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Ella SQE > Property law 5* (completion) > Flashcards

Property law 5* (completion) Flashcards

1
Q

Who drafts the transfer deed?

A

Buyer

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2
Q

A transfer of land must be made in the form of a deed - true or false?

A

True

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3
Q

If there is a second trustee appointed for the sole surviving tenant, what details should be included on TR1?

A

Their details (no death certificate needs to be provided)

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4
Q

What happens if the seller has a different name due to marriage

A

The new name should be added and a copy of the marriage certificate sent

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5
Q

Which forms must be used for the transfer of registered land?

A

Land Registry forms must be used:

TR1 - whole of freehold or leasehold land
TP1 - part of a registered title
TR5 - portfolio of titles (including unregistered titles)

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6
Q

Transfers of Unregistered land must use Land registry forms - True/False?

A

False - Unregistered land may be transferred in the form of a conveyance - but often LR forms are used.

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7
Q

When should the date on Form TR1 be filled in?

A

On completion - it has the effect of completing the deed

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8
Q

What is the maximum number of transferees that can be entered onto TR1?

A

4 people or companies

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9
Q

Must the transferor always execute the TR1?

A

Yes

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10
Q

When must transferees (the people buying the property) execute a TR1

A
  • If they are tenants in common or hold the property on trust for someone else (panel 10).
  • they are providing an indemnity covenant or any other obligation (panel 11).
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11
Q

Does an individual need an independent witness to the deed and, if so, how many?

A

Yes - 1

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12
Q

How can a company execute a deed?

A
  • Company seal attached and signed by 2 directors or 1 director and company secretary
  • No Company seal but signed by 2 directors or 1 director and company secretary
  • Singed by 1 company director and witnessed by an independent witness
  • Signed by a senior employee who is authorised under a power of attorney
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13
Q

How are pre-completion searches carried out on Registered land?

A

The buyer carries out a search with priority at the Land Registry against the title number.

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14
Q

What is the priority period for a search with priority carried out on REGESTERED land?

A

30 working days from the search result.

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15
Q

How are pre-completion searches carried out on Unregistered land?

A

The buyer carried out a ‘land charges search’ of the Land Charges Registry.

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16
Q

What is the priority period for a search with priority carried out on UNREGESTERED land?

A

15 working days from the search result

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17
Q

What is the effect of the priority period?

A

The buyer’s transfer will take priority over any other applications, even if they were lodged before the buyer’s transfer.

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18
Q

When acting for buyer and lender What searches must the solicitor carry out on behalf of the lender?

A

Solvency Search against the buyer

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19
Q

What is the priority period of a solvency search?

A

15 working days from the search result

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20
Q

Must a solvency search be carried out against the seller?

A

No. The OS1 gives the information for registered land, and the land charges search for unregistered land.

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21
Q

How does the buyer get comfort that the seller will pay-off their mortgage?

A

The Sellor’s solicitor undertakes to REDEEM the mortgage.

Note: they’re not undertaking to discharge the charge as only the lender can do that.

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22
Q

What is the purpose of the Completion Information and Undertakings Form?

A

It is sent by the buyer to the seller to obtain information about completion.

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23
Q

Who completes and signs the Completion Information and Undertakings Form?

A

The seller’s solicitor.

24
Q

When should the seller undertake to send the transfer deed and other deeds and documents to the buyer’s solicitor?

A

As soon as possible, and no later than the end of the working day after completion.

25
Q

Can the “Law Society’s Code for Completion by Post” be used for residential/commercial or both

A

Both

26
Q

Is the Law Society’s Code for Completion by Post manditory?

A

No

27
Q

How does completion occur under Law Society’s Code for Completion by Post?

A

The seller’s solicitors to act as agent for the buyer’s solicitors. Completion occurs at the seller’s solicitor’s office as they hold the executed TR1 (which they sign) and receive the completion monies.

28
Q

What undertakings are made by the seller under The Code?

A
  • The Seller’s Solicitor undertakes:

(i) to receive the purchase money on completion; and

(ii) on completion, to pay the mortgage off;

  • The Seller’s Solicitor will complete upon receipt of the money
  • As soon as possible after completion and in any event by the end of the working day following completion, send written confirmation that completion has taken place …

and the [executed transfer and other deeds and documents]

29
Q

What undertakings are made by the buyer under The Code?

A
  • The buyer’s solicitor will use reasonable endeavours to get the cash to transmit to the Seller’s Solicitor on or behalf the completion date.
  • immediately upon becoming aware of their receipt, the Seller’s Solicitor will report to the buyer’s solicitor that the funds have been received.
30
Q

How is interest calculated if there is a failure to complete? Under SCS

A

For each CALENDAR day:

At the contract rate.
- If there is no rate specified, at the Law Society interest rate.

Seller late = seller pays interest on full purchase price

Buyer late = buyer pays interest on the purchase price less any deposit paid

31
Q

Is there a financial remedy for failure to complete other than interest?

A

Yes - common law damages. If the buyer is successful, the interest received under SCS is deducted from such sum.

32
Q

Are there remedies other than financial remedies for a failure to complete?

A

Yes, Rescission.

NOT automatically available (unlike common law damages) as under a standard contract time is NOT of the essence.

33
Q

What is the process for rescission? 4 steps

A
  1. The non-defaulting party serves a ‘notice to complete’ on the other party.
  2. This makes ‘time of the essence.
  3. The parties must then complete within 10 working days (excluding the day on which the notice was given).
  4. If buyer is defaulting party and they have not given full 10% deposit, they MUST make it up to 10% without delay.
34
Q

4 effects of notice to complete

A
  1. Parties must complete within 10 working days (the first day being the day AFTER the notice to complete has been served).
  2. Party serving the notice is bound by the notice as well, so they MUST make sure they will continue to be ready to complete within the 10 working day period.
  3. Once served, CANNOT be withdrawn without agreement of both parties.
  4. If either party fails to complete within the 10 working days, the remedies depend on whether non-defaulting party is seller or buyer.
35
Q

Can a notice of recession be withdrawn and, if so, how?

A

Yes, requires the agreement of both parties.

36
Q

What are the SELLER’s 3 remedies of rescission?

A
  1. forfeit the deposit and any interest accrued on it
  2. resell the property and any contents included in it
  3. claim contractual damages
37
Q

What are the BUYER’s 2 remedies of rescission?

A
  1. Demand return of deposit with interest accrued.
  2. Claim contractual damages or even specific performance.

NB: contractual compensation only applies to delayed completion (so where completion does not take place at all, remedy = damages)

38
Q

How long do you have to register a charge at Companies House? What if deadline is missed?

A

Within 21 Days of the creation of the charge

(if not, charge is void against any liquidator or administrator)

NB: CH have NO DISCRETION to extend deadline

If deadline missed, need to apply for a court order to allow the filing out of time.

39
Q

How long have you got for LTT (Wales) to be submitted and paid?

A

Within 30 days of completion (to avoid penalties)

40
Q

What certificate will be granted once SDLT/LTT submitted

A

SDLT5 certificate

WRA certificate

41
Q

How long have you got for SDLT to be submitted and paid?

A

Within 14 days of completion (to avoid penalties)

42
Q

Who prepares and submits SDLT return

A

Buyer’s solicitor on buyer’s behalf

43
Q

What documents are sent to the Land Registry for REGISTERED land?

A
  1. Form AP1
  2. The transfer deed
  3. SDLT5 or WRA certificate to prove payment of SDLT / LTT
  4. Form DS1 to discharge the seller’s mortgage
  5. Mortgage deed in favour of the buyer’s lender

If appropriate:
- certificate of registration of charge at Companies House
- Other documents as appropriate

44
Q

What documents are sent to the Land Registry for UNREGISTERED land?

A
  1. Form FR1
  2. Same docs as for registered land, plus
  3. The epitome of title and the deeds and documents referred to in it,
  4. Land charges searches for the seller and previous owners in the chain of title
45
Q

After completion, what is the deadline for the Land Registry application and what happens if you miss it?

A

Priority lasts 30 WORKING days from the date of the OS1 search result.

If the application is not made within those 30 days, then priority is lost.

A new OS1 can be submitted, but this starts a new period rather than extending the old one.

46
Q

What is the deadline for submitting an application to the Land Registry following completion of REGISTERED land?

A

There is no deadline. However, consider OS1 search priority period.

NB: LR will allow an application submitted at any time after completion, but may QUERY it if a long period if a long period has elapsed.

47
Q

What is the deadline for submitting an application to the Land Registry following completion of UNREGISTERED land and what happens if it missed?

A

2 months from completion.

If not complied with, the transaction is void.

NB: an application can be made to the Land Register to extend the period.

48
Q

Do SDLT and LTT rates rely on slices or thresholds?

A

Slices - i.e. if a threshold is breached the whole sum is NOT charged at the threshold amount

49
Q

What SDLT relief is available for first-time buyers?

A

No SDLT on the first £300,000 and 5% on the next £200,000

50
Q

What additional rate of SDLT is due if the property purchased is a second residential property?

A

An additional 3% is charged on the WHOLE of the purchase price

51
Q

What are the difference in the rates of SDLT and LTT?

A
  • there is no relief for first-time buyers
  • LTT is increased by 4% on a second home
  • the rates are different.
52
Q

What are the allowable expenditure for CGT

A
  • Original cost
  • Incidental costs of acquisition e.g. lawyer’s fees
  • Subsequent expenditure enhancing the asset’s value (i.e. not repairs)
  • Incidental costs of disposal
53
Q

When is PPR available

A
  • You have one home and you have lived in it as your main home all the time you have owned it
  • You have not let part of it out - although one lodger is allowed.
  • You have not used it for business only
  • The grounds are less than 5,000 mSq
  • You did not buy it just to make a gain
54
Q

What periods of absence are disregarded for PPR

A
  • the last 9 months of ownership,
  • the first 12 months of ownership
  • any periods not exceeding 3 years in total throughout the period of ownership
  • any period where employed outside of the UK
  • any period not exceeding 4 years in total during which the owner was required by the conditions of their employment to live elsewhere.
55
Q

What are the requirements of a deed?

A
  • must state it’s a deed
  • signed and delivered
  • signature needs to be attested 1 person

Ella SQE (13 decks)

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