for serving a enforcement notice in respect of most changes of use is 10 years.
• the period for serving an enforcement notice is respect of unauthorised construction is 4 years.

Question 10

severance

Answer 10

a letter will constitute valid notice of severance if it is deemed to have been correctly served on the other equitable joint tenants. must be in writing and conveys an immediate intention to sever.

if sent by registered post, notice of severance is deemed to have been served if it is not returned undelivered by the post office.

the person serving the notice can validly sign for the letter.

the destruction and disposal of a letter that has been correctly served does not negate its validity.

if

Question 11

k15 form

Answer 11

is submitted to find out certain title issues in unregistered title it will reveal matters such as restrictive covenants and estate contract which have been registered against the name of the current or previous owner.

• status of roads will be reveleased by enquriies with the local authority - con29

Question 12

different surveys

Answer 12

a full structural survey is always advisable where the property in question is in disrepair or where further alterations are proposed. additionally the age of the property / whether it has been previously converted is also relevant.

Question 13

exchange

Answer 13

formula b - will need special variations if electronic means - SPCPC state bankers draft or cheque. this is done by variation rather than amending the special conditions.

second undertaking in the conditions is that they will put their part of their contract in first class post / document exchange day of - so will need to vary the formula if this wont ocur.

Question 14

certificates of title

Answer 14

in commercial transactions, the lender will require a more detailed certificate of title than that which is required in residential transactions.

for commercial transactions, the solicitor is lkley to have used the city of london society certificate of title.

law society and uk finance is more appropriate for residential transactions.

Question 15

lenders powers

Answer 15

a lender can exercise its power of sale without a court order - if the proeprty is commercial the lender would not need a possession order either (would need for residential).

where the mortgaged property is residential and occupied, the lender will needa court order in order to take possession- this in itself will not end the mortgage. the only remedies which end the mortgage are power of sale and foreclosure.

Question 16

standard commercial proeprty conditions completion compensation

Answer 16

under scpc - only requires the buyer to compensate to the seller.

in order to calculate the amount of compensation - the contract rate is applied to an amoutn = to the purchase price - deposit.

the seller must be ready, willing and able to complete before serving a notice to complete.

the contract cannot be terminated until a notice to complete has been served.

Question 17

registering mortgages

Answer 17

the mortgage should be registered at companies house within 21 days of the date of its creation, to avoid rendering the charge void against the company’s liquidators, administrators and other creditors.

failure to register within the time limit may prejudice the lenders security and render the charge void against the company’s liquidator or administrator and other creditors.

Question 18

insolvency searches

Answer 18

a company search would be carried out against the seller if they are a company (if acting for buyers) - if acting for a lender a search against buyer too.

Question 19

contracting out of the security of tenure act

Answer 19

• so the best course of action is short notice - notice of no les than 14 days to contract out and a statutory declaration (before an independent solicitor)

Question 20

security of tenure

Answer 20

security of tenure requires
1) a tenancy
2) the premises to be occupied by the tenant
3) the occupation to be for business purposes
4) none of the exclusions apply

i.,e not exceeding 12 motnhs
tenancy at will; can be terminated at any time

Question 21

variation of leases

Answer 21

e.g. tenants user covenants - to avoid breaching absolute covenants - the tenant will need to agree with the landlord a varation of the lease - the landlord does not have to act reasonably if it is an absolute covenant.

Question 22

leases and SCPC

Answer 22

requires the lease to be in the form of the draft attatched to the contract so no further amendments can be made.

once contracts are exchanged a legal relationship exists between the paties and amendments cannot be made.

whilst the landlords solicitor will have drfated the lease and a contract is not essential, once entered into the form of a lease is in agreed form from exchange of contracts.

Question 23

tenant of a business premises - wishing to carry out works to a property

Answer 23

a tenant of a business premises may be able to carry out works to a property even if there is an absolute prohibition contained within the lease.

this is as a result of s3 of the landlord and tenant act 1927. s3 provides that if a tenant wishes to carry out improvements it can serve notice on the landlord detailing its proposals.

the landlord then has 3 months within which to object.

if it does the tenant has the right to apply to the court.

Question 24

title and leaseholds

Answer 24

land registry will regiter a lease, regardless of whether freehold title has been investigated. however if the freehold title is registered - a lease will NOT be registered with absolute title unless the freehold title is deduced.

Question 25

sdlt and leases

Answer 25

if certain thresholds are exceeded, sdlt is chargeable on both the premium and the net present value of the rent chargeable during the term of the lease.

if sdlt is payable an sdlt1 and payment must be submitted to hmrc within 14 days.

Question 26

landlord remedies

Answer 26

before a landlord can forfeit a lease for breach of a repair covenant, it must serve a notice on the tenant under s146. if the breach is capable of being remdies, the notice must require it to be remedied within a reasonable time. if the tenant fails to remedy the breach within the time specified the landlord can forfiet the lease.

CRAR is only available for breaches of rent covenant.

Question 27

assumptions and disregards

Answer 27

• the tenant will not want an assumption that the landlord has complied with its covenants

-

Question 28

land charges

Answer 28

restrictive covenant d(ii)
equitable easement - class d(iii)
class f - statutory home right
option - class c(iv)

Question 29

pre completion searches

Answer 29

if the lease is registered: an official search of the register of the leasehold title should be carried out to check for any new enteries and to gain a priority period within whcih to register the transfer.

Question 30

assigning

Answer 30

in the absence of a restriction in the lease, a tenant can dispose of their lease in any way they like.

Question 31

leasehold sdlt

Question 32

best method to protect trust interest in land

Answer 32

record a restriction on the proprietoship register which will alert the bueyr to the need to overreach.

Question 33

s25 grounds

Answer 33

a landlord can only avoid payment of compensation if the s25 notice specifies a fault ground and the landlord then proves the fault ground. i.e must be a fault of the tenant.

landlord can only rely on original grounds in s25 cant be amended later.

5 yr rule only relates to ground g (landlords intention to occupy) only applies when the landlords interest was purchased or created within 5 years before the ending of the current tenancy

Question 34

implied easements

Answer 34

overriding interests in registered land if they satisfy one of the conditions listed in sch 3 paragraph 3 - i.e that they have been exercised in the year prior to the sale.

Question 35

tenant protected by the landlord and tenant act

Answer 35

can only terminate in on of the ways e.g.

a tenant who wants to terminate a lease on the contractural expiry date may do so by serving a s27 notice giving the landlords 3 months prior written notice.

Question 36

business tenancys

Answer 36

will connie until terminated or replaced with a new lease.

Question 37

assuming that a landlord and tenant do not agree terms for the new lease what order can the court make?

Answer 37

the term of the new lease will be such as is reasonable in the circumsatnces but canot exceed 15 years. the rent will be open market rent having regard to the other terms of the tenancy.