Property Practise

Question 1

What are the key preliminary tasks for a solicitor in a conveyancing transaction?

Answer 1

Sending a client care letter, verifying client ID, conducting due diligence, advising on surveys (for buyers), and advising on capital gains tax (for sellers).

Question 2

Can a solicitor act for both the buyer and the seller in a property transaction?

Answer 2

No, as it would create a conflict of interest.

Question 3

When can a solicitor represent both the buyer and the lender?

Answer 3

When the lender is institutional, a standard certificate of title is provided, and confidentiality is maintained.

Question 4

What document must a seller provide during a sale?

Answer 4

An Energy Performance Certificate (EPC), valid for 10 years.

Question 5

What is the purpose of the Law Society Conveyancing Protocol?

Answer 5

To set best practices for residential conveyancing.

Question 6

What is a Property Information Form (PIF)?

Answer 6

A form giving practical information about the property, such as disputes, building work, and connected utilities.

Question 7

What are latent defects in property law?

Answer 7

Hidden defects not apparent from inspection, such as underground easements or restrictive covenants.

Question 8

What is the standard deposit amount required on exchange of contracts?

Answer 8

10% of the purchase price, though smaller deposits may be agreed.

Question 9

What happens if the seller breaches their duty of disclosure?

Answer 9

The buyer may withdraw after the exchange and claim damages.

Question 10

What are the three main parts of a Contract Incorporating the Standard Conditions of Sale?

Answer 10

Particulars of sale, standard conditions of sale, and special conditions of sale.

Question 11

Who bears the risk of loss after contracts are exchanged?

Answer 11

The buyer, even if the property is damaged or destroyed.

Question 12

What are the common pre-completion searches a buyer’s solicitor must perform?

Answer 12

Official search with priority (OS1 or OS2), bankruptcy search, company search (if applicable), and physical inspection.

Question 13

What must a seller’s solicitor provide pre-completion?

Answer 13

A completion statement, redemption figure for any mortgage, and a signed transfer deed.

Question 14

When does title pass to the buyer in registered land?

Answer 14

When the buyer is registered at the HM Land Registry.

Question 15

What is a TR1 form used for?

Answer 15

To transfer the whole of a property in registered land.

Question 16

What are the time limits for registering a mortgage or charge post-completion?

Answer 16

21 days at Companies House for companies and 30 working days at HM Land Registry.

Question 17

How is Stamp Duty Land Tax (SDLT) paid and reported?

Answer 17

By filing an SDLT return and paying the tax to HMRC within 14 days of completion.

Question 18

What is the purpose of indemnity insurance in property transactions?

Answer 18

To cover potential losses due to unresolved title or planning issues

Question 19

What is the significance of security of tenure for commercial tenants?

Answer 19

It gives tenants the right to remain in the premises unless the landlord terminates the lease using statutory grounds.

Question 20

What is a leasehold interest?

Answer 20

A legal interest granting possession of a property for a specific term under a lease agreement.

Question 21

What is an Energy Performance Certificate (EPC) exemption?

Answer 21

Listed buildings generally do not require an EPC.

Question 22

What is a “heads of terms” document in commercial leases?

Answer 22

A document outlining the agreed terms between landlord and tenant, including rent, lease term, and other key details.

Question 23

What is a licence to assign?

Answer 23

A document drafted by a landlord’s solicitor that allows a tenant to transfer their lease to another party, subject to conditions.

Question 24

What is an epitome of title?

Answer 24

A chronological list of documents proving ownership of unregistered land, showing at least 15 years of ownership history.

Question 25

What is the buyer’s solicitor’s responsibility when investigating title?

Answer 25

To ensure good title is passed to the buyer and to address any title defects.

Question 26

What are the standard pre-contract enquiries for a property purchase?

Answer 26

Questions about boundaries, disputes, utilities, planning permissions, and service charges.

Question 27

What is a deed of variation?

Answer 27

A document used to resolve defects in a property’s title by modifying existing terms.

Question 28

What is the purpose of a drainage and water search?

Answer 28

To determine details about the property’s water supply, drainage, and proximity to public sewers.

Question 29

What is the priority period for an official search with priority (OS1 or OS2)?

Answer 29

30 working days, during which no new interests can be registered.