Property Practice Flashcards
What information does the seller’s solicitor include in the contract package?
Residential Conveyancing
- Draft contract x 2
- Property Information Form
- Fitting and Contents Form
- Copy of seller’s title, documents mentioned in the title, and the title plan.
- Other relevant documents - eg guaranties for work to be done such as putting in new doors or windows
What information will the seller’s solicitor include in a leasehold contract package?
New lease
- Draft lease should be attached to contract
- Landlord’s freehold title with new lease landlord is often a developer if so additional things to include:
- Copy of any relevant planning permission and or building regulation relating to structure of property.
- Service charge budget
- details of any management company
- ## if property is less that 10 years old,a new warranty
What information will the seller’s solicitor include in a leasehold contract package? Existing lease
- Copy of outgoing tenant’s leasehold title
- existing lease alongside leasehold infor for:
- copies of last 3 years service charge accounts
- copy of landlord’s freehold title
In all cases the basic paperwork for the contract package is the same:
- The contract
- The seller’s title
- And information about the property in question.
Provide an example of a special condition in contract for the seller arranging Restrictive Covenant Indemnity Policy.
Prior to completion the Seller shall arrange a Restrictive Covenant Indemnity Policy for an insured sum of at least (cost of property) in respect of the restrictive covenants in a conveyance dated 13th February 1927 referred to in Entry 2 of the Charges Register of Title No. HP722096. The policy shall be in a form approved of by the Buyer (such approval not to be unreasonably withheld or delayed) and shall be handed over by the Seller to the Buyer upon completion.
Where the sellers have agreed to provide this insurance an additional Special Condition is necessary otherwise any agreement between the parties will not be enforceable if it is not included in the Contract.
What are the elements of a good Root of Title?
Must deal with the whole legal and equitable interest in the property
It must contain an adequate description of property
Doesn’t cast doubt on title
At least 15 years old.
Most common root will be a conveyance on sale.
What type of search will show if land is subject to a restriction from a nearby village green?
A commons registration search, this is an optional enquiry.
What searches are carried out in every case?
Local search- search of local land charges. Financial charges, planning restrictions.
Local water company - establish if property is connected to the public water supply and foul drainage system.
Environmental search - will reveal
if the land upon which property is built has ever been put to contaminative use. If toxic chemicals have even been dumped. The obligation for any clean up can be imposed on landowner if the original polluter can’t be found.
What are some non standard searches?
If title unregistered search of Index Map. Will show of property is already fully or partially registered.
• If buyer obtaining mortgage - Bankruptcy search against buyer’s full name to ensure buyer will be able to get a mortgage.
• If coal mining locality
How long does the local authority have to take enforcement action if work completed without building regulation consent?
1 year
However, unlimited jurisdiction to obtain an injunction to require unsafe work to be remedied or removed.
How can non owning occupiers be dealt with for the lender?
- Get them to sign an occupier’s consent form before completion. This form confirms that they’ll move out of the property should they lender have to repossess.
- Send the form to the non owning occupier but make it clear they should obtain their own independent advice.
Post-Completion
How does a buyer’s solicitor perfect the buyer’s mortgage?
- They register the lender’s charge in the charges register of the title to the property on completion of the conveyance.
- This is done by including the mortgage deed in their application for registration to the land registry.
Time Limits
- Registered within 30 day priority period
- Unregistered within 2 months of completion.
- Company - register at Companies House within 21 days of completion
What are the Pre-Exchange Tasks for the Seller’s solicitor?
- if seller has a mortgage, obtain indicative redemption figure of discharging mortgage.
- Agree form of contact with buyers solicitor.
- Arrange for seller to sign the contract and whether there are any non owning occupiers who need to sign.
- Get seller to confirm they can proceed to exchange.
What are the buyer’s solicitor’s Pre-Exchange Tasks?
- Report to buyer
- confirm they are satisfied about property and wish to proceed
- searches survey, replies to inquiries are all accceptable and haven’t revealed any issues that would deter buyer from going ahead.
- ensure buyer’s finances are in order- considering mortgage offer and how buyer will be paying 10% deposit due once exchange
- agree the contract with the seller’s solicitor
- arrange for buyer to sign and get their authority to exchange.
IT IS ESSENTIAL FOR EACH SOLICITOR TO OBTAIN THEIR CILENT’S IRREVOCABLE AUTHORITY TO PROCEED TO EXCHANGE.
Why would you register the contract?
If there is considerable time between exchange and completion.
- Registered - Notice on charges register
- Unregistered - C(iv) land charge
To put the world on notice that the seller has agreed to sell the land to the buyer.
What happens if the parties want to vary the terms of the contract after exchange?
The solicitors should exchange new contracts with the new term included.
Eg want to change completion date.
