PROPERTY LAW

Question 1

Full Title Guarantee

Question 2

Full Title Guarantee
VS
Limited Title Guarantee
VS
No

Question 3

Can Buyer’s Solicitor represent both Buyer and Mortgage Lender?

Answer 3

In a residential transaction, lenders often choose to use the buyer’s solicitor in a transaction.
Because the Buyer and the Lender have the same common interests:
- to acquire a good and marketable title.

In a Commercial Lease, the Lender will often appoint** a Seperate Solicitor**.

Question 4

When can a Solicitor act for the Buyer and the Buyer’s Lender?

Answer 4

1. The Lender is an Institutional Lender, providing loans in the ordinary course of business.
2. The Standard Certificate of Title is provided.
3. There is no (risk of) conflict of interest.

If a conflict of interest arises, the buyer should cease to act for both the Buyer and the Buyer’s Lender.

Question 5

What happens if the Buyer’s Parents gift a Deposit to the Buyer of a Property?

Answer 5

A conflict may arise. And the Solicitor should avoid acting for the Parents and the Buyer, because of the possibilit of conflict of interest.

Question 6

What should the Solicitor do in case of a conlfict of interest?

Answer 6

Avoid Acting for the Additional Party.

+
If a Solicitor acts for more than one Parties e.g. for more Buyers or Sellers, they must ensure that they receve instructions by **EACH **of the clients.

Question 7

Hos can the Legal Estate in Land be held and how the Equitable Interest?

Answer 7

LEGAL ESTATE: only as joint tenants. MAX 4.

EQUITABLE INTEREST: as joint tenants or tenants in common.

Question 8

What should the Solicitor do when the Buyers are more than 1?

Answer 8

Give co-ownership advice.

If the Buyers will hold equitable interest as Tenants in Common, they should enter into a Declaration of Trust.

Question 9

Law Society Conveyancing Protocol.

Answer 9

Statement of Best Practise for Residential Conveyancing.
(it is stll up to the Solicitor to act in teh Best interest of his client.

For Freehold anf Leasehold
Even when both Buyer and Lender have both mortgage lenders and the solicitor acts for teh lender in addition to the Client.

**NOT for NEWBUILT HOMES OR COMMERCIAL PROPERTY. **

Question 10

Energy Performance Certificate

Answer 10

• A (most efficient) to G (least efficient)
• Valid for 10 years
• Not Required for Listed Buildings.
• Issued before the Property is marketed.
• Not Required if the previous Certificate is valid.

Question 11

Memorandum of Sale

Answer 11

In a Residential Lease:
-Details of the Property
-Purchase Price
-Solicitors of Each Party.

In Commercial Leases, they are the “Heads of Terms”.

Question 12

Code for Leasing Business Premises
(“the Code”)

Answer 12

The Royal Instution of Charterered Surveyors

• **Purpose: **The Code for Leasing Business Premises provides a framework for negotiating leases of commercial properties, typically for retail, office, and industrial spaces.

-Nature of the Transaction: The Code focuses on lease terms and negotiation fairness, while the Protocol on Conveyancing TRansactions guides the sale or purchase process for residential properties.

• For residential transactions, there is no direct equivalent to the Code for Leasing Business Premises, as the structure and typical requirements of residential leasing differ significantly from commercial leases.

Question 13

In the Commercial Leases:

Answer 13

1. The Landlord must usually give consent to the assignment.
   2.The Landlord may request Bank References or Business Accounts of the Last 3 years.
   3.Once the Landlord is satisfied that the Prospective Buyer will meet their requirements, the Landlord’s Solicitor -> LICENCE TO ASSIGN.
2. • signed by All Parties (Landlord, Tenant, Incoming Tenant) to create Privity of Contract Between them.
3. Rent Deposit Deed - 3 month Rent (returned when ENDS, unpon ASSIGNMENT.
4. Guarantees

Question 14

GUARANTEES IN COMMERCIAL LEASES

Answer 14

PERSONAL GUARANTOR - Additional Party to the Lease

ASSIGNMENT: Spereate Deed of Guarantee.