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FLK 2 Revision > Property Practice Revision > Flashcards

Property Practice Revision Flashcards

1
Q

The burden of a right-of-way would appear on the Charges Register of the burdened title

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2
Q

The standard conditions of sale are the ‘small print’ in the middle of the contract which covers issues such as: formation of the contract, service of notices, matters subject to which the property is sold, physical condition of the property, details regarding completion, and remedies for late completion or non-completion

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3
Q

A full title guarantee includes a guarantee that the seller is entitled to sell the property, that they will do all in their power to transfer the purported title to the buyer, and that they are selling the property free from all charges or encumbrances other than those disclosed in the contract. It is generally given by a seller who owns the full legal and equitable interest in the property and has lived at the property.

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4
Q

No title guarantee is typically given by a seller who has no knowledge of the property at all (for example, a mortgagee in possession)

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5
Q

A limited title guarantee is narrower in scope than a full title guarantee; in it, the seller merely 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. A limited title guarantee is typically given by a seller with less knowledge or involvement with the property and is most appropriate when the seller is a personal representative

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6
Q

Do the standard conditions of sale permit the use of a deposit for a related purchase that is outside England and Wales?

A

No

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7
Q

What is a licence to assign?

A

The document by which a landlord gives formal consent to an outgoing tenant to assign the lease

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8
Q

An Energy Performance Certificate (EPC) is not required for sales of listed historic buildings

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9
Q

Formula A is used when the solicitors think it is prudent for one solicitor to hold both contracts on exchange

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10
Q

Under Formula A, the buyer’s solicitor will send the contract signed by the buyer to the seller’s solicitor, along with the deposit. The seller’s solicitor will confirm both contracts are the same over the telephone, insert the exchange date in both, and send the part signed by the seller to the buyer’s solicitor (or vice versa seller’s solicitor will send the contract etc.)

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11
Q

The term for a title which is acceptable is ‘good and marketable’

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12
Q

If title is unregistered, a full land charges search must be carried out against the full name of the current estate owner for the full period of their ownership. The search result confers a 15-working-day priority period during which the transaction should complete. Any application to register a land charge against the owner made during the 15-day period will be held until the buyer’s priority period has expired. If the transaction completes during the 15-day period, such registration will be ineffective, but if completion goes beyond the 15-day period, the registration will be effective against the buyer and the solicitor will probably be liable for the costs of removing the land charge due to negligence.

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13
Q

The three methods of completion: personal attendance, agent, post

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14
Q

The three methods of exchange: person, post, and phone

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15
Q

What is required for a mortgage advance?

A

A certificate of title is submitted to the lender. A CoT involves the solicitor confirming a series of statements which confirm to the lender that the title is good and marketable. The CoT also acts as a request for drawdown of the mortgage advance

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16
Q

The Law Society’s Conveyancing Protocol provides that completion will be by post in compliance with the Code for Completion by Post unless the solicitors agree otherwise

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17
Q

When title is unregistered, after the exchange of contracts, the solicitor for the buyer will conduct a full land charges search (against the full name of the seller and all owners in the epitome for the full period of their ownership). This will give the buyer a 15 working day priority period in which to complete. The buyer’s solicitor will also repeat the bankruptcy search if the buyer requires a mortgage.

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18
Q

A local search is a pre-contract search

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19
Q

An official search with priority provides protection (priority) only for a 30 working day period during which the transaction must complete and be registered. If the purchaser needs their interest protected for more than 30 working days (if they are not going to complete within this time) then the solicitor should register an estate contract on the seller’s title at the land registry.

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20
Q

A mortgage offer almost always imposes duties on the instructing solicitor

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21
Q

Under the Code for Completion by Post, the seller’s solicitor gives a warranty that the solicitor is authorised to act by the true seller

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22
Q

Law Society forumlae A for exchange of contracts

A

Prior to exchange, the buyer’s solicitor will send the contract signed by the buyer to the seller’s solicitor, along with the deposit. The seller’s solicitor will confirm both contracts are the same over the telephone, insert the exchange and completion dates in both, and send the part signed by the seller to the buyer’s solicitor.

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23
Q

When title is unregistered, in addition to carrying out the local search, drainage and water search, and environmental search that should be done pre-contract in every purchase, the solicitor should also carry out an index map search to reveal whether the title to the property is already fully or partially registered. This will be done whether the use of the property is residential or commercial.

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24
Q

Typically, a bankruptcy search is done only if the buyer is an individual and needs to obtain a mortgage (to ensure a lender will be willing to lend to the buyer)

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25
Q

A company search is conducted only if the seller is a company.

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26
Q

Under the Town and Country Planning Act 1990, planning permission is required for any development of land. Development includes building work and making a material change of use. However, minor internal work is not considered to be development and so planning permission is not required.

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27
Q

Most mortgages are handled under the terms of the UK Finance Mortgage Lender’s Handbook and the Building Societies Association Mortgage Instructions.

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28
Q

Law Society formulae B for exchanging contracts by telephone

A

Each solicitor holds their own client’s part of the contract, confirms they are the same, and then sends it. The buyer’s solicitor will also send the deposit funds to the seller’s solicitor to hold as stakeholder pursuant to the unamended Standard Conditions of Sale.

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29
Q

Law Society formulae A for exchanging contracts by telephone

A

The buyer’s solicitor will send the contract signed by the buyer to the seller’s solicitor, along with the deposit. The seller’s solicitor will confirm both contracts are the same over the telephone, insert the exchange and completion dates in both, and send the part signed by the seller to the buyer’s solicitor.

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30
Q

In an unregistered title transaction, title passes to the buyer on completion

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31
Q

The memorandum of exchange is a central part of the requirements of the formulae for exchange and is designed to ensure that both solicitors have a contemporaneous and accurate written record of the conversation which effected exchange.

In practical terms, it is important for the buyer’s solicitor to have the seller’s solicitor’s client account number, but this is not part of the prescribed information required by the formulae.

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32
Q

15 working days is the priority period for a full land charges search in the unregistered system

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33
Q

21 days is the strict timeframe for registering a charge at Companies House

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34
Q

A full land charges search is relevant when the title is unregistered

A
35
Q

True or false? In a long-term commercial lease, the rent is typically a nominal sum because the tenant will have paid a large premium at the beginning of the lease

A

False

36
Q

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

A

Yes, with respect to a long-term commercial lease, but such clauses may not be included in a long-term residential lease

37
Q

If the seller has to pay capital gains tax, when must it be paid?

A

Within 60 days from the completion date

38
Q

What is the Law Society Conveyancing Protocol?

A

It is a statement of best practice for residential conveyancing

39
Q

If the landlord of a commercial premises approves an assignment of the tenant’s lease after determining the assignee is of good financial standing, what document would the landlord’s solicitor typically draft to create privity of contract between the landlord and the assignee?

A

A licence to assign

40
Q

May a landlord require a tenant to deposit money with the landlord to be used by the landlord in the event the tenant defaults?

A

Yes, this is called a rent deposit

41
Q

If a tenant deposits funds with their landlord to be used in the event the tenant defaults on an obligation, any unused portion of the funds must be returned to the tenant when the lease ends or when they assign the lease to a new tenant.

A
42
Q

In a conveyancing contract, the seller must disclose latent defects and latent burdens on the land but need not disclose patent defects.

A
43
Q

Under the Standard Conditions of Sale, the purchase price and the contents price include VAT

A
44
Q

A lease of commercial premises is generally exempt from VAT, but a landlord may elect to tax in order to recover input tax.

A
45
Q

Under the Standard Conditions of Sale, who holds the deposit and how is it held?

A

The seller’s solicitor as stakeholder for both parties

46
Q

Under the Standard Conditions of Sale, if the parties have not included a completion date, when will completion be held?

A

20 working days after exchange

47
Q

What can be used to resolve a problem if a defect in title is identified?

A

Deed of variation

Deed of rectification

Indemnity insurance

48
Q

A basic local search will reveal whether the property is subject to charges owed to the local authority, planning charges, and listed building charges; it will also reveal any Tree Preservation Orders affecting the property

A
49
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

50
Q

A buyer’s solicitor typically will carry out a bankruptcy search only if the buyer is obtaining a mortgage.

A
51
Q

If a person obtains detailed permission to undertake a development, is there a time limit on when the work must be performed?

A

The work must be commenced within 3 years from the date of permission

52
Q

An enforcement notice regarding unauthorised building works must be served within 4 years of the breach, but enforcement notices for a material change of use must be served within 10 years of the breach.

A
53
Q

A local authority can take enforcement action against a person who does not comply with building regulations within 12 months from the date of the breach

A
54
Q

What is the UK Finance Mortgage Lender’s Handbook?

A

It comprises a series of standardised instructions to conveyancers and variations on these instructions that are required by particular lenders

55
Q

The UK Finance Mortgage Lender’s Handbook requires a solicitor who is acting for the buyer and the lender to ensure the lender should be named as applicant in the HMLR pre-completion searches

A
56
Q

What is the maximum age for pre-completion searches at the date of completion, other than HMLR priority searches, required by the UK Finance Mortgage Lender’s Handbook?

A

6 months

57
Q

The OS1 (or OS2) priority search at the Land Registry provides a 30 working day period to complete registration of the mortgage

A
58
Q

If the buyer is a company, the mortgage must be registered at Companies House within 21 days of completion

A
59
Q

If the mortgage completion triggers first registration of the land, the buyer’s solicitor has 2 months to complete registration of the mortgage

A
60
Q

Formula A for exchange of contracts

A

Where one solicitor (usually the seller’s) holds both signed parts of the contract, the buyer’s solicitor having sent a signed contract and the deposit cheque in advance. The seller’s solicitor confirms both parts are the same and inserts the exchange and completion dates on both.

61
Q

Formula B for exchange of contracts

A

Where each solicitor holds their own client’s signed part of the contract. The solicitors will confirm in a call that the versions are the same, and each will send their signed part to the other.

62
Q

What is an engrossment?

A

The final version of a lease prepared by the landlord’s solicitor and including an original signed by the landlord and the counterpart signed by the tenant.

63
Q

What is the document used by personal representatives to transfer land to a beneficiary?

A

Assent

64
Q

A landlord provides their consent to the assignment of an existing lease in a document called a licence to assign

A
65
Q

What methods can completion occur?

A

By personal attendance

By agent

By post

66
Q

If the solicitors to a conveyance have elected to follow the Law Society Conveyancing Protocol, and they do not otherwise indicate a method of completion, how will completion be accomplished?

A

By post, under the Law Society Code for Completion by Post.

67
Q

Under the Law Society Code for Completion by Post, the seller’s solicitor acts as the agent for the buyer’s solicitor in that they will date and execute the transfer and other relevant documents for the buyer’s solicitor.

A
68
Q

Under the Law Society Code for Completion by Post, the seller’s solicitor has a duty to confirm to the buyer’s solicitor by telephone, fax, or email the time at which completion takes place, and a duty to notify the keyholder to release the keys to the buyer.

A
69
Q

On completion, the contract merges with the purchase deed, which means that the purchaser can no longer sue on the contract terms.

A
70
Q

When a property is bought or exchanged, the buyer’s solicitor must send a Stamp Duty Land Tax return to HMRC and pay the appropriate amount of tax within 14 calendar days

A
71
Q

The buyer’s solicitor must register a mortgage within 30 working days of the date of the HMLR official search

A
72
Q

Which of the following best describes the way Stamp Duty Land Tax (SDLT) is assessed on the grant of a new lease?

A

SDLT is assessed on the premium and the total rent paid over the life of the lease if this is more than £125,000.

73
Q

A party will be entitled to damages for delayed completion as any delay to completion is a breach which entitles the innocent party to damages caused by the delay.

A
74
Q

What is the minimum amount of time an innocent party must give the other party to complete under a notice to complete?

A

10 working days.

75
Q

When must the landlord serve the tenant with a health warning notice?

A

At least 14 days before completion of the lease

76
Q

A section 26 notice is a request by the tenant served on the landlord for a new lease

A
77
Q

Under the unamended Standard Conditions of Sale, the seller’s solicitor will hold the deposit funds

A
78
Q

Converting a single dwelling into two or more separate dwellings is a material change of use for which planning permission is required. A local authority has up to 10 years in which to bring an enforcement action for unauthorised change of use.

A
79
Q

A commons registration search is an optional search which is performed when the property appears to abut common land or a town or village green to determine whether use of the property is restricted or burdened by its proximity to public land.

A
80
Q

A local search gathers information from the local authority. The first part of a local search reveals whether there are registrations by the local authority in the land charges register. The second part is a standard set of enquiries of the local authority which include enquiries about roads fronting the property, public rights of way, and planning entries and building regulations relevant to the property. A local search may also include optional enquiries.

A
81
Q

The commons registration search is an optional part of the local search.

A
82
Q

Registration of an estate contract must be carried out to protect the buyer’s position after exchange and before completion in order to put the world on notice of the existence of the agreement. The buyer’s position is protected by registration of a notice on the seller’s charges register.

A
83
Q

If unauthorised building work took place the Local Authority has 4 years from the breach to take action

A
84
Q

In a Protocol transaction, the seller’s solicitor will draft the contract and send the contract package to the buyer’s solicitor. The contract package will comprise: the draft contract in duplicate; the Property Information Form and Fittings and Contents Form, both completed by the seller; a copy of the seller’s title (or epitome of title if the title is unregistered), any other relevant title documents, and title plan; and any guarantees or planning permissions.

A

FLK 2 Revision (8 decks)

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