Property Practise Flashcards
What are the key preliminary tasks for a solicitor in a conveyancing transaction?
Sending a client care letter, verifying client ID, conducting due diligence, advising on surveys (for buyers), and advising on capital gains tax (for sellers).
Can a solicitor act for both the buyer and the seller in a property transaction?
No, as it would create a conflict of interest.
When can a solicitor represent both the buyer and the lender?
When the lender is institutional, a standard certificate of title is provided, and confidentiality is maintained.
What document must a seller provide during a sale?
An Energy Performance Certificate (EPC), valid for 10 years.
What is the purpose of the Law Society Conveyancing Protocol?
To set best practices for residential conveyancing.
What is a Property Information Form (PIF)?
A form giving practical information about the property, such as disputes, building work, and connected utilities.
What are latent defects in property law?
Hidden defects not apparent from inspection, such as underground easements or restrictive covenants.
What is the standard deposit amount required on exchange of contracts?
10% of the purchase price, though smaller deposits may be agreed.
What happens if the seller breaches their duty of disclosure?
The buyer may withdraw after the exchange and claim damages.
What are the three main parts of a Contract Incorporating the Standard Conditions of Sale?
Particulars of sale, standard conditions of sale, and special conditions of sale.
Who bears the risk of loss after contracts are exchanged?
The buyer, even if the property is damaged or destroyed.
What are the common pre-completion searches a buyer’s solicitor must perform?
Official search with priority (OS1 or OS2), bankruptcy search, company search (if applicable), and physical inspection.
What must a seller’s solicitor provide pre-completion?
A completion statement, redemption figure for any mortgage, and a signed transfer deed.
When does title pass to the buyer in registered land?
When the buyer is registered at the HM Land Registry.
What is a TR1 form used for?
To transfer the whole of a property in registered land.
What are the time limits for registering a mortgage or charge post-completion?
21 days at Companies House for companies and 30 working days at HM Land Registry.
How is Stamp Duty Land Tax (SDLT) paid and reported?
By filing an SDLT return and paying the tax to HMRC within 14 days of completion.
What is the purpose of indemnity insurance in property transactions?
To cover potential losses due to unresolved title or planning issues
What is the significance of security of tenure for commercial tenants?
It gives tenants the right to remain in the premises unless the landlord terminates the lease using statutory grounds.
What is a leasehold interest?
A legal interest granting possession of a property for a specific term under a lease agreement.
What is an Energy Performance Certificate (EPC) exemption?
Listed buildings generally do not require an EPC.
What is a “heads of terms” document in commercial leases?
A document outlining the agreed terms between landlord and tenant, including rent, lease term, and other key details.
What is a licence to assign?
A document drafted by a landlord’s solicitor that allows a tenant to transfer their lease to another party, subject to conditions.
What is an epitome of title?
A chronological list of documents proving ownership of unregistered land, showing at least 15 years of ownership history.
What is the buyer’s solicitor’s responsibility when investigating title?
To ensure good title is passed to the buyer and to address any title defects.
What are the standard pre-contract enquiries for a property purchase?
Questions about boundaries, disputes, utilities, planning permissions, and service charges.
What is a deed of variation?
A document used to resolve defects in a property’s title by modifying existing terms.
What is the purpose of a drainage and water search?
To determine details about the property’s water supply, drainage, and proximity to public sewers.
What is the priority period for an official search with priority (OS1 or OS2)?
30 working days, during which no new interests can be registered.
