Starting a Conveyancing Transaction (Stage 1B & 2A) Flashcards
What must a seller of property provide to the buyer, which includes information about the property’s energy use?
Energy Performance Certificate (EPC)
How long is an EPC valid for?
10 years
Are EPCs generally required for listed buildings?
No
What are heads of terms?
Agreed terms between a landlord and a tenant for a new commercial lease
Which code sets out best practice for commercial lease transactions?
Code for Leasing Business Premises (CLBP)
Name any 6 things the CLBP require landlord to include in their offers.
- Must be in writing
- Rent and length of term
- Rights to break lease
- Rent review arrangements
- Rights to assign
- Repairing obligations
If an existing tenant has asked to assign their lease of commercial property, it will almost always require whose consent?
Landlord’s
What will the landlord’s solicitor draft to set out conditions required of the assignee under a commercial lease assignment?
Licence to assign
What are 3 features of a licence to assign?
- Signed by all parties
- Creates privity between assignee and landlord
- Makes lease enforceable between 2 parties
What should the seller’s solicitor do shortly after receiving instruction from the seller to confirm ownership or existence of charges?
Investigate the seller’s title
How will S’s solicitor investigate S’s title if their title is registered?
Download a copy of register of title and title plan from HMLR
How will S’s solicitor investigate S’s title if their title is unregistered?
Locate and review title deeds and charges in S’s name
What does the Law Society Conveyancing Protocol (LSCP) require S’s solicitor to do if they find defects in seller’s title?
Take care of them as part of their investigation
What should S’s solicitor send to S to confirm representation of extent of land being sold?
Title map
What is a title map?
A map showing the location of the property being sold and a red outline of the land included in the title.
What should S’s solicitor ask the lender if S has a mortgage?
Why should they ask for this?
Indicative redemption figure
To ensure sale proceeds will be sufficient to redeem the existing mortgage on completion
What does S’s solicitor have to give if S has a mortgage?
An undertaking to redeem mortgages out of the sale proceeds
What six things could S’s solicitors contract package include which is sent to B’s solicitor?
- Draft contract in duplicate
- Property Information Form (PIF)
- Fittings and Contents Form (FCF)
- Copy of Seller’s title (aka ‘deducing title’)
- Copy of title map
- Guarantees or copy planning permissions
Name any of the 7 issues that a PIF typically includes
- Disputes
- Building work
- Notices
- Flooding
- Services that cross the property
- Utilities connected to property
- Occupiers
What does the FCF set out?
Personal property included (or excluded) in the transaction and their price
What will S’s solicitor send when deducing title if the land is unregistered?
Epitome of title
What is an epitome of title?
A chronological list of documents proving title to unregistered land with copies of documents attached
What 2 things must an epitome of title show?
- Unbroken chain of ownership
- Root of title of 15 years
What will S’s solicitor send when deducing title if the land is registered?
Official copy of registered title
S has a duty to disclose ______ defects and burdens on the land, but need not disclose _______ defects
latent, patent
What is the difference between latent and patent defects?
- Latent - One which isn’t apparent on physical inspection of the property
- Patent - one which is discoverable upon physical inspection
If S breaches their duty to disclose information in the PIF or latent defects, what 2 rights does B have?
- Withdrawal from contract after exchange
- Damages
What type of defects does S’s duty to disclose not extend to?
Why is this?
Patent defects
Due to caveat emptor - meaning B should be responsible for checking goods before purchasing them
If S tries to deceive B by covering up a patent defect, this amounts to _______ _____ and S could be liable in ____
wilful deceit, tort
Name any 8 things a contract package on the assignment of an existing registered lease will include
- Draft contract in duplicate
- Official copies of leasehold title + plan
- Copy of the lease
- PIF
- FCF
- Leasehold Information Form
- Insurance policy
- Last 4 years service charge accounts
Which conditions are used in residential transactions (unless the Parties agree otherwise?)
Standard Conditions of Sale
Which conditions are used in commercial conveyances (unless parties agree otherwise?)
Standard Commercial Property Conditions
What are the three parts of a Contract Incorporating the Standard Conditions of Sale?
- Particulars of sale
- Standard Conditions of sale
- Special Conditions of sale
What 5 things do the particulars of sale include?
- Name of parties
- Estate (freehold or leasehold)
- Title guarantee
- Completion date
- Purchase price
What 3 things can the standard conditions of sale include?
- Payment of VAT
- Deposit
- Risk of loss
What 3 things could the special conditions of sale include?
- Whether property will be vacant on completion
- Details of items to be left at the property
- Different agreed time for completion
Under the Standard Conditions of sale, does the purchase and contents price include VAT?
Yes
How much deposit is B required to put down on the purchase price under the Standard Conditions of Sale?
10%
If S has a related purchase of property for their residence in ________ ___ ______, they can use the deposit received on their sale towards the deposit required on this purchase
England and Wales
Who holds the buyer’s deposit and how is it held?
Seller’s solicitor holds it as stakeholder
What does it mean when S’s solicitor holds B’s deposit as stakeholder?
When can the deposit be paid over to S?
S’s solicitors holds it in their firm’s client account on behalf of both parties
It can be paid over to S on completion
When is B’s deposit paid over when S’s solicitor holds it as agent?
Immediately after exchange
What must S provide unless Standard Conditions are amended?
Full title guarantee
What does a full title guarantee include? (3 things)
- S’s entitlement to sell property
- S will do all in their power to transfer purported title to B
- S is selling property free from charges not disclosed
What is given by S under a limited title guarantee?
A warranty that S hasn’t created any charges/granted any rights during their ownership that haven’t been disclosed
When is a no title guarantee given by the seller?
When they have little to no knowledge of the property being sold (e.g. mortgagees or receivers)
What do the Standard Conditions of Sale provide if the contract discloses obligations which bind the buyer?
B agrees to perform obligation and indemnify S if they breach this in the future
When does the risk of loss in property pass to the buyer?
On exchange of contracts
When do the SCoS provide completion takes place if the date isn’t in the contract on exchange?
20 working days after exchange by 2pm
What’s is the best way to resolve a defect in title if B’s solicitor identifies one?
Deed of variation/rectification
If a deed of variation/rectification is not available to resolve a defect in title, what can S purchase to cover B’s future losses arising from the defect?
Indemnity insurance
