Property Matters Flashcards
1
Q
What are the 5 main stages in the conveyancing process?
A
The stages are:
* Pre-exchange
* Exchange
* Pre-completion
* Completion
* Post-completion
2
Q
What is the first step in the conveyancing process?
A
Checking through title documents and raising necessary enquiries.
3
Q
What is the buyer’s responsibility before the exchange of contracts?
A
The buyer must investigate and make enquiries about the property.
4
Q
What should a buyer do with valuation and survey reports?
A
Review them thoroughly and ask questions about any concerns.
5
Q
What happens once contracts are exchanged?
A
The purchase price, completion date, and terms become legally binding.
6
Q
True or False: A buyer should hand in their notice to their landlord before contracts are exchanged.
A
False
7
Q
What is the Law Society Conveyancing Protocol?
A
It is a set of step-by-step procedures for acting in residential property transactions.
8
Q
Is the use of the Law Society Conveyancing Protocol mandatory?
A
Not mandatory, except for Conveyancing Quality Scheme accredited practitioners.
9
Q
What is the Property Information Form also known as?
A
TA6
10
Q
What does the Fittings and Contents Form (TA10) confirm?
A
Which items the seller intends to leave or take from the property.
11
Q
What is the principle of Caveat Emptor?
A
The buyer must find out everything about the property before committing to purchase.
12
Q
What does the exchange of contracts signify?
A
The sale becomes legally binding for both seller and buyer.
13
Q
What are the key exceptions to the principle of Caveat Emptor?
A
The exceptions are:
* Seller’s duty to disclose latent defects
* Contractual obligations to disclose
* Contract provisions
* Inducement by fraud
14
Q
What are the risks of exchanging contracts before receiving search results?
A
The buyer may become contractually committed and lose the ability to address issues.
15
Q
What should the buyer’s solicitor investigate?
A
The title to the property and any defects affecting the buyer’s interests.
16
Q
What is required for a seller to deduce title in a registered property?
A
The official copy of the register and associated documents.
17
Q
What is a good root of title?
A
A deed tracing ownership back at least 15 years with an unbroken chain.
18
Q
What is the Epitome of Title?
A
A list of all documents of title with photocopies, used for unregistered land.
19
Q
What should be checked in the lease before exchange?
A
Terms acceptable to the buyer and lender, restrictions, ground rent, etc.
20
Q
What is the purpose of pre-exchange searches?
A
To identify any issues affecting the property before contracts are exchanged.
21
Q
What is OC1 used for?
A
To obtain Official Copies of the Register showing existing entries affecting the title.
22
Q
What is required for a contract for sale of land to be valid?
A
A contract for sale of land is void UNLESS: (1) made in writing; (2) contains or incorporates all of the terms expressly agreed; and (3) signed by or on behalf of the parties.
23
Q
What does an OC1 search provide?
A
Official Copies of Register showing existing entries affecting the title.
24
Q
What does an Index Map Search reveal?
A
Whether the land is registered at the Land Registry, title numbers, and whether parts are unregistered or owned by third parties.
25
What is the purpose of a Land Charges Search?
To protect certain interests in unregistered land and reveal encumbrances and bankruptcy status of the seller.
26
What information does a Local Land Charges (LLC) Search uncover?
Registered local land charges, financial charges, restrictions on land use imposed by public authorities.
27
What kind of information does the CON29 Local Authority Enquiry provide?
Important information affecting future use or development of the property, including planning permissions and public rights of way.
28
What is the Energy Performance Certificate (EPC)?
An EPC contains info about the property's energy use and typical costs, and gives an efficiency rating from A to G.
29
What types of property surveys are there?
* Level 1 Survey
* Level 2 Survey
* Level 3 Survey
30
What is the main function of a CON29DW Drainage & Water Enquiry?
To reveal key information about water and drainage services related to the property.
31
What does a Bankruptcy Search show?
Any bankruptcy application, petition, order, or arrangement recorded against the name in the last 5 years.
32
What does a Companies House Search confirm?
That the company exists, has the power to hold land, and is not in liquidation.
33
What is a Chancel Repair Search?
A search to check if the property is liable to pay for repairs to an old church.
34
What does an Environmental Data Search reveal?
Environmental risks affecting the property, such as land contamination and flooding.
35
What is the purpose of a Commons Registration Search?
To determine if land adjoining the property is affected by the Commons Registration Act.
36
What are the three main types of property surveys?
* Level 1 Survey: Cheapest and least thorough
* Level 2 Survey: Most common, detects obvious issues
* Level 3 Survey: Most expensive and thorough
37
What happens after receiving the results of pre-exchange searches?
Consider clarification of issues, report on title and search results, check if results are satisfactory.
38
What is the method used for Telephone Exchange?
Contracts become binding over the phone using Law Society formulae.
39
What is Formula B in the context of contract exchange?
Each solicitor holds their own client’s copy of the contract and checks they are identical before agreeing to exchange.
40
What happens to the deposit when contracts are exchanged?
The buyer is legally bound to complete, and the seller may keep the deposit if the buyer fails to complete.
41
What does it mean for a seller's solicitor to hold the deposit as a 'stakeholder'?
The deposit may only be released to the seller on completion or if the buyer fails to complete.
42
What is the purpose of Optional Local Authority Enquiries (CON29O)?
To order enquiries on an individual or multiple question basis regarding specific property concerns.
43
What is the significance of the 'Standard Conditions of Sale' Toolkit?
It helps speed up the negotiation process and reduce costs.
44
What is a physical inspection in property transactions?
Inspection may be done by the buyer, surveyor, valuer, or other experts to assess the property's condition.
45
What happens to the deposit if the buyer fails to complete the contract?
The seller may be entitled to keep the deposit.
## Footnote
This is contingent on the terms of the contract.
46
Who usually sends the deposit to the seller’s solicitors when contracts are exchanged?
The buyer’s solicitors.
## Footnote
This is standard practice in property transactions.
47
What is the role of the seller’s solicitors when holding the deposit as a 'stakeholder'?
The deposit may only be released to the seller on completion or if the buyer fails to complete.
## Footnote
The deposit does not belong to the seller before that.
48
What does it mean for the seller’s solicitors to hold the deposit as an 'agent'?
The seller’s solicitors can pay the deposit to the seller immediately.
## Footnote
This is generally less favorable for buyers.
49
What are the risks for buyers when the deposit is held as an 'agent'?
The buyer may not recover the deposit if the seller becomes insolvent or if completion does not occur through no fault of the buyer.
## Footnote
The buyer ranks as an unsecured creditor in such cases.
50
What is a lien in the context of property transactions?
A legal right to keep possession of property belonging to another until a debt owed by that person is discharged.
## Footnote
The buyer can apply for a lien over the property for the deposit amount.
51
What are the risks a client faces when replacing their residence?
The client could end up with no property or two properties simultaneously.
## Footnote
This can occur if transactions are not synchronized.
52
What tax implication arises if a client owns two properties at the same time?
The client must pay SDLT at the higher rates.
## Footnote
A refund is possible if the first property is sold within 36 months.
53
What is one option to mitigate risks when synchronizing sale and purchase?
Using Formula C to synchronize exchange and completion dates.
## Footnote
This ensures the timing of transactions aligns.
54
What should a buyer’s solicitor ensure before proceeding with the exchange of contracts?
That the client has arranged the deposit funds.
## Footnote
This is crucial as the deposit is needed before mortgage funds are available.
55
What is a deposit guarantee?
An agreement where the buyer may purchase a guarantee from an insurance company instead of paying a deposit.
## Footnote
The seller can enforce it if the buyer fails to complete.
56
What is bridging finance?
A short-term loan used to 'bridge' the gap between buying a new home and selling an old one.
## Footnote
It helps when immediate funds are needed.
57
When does the legal estate pass for unregistered properties?
When the transfer deed is executed and completion monies have been paid.
## Footnote
If compulsory registration is triggered, it reverts to the seller if not registered within 2 months.
58
When does the legal estate pass for registered properties?
When the transfer is registered.
## Footnote
It is deemed to have passed on the date the registration application was made.
59
What happens to the beneficial interest in the property upon exchange of contracts?
It passes to the buyer, provided the contract is specifically enforceable.
## Footnote
This grants the buyer ownership rights.
60
Who bears the risk of damage or destruction of the property after the exchange of contracts?
The buyer.
## Footnote
This is unless the contract states otherwise.
61
What is a priority period in the context of property transactions?
A designated time frame during which any entries made will not affect the applicant/buyer.
## Footnote
This typically lasts 5 to 7 days before completion.
62
What is the purpose of conducting a Land Registry Official Search (Form OS1/OS2)?
To confirm the title and identify any adverse entries.
## Footnote
It provides a priority period of 30 working days.
63
What does a Land Charges Search (Form K15) against unregistered land provide?
It shows any subsisting entries against the seller and previous owners.
## Footnote
It has a priority period of 15 working days.
64
What is the purpose of raising pre-completion requisitions?
To obtain key information from the seller’s solicitor before completion.
## Footnote
This ensures all necessary details are confirmed.
65
What should be checked in the property sale contract regarding pre-completion?
Any express pre-completion conditions or requirements.
## Footnote
This includes checking the completion clause.
66
What is advisable to inspect before completion?
The purchased property to ensure no changes in condition or new occupiers.
## Footnote
This helps confirm the property's status.
67
What should be checked in the property sale contract before completion?
Express Pre-completion Conditions or Requirements and the completion clause
68
What is advisable to do before completion regarding the purchased property?
Conduct a Pre-completion Inspection
69
What document does the seller’s solicitor prepare to obtain redemption figures from the mortgagee?
Redemption statement
70
What forms are used for mortgage discharge?
* Form DS1 (whole)
* Form DS3 (for releasing part)
* Electronic discharge (ED) or e-DS1
71
What is an undertaking to discharge an existing mortgage?
A request from the buyer’s solicitor to the seller’s solicitor to redeem the mortgage upon completion
72
What does the seller’s solicitor prepare for the seller to show net proceeds?
Financial statement
73
What does the seller’s solicitor prepare for the buyer before completion?
Completion statement
74
What must the buyer do before completion regarding funds?
Transfer all funds to their solicitor
75
What is the purpose of the draft transfer deed prepared by the buyer’s solicitor?
To execute the deed upon completion
76
Fill in the blank: The buyer's mortgage deed is executed but left _______.
undated
77
What is a Certificate of Title?
A document confirming statements about the property, issued by the solicitor to the lender
78
What does ‘vacant possession’ mean?
The obligation to make the property available for legal and physical occupancy by the buyer
79
What are the two types of obligations related to vacant possession?
* Implied Obligation
* Express Obligation
80
What breaches the obligation to give vacant possession?
Removable items left on the property or lawful/unlawful possession by another party
81
What remedies can a buyer seek for breach of the vacant possession obligation?
* Apply for specific performance and claim damages
* Rescind the contract and recover deposit
* Complete and claim damages
82
What happens to the contract if a party dies after exchange but before completion?
The contract remains binding on the buyer and the deceased’s estate
83
What is a potential risk if the seller dies before completion?
Delay in completion due to the need for a grant of representation
84
What can the PR do to mitigate risks after a party’s death?
* Request an expedited grant
* Postpone completion date
* Issue a licence to occupy
85
What is the buyer's responsibility regarding property risk between exchange and completion?
The property is at the buyer’s risk unless otherwise agreed
86
What should a buyer do if the property is damaged between exchange and completion?
Claim insurance coverage or consider seller's liability if applicable
87
What does Caveat Emptor imply for the buyer?
The buyer is responsible for discovering all relevant issues before purchase
88
What are possible remedies if issues are discovered after the exchange of contracts?
* Action against the seller for breach
* Action against a third party
* Claim insurance coverage
89
What is a bridging loan?
A short-term loan used to bridge the gap between buying a new property and selling an old one
90
What happens if the buyer does not have sufficient funds for completion?
The buyer may face penalties, including interest charges or losing their deposit
91
What is the completion procedure regarding the completion date?
Completion date should be stated in the contract, typically 20 working days after contract date
92
What methods can be used for completion?
* In person
* By an agent
* By post
93
What is the first step in postal completion?
Appoint the seller’s solicitor as an agent
94
What does the seller’s solicitor do during postal completion?
Confirms receipt of funds and completes the transfer deed
95
What is the role of the seller's solicitor in the transfer deed?
The seller’s solicitor will complete and date the transfer deed with the date of completion.
96
What must the buyer's solicitor do regarding the mortgage deed?
The buyer’s solicitor will date the mortgage deed with the date of completion.
97
What happens to completion documents after they are dispatched?
Once the original documents are posted properly, they are at the buyer’s risk.
98
What is the outcome for registered land after completion?
The legal estate remains vested in the seller until registration has been completed.
99
What is the outcome for unregistered land after completion?
The legal estate passes from the seller to the buyer on completion.
100
What protection can be registered if completion does not occur?
Consider protecting the contract by registering a Unilateral Notice (for registered land) or C(iv) land charge (for unregistered land).
101
What is a lien in the context of failure to complete?
The buyer who has paid some or all of the purchase price is entitled to apply for a lien over the property for the amount paid.
102
What happens if time is NOT of the essence regarding completion?
A failure to complete on the completion date gives the innocent party a claim for damages but cannot unilaterally terminate the contract.
103
What must happen if time is of the essence and a notice to complete is served?
Time is of the essence; the parties must complete within 10 working days following the notice.
104
What are the consequences if the buyer fails to comply with the notice to complete?
The seller may rescind the contract, forfeit/keep the deposit with interest, re-sell the property and claim damages.
105
What are the remedies if the seller fails to comply with the notice to complete?
The buyer may rescind the contract and refund the deposit with accrued interest.
106
What is the importance of registration at the Land Registry?
The main aim of registration is to ensure that the dispositions of and interests in land are appropriately protected in the register.
107
What happens if a mortgage charge is not registered within 21 days for companies?
The security becomes void against liquidators, administrators and other creditors.
108
What is the difference between a repayment mortgage and an interest-only mortgage?
A repayment mortgage pays off both capital and interest, while an interest-only mortgage pays off only interest.
109
What is an endowment mortgage?
An endowment mortgage is an interest-only mortgage linked to a life assurance policy that matures at the end of the mortgage term.
110
What happens if the seller dies after completion but before registration?
The death of the seller does not affect the validity of the transfer deed, which can still be registered.
111
Fill in the blank: SDLT applies to the transfer of chargeable interests in land and is payable by the _______.
transferee
112
True or False: The buyer's solicitor is responsible for registering the title at the Land Registry.
True
113
What must the seller's solicitor ensure regarding the executed transfer?
The executed transfer and all documents needed to transfer the ownership are handed over to the buyer’s solicitor.
114
What is the consequence of failing to register a mortgage?
The debt will remain payable but as an unsecured debt.
115
What is the typical time frame for paying Capital Gains Tax after selling a property?
Any UK resident must pay CGT owed within 60 days of completion.
116
What must happen for a mortgage to be legally valid?
It must incorporate all terms agreed, be in writing, and be signed by the parties as a deed.
117
What does the borrower pay monthly on a life policy?
Monthly premiums
## Footnote
The life policy is intended to cover the capital loan.
118
What is the theoretical value of the life policy supposed to cover?
Repay the capital loan
## Footnote
Any shortfall must be funded by the client.
119
What happens to the validity of the transfer deed if the seller dies after completion?
The validity is not affected
## Footnote
The transfer deed can still be registered as usual.
120
Is documentation needed from the PR to register a transfer deed if the seller dies after completion?
No documentation is needed
## Footnote
The registration gap can be closed without PR's involvement.
121
What can the innocent party claim if a condition is breached in a contract?
Repudiate the contract and claim damages
## Footnote
This applies to breaches of contract related to title guarantee.
122
What can the innocent party claim if a warranty is breached?
Claim damages but cannot end the contract
## Footnote
Warranties differ from conditions in this aspect.
123
What type of misrepresentation occurs when a seller knowingly makes an untrue statement?
Fraudulent Misrepresentation
## Footnote
An example includes knowingly misrepresenting disputes on the Seller’s Property Information Form.
124
What is Negligent Misrepresentation?
A statement made carelessly without reasonable grounds for believing it was true
## Footnote
This type of misrepresentation lacks intent but still causes harm.
125
What defines Innocent Misrepresentation?
A misrepresentation made with reasonable grounds to believe it was true
## Footnote
It is neither fraudulent nor negligent.
126
What can significant non-disclosure lead to?
Rescission
## Footnote
This is applicable if the non-disclosure is materially significant.
127
What is Misdescription in the context of property contracts?
An error in the property particulars of the contract
## Footnote
Misdescription can also result in misrepresentation and potential rescission if significant.
128
What is the title guarantee?
Full guarantee, except for encumbrances mentioned (unless stated otherwise)
## Footnote
Encumbrances refer to claims against a property, such as mortgages or liens.
129
What is the standard deposit amount in property transactions?
10% of the purchase price
## Footnote
The seller’s solicitor holds the deposit as a stakeholder.
130
What happens if the seller agrees to buy another property before completion?
The seller may use the deposit, provided that the second seller’s solicitor holds the deposit as a stakeholder.
131
When is the completion date set in property transactions?
20 working days after the contract date.
132
Is time considered of the essence in property transactions?
No, unless a notice to complete has been served.
133
Who bears the risk of the property from the contract date?
The buyer accepts the property as is and bears the risk.
134
Is the seller obligated to insure the property before completion?
No, unless the contract states otherwise.
135
What responsibilities does the buyer have from the time of the exchange?
The buyer must complete the sale and shoulder all responsibilities.
136
What is meant by freedom from encumbrances?
The seller sells the property free from encumbrances, except for specific conditions outlined in the contract.
137
What are the conditions under which a seller can sell a property encumbered?
Encumbrances must be specified in the contract, discoverable by inspection, unknown to the seller, known to the buyer, or entries made before the contract date in public registers.
138
What is the late completion interest rate?
Law Society’s interest rate from time to time in force.
139
What can a party do if completion does not occur as agreed?
Serve a Notice to Complete on the other party.
140
What is the time frame for completion after serving a Notice to Complete?
Completion should occur within 10 working days.
141
What rights does a seller have if the buyer fails to comply with the notice?
The seller can rescind the contract, keep the deposit with accrued interest, resell the property, and claim damages.
142
What happens if the seller fails to comply with the notice?
The buyer can rescind the contract and the deposit is to be returned with accrued interest.
143
What must the buyer send to the seller regarding the transfer deed?
A draft transfer deed for approval or revision.
144
What must the buyer covenant in the transfer deed if the seller is bound by obligations post-completion?
To perform existing covenants and indemnify the seller against future breach.
145
Can the buyer reside in the property before completion?
Yes, if the buyer takes a license from the seller.
146
What is the time limit for the buyer to raise requisitions after discovering an issue?
Within 6 days.
147
What are the consequences of an error or omission in the contract?
The buyer may be entitled to damages or to rescind if there's a material difference or if it results from fraud or recklessness.
148
Are buyers allowed to transfer the benefit of the contract to another person after the exchange?
No, they are not permitted to do so.
149
What must the seller provide regarding existing tenancies?
Detailed information about any existing tenancy.
150
What is the timeline for actions after the exchange?
Specific time limits include:
* Seller submits proof of title immediately
* Buyer poses enquiries within 6 days
* Seller responds to requisitions within 4 days
* Buyer reviews seller’s reply within 3 days.
151
What is included in the special conditions section of the contract?
Additional conditions or modifications to the standard conditions.
152
What is forfeiture in the context of a lease?
Forfeiture is the landlord's right to terminate the lease early and recover possession of the property because the tenant breached its obligations.
153
What is another term often used for a forfeiture clause?
Re-entry clause.
154
How can landlords forfeit a lease?
Landlords may forfeit the lease by either peaceably re-entering the property or by going to court (forfeiture proceedings).
155
What must landlords be cautious of regarding their right to forfeit?
Landlords must take care not to waive their right to forfeit by performing an act that recognizes the lease as continuing.
156
What is a condition in a lease context?
A condition is a major term of a contract which is of such vital importance that it goes to the root of the transaction.
157
When can landlords forfeit for a covenant breach?
Landlords can only forfeit for a covenant breach if the right to forfeit is expressly reserved in the lease.
158
What is a Section 146 Notice?
A Section 146 Notice is a notice served by the landlord to inform the tenant of a breach that requires remedy before forfeiting the lease.
159
What must be specified in a Section 146 Notice?
The notice should specify all breaches and give tenants reasonable time to remedy if the breach is remediable.
160
What is the purpose of a Section 146 Notice?
The purpose is to give the tenant the opportunity to remedy the breach and apply for relief from forfeiture.
161
What is a Jervis v Harris clause?
A Jervis v Harris clause entitles landlords to enter the property, carry out any repair works, and recover the cost from the tenant.
162
What is the starting point for damages when a tenant breaches a lease?
The landlord is entitled to be put back into the same position it would have been in if the tenant had complied with its obligations.
163
What is specific performance in lease agreements?
Specific performance is an equitable remedy compelling a party to perform its obligations under the contract when damages are inadequate.
164
True or False: Specific performance is available as of right.
False.
165
What can landlords apply for to stop a breach or anticipated breach?
Landlords can apply for an injunction order.
166
What is the limitation period for issuing proceedings to recover rent arrears?
6 years.
167
What is the Commercial Rent Arrears Recovery (CRAR)?
CRAR is a statutory procedure that allows landlords of commercial premises to recover rent arrears by instructing an enforcement agent.
168
What are the requirements for exercising CRAR?
Only exercisable at commercial premises, against arrears of principal rent, by certified enforcement agents, with notice given 7 days prior.
169
What should landlords consider before drawing down on a rent deposit?
Landlords should consider the timing of the draw down and the tenant's long-term solvency.
170
What happens if a landlord draws down on a rent deposit?
It will waive the right to forfeit.
171
What is the purpose of pursuing guarantors or former tenants for rent arrears?
To recover rent arrears and other sums due under the lease through contractual guarantees or privity of contract rules.
172
What is the first step in the property conveyancing process?
The client instructs the solicitor.
## Footnote
This initiates the legal representation for the transaction.
173
Who prepares the draft contract in the property conveyancing process?
The seller’s solicitor prepares the draft contract.
## Footnote
This document outlines the terms of the sale.
174
What is the purpose of deducing title in property conveyancing?
To prove title to the buyer.
## Footnote
This involves presenting official documents and evidence of ownership.
175
What documents are typically included in the title for registered land?
* Official copies
* Documents referred to in the register
## Footnote
These are essential for demonstrating ownership.
176
What must the buyer's solicitor investigate regarding the property?
The title must be good, marketable, and free from encumbrances.
## Footnote
This includes conducting various searches and inspections.
177
What is a mortgage offer in the context of property buying?
A document from the lender confirming the terms of the mortgage.
## Footnote
Ideally obtained before the exchange of contracts.
178
How are contracts typically exchanged between solicitors?
By reading out the contracts over the phone.
## Footnote
This ensures both parties have identical contracts.
179
What percentage is typically the deposit sent by the buyer’s solicitor?
10%.
## Footnote
This amount is held by the seller's solicitors as a stakeholder or agent.
180
When does the contract become binding in property conveyancing?
At the exchange of contracts.
## Footnote
This marks the legal commitment to the transaction.
181
What happens to the beneficial ownership of the property at the exchange?
It passes to the buyer.
## Footnote
The seller holds the legal title on trust for the buyer.
182
Who should the buyer's solicitor raise final requisitions with?
The seller’s solicitor.
## Footnote
This ensures all necessary information is obtained before completion.
183
What is a redemption statement?
Figures from the seller’s mortgagee detailing the amount needed to discharge the mortgage.
## Footnote
This is crucial for ensuring the mortgage is cleared upon completion.
184
What is the purpose of pre-completion searches?
To secure registration priority for the property.
## Footnote
This protects the buyer from claims by third parties.
185
What does the buyer’s solicitor prepare before completion?
The transfer deed.
## Footnote
This document is essential for transferring ownership.
186
What must happen on the completion date regarding the transfer deed?
It must be completed and dated by the seller’s solicitor.
## Footnote
This marks the official transfer of ownership.
187
What is the role of the Law Society Protocol during completion?
It governs the use of post for residential completions.
## Footnote
This ensures a standardized process is followed.
188
What must the buyer do regarding tax after completion?
File a land transaction return with HMRC and pay any SDLT due.
## Footnote
This must be done within 14 days to avoid penalties.
189
What happens if the buyer is a company regarding mortgage registration?
The mortgage must be registered at Companies House within 21 days of completion.
## Footnote
This is required for legal compliance.
190
What is included in the header section of the Register of Title?
* Title Number
* Edition Date
* Date Produced
## Footnote
These details provide essential information about the property registration.
191
What does the tenure entry in the Property Register indicate?
Whether the property is freehold, leasehold, or commonhold.
## Footnote
This classification affects ownership rights and responsibilities.
192
What are rights benefiting property?
Rights that exist for the benefit of the land, such as easements.
## Footnote
These may enhance the property's utility and value.
193
What is the purpose of the title plan?
To provide a visual representation of the property boundaries.
## Footnote
It aids in identifying the specific land covered by the title.
194
What rights are likely to be excluded from the title in favor of the Crown?
Rights to mines and minerals
## Footnote
These rights may vary depending on jurisdiction and specific property laws.
195
What type of rights may benefit property according to the Register?
Easements
## Footnote
Easements allow the use of someone else's land for a specific purpose.
196
What does the title plan represent?
An ordnance survey map defining the extent of the land in the title
## Footnote
It outlines property boundaries and features affecting the property.
197
How is the property owned indicated on the title plan?
Outlined in red ink
## Footnote
Other colors may indicate areas affected by easements or rights.
198
What should be checked on the title plan when acting for a buyer?
Possible passageways for rights of way and relevant features
## Footnote
This includes checking for flooding risks or contamination sources.
199
What does the Proprietorship Register detail?
Class of title, owner, and entries affecting the right of disposal
## Footnote
It is essential for understanding ownership and restrictions.
200
What are the types of title classifications?
Absolute, Qualified, Good Leasehold, Possessory
## Footnote
Absolute Title is the safest class to purchase.
201
What does a Qualified Title indicate?
The title is defective
## Footnote
It may arise if the applicant could not show a good root of title.
202
What information does Entry 1 in the Proprietorship Register contain?
Names and addresses of current owners and registration date
## Footnote
Previous owners' names are not shown.
203
What type of covenants are shown in the Proprietorship Register?
Personal covenants
## Footnote
These do not run with the land and relate to actions agreed upon by the purchaser.
204
What do restrictions in the Proprietorship Register prevent?
Making a disposition or registering dispositions without action
## Footnote
Commonly, restrictions relate to mortgages requiring lender consent.
205
What does the Charges Register deal with?
Matters that encumber the property such as mortgages and covenants
## Footnote
It is crucial for understanding financial obligations on the property.
206
What do financial charges in the Charges Register indicate?
Mortgages or financial burdens registered on the property
## Footnote
They do not show amounts but indicate priority order of entitlement.
207
What are notices in the Charges Register?
Notices that protect interests of others without proving validity
## Footnote
Examples include unilateral notices and home rights.
208
What types of interests burden the property?
Covenants and easements
## Footnote
These can limit property usage or impose obligations on the owner.
209
What should you explain to a client when advising on official copies?
Which register and entry the issue appears in and why it could be a problem
## Footnote
It's also important to discuss appropriate actions and possible solutions.
