Taking Instructions - Initial Advice Flashcards
What are important issues to consider initially?
• EPC
• Likely timescales and costs
• Co-ownership
• Surveys
• Tax
What is an EPC? When must it be commissioned? How long does it stay valid? Who by?
• Energy Performance Certificate
• Must commission before marketing property
• EPC is prepared by energy assessor
• Remains valid for ten years on public register
What is average timescales for conveyancing?
Six to eight weeks
Where are legal owners registered?
Land Registry
How many legal owners can there be?
Maximum of 4
Age requirement for legal ownership?
18+
What are the two types of legal ownership?
Sole or joint
Is beneficial ownership registered at Land Registry?
No, unless they are legal owners
Maximum numbers of beneficial ownership?
Unlimited
What age can beneficial ownership be?
Any
What are the types of beneficial ownership?
Joint tenancy or tenancy in common
Who is joint tenancy not suitable for?
Co-owner who wants to pass their share in a will
What does right of survivorship apply to?
Joint tenancy
What type of ownership is tenants in common?
Equitable
What is tenancy in common?
Each owns undivided share, in different proportions
How is a co-ownership arrangement made?
By declaration of trust of land
Where is a declaration of trust made?
Usually in TR1 form / other transfer deed
What should advice on surveys be?
• Always be advised to instruct surveyor
• Physical defects can affect lending
What are different types of surveys?
- Basic valuation
- Homebuyer report – much more detailed
- Full structural survey – most expensive
What are tax considerations for property transactions?
- SDLT / LTT
a. If over a certain price in England and Northern Ireland (Wales is LTT) - Capital Gains Tax
a. Is tax on profit on certain assets
b. Not payable on most residential sales – Private Residence Relief - VAT
a. New builds usually
