Property Flashcards

1
Q

Three parts to the contract

A

Particulars of sale
Standard conditions
Special conditions

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2
Q

What if standard conditions and special conditions conflict

A

Special conditions prevail

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3
Q

What are unfair contract terms under consumer rights act 2015

A

Unfair - contrary to good faith and create a significant imbalance in the rights and obligations of the parties to the detriment of the consumer

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4
Q

Which contracts does the consumer rights act apply to

A

Consumer and trader contracts

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5
Q

What are some of the key standard commercial property conditions (SCPC)

A

Full title guarantee
Sellers solicitor drafts contract
Deposit at 10% held as stakeholder by sellers solicitor
If money transferred after 2pm it is taken to be completed the following working day
Penalty for late completion

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6
Q

According to SCPC when is the completion date

A

20 working days after contract date

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7
Q

Do the SCPC apply to all contracts

A

They are implied into all contracts unless explicitly overwritten

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8
Q

Does the signing of the contract need to be witnesses

A

No

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9
Q

Can the solicitor sign the contract on behalf of the client

A

Only with express authority

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10
Q

Methods of exchange and when they come into existence

A
Phone - formula a, b or C 
In person 
Post- completed when S sends to B 
DX- completed when B received it 
Fax and email NOT allowed 
If only one contract - completed when second signature is made
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11
Q

What is formula A for exchange of contracts over the phone

A

B sends contract and deposit to S
B rings to confirm they have it and agree time to note for exchange
Agree completion date
S send contract back to B

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12
Q

What is formula B for exchange over the phone

A

Each party has a copy of the contract
They each sign their own
They ring to agree time and note to exchange And confirm they have both signed their own copies
Send contracts to each other plus deposit

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13
Q

What is formula C for exchange over the phone

A

Chains

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14
Q

When does the risk of accidental damage to the property pass to the buyers

A

On exchange of contracts unless it can be shown that damage was attributable to sellers lack of proper care. Should insure from exchange

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15
Q

Can you advise on or arrange insurance for your client

A

Not unless you are authorised by FCA or relying on professional firms exemption

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16
Q

Three ways of holding a deposit

A

Stakeholder - by sellers solicitor
Agency for seller - by sellers solicitor
Agency for buyer - by buyers solicitor

17
Q

Is interest payable on deposit held by solicitor

A

Yes

18
Q

What if deposit cheque bounces

A

This is breach of contact and seller can either keep contract alive or end it
Either way can sue for damages

19
Q

Once deposit is paid what sort of right does the buyer have over the property

A

A lien

This can be enforced by court order and registered but would only do this where there is a problem with the transaction

20
Q

What is overage

A

Requires the purchaser to pay to the seller an agreed percentage of the increase in market value of the property after a particular date

21
Q

What is positive overage

A

Agree to pay specific amount if specific event occurs

22
Q

What is negative overage

A

Seller withholds ransom strip or covenant that requires further payment so development can go ahead

23
Q

When does a conditional agreement in a contract expire

A

Specific date in contract or if no date then completion date
If no completion date then within a reasonable time
Include long stop date by which condition must be satisfied
Requirement to act with reasonable speed
Require them to notify other party when contract becomes unconditional

24
Q

What is a call option agreement

A

This allows the buyer to insist that the owner sells property to them within agreed timeframe for agreed value

25
Q

When you have a call option what sort of interest do you have and how can it be protected

A
Equitable interest 
Register C(iv) charge for unregistered land or notice for registered land
26
Q

Does a call agreement have to be exercised

A

No can let it lapse

27
Q

What is a put option

A

This enables the land owner to insist the other party purchase their land subject to terms of contact

28
Q

What sort of interest in the land does a put option create

A

No interest

29
Q

Does a put option have to be exercised

A

No the seller can chose to never sell

30
Q

What tax is the option fee and subsequent transfer of land subject to

A

SDLT, VAT and capital gains tax

31
Q

What is a pre emotion agreement

A

A right of first refusal. If owner decides to sell within a particular period they must offer it to developer first

If developer doesn’t accept within particular time frame then can offer it to third party

Owner not obliged to ever sell