Property Practice Law

Question 1

KEY QUESTIONS

Answer 1

KEY QUESTIONS
Title: registered or unregistered?
* Estate: freehold or leasehold?
* Client: selling or buying or both?
* Transaction: residential or commercial?
* Transaction: which stage?

Question 2

1

Answer 2

UNREGISTERED TITLE
* Documentary evidence
* Epitome of Title
REGISTERED TITLE
Title Number
* Registers of Title
- Property Register
- Proprietorship Register

Answer 3

To see who owns a registered property, you would look in the “Proprietorship Register” at the HM Land Registry.

Question 4

2. In which register would you look to see if there are mortgages or other encumbrances against a registered property?

Answer 4

To see if there are mortgages or other encumbrances against a registered property, you would look in the “Charges Register” at the HM Land Registry.

Answer 5

To determine if a property is freehold or leasehold, you would look in the “Property Register” at the HM Land Registry.

Question 6

4. Now, the hard one. In which register would you look to see the class of title?

Answer 6

To see the class of title, you would look in the “Property Register” section of the Land Registry title register.

Question 7

5. And if you see any of these things in the facts of an exam question, what type of land are you dealing with?

Answer 7

If you see references to registers such as the Proprietorship Register, Charges Register, or Property Register in the facts of an exam question, you are dealing with registered land.

Question 8

Just to keep you on your toes: True or False?
Parties become bound to buy or sell a property in the pre-contract stage.
O True
O False

Answer 8

False

You probably got that one right, but it never hurts to double check. Pre-contract, as I said, is what it says on the tin: pre-contract. One does not become bound until there is a contract - in Property Practice, that happens on the exchange of contracts in stage III. In the pre-contract stage, the solicitors are investigating things, the solicitor for the buyer is raising enquiries about the property, and the buyer is arranging financing.

Question 9

If a question mentions that the seller’s solicitor has just sent the contract package and the buyer’s solicitor is investigating the title to the property in question, what stage of the process are we in?

Answer 9

If the seller’s solicitor has sent the contract package and the buyer’s solicitor is investigating the title, we are in the “pre-contract” stage of the conveyancing process.

Question 10

You know me by now. I want to start you on your way to memorising this terminology so that you don’t get confused during the SQE.

Match the terms with their appropriate description.

A - Head lease
B - Deed of variation
C - Premium

1. A (usually large) sum of money paid up front on a lease, more commonly in a long-term residential lease.
2. A new lease granted by a freehold owner.
3. An agreement to vary the terms of a lease, usually on the request of an assignee of a lease.

Answer 10

C
A
B

Question 11

True or False?
The principal private residence relief exemption provides a set off against income tax.
O True
O False

Answer 11

False.

Did I trip you up with that? If so, be sure to pay close attention to the words of each question on the SQE. The principal private residence relief exemption provides for relief against capital gains tax on the sale of a person’s principal residence.

Question 12

Let’s just double check that you heard me correctly.
True or False?
A solicitor cannot represent both a mortgagor buyer and a mortgagee lender in a conveyance because the two often have conflicting interests.
O True
O False

Answer 12

False. Usually, the interests of the mortgagor buyer and the mortgagee lender are aligned; it is only in unusual circumstances in which a solicitor would not be able to represent both in a conveyance.

Question 13

You are acting for a seller in the sale of their house, and the sale price is £300,000. During the pre-contract stage, as is standard practice, you write to the seller’s lender for an indicative redemption figure (that is, the amount needed to pay off the seller’s mortgage). The lender writes back and indicates that the settlement figure is £350,000.
Would this cause you any concern? in one sentence

Answer 13

Yes, this would cause concern because the indicative redemption figure exceeds the sale price, indicating the seller may not have sufficient funds from the sale to fully repay the mortgage.

Question 14

Let’s not let this highly examinable area go by too quickly.
A man owns a home and a small shop building. He decides to sell both so he can retire to Spain. He purchased the home 12 years ago and the shop seven years ago. He has the energy efficiency certificates that he received when he purchased each property.
Will the man have to get a new energy efficiency certificate for either property?
* (A) Yes, for the home, because it is a residential property, but not for the shop because it is commercial property.
O (B) Yes, for the shop, because it is commercial property, but not for the home, because it is residential property.
* (C) Yes, for both the home and the shop.
* (D) No, for neither the home nor the shop.
* (E) Yes, for the home, because the existing certificate is more than 10 years old, but not for the shop.

Answer 14

(E) is correct. The rule here is straightforward: a new energy efficiency certificate must be obtained when selling either residential or commercial property, unless: (1) the property is listed as a historical structure, or (2) the seller has an energy performance certificate that is less than 10 years old. If you chose the wrong answer, chances are that you remembered the rule, but were led astray by convincing wrong answer choices. Be careful to not let that happen on the exam (or in practice, for that matter).

Question 15

Let’s review. If title is registered, how will the seller’s solicitor investigate the seller’s title before contracts are exchanged?

Answer 15

If title is registered, the seller’s solicitor will investigate the seller’s title by obtaining and reviewing official copies of the register of title from the HM Land Registry.

Question 16

If title is unregistered, how will the seller’s solicitor investigate title before contracts are exchanged?

Answer 16

If title is unregistered, the seller’s solicitor will investigate title by examining an unbroken chain of title deeds and documents to deduce and verify the seller’s ownership.

Question 17

What will the seller’s solicitor do if they find defects in their investigation of title?

Answer 17

If the seller’s solicitor finds defects in their investigation of title, they will seek to rectify them, possibly through obtaining indemnity insurance, rectifying documents, or negotiating with the buyer’s solicitor for acceptance of the title as is.

Question 18

Let’s ensure you understand how this works.
You represent a buyer of a lovely looking home in Henley-in-Arden. After completion, the buyer moves in and discovers that the seller failed to disclose that
carpenter ants had infested the wood within one wall of the home, a neighbour had a right of way over the back three metres of the property to access a road, and a private sewer pipe ran across the middle of the back garden which interfered with the buyer’s ability to build a koi pond.
Can the buyer sue for damages based on misrepresenation for any of these non-disclosures?
* (A) Yes, for the sewer pipe only.
* (B) Yes, for the sewer pipe and the
carpenter ants.
* (C) Yes, for the right of way and the
carpenter ants.
* (D) No, not for any of these non-disclosures
because of the doctrine of caveat emptor.

Answer 18

(A) is correct. A buyer can sue for damages from non-disclosure of the sewer pipe because a seller has a duty to disclose defects and encumbrances that would not be apparent from an inspection. This does not extend to physical defects in the property, such as the carpenter ant damage, or to encumbrances which can be discovered through inspection, such as right of way.

Question 19

You are told that a tenant wishes to assign their lease of a factory unit. At the beginning of the transaction, the landlord’s solicitor asked for an undertaking for their costs.
What is this undertaking likely to relate to?

Answer 19

This undertaking likely relates to the tenant or the assignee covering the landlord’s legal costs associated with consenting to the lease assignment.

Question 20

Shall we flog the dead horse once more?
Under the Standard Conditions of Sale, who holds the deposit?
* (A) The seller’s solicitor.
* (B) The buyer’s solicitor.

Answer 20

A

Question 20

Under the Standard Conditions of Sale, how does the seller’s solicitor hold the deposit?
* (A) As agent of the seller.
O (B) As agent of the buyer.
* (C) As a stakeholder.

Answer 20

(C) is correct. The solicitor holds the deposit funds as a stakeholder, which means the solicitor does not have the right or duty to transfer the funds to the seller until completion.

Question 21

1. True or False?

Under the Standard Conditions of Sale, a buyer is required to purchase insurance on the property upon the exchange of contracts.
* True
O False

Answer 21

False

Question 22

On the afternoon of 5 May, a buyer and seller exchange contracts for the purchases and sale of a £million estate in the country. The contract allowed the seller to remain in possession until completion.
That evening, a fierce storm sweeps across the region.
Lightning strikes the home and it burns to the ground.
The seller had allowed his property insurance to lapse the day before contracts were exchanged, and the buyer intended to purchase property insurance for the premises the next day. The property is worth only £250,000 in its post-fire condition.
Must the buyer go through with the purchase?

• (A) Yes, but equity will relieve him of the duty to pay anything more than £250,000.
• (B) No, because the Standard Conditions
  of Sale do not require a buyer to purchase insurance, and so the buyer is not responsible for a loss that occurs whilst the seller is still in possession.
• (C) Yes, and he will have to pay the full
  £1million purchase price.

Answer 22

C

Hopefully I didn’t blind you with extra facts. The rule is simple: the buyer bears the risk of loss after the exchange of contracts. Whilst not required to purchase insurance, you can see it’s a good idea to do so, as no rule of equity will let the buyer off the hook.

Question 23

If the seller has breached a covenant on their title and agrees with the buyer to provide indemnity insurance at their own cost, what should the buyer’s solicitor do to ensure that the seller complies with this agreement?

Answer 23

The buyer’s solicitor should obtain a written undertaking from the seller’s solicitor to provide an appropriate indemnity insurance policy covering the breach of covenant before or at completion, and ensure the policy terms are satisfactory and meet the buyer’s needs.

Question 24

As they say on television: work with me here.
In which register would you look to see who owns a registered property?
* (A) The title register
* (B) The proprietorship register
O (C) The property register

Answer 24

B

Question 25

In which register would you look to see whether a registered property is freehold or leasehold?
O (A) The title register
* (B) The proprietorship register
O (C) The property register

Answer 25

c

Question 26

In which register would you look to see the class of title under which a registered property is held?
O (A) The title register
* (B) The proprietorship register
* (C) The property register

Answer 26

B

Question 27

In which register would you look to see whether registered property benefits from a right of way?
* (A) The title register
* (B) The charges register
* (C) The property register

Answer 27

C
You have to be careful if asked a question like this to note whether you are asked about the benefit or the burden. For a burden of a right of way, you should look in the charges register of the servient tenement; for the benefit (which is what this question asks about), you should look in the property register of the dominant tenement.

Question 28

5. Which of the following three reigsters is one I made up?
   * (A) The title register
   * (B) The proprietorship register
   * (C) The property register

Answer 28

A

Question 29

GOOD ROOT OF TITLE

Answer 29

GOOD ROOT OF TITLE
* Whole legal/equitable interest in property
* Adequate description of property
* Doesn’t cast doubt on title
* At least 15 years old

Question 30

Recall from Land Law that another event that triggers registration is the grant of a first legal mortgage (that is, one given by deed) that allows for forfeiture of the property if the borrower defaults (most mortgages do - that’s the whole point of a mortgage).
So what would you do if, whilst examining the epitome of title, you discover that the owner gave a mortgage deed ten years ago, and the land is not registered?

Answer 30

to apply for first registration of the land at HM Land Registry, as the grant of a first legal mortgage triggers the requirement for registration.

The same thing we just discussed for the 2010 conveyance: insist that the seller’s solicitor make the necessary application for first registration at the land registry.

Question 31

How would you recognise that the title you were dealing with in an exam question was unregistered?

Answer 31

You would recognize unregistered title in an exam question by references to examining a chain of title deeds and documents, the absence of Land Registry entries, or explicit mentions of the title being unregistered.

You would recognize unregistered title in an exam question by references to examining a chain of title deeds and documents, the absence of Land Registry entries, or explicit mentions of the title being unregistered.

Question 32

What type of search will reveal whether a charge is owed to a local authority with respect to a property?
* (A) A local property index search.
* (B) A local land charges register search.
* (C) A commons registration search.

Answer 32

B

Question 33

What type of search will reveal whether land is subject to a restriction from a nearby village green?
* (A) A local property index search.
O (B) A local land charges register search.
* (C) A commons registration search.

Answer 33

C

Question 34

3. What type of search did I make up for the questions above?
   * (A) A local property index search.
   * (B) A local land charges register search.
   * (C) A commons registration search.

Answer 34

A

A bit of a Simon/Lorraine Says question, isn’t it? Lorraine didn’t say there was a local property index search, so you shouldn’t choose it. In any case, you have now worked with and thought about the local land charges register search and the commons registration search and so are now on the road to remembering these searches for your exam!

Question 35

when you would conduct a bankruptcy search.

Answer 35

A bankruptcy search is conducted just before completion of a property transaction to ensure that the buyer (if they’re obtaining a mortgage) or the seller (in case of receiving the sale proceeds) has not been declared bankrupt, which could affect their ability to engage in the transaction.

When the buyer will be obtaining a mortgage. If the buyer will need a mortgage (and most of us mere mortals do), you will need to do a bankruptcy search against the buyer’s full name to ensure the buyer will be able to get a mortgage - as most lenders will not lend to a bankrupt person.

Question 36

So, how exactly might this come up on the exam?
You represent a client who is buying a house. Your searches and enquiries reveal that the current owner of the home added a significant extension to the home three years ago and did not seek permission from the local planning authority.
How should you advise your client in relation to the extension?
* (A) The local authority would still have time to take enforcement action, and it could do so against the buyer, as the extension was built without permission.
O (B) It is too late for the local authority to take enforcement action against the buyer.
* (C) It is not too late for the local authority to take enforcement action, but such action may only be taken against the person who put on the extension.
O (D) No enforcement action may be brought by the local authority because an extension is not considered development under the
Town and Country Planning Act 1990.
O (E) The local authority would be able to bring an enforcement action against the buyer at any time because the extension was built
without approval.

Answer 36

Because the local authority has four years to bring an enforcement action and the extension was built three years ago, the local authority could still bring an enforcement action. But if we change one minor detail - if the significant extension were built five years ago - our answer changes to (B)!

Question 37

How does a buyer’s solicitor find out whether a road fronting a property is an adopted highway, and how do they find out whether a property is connected to the public water supply?

Answer 37

A buyer’s solicitor can find out if a road fronting a property is an adopted highway by conducting a search with the local authority or consulting the Local Land Charges Register. To determine if a property is connected to the public water supply, the solicitor would conduct a water and drainage search with the local water authority or utilize a CON29DW (Drainage and Water) search enquiry.

Question 38

TYPES OF MORTGAGES

Answer 38

TYPES OF MORTGAGES
* Repayment
* Interest only
Endowment

Question 38

1. You open a law practice shortly after receiving the news that you have passed SQE2. A woman walks through your door and explains that she is buying a house and would like your assistance. You readily agree! The woman then proceeds to give you details about the house and tells you that she has spoken to somone at a building society about obtaining a mortgage. She tells you that the man she spoke with at the building society suggested either a repayment mortgage or an interest only mortgage and asks if you could re-explain to her the difference between these two.
   How should you respond?
   * (A) By telling her that unfortunately, you are not allowed to discuss the details of financial services and that she will have to obtain independent financial advice from an expert as to such matters.
   * (B) By telling her that both typically require monthly payments: the repayment mortgage payments include both interest and a return of some of the capital borrowed, and interest only mortgage payments include only payment of interest, so the woman would owe the full amount of the amount borrowed at the end of the term.

Answer 38

(B) is correct. The point was to get you to consider what I just said again - to start you on your way to memorising this information, if you didn’t already know it.

Question 39

The woman was dazzled by your knowledge regarding mortgages and asks you whether the rate the building society offered - 4.2% - is a good rate.
How should you respond?
* (A) You should tell the woman that you will look into current rates and let her know once you have investigated current market conditions.
* (B) You should tell her that unfortunately, you are not allowed to discuss the details of financial services and that she will have to obtain independent financial advice from an expert as to such matters

Answer 39

(B) is correct. Was this one a little more challenging? (A) seems reasonable, doesn’t it? But we are not qualified to give specific financial advice merely by being solicitors.

Question 40

How does a buver’s solicitor perfect the buyer’s mortgage?

Answer 40

A buyer’s solicitor perfects the buyer’s mortgage by ensuring the mortgage deed is properly executed by the buyer, registering the mortgage with the HM Land Registry to protect the lender’s interest, and ensuring that the lender’s requirements and conditions are fully complied with before funds are released.

By registering the lender’s charge after completion of the conveyance.

Question 41

What are the various ways in which a buyer can fund the purchase of a property?

Answer 41

A buyer can fund the purchase of a property through various means, including obtaining a mortgage loan from a bank or building society, using personal savings, receiving a gift or loan from family or friends, participating in government-backed schemes like Help to Buy, or through the proceeds of selling another property.

Question 42

I don’t necessarily think you’ll be able to remember this just yet, but have a go anyway:
Explain how formula B - the most common form of exchange - works.

Answer 42

Formula B, the most common form of exchange, works by having both the buyer’s and seller’s solicitors each hold a signed part of the contract. They agree over the phone that they will treat these parts as exchanged, making the agreement legally binding, and then physically exchange these parts by post or delivery.
Each solicitor holds their own client’s signed part of the contract. The buyer’s solicitor holds the buyer’s deposit as cleared funds. During the phone conversation, each solicitor will confirm the contents of the contract which they hold and which is signed by their client.

Question 43

Just so you pause and reflect on the importance of what I just said:
How would you protect your client (the buyer) against intervening interests that might crop up against a property they want to buy if the completion will take place more than a couple of weeks after exchange?

Answer 43

To protect your client (the buyer) against intervening interests that might arise between exchange and completion when completion is scheduled for more than a couple of weeks after exchange, you would lodge a priority search (also known as a pre-completion search) at the Land Registry. This search secures a priority period, typically lasting 30 days, during which no other interests can be registered against the property that would affect the buyer’s impending registration as the new owner.
Your answer should be, “it depends”. (That’s a solicitor’s favourite answer, because that’s why people need to hire us - we know all those complicated things.) If the property is registered (which will be the most common situation in your practice), you’ll want to register an estate contract in the property’s charges register. If the property is unregistered, you’ll want to register a land charge against the seller’s full name.

Question 44

Let’s think about how this might come up on the exam:
You represent a client who is buying a house. Completion is scheduled for 25 May. However, things went exceedingly smoothly, and both your client and the seller would like to move up the completion date.
How should you proceed?
* (A) Telephone the solicitor for the seller and
agree a new completion date.
* (B) Write to the solicitor for the seller, requesting a new completion date.
O (C) Exchange new contracts with the seller’s solicitor with the new completion date inserted.
O (D) Seek permission from the Law Society to
vary the completion date.
O (E) Seek permission from the County Court to
vary the completion date.

Answer 44

C

I wanted to show you this because, frankly, I think when you see it, the correct answer seems a little silly - a little extreme. As I told you the correct answer - the best way to proceed (what you, the solicitor, should do) is choice (C) - exchange new contracts with the seller’s solicitor. But seeing it in writing, don’t you just want to go with (A)? That will probably work most of the time, but it could cause you trouble those few times it doesn’t work out. So, your best course of action is to exchange new contracts whenever you want to vary a term of the conveyancing contract.

Question 45

What are the three methods of exchange?
What are the three formulae for exchange by phone, and when might each be used?

Answer 45

The three methods of exchanging contracts in property transactions are:

1. In person: Where the solicitors or their representatives meet face-to-face to physically exchange signed contracts.
2. By post: Where signed contracts are sent via mail from one solicitor to the other, with each retaining one part and sending the counterpart to the opposite party.
3. By electronic means: Increasingly common, involving the electronic exchange of scanned copies of signed contracts via email or a secure digital platform.

The three formulae for exchange by phone, also known as “contract races,” are:

1. Formula A: Used when there’s no contract race, meaning the buyer’s solicitor confirms they hold a part contract signed by their client and will send it to the seller’s solicitor in exchange for the part signed by the seller, effective immediately upon verbal agreement.
2. Formula B: The most common form used even in contract races, where each solicitor confirms they hold a part contract signed by their client and agrees to treat these parts as exchanged at that moment, followed by sending the parts to each other.
3. Formula C: Used less frequently, typically in a contract race scenario, where the seller’s solicitor holds both parts of the contract signed by the seller and each potential buyer. The seller’s solicitor agrees over the phone with the first buyer’s solicitor to complete the exchange and immediately informs other potential buyers that the property is off the market.

Each formula is used based on the circumstances of the sale, the presence of a contract race, and the preference or agreement between the solicitors involved in the transaction.

Question 46

I can’t let such an important part of conveyancing go by without asking you to recall it, can I?
What is the effect of a pre-completion official search with priority with respect to registered land? Be sure to try to recall the priority period.

Answer 46

A pre-completion official search with priority on registered land secures a priority period, typically 30 days, during which no other dealings with the land can be registered to affect the buyer’s interest, ensuring the buyer’s transaction takes precedence.

An official search with priority updates the pre-contract search the buyer’s solicitor performed to see whether any new interests in the subject property have been added. Crucially, it also prevents new interests from being registered after the search if the conveyance is completed and registered within the priority period, which is [drumroll…] 30 working days.

Question 47

If land is unregistered, a solicitor should carry out an official search with priority and, as a result, the solicitor will gain a 15-working-day priority period in which to complete the conveyance.
* True
O False

Answer 47

It’s false. The 15-day part is correct, but you must watch the names of the searches carefully, because this is how I suspect the examiners will try to trip you up. For unregistered land, the search isn’t an official search with priority, but rather a land charges search against the full name of the current owner.

Question 48

What are some of the pre-contract searches, and what are some of the pre-completion searches?

Answer 48

Pre-contract searches include:
1. Local Authority Search: Reveals planning, building control issues, and local charges.
2. Environmental Search: Assesses the risk of land contamination and environmental issues.
3. Water and Drainage Search: Provides information on water supply and sewage disposal.
4. Chancel Repair Search: Determines potential liability for church repairs.
5. Flood Risk Search: Assesses the risk of flooding at the property.

Pre-completion searches include:
1. Land Registry Pre-completion Search (OS1 for freehold, OS2 for leasehold): Ensures there are no new interests registered against the property before completion.
2. Bankruptcy Search: Ensures the buyer hasn’t been declared bankrupt before funds are transferred.
3. Search of the Index Map (SIM): Confirms the property’s registration status at the Land Registry if its registration status is unclear.

Question 49

If the parties to a conveyance have not altered the Standard Conditions of Sale, on the date set for completion, by what time must completion take place to avoid penalties?

Answer 49

If the parties have not altered the Standard Conditions of Sale, completion must take place by 2:00 PM on the date set for completion to avoid penalties.

Question 49

THREE METHODS OF COMPLETION

Answer 49

THREE METHODS OF COMPLETION
* Personal attendance
* By agent
* By post

Question 50

True or False?
If you are representing a buyer that is a company, you must register the purchase with Companies House within 21 days of completion.
* True
O False

Answer 50

It’s false. Did I get you to snap at the bait? If so, remember to carefully consider the language used in each choice on your exam. There is nothing wrong with the timescale here - 21 days applies to something, just not to the event mentioned in the question. Purchases of property by companies do not have to be registered at Companies House; mortgages do.

Question 51

DEADLINES FOR BUYER’S
SOLICITOR

Answer 51

DEADLINES FOR BUYER’S
SOLICITOR
* Company charge
- Register within 21 days of completion
Stamp Duty Land Tax
Submit return and pay within 14 days of completion
Registered title
Register within 30 working day priority period
Unregistered title
Register within 2 months of completion

Question 52

Try to recall the key post-completion deadlines for the buyer’s solicitor.

Answer 52

Key post-completion deadlines for the buyer’s solicitor include:

1. Stamp Duty Land Tax (SDLT) Payment and Return: Must be submitted and paid within 14 days of completion in England and Northern Ireland (30 days if the completion date is before 1st March 2021).
2. Land Registry Registration: The application to register the buyer as the new owner should be submitted to the Land Registry as soon as possible after completion, ideally within 2 months to ensure compliance with the priority period set by the pre-completion search.
3. Notice of Transfer and/or Charge: If the property is leasehold, notice of the transfer and any mortgage must be served on the landlord or management company according to the lease terms, often within a month of completion.

Question 53

EXEMPT TRANSACTIONS

Answer 53

EXEMPT TRANSACTIONS
Property transferred as a gift
Property transferred to a spouse or former spouse upon divorce
Property transferred under a variation of a will within two years of the decedent’s death

Question 54

Looking at the table, what is the SDLT on the purchase of a commercial property for £200,000?

Answer 54

For the purchase of a commercial property worth £200,000, the Stamp Duty Land Tax (SDLT) calculation would be as follows: 0% on the first £150,000, and 2% on the remaining £50,000. This means the SDLT payable would be £1,000.

Question 55

A contract is set to complete on 3 March, but at noon that day the buyer’s solicitor calls the seller’s solicitor and says they are having problems obtaining the mortgage funds and they will not be able to complete that day. The seller’s solicitor informs the seller, and they wait. The next day, the same events occur, and they occur the next day as well. However, on that day, the seller’s solicitor serves a notice to complete. The buyer’s solicitor calls two days later and says he finally has the funds. What remedy is available to the seller under the Standard Conditions of Sale?
* (A) The seller may charge interest at the
contract rate and rescind the contract.
* (B) The seller may charge interest at the
contract rate or rescind the contract.
O (C) The seller may only rescind the contract because they have served a notice to complete.
* (D) The seller may charge interest at the
contract rate on the amount owed but may
not rescind.

Answer 55

(D) is correct. The Standard Conditions of Sale provide for interest at the contract rate if completion is late. However, rescission is not available unless a notice to complete is served (which did occur here) and the defaulting party failed to complete within ten days (which did not occur here - they completed two days after the notice). Thus, the only remedy available under our facts is interest.

Question 56

IF DEFAULTING PARTY DOES NOT COMPLETE

Answer 56

IF DEFAULTING PARTY DOES NOT COMPLETE
* Buyer as defaulting party
- Rescind contract
- Keep 10% deposit
- Claim damages for losses
Seller as defaulting party
- Rescind contract
- Claim deposit with interest at contract rate
- Claim damages

Question 57

AFTER (OR BEFORE COMPLETION

Answer 57

AFTER (OR BEFORE COMPLETION
Misrepresentation
* Misdescription
AFTER COMPLETION
Breach of title guarantee covenants

Question 58

What are the main remedies that are available for breach of a contract for the sale of land?

Answer 58

For breach of a contract for the sale of land, the main remedies available include: specific performance, where the court orders the breaching party to fulfill their contractual obligations; damages for any losses incurred due to the breach; rescission, allowing the non-breaching party to cancel the contract; and charging interest on unpaid amounts if the breach involves delayed payment. Each remedy aims to address the breach’s impact and restore the parties, as much as possible, to their original positions.

Question 59

IF BUSINESS TeNANCY IS
PROTECTED

Answer 59

IF BUSINESS TeNANCY IS
PROTECTED
Tenancy will automatically continue unless brought to an end
- Forfeiture
- Surrender
- Landlord serves section 25 notice
- Tenant serves section 26 notice

Question 60

True or False?
Under the Landlord and Tenant Act 1954, a commercial tenant may waive security of tenure only if the landlord served the tenant with a health warning notice.
* (A) True
O (B) False

Answer 60

The answer is true. I wanted you to read this at this juncture and not just hear it - because it sounds made up. A health warning? Yes, a health warning; that’s what the notice is called that informs the commercial tenant that the landlord is asking them to give up an important right - the right to remain on the premises after the lease expires (with payment of rent, of course; the tenant is not allowed to stay on for free).

Question 61

When must the health warning notice be served?

Answer 61

At least 14 days before the tenant completes the lease.

Question 62

Despite the security of tenure, if a statutory ground for ending the lease is present, and the landlord wishes to terminate a tenant’s lease, when must the landlord give notice of this intention?
* (A) At least 14 days before the end of the
lease but not more than 6 weeks before.
* (B) At least 6 months before the end of the lease but not more than 12 months before.
(C) At least 12 months before the end of
the lease term.

Answer 62

B