Property/Land: EXTRA Flashcards
extra things from paper flashcards
meaning of interest in possession
entitled to immediate possession (as opposed to interest in remainder)
When can a deposit held a stakeholder be used on a related purchase?
When the contract contains the SC only (NOT the SCPC)
SCPC-if buyer consents
What are VAT sensitive buyers and why?
Don’t make taxable supplied in course of business (ie. Bank/building society/insurance co.) so cant recover input tax
Who will a certificate of title be addressed to?
often buyer and lender
sometimes just the lender
When is the certificate of title provided?
Draft=before exchange
Final=before completion
Will the buyers solicitor report to the lender on the results of a title investigation?
Yes, even if lender separately represented
What is the risk for a solicitor if information in the certificate of title is wrong?
the lender can sue the firm which gave the certificate because there are warranties as to the correctness of the information contained within the certificate of title.
Mortgages: Lenders 5 remedies
- Possession
- Power of sale
- Debt action
- Appointing a receiver
- Foreclosure
Mortgages: what lenders powers can be exercised as soon as the mortgage is completed
Possession
Mortgages: what lenders powers cant be exercised until the legal date of redemption has passed
Foreclosure
Debt action
Mortgages: what lenders powers cant be exercised until the power exists, has arisen, is exercisable
Power of sale
Appointing a receiver
Mortgages: which lenders powers WONT end a mortgage
- Taking possession
- Debt action
- Appointing a receiver
Mortgages: what entry will be on the Proprietorship Register in relation to a mortgage?
a restriction providing that no disposition of the land in in the registered title can take place without the lender’s consent
Mortgages: what entry will be on the Charges Register in relation to a mortgage?
the mortgage itself (x2 entries)
Deadline for registering mortgage if buyer is a co vs individual
CH for Co: 21d completion
LR for individual:within priority period
Completion: deadline for applications to LR
within priority period
How to calculate contractural compensation for delayed completion
Contract rate on balance of purchase price
Calculate daily rate (amount /356)
Times by number of days delayed
Form for applying for 1st registration
FR1
Form for registering buyer as new registered proprietor in registered land
AP1
How should an interest under a trust be protected in registered land?
As a restriction in the proprietorship register.
How are legal leases, legal easements and legal mortgages protected in registered land?
Registrable disposition under s27 LRA 02-must be registered as restriction at land registry before new owner registered
Registered land: what does Sch 3 para 3 protect?
legal easements/ profits created by implication or prescription after 12 Oct 2003
IF
1. buyer had actual knowledge before purchase
2. OR easement would have been obvious on a reasonably careful inspection of the land
3. OR easement used by person entitled in the year preceding the disposition of the land
Registered land: what does Sch 3 para 2 protect?
IARE if person is in actual occupation on date of completion
IF:
1. Interest is proprietary (not personal/home right) in nature
2. Occupation obvious on reasonably careful inspection of land
3. OR wasn’t obvious but they had actual knowledge
□ Will be lost if: When asked, person holding interest failed to disclose when they could have reasonably have been expected to do so
When does a statutory home right end?
Death or divorce (not separation)
Can the landlord forfeit after using CRAR and why?
No because forfeiture acknowledges the existence of a lease and may therefore waive the landlord’s right to forfeit
What incumbrances should be mentioned in the contact?
Just the ones the property is being sold subject to
How to determine if equitable interest held as JT or TiC
- 4 unities? (possession, time, interest, title)
- Express declaration in deed
- words of severance in deed
- Equity presume a TiC? (partnership/business prop, lenders, unequal contrib to purchase price of non home)
if 4 unities only=JT
7 methods of severance
- Formal written: to sever immediately, correctly served
- Alienation (sale, gift, mortgage, lease, contract to dispose of equitable interest)-,its be signed writing
- Mutual agreement
- Mutual conduct over time
- Homicide
- Bankruptcy
- Post acquisition money management
Freehold covs: liability of original parties?
Privity of contract:
Original covenantee: can enforce against anyone with burden unless parted with land
Original covenantor: liable forever unless covenant personal
Rates of VAT for property
Zero rated: Sale of new build by developer (subsequent sale of residential prop is not in course of business=no VAT)
Exempt subject to option to tax: Sale of old commercial freehold building
Standard rated 20%: Sale of new freehold commercial building
Classes of title
▪ Absolute freehold (or leasehold)
▪ Possessory freehold (or leasehold)
▪ Good leasehold
▪ Qualified freehold (or leasehold)
What 6 pre contract searches should be done for every transaction?
- survey/inspection
- local search
- flood
- water and drainage
- pre contract enquiries to seller
- environmental
Form for standard pre contract enquires to seller
CPSE: disputes, covs, planning permission, 3rd party in occ, boundary maintenance, VA+T
3 Formulas for exchange and 3 ways to exchange
A-1 sol has both signed parts
B-both hold own signed parts
C-synchronise chain
Ways: in person, post, phone
Methods of completion
- In person: buyer sol attend seller office
- By post: Law Soc Code for Completion by Post, seller sol act as agent of buyer at no cost, buyer sol set out in writing what to be done)
When does title pass?
Unregistered: on completion
Registered: when buyer registered at LR as propitiator
Form for pre completion searches in registered land/unregistered land
R:
OS1-sale of whole
OS2-sale of part
UR: K15
How long is the priority period conferred by the pre completion searches in registered/unregistered lands and how is it obtained?
Registered: LR search against title since ‘search from date’=30d pp (register by 12pm on last day)
Unregistered: Land charges search on K15=15d priority period
When should completion occur
20 working days from exchange at 2pm
Effect of serving notice to complete
Makes time of the essence
Gives 10 working days to complete out can rescind contract
Forms to discharge sellers mortgage
□ LR form DS1 (send to sellers sol to forward to buyers sol)
□ E-DS1 electronic discharge via Land Registry portal (sellers sol needs to send notice of discharge to buyers sol)
□ Electronic Discharge system, sending message to Land Registry which automatically removes charge from register (sellers sol needs to send notice of discharge to buyers sol)
Under the SC/SCPC who is required to pay contractual compensation for delayed completion?
SC-buyer AND seller can be required to pay
SCPC-ONLY buyer can be required to pay
