Property Flashcards
Three parts to the contract
Particulars of sale
Standard conditions
Special conditions
What if standard conditions and special conditions conflict
Special conditions prevail
What are unfair contract terms under consumer rights act 2015
Unfair - contrary to good faith and create a significant imbalance in the rights and obligations of the parties to the detriment of the consumer
Which contracts does the consumer rights act apply to
Consumer and trader contracts
What are some of the key standard commercial property conditions (SCPC)
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
According to SCPC when is the completion date
20 working days after contract date
Do the SCPC apply to all contracts
They are implied into all contracts unless explicitly overwritten
Does the signing of the contract need to be witnesses
No
Can the solicitor sign the contract on behalf of the client
Only with express authority
Methods of exchange and when they come into existence
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
What is formula A for exchange of contracts over the phone
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
What is formula B for exchange over the phone
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
What is formula C for exchange over the phone
Chains
When does the risk of accidental damage to the property pass to the buyers
On exchange of contracts unless it can be shown that damage was attributable to sellers lack of proper care. Should insure from exchange
Can you advise on or arrange insurance for your client
Not unless you are authorised by FCA or relying on professional firms exemption