Property Practice - Key Concepts and Stages of the Transaction Flashcards

1
Q

Key Questions

A
  1. Title: registered or unregistered?
  2. Estate: freehold or leasehold?
  3. Client: selling or buying or both?
  4. Transaction: residential or commercial?
  5. Stage of transaction?
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2
Q

Unregistered Title

A
  • Documentary evidence
  • Epitome of title
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3
Q

Registered Title

A

Has its own title number

Registers of title:

  • Property Register
  • Proprietorship Register
  • Charges Register
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4
Q

Legal Estates

A

Freehold: unlimited duration

Leasehold: limited duration

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5
Q

Selling or buying?

A

Usually both

Related transactions: client is buying and selling property on the same day

Synchronising transactions: process of assuring that the purchase and sale happen on the same day

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6
Q

Residential or commercial?

A

Can both be freehold or leasehold transactions

Look out for wording in the exam that client is buying/selling a ‘house’ or refers to items typically found in a home this transaction will be residential

Biggest giveaway will be the type of property in the question

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7
Q

Stages of the transaction

A
  1. Pre-market
  2. Pre-contract
  3. Exchange of contracts
  4. Pre-completion
  5. Completion
  6. Post-completion
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7
Q

Pre-market

A

Short stage in the process

Involves steps which need to be taken by a seller before they put the property on the market

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8
Q

Pre-contract

A

Takes clients from agreeing the sale to exchange of contracts

No binding commitment between seller and buyer at before the exchange of contracts stage

Tasks:

  • Seller’s solicitor prepares contract package
  • Buyer’s solicitor investigates seller’s title, conducts searches against property, raises enquiries, establishes buyer’s funding

Likely to take 4-6 weeks of an 8-10 week timeframe

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9
Q

Exchange of Contracts

A

Transaction becomes legally binding

10% of deposit is payable on exchange of contracts

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10
Q

Pre-Completion

A

Typically two weeks between exchange and completion but can happen on the same day

Solicitor makes arrangement for balance of purchase price to be sent to seller’s solicitor

Solicitor carries out searches to avoid surprise third-party interests

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11
Q

Completion

A

When seller moves out and buyer moves in

Buyer’s solicitor will send 90% balance of purchase money to seller’s solicitor’s client account

Once funds received keys to property will be released to buyer

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12
Q

Post-Completion

A

Seller’s solicitor must pay off seller’s mortgage

Buyer’s solicitor must pay any stamp duty land tax due within 14 days of completion and must submit application to register buyer’s title with HMLR

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