Test A2

Question 1

Is it a building regulations completion certificate required when planning permission is not necessary?

Answer 1

Yes

Question 2

How long does the local authority has to bring an enforcement action based on the failure to obtain a certificate?

Answer 2

12 months

Question 3

What is the time limit for the local authority to bring an injunction to force the owner to bring the property up to standards (if the work was not upto standards)?

Answer 3

At any time if the works is deemed to be dangerous

Question 4

What is the deadline to register a charge at the Companies House when a limited company is borrowing money?

Answer 4

21 days

Question 5

What is the deadline for the local authority to bring an enforcement action in a case where planning permission was not obtained?

Answer 5

4 years from when the work was done. Enforcement can be against owner who did the work or current owner.

Question 6

When will HMLR will award an absolute leasehold title?

Answer 6

Only when it has inspected all superior leasehold titles and the freehold title

Question 7

How to protect the interest of a lender in a second legal charge over a registered property?

Answer 7

By registering a second charge on the charges register of the title. The charges register indicates any encumbrances which affect land, for example, covenants or mortgages.

Question 8

How to protect the interest of a lender in a second legal charge over a unregistered property?

Answer 8

Registering a puisne mortgage on the land register

Question 9

What impact a surrender of a headlease has on a sublease?

Answer 9

No major effect as the sublease will not come to an end. The subtenant will become the tenant of the head landlord.

Question 10

What are the grounds for terminating a commercial lease if the landlord serves a section 25 notice?

Answer 10

(1)The landlord desires to demolish the premises
(2) breaches of obligations under the lease by the tenant
(3) the availability of suitable, alternative premises for the tenant and the landlord’s desire to reconstruct or move into the premises.

Question 11

Is a commercial tenant entitled to statutory compensation when the landlord serves a section 25 notice?

Answer 11

Yes if the basis for termination is not fault of the tenant. However, the tenant is not entitled to compensation if suitable alternative premises are available.

Question 12

What does it mean when a solicitor holds the buyers deposit as agent?

Answer 12

It means that the buyer’s deposit will be held by the seller’s solicitor and may be paid over to the seller immediately after exchange has taken place.

Question 13

What does it mean when a solicitor holds the buyers deposit as stakeholder?

Answer 13

The deposit is paid to the seller only on completion

Question 14

What is formula A for exchange of contracts?

Answer 14

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 phone, insert the exchange date in both and send the part signed by the seller to the buyer’s solicitor

Question 15

What is formula B for exchange of contracts?

Answer 15

Each solicitor holds their own client’s part of the contract, confirms they are the same and then sends it.

Question 16

What pre-completion searches must be carried out when the title is registered?

Answer 16

Official search with priority and bankrupt search if the buyer is getting a mortgage