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SQE1 > Property Practice > Flashcards

Property Practice Flashcards

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1
Q

Two main forms of residential lease

A
  • Head lease
  • Underlease
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2
Q

What 2 things happen when a lease of more than 7 years is granted?

A
  • It is registerable at HMLR
  • A leasehold title is created
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3
Q

Process of transferring the remaining term of an existing leasehold estate

A

Assignment of a lease

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4
Q

A prospective subtenant would be bound by the original lease terms. What can the tenant request from the freehold owner to alter the lease terms?

A

A deed of varation

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5
Q

Term for a summary of the lease terms included in a standard form at the front of a lease

Used when least term over 7 years

A

Prescribed clauses

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6
Q

A mortgage lender will generally not accept a lease term less than…

A

80 years

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7
Q

What should you advise a buyer if the existing lease contains an unacceptable clause (e.g. absolute prohibition against assignment)?

A

Insist the lease is amended between the seller and landlord by a deed of variation. If the clause is not altered/removed, withdraw from the transaction

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8
Q

If CGT is payable on property disposal, when must the seller submit a tax return and the tax to HMRC?

A

Within 60 days of the completion date

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9
Q

Who does the buyer’s solicitor also act for?

A

The lender

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10
Q

A buyer instructs their solicitor not to disclose a certain issue to the lender. What must the solicitor do?

A

Cease acting for the lender.
(The duty of confidentiality to the buyer is paramount)

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11
Q

In which cases would a lender:
- Use the buyer’s solicitor
- Appoint their own soliticor

A
  • Residential transactions
  • Commercial transactions
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12
Q

When there are multiple buyers, what is the only way legal estate can be held?

A

As joint tenants

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13
Q

What is the maximum number of people that can hold the legal estate?

A

4

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14
Q

Which document sets out the circumstances of co-owners’ purchase and the buyer’s contributions and shares in the property?

A

Declaration of Trust

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15
Q

Which doctrine does not apply to tenants in common?

A

Survivorship

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16
Q

A statement for best practice for residential conveyancing introduced by the Law Society

A

The Law Society Conveyancing Protocol

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17
Q

Which type of property does not need an EPC?

A

Listed buildings

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18
Q

Weird phrase for ‘agreed terms’ between landlord of commercial premises and prospective tenant

A

Heads of Terms

Commercial equivalent of memorandum of sale

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19
Q

Document produced by the Royal Institution of Chartered Surveyors that sets out best practice for landlords when negotiating terms of a commercial lease with a tenant

A

Code for Leasing Business Premises (the Code)

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20
Q

What will the landlord’s solicitor draft up once the landlord is satisfied to allow their tenant to assign the lease?

A

Licence to Assign

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21
Q

Typical deposit amount in commercial lease

A

3 months’ rent

Terms usually contained in rent deposit deed

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22
Q

Agreement in which outgoing tenant acts as guarantor for their immediate successor in title.

Often a condition for the landlord to consent to assignment

A

Authorised Guarantee Agreement

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23
Q

What must the seller’s solicitor do to obtain unregistered title deeds from lender?

A

Give an undertaking not to part with the deeds until the mortgage is redeemed (paid off) out of sale proceeds on completion

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24
Q

What does the seller’s solicitor obtain from mortgage lender to ensure sale proceeds will be sufficient to redeem the existing mortgage on completion?

A

Indicative redemption figure

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25
Q

Conveyancing term for the process of a property seller proving to the purchaser that they own the property, and are therefore entitled to sell the property

A

Deducing title

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26
Q

Name of process whereby buyer’s solicitor checks title to ensure seller is entitled to sell the property

A

Investigating title

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27
Q

What must the seller disclose to the buyer in the contract?
What need not be disclosed?

A
  • Latent defects and latent burdens (encumbrances)
  • Patent defects or encumbrances
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28
Q

Which doctrine provided it is the buyer’s responsibility to inspect the property for physical defects.

The reason why buyer’s solicitor will advise to instruct a surveyor

A

Caveat emptor

Buyer beware

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29
Q

What remedy does the buyer have if the seller commits wilful deceit by trying to cover up a patent defect?

A

The buyer could sue the seller in tort

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30
Q

What are the 4 constituents of the Contract Package sent by seller’s solicitor to buyer’s?

A
  • Draft contract in duplicate
  • Property Information Form and Fittings & Contents Form
  • Copy of title and title plan
  • Any guarantees or copy planning permissions
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31
Q

Which contract is divided into these 3 parts?
- The particulars of sale
- The standard conditions of sale
- The special conditions of sale

A

Contract Incorporating the Standard Conditions of Sale

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32
Q

In commercial transactions, what form of contract is used instead of the residential Contract Incorporating the Standard Conditions of Sale?

A

Standard Commercial Property Conditions

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33
Q

When will a deposit payment not be allowed to pass along in a chain of transactions?

A

If the related purchase is not in England and Wales, or the property will not be used as the party’s residence

e.g. buy-to-let

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34
Q

What does it mean when a solicitor holds a deposit as stakeholder?

A

Seller’s solicitor holds deposit in firm’s client account on behalf of both parties. The deposit cannot be paid to the seller until completion

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35
Q

What does it mean when a solicitor holds a deposit as agent?

A

Allows the seller’s solicitor to pay the deposit to the seller immediately after exchange has taken place

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36
Q

Term for a chronological list of documents proving title in unregistered land?

A

Epitome of title

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37
Q

Type of guarantee that warrants that the seller has not created any charges or granted any rights during their period of ownership that have not been disclosed in the contract.
Usually given by seller with less knowledge/involvement (e.g. personal representative)

A

Limited title guarantee

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38
Q

Type of provision included in the Transfer Document whereby the buyer agrees to perform contractual obligations and to indemnify the seller if the buyer breaches the obligation in future

A

Indemnity covenant

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39
Q

The Standards Conditions of Sale provide that risk in the property transfer to the buyer at which stage?

A

On exchange of contracts

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40
Q

If the completion date is not inserted in the contract on exchange (rare), when do the Standard Conditions of Sale provide that completion will take place?

A

20 working days after exchange

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41
Q

What must the buyer’s solicitor do to ensure non-owning occupiers move out upon completion?

A

Get them to sign the contract as confirmation they will relinquish any rights in the property and move out of the property on completion

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42
Q

What are the 4 sections the Register of Title is divided into?

A
  • Header
  • Property Register
  • Proprietorship Register
  • Charges Register
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43
Q

What does the following entry in the Property Register suggest
“Together with the benefit of a right of way over the land coloured brown on the plan”

A

A right benefitting the property

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44
Q

Where does a restriction affecting the title appear on the Register of Title?

A

Proprietorship Register

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45
Q

Where does an encumbrance (e.g. restrictive covenant/mortgage) appear on the Register of Title?

A

Charges Register

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46
Q

In the sale of unregistered land, what document must the seller’s title begin with?

A

Root of title

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47
Q

What are the 4 characteristics of a good root of title in unregistered land?

A
  • Deal with the whole legal and equitable interest in the property
  • Contain an adequate description
  • Be at least 15 years old at the date of contract
  • Do nothing to cast doubt on the title
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48
Q

Who drafts the contract of sale?

A

Seller’s solicitor

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49
Q

What is the best document to be a root of title?

A

Conveyance on sale

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50
Q

Why is a deed of gift a bad document for root of title?

A

The title is unlikely to have been investigated at the time of the gift

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51
Q

How does the seller’s solicitor obtain the title deeds in registered land?

Stage 2 Pre-Contract

A

Dowload a copy of the register of title, title plan, and additional available documents from the HMLR Portal

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52
Q

How does the seller’s solicitor obtain the title deeds in unregistered land?

Stage 2 Pre-Contract

A

Locate the title deeds. If mortgaged, obtain title deeds from lender in exchange for undertaking to not part with deeds until mortgage redeemed from sake proceeds

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53
Q

Why does the seller’s solicitor send the seller a copy of the title plan?

A

For the seller to confirm the property outlined on the plan is the full extent of the land being sold

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54
Q

What is it called when the seller’s solicitor sends a copy of the title to the buyer’s solicitor?

A

Deducing title

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55
Q

What does and doesn’t the seller have to disclose to the buyer during Stage 2 Pre-Contract?

A
  • Must disclose latent defects and latent burdens (encumbrances) of the land
  • Need not disclose patent defects (apparent from inspection)
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56
Q

In which type of land are the following conducted?
- Search of the local land charges register
- Search of the land charges register

A
  • Registered land
  • Unregistered land
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57
Q

What are the 3 common local land charges you need to know?

A
  • General and Specific Financial Charges
  • Planning Charges (e.g. TPOs)
  • Listed Building Charges
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58
Q

What registered land enquiry should be made when the land is adjacent to common land or a town/village green or is a new build?

A

A common land and town or village green enquiry

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59
Q

What are the 4 categories of Pre-Contract searches done in every case?

A
  • Local land charges search
  • Enquiries of Local Authority + Optional Enquiries of Local Authority
  • Drainage and water search
  • Environmental search
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60
Q

Which search reveals whether the property is fully or partially registered?

A

Search of the Index Map

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61
Q

Which search reveals any pending or acctual bankruptcy orders against the buyer?

A

Bankruptcy Search

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62
Q

Which search reveals whether the company is subject to any winding up or liquidation proceedings and whether the company is authorised to deal in the sale or purchase of land?

A

Company Search

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63
Q

If the buyer’s solicitor discovers a risk of liability during a search (e.g. chancel liability) what is usually the solution?

A

Indemnity insurance

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64
Q

What is the name of the process where the buyer’s solicitor asks questions of the seller’s solicitor, usually when a potential defect has been found?

A

Raising enquiries

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65
Q

Once exchange of contracts has occurred the buyer becomes unable to withdraw, except in which situation?

A

If there has been a misrepresentation by the seller

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66
Q

What is the commercial equivalent of the PIF?

More comprehensive than PIF

A

Commercial Property Standard Enquiries (CPSE)

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67
Q

Term for a clause within a title that prohibits or limits development

A

Restrictive covenant

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68
Q

Which act provides planning permission is required for the carrying out of any development of land?

A

Town and Country Planning Act 1990

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69
Q

What type of planning permission covers developments like small home extensions within certain limits, porches, fences, and conservatories?

A

Permitted development/deemed planning permission

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70
Q

What must the property owner apply for if they do not have deemed permission for their proposed development?

A

Express planning permission

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71
Q

What are the two types of express planning permission?

A
  • Outline permission
  • Detailed permisison
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72
Q

How long does one have after outline planning permission to submit a full application to obtain approval if there are reserved matters?

A

3 years

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73
Q

How long does one have from approval of reserved matters (via planning application) to begin work?

A

2 years

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74
Q

How long after detailed planning permission is issued does permission lapse if development does not commence?

A

3 years

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75
Q

What form of local authority enforcement action against a planning breach requires the party carrying out the work to cease immediately?

A

Stop Notice/injunction to prevent work from taking place

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76
Q

How long does the local authority have to serve an enforcement notice regarding unauthorised building works?

A

Within 4 years of breach

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77
Q

How long does the local authority have to serve an enforcement notice regarding all breaches except unauthorised building works?

e.g. material change of use

A

Within 10 years of the breach

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78
Q

Term for garden and immediate area around the buildings of a property

Covered by listed status

A

Curtilage

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79
Q

What is the time limit for enforcement action by a local authority regarding breaches of listed building status?

A

No time limit

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80
Q

What type of offence is failing to comply with an enforcement notice?

A

Criminal offence

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81
Q

Which local authority department governs building regulations?

A

Building control

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82
Q

What does a building control officer issue after he is satisfied with the completed work?

A

Building regulations completion certificate (Final Certificate)

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83
Q

How long does a local authority have to take enforcement action against non-compliance with building regulations?

A

Within 12 months of the date of breach

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84
Q

What can the local authority obtain if non-compliance with building regulations has passed 12 months without enforcement?

A

Injunction to force owner to bring property up to standard

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85
Q

Why does a buyer’s solicitor carry out checks on any cash contributing to the purchase?

A

To ensure proceeds of crime are not being cleaned by entering the banking system (money laundering)

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86
Q

What 2 checks does the buyer’s solicitor carry out on cash contributing to the purchase?

A
  • Source of funds (money has been in client’s UK bank account for past 3- months)
  • Source of wealth (e.g. inheritance, sale of another asset)
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87
Q

Term for mortgage borrower

A

Mortgagor

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88
Q

Term for mortgage lender

A

Mortgagee

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89
Q

What type of mortgage advice is a solicitor limited to giving?

A

Generic advice

90
Q

What are the 5 types of mortgage?

A
  • Repayment mortgage
  • Interest only mortgage
  • Endowment mortgage (combined with life insurance policy)
  • Pension mortgage (linked to personal pension policy)
  • Sharia-compliant mortgage
91
Q

When will a lender issue a set of instructions explaining what they require the buyer’s solicitor to do?

A

At the same time the mortgage offer is issued to the buyer

92
Q

What is the maximum age of searches such as pre-completion searches at completion?

A

6 months

93
Q

Which document submitted by the buyer’s solicitor performs these functions:
- Confirms to lender that title is good and marketable
- Acts as a request for the release of the mortgage advance

A

Certificate of Title

94
Q

Who should the buyer’s solicitor not act for?

A
  • Third party privately contributing to purchase price
  • A non-owning adult occupier who will live with the mortgagor after completion
95
Q

At which stage does the buyer’s solicitor register the mortgage at HMLR?

A

Following completion

96
Q

How long does the buyer’s solicitor have to register unregistered land at HMLR following completion?

A

2 months

97
Q

If a buyer is a company, how long does the buyer’s solicitor have to register the mortgage at Companies House?

A

Within 21 days of completion

98
Q

If a company is buying a property with a mortgage, where must the buyer’s solicitor register the mortgage and by when?

A
  • At Companies House (obtaining Certificate of Registration)
  • Within 21 days of completion
99
Q

At what point does the conveyancing transaction become legally binding?

A

Exchange of contracts

100
Q

What can failure to synchronise result in for the solicitor?

A

Negligence claim

101
Q

What are the 3 methods of exchange?

A
  • In person
  • By post
  • By phone (most common)
102
Q

When is Formula A of the Law Society’s Formulae for Exchange used?

A

When one solicitor holds both signed parts of the contract

Rare. Used when there is no chain and solicitor unavailable on exchange day

103
Q

When is Formula B of the Law Society’s Formulae for Exchange used?

A

When each solicitor holds their own client’s signed part of the contract, and the buyer’s solicitor has cleared funds for deposit

Most common. Used when there is no chain or for transactions at the end of the chain

104
Q

When is Formula C of the Law Society’s Formulae for Exchange used?

A

When there is a chain of transactions and deposit monies are to be sent directly to another firm further up the chain.

2 phone calls. 1st confirms readiness to exchange (locking in transaction allowing exchange on related transaction. 2nd confirms actual exchange of contracts

105
Q

What do both solicitors make after exchange to record details (names, date, Formula used, completion date, amount of deposit paid)?

A

Memorandum of exchange

106
Q

What is usually registered when there is likely to be more than a couple weeks between exchange and completion?

A

Estate contract

107
Q

What does registering an estate contract do?

A

Publicises notice that the seller has agreed to sell the property to the buyer

108
Q

What type of estate contract is registered if land is unregistered?

A

C(iv) land charge against the seller’s full name

109
Q

What type of estate contract is registered on seller’s title if land is registered?

A

Unilateral notice placed on seller’s charges register

Placed by buyer if there will likely be more than 2 weeks between exchange and completion to put world on notice the sale has been agreed

110
Q

Completion usually takes place 1-2 weeks after exchange.
What is the term for exchange and completion taking place on the same day?

A

Simultaneous exchange and completion

111
Q

What does the seller’s solicitor need to know before preparing the completion statement?

2

A
  • Mortgage redemption figure
  • Estate agent’s fees (if any)
112
Q

What undertaking does the seller’s solicitor give when the property is mortgaged?

A

An undertaking to pay off the mortgage out of the sale proceeds and provide evidence of discharge when received

113
Q

Which document prepared by the seller’s solicitor gives details of the client account the money must be sent to on completion and where the keys will be collected from on completion?

A

Completion Information and Undertakings

114
Q

Term for whole property purchase deed form prepared by buyer’s solicitor

Seller’s solicitor arranges for it to be signed with deed formalities, handed to buyer’s solicitor on completion once purchase money received

A

TR1

115
Q

In a freehold transaction, parties execute a transfer deed. What is the equivalent in a leasehold transaction?

A

Execute the lease

116
Q

Term for final version of the lease

A

An engrossment

117
Q

What are the two parts of the engrossment?

A
  • The original (signed by landlord)
  • The counterpart (signed by tenant)
118
Q

What interest do the buyer, leesee, or mortgagee have between completion and registration?

A

Equitable interest

119
Q

What are the 2 most common official searches with priority carried out by buyer’s solicitor after exchange?

A
  • OS1 - Official Search Against the Whole of a Registered Title
  • OS2 - Official Search Against Part of a Registered Title
120
Q

How are the OS1 and OS2 searches carried out?

A

Via the HMLR’s online portal

121
Q

What are the 2 purposes of the post-exchange priority search on registered title?

A
  • Discover recent entries (obtain undertaking from seller’s solicitor to deal with adverse entries, e.g. to pay off mortgage)
  • Priority period (any application to register entry held for 30 working days)
122
Q

The buyer is bound by errors made by HMLR in an official search certificate. Whatever can he do?

A

Claim an indemnity from HMLR for any loss sustained

123
Q

If title is unregistered, a full land charges search must be carried out against the full names of the owner/seller for the full period of their ownership.
When should this be done?

A

Before exchange and repeated before completion

124
Q

How long is the charges search priority period for unregistered title?

A

15 working days

125
Q

When would the buyer also need to sign the purchase deed?

A

When the transfer includes covenants by the buyer or if there is more than one buyer

126
Q

What is the most commonly used purchase deed?
What are the two forms?

A

The transfer
TR1 (whole land in title transferred) & TR2 (part of land in title transferred)

127
Q

What are the 2 rarely used types of purchase deed relating to unregistered land?

A
  • Conveyance
  • Assignment
128
Q

What type of purchase deed is used when personal representatives transfer land to a beneficiary?

A

Assent

129
Q

When must an assent be by deed?

A

If it contains a covenant by the assentee (e.g. indemnity covenant)

Why?
To ensure that the assent is legally binding and enforceable. A deed provides a higher level of formality and evidentiary weight compared to other forms of documentation, which can be important in situations where legal protection and certainty are necessary, such as property transactions.

130
Q

Who must sign an assent?

A

All proving personal representatives (representatives named on the grant)

131
Q

What purchase deed form is used to legally transfer a lease to the buyer?

A

TR1

132
Q

Which document provided by the seller’s solicitor provides evidence of the landlord’s consent to the assignment of the lease?

A

Licence to assign

133
Q

Which document includes the finalised accounts confirming the actual service charge the seller/tenant has over/underpaid?

A

Completion Statement

134
Q

Unless amended in the contract’s special conditions, when must completion take place by on completion day?

A

2pm

135
Q

What usually happens on completion day?

A
  • Buyer’s solicitor sends purchase money to seller’s solicitor’s client account
  • Seller moves out of property being sold
  • Buyer collects keys from estate agent and moves in
136
Q

Three methods by which completion can occur

A
  • Personal attendance (rare)
  • By agent (rare)
  • By post (common)
137
Q

How is title transferred in completion by personal attendance?

Unregistered title

A

Buyer’s solicitor takes physical possession of the deeds from the seller’s solicitor

138
Q

If the parties are completing by agent, who does the buyer’s solicitor appoint to attend to completion at the seller’s solicitor’s office?

A

Local firm

139
Q

What set of procedures gives the process of telephone exchange some structure and certainty?

A

Formulae for Exchange

140
Q

What Law Society-issued code sets out procedures that enable the matter to complete?

A

Code for Completion by Post

141
Q

When is completion using the Code for Completion by Post implied?

A

When the parties have adopted The Law Society Conveyancing Protocol

142
Q

When does title pass if land is
- registered
- unregistered

A
  • When purchaser becomes registered at the Land Registry
  • On completion
143
Q

What do the Standard Conditions of Sale have to say about the merger of contract with purchase deed?

A

Contains a ‘non-merger clause’ that states completion will not cancel liability to perform outstanding obligations under the contract

144
Q

What are the steps to discharging a mortgage on unregistered title upon completion?

A
  • Seller’s solicitor transfers funds to lender in accordance with mortgage redemption statement
  • Seller’s solicitor sends original mortgage deed to lender. Lender acknowledges receipt and sends back
  • Seller’s solicitor sends mortgage deed to buyer’s solicitor (to comply with undertaking to redeem mortgage)
145
Q

How is a mortgage on registered title discharged upon completion?

A

Using an HMLR form or following lender’s instructions

146
Q

On which document will the legal fees and estate agent’s fees appear?

A

Completion statement

147
Q

If the buyer is a company, when must the buyer’s solicitor register any company charge?

A

Within 21 days of completion

Court order required to register if deadline missed

148
Q

Term for unregistered title deeds after first registration

A

Pre-registration deeds

149
Q

When might a buyer apply for a share in the management company?

A

If the leasehold property is located in a block managed by a management company

150
Q

If the seller holds a share in the property’s management company, how will they transfer it to the buyer?

A

By providing a signed stock transfer form

151
Q

What is the standard draft contract for property transactions?

A

Contract Incorporating the Standard Conditions of Sale

152
Q

Term for the division of a benefit or a liability between two or more parties according to their proportionate interests

This might arise if joint owners sell an asset or when tenants of a block have to contribute towards the cost of the building insurance.

A

Apportionment

153
Q

If a leasehold buyer has a mortgage, what does the buyer’s solicitor send to the landlord after completion?

A

Notice of mortgage

154
Q

In a purchase of an assignment, what does the buyer’s solicitor send to the landlord?

A

Notice of assignment

155
Q

When must a buyer send HMRC a Stamp Duty Land Tax return after buying or leasing land or buildings in the UK?

A

Within 14 calendar days of completion (irrespective of whether SDLT is due)

156
Q

If property is given to a company in exchange for shares in a company, what is the deemed transaction value?

A

Property market value

157
Q

Which transfers are exempt from SDLT?

Type of transfers

A
  • Property transferred as gift
  • Property transferred to a spouse
  • Property transferred to a former spouse upon divorce
  • Property transferred under a will variation changing property’s beneficiary within 2 years of decedent’s death
158
Q

What is the penalty imposed if the land transaction form (re SDLT) is submitted
- Up to 3 months late
- Over 3 months late
- Over 1 year

A
  • £100 fixed penalty
  • £200 fixed penalty
  • Tax-geared penalty up to amount of SDLT due
159
Q

What additional SDLT charges are imposed on each tax band if already owns a residential property and buys another?
The higher rates are not charged for transactions under…

A

3%
£40,000

160
Q

The relief for purchase of first residence applies up to what figure?

A

£625,000

161
Q

What are the rates for SDLT Relief for Purchase of First Residence?

For purchase of first property as main residence

A
  • 0% up to £425,000
  • 5% on remainder up to £625,000
    (no relief if consideration above £625,000)
162
Q

What 2 alternative SDLT options are available for linked transactions of multiple properties?

A
  • Paying SDLT on the mean consideration (aggregate consideration/number of dwellings)
  • Can choose to apply non-residential property rates if 6+ properties purchased in a single transaction
163
Q

What SDLT relief is available on purchasing more than one property in a linked transaction?

A

SDLT rate calculated by mean consideration (aggregate consideration / number of dwellings)

164
Q

In which case would the innocent party have the right to cancel the contract if completion is delayed?

A

If time is of the essence (meaning completion date in the contract is firm and cannot be moved)

165
Q

What remedy is always available for the innocent party if completion is delayed?

A

Damages caused by the delay

166
Q

If funds are received after 2pm on completion day, when is payment considered to be received?

A

Next working day

167
Q

If completion is delayed, the innocent party is entitled to interest at which rate?

A

At the contract rate on the outstanding balance for the number of days that completion was delayed

168
Q

When working out the interest for delay, what is the contract rate calculated based on?

A

Purchase price + contents price - deposit paid

169
Q

How can the innocent party make time of the essence when the other party has delayed completion?

A

By serving a notice to complete

170
Q

What is required of a party to be able to serve a notice to complete?

A

Must be ready, willing, and able to complete

171
Q

How long does the defaulting party have to complete after the notice to complete has been served?

A

10 working days (excluding date of service)

If buyer paid reduced deposit, must make up full 10% deposit upon notice

172
Q

What are the seller’s options if the buyer does not comply with Notice to Complete according to the Standard Conditions of Sale?

In addition to rescinding the contract

A
  • Retain buyer’s deposit
  • Resell the property
  • Claim damages
173
Q

What are the consequences of non-compliance with Notice to Complete according to the Standard Conditions of Sale if the seller is the defaulting party?

In addition to rescinding the contract

A
  • Reclaim deposit with interest at contract rate
  • Claim damages
174
Q

What remedies are available to the innocent party if breach of contract occurs before completion?

A
  • Specific performance
  • Claim for compensation by way of damages
  • Rescission
175
Q

In which case can an innocent seller pursue a claim against the defaulting buyer following resale of property?

A

If the value on resale is higher than the contract price agreed with defaulting buyer (because seller can only recover difference in value)

176
Q

Under the Standard Conditions, in which 2 specific circumstances is rescission permitted?

A
  • When there has been a misrepresentation because of an error or omission
  • When the landlord’s consent for an assignment is required and the licence to assign is not forthcoming
177
Q

What is the remedy for fraudulent misrepresentation in a property transaction?

A

To sue for damages and rescission of contract

178
Q

What is the remedy for negligent misrepresentation in a property transaction?

A

To sue for damages and/or rescission of contract

179
Q

What is the remedy for innocent misrepresentation in a property transaction?

A

Rescission or damages in lieu of rescission

180
Q

Property particulars of the contract overstating property size by 40% or stating freehold when leasehold is an example of…

A

Misdescription

181
Q

What remedies does the innocent party have for a significant misdescription?

A

Rescind contract and claim damages

182
Q

What are the 3 classes of title guarantee?

A
  • Full title (most common)
  • Limited title (personal representatives/trustees)
  • No title

Each provides different assurances

183
Q

What is the remedy for breach of title guarantee?

Rare claim

A

Damages

184
Q

What additional title guarantees are given by seller to buyer on the sale of a lease?

A
  • That the lease is valid and subsisting
  • That there is no breach of covenant rendering the lease liable to forfeiture
185
Q

A business tenancy protected by the Landlord and Tenanct Act 1954 will automatically continue at the end of the contractual term unless brought to an end in which 4 ways?

A
  • Forfeiture by the landlord (if tenant defaults on repair obligations)
  • Surrender (both parties agree to give up the lease)
  • Landlord serves Section 25 notice terminating or suggesting new lease
  • Tenant serves Section 26 notice requesting new lease
186
Q

A business tenancy has to exceed what period to be protected under the Landlord and Tenanct Act 1954?

A

6 months

187
Q

What are the 3 exclusions from the Landlord and Tenanct Act 1954?

No entitlement to Act protections

A
  • Fixed term tenancies not exceeding 6 months
  • Service tenancies
  • Contracted out tenancies
188
Q

What does it mean for a tenancy to be contracted out?

A

Landlord and tenant agree that tenancy tenure provisions will not be secured by Landlord and Tenanct Act 1954

189
Q

What are the 3 requirements for a tenancy to be ‘contracted out’ of the Landlord and Tenant Act 1954?

A
  • Landlord’s health warning
  • Tenant’s declaration (agreeing to contract out of the Act)
  • Reference in the lease to the requirements
190
Q

When must the landlord’s health warning be served?

A

At least 14 days before tenant completes the lease
(Less if tenant signs formal declaration in from of solicitor waiving notice period)

191
Q

If landlord and business lease tenant cannot agree whether lease should end or cannot agree terms of new tenancy, how is the matter settled?

A

By court application

192
Q

What timeframe does the landlord have to serve a Section 25 notice?

A

Between 6 - 12 months before wishing to end tenancy

193
Q

What timeframe does the tenant have to serve a Section 26 notice?

A

Between 6 - 12 months before wishing to start new tenancy

194
Q

How long does the landlord have to inform tenant whether they intend to oppose the request in the Section 26 notice?

A

2 months

195
Q

When does the tenant have a right to compensation following landlord’s Section 25 notice?

A

When a no-fault ground is used

196
Q

What is the maximum lease term a court can order if parties cannot agree?

A

15 years

197
Q

When is the earliest a new lease will commence after court proceedings if terms are set by court following disagreement between parties?

A

3 months

198
Q

Under the Landlord and Tenanct Act 1954, what will the court order if
- the landlord has failed to establish an oppositional ground (S25)
- the landlord does not oppose the tenant’s application (S26)

A

New lease

199
Q

If landlord terminates commercial tenancy with no-fault grounds in Section 25, what damages is the tenant entitled to if they have occupied the premises for at least 14 years?

A

Twice the ratable value of the holding (i.e. 2 years’ rent)

200
Q

If landlord terminates commercial tenancy with no-fault grounds in Section 25, what damages is the tenant entitled to if they have occupied the premises for less than 14 years?

A

The ratable value of the holding

201
Q

How long does the official search with priority against all (OS1) or part (OS2) of a registered title protect the buyer against registration of new adverse interests against the title to the property for?

A

30 working days

202
Q

What is the difference between latent and patent defects?

A

Latent - not discoverable from inspection of the property
Patent - discoverable from inspection

203
Q

If a registered title benefits from any rights, on which register would they appear?

A

Property Register

204
Q

Which 3 parts is the Contract Incorporating the Standard Conditions of Sale divided into?

A
  • The particulars of sale
  • The standard conditions of sale
  • The special conditions of sale
205
Q

When parties are using the Standard Conditions of Sale and agree a lesser deposit than 10%, if the buyer breaches the contract how much are they liable for?

A

The full 10%

206
Q

Which five points must be included in the Property Information Form?

A
  • The position of the property’s boundaries
  • Any disputes with the neighbours
  • Any building works and/or alterations by the seller to the property
  • Occupiers of the property
  • Utilities that the property is connected to
207
Q

What form is annexed to a conveyancing contract to indicate personal property that is included or excluded from the sale?

A

Fittings and Contents Form

208
Q

Which register contains details of rights which benefit the property?

A

Property register

209
Q

Which register contains details of entries which adversely affect the land?

A

Charges register

210
Q

What 3 most commonly occurring charges a local land charges search will reveal?

A
  • General and specific financial charges
  • Planning charges
  • Listed building charges
211
Q

Which search will reveal information about roads, public rights of way, and planning information relating to the property?

A

Enquiries of Local Authority

212
Q

How would the solicitor for a buyer discover whether any major gas pipelines affect the property?

A

By raising optional enquiries in the local search

213
Q

Which 2 searches are location-specific searches (that is, searches that will be carried out only if the location of the property indicates an issue might arise)?

A
  • A coal mining search
  • A chancel liability search to see if the property is subject to an obligation to maintain a chancel in a church.
214
Q

Is it generally permissible to include an absolute prohibition against assignment of a long-term property lease?
- Residential lease
- Commercial lease?

A
  • No
  • Yes
215
Q

In a long-term commercial lease, what is required for the landlord to have the right to increase rent?

A

Explicit provision in the lease

216
Q

Which 2 consequences could result from a solicitor breaching an undertaking in a conveyancing transaction?

A
  • The solicitor may be subject to an action for specific performance - an order requiring them to comply
  • The solicitor may be subject to disciplinary action or sanctions by the Solicitors Regulation Authority
217
Q

What set of guidelines sets out best practice for residential conveyancing?

A

Law Society Conveyancing Protocol

218
Q

In which package would the following be found?
- The draft contract in duplicate.
- A copy of the outgoing tenant’s leasehold register of title.
- A copy of the existing lease of the property.
- The Property Information Form and Leasehold Information Form.
- A copy of the landlord’s freehold register of title.
- If the property is less than 10 years old, a copy of any new build warranty, planning permissions, and building regulations consents.

A

Contract package on the assignment of an existing registered lease

219
Q

What are the 3 ways that can be used to resolve a problem if a defect in title is identified?

A
  • Deed of variation
  • Deed of rectification
  • Indemnity insurance
220
Q

What are the 2 purposes of the pre-completion official search with priority?

A
  • It provides the buyer with a priority period of 30 working days in which to submit their application for registration
  • It reveals any entries that have been added to the register since the date of the official copies supplied by the seller’s solicitor
221
Q
A

SQE1 (15 decks)

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