Property Law 4 Flashcards
What is the purpose of a certificate of title for the lender?
Solicitor certifies that the title to the property is satisfactory for lending purposes
What conditions must a contract for land satisfy under s2 LPA 1989?
- be in writing
- incorporate all the terms which the parties have expressly agreed.
- be signed by, or on behalf or, each party to the contract.
What are special conditions in a property contract?
Special conditions may be used in both residential and commercial property contracts to add or amend the standard conditions.
What are the standard conditions for residential property relating to incumbrances?
The seller needs to disclose any incumbrances registered at:
- Land Registry
- Land charges Registry
- Companies House
If they don’t, the seller is in breach
What are the standard conditions for commercial property relating to incumbrances?
The buyer is deemed to buy the property subject to any incumbrancers which would be revealed by a prudent buyer’s searches and enquiries.
When would a full title guarantee be used?
This is the default - it means the property is free of all incumbrances other than those disclosed in the contract, and those which it didn’t and couldn’t reasonably have known about.
When would a limited title guarantee be used?
Given by sellers with little knowledge of the property. It means that no incumbrances have been created over the property during the seller’s period of ownership.
What does ‘No title guarantee’ mean?
The seller does not guarantee the seller’s right to sell the property, or that the property is free from incumbrancers.
What is the default completion date?
20 working days after the date of the contract
What is the default completion time of the day and what does this mean?
- 2pm
Money must be received by the seller’s solicitor before 2pm
What is the default remedy if completion time is missed?
The other party can claim damages, but cannot walk away from the transaction.
If the party serves a ‘notice to complete’ then time is of the essence and if the contract is not performed by a specific time the non-defaulting party can walk away and claim damages.
What is the default deposit and who pays
10% and paid by the solls
- domestic, cheque or electronically
- commercial - just electronically.
What is the difference between holding a deposit as a stakeholder and agent?
- Stakeholder, solls must not give deposit to seller until completion (standard)
- Agent, seller can demand the deposit immediately after exchange
Who holds the risk after contracts are exchanged?
The buyer, therefore buyer should insure from the date of exchange
When is VAT due?
VAT is charged on any taxable supply, namely the supply of certain goods or services by a taxable person in the course of business.