The Legal Aspect Of Property Purchase Flashcards
In which register would you find:
1) A plan of the property?
2) Details of restrictive covenants?
3) The class of title applying to the property?
4) What is the most desirable class of title from a owners and lenders perspective?
1) the property register
2) the charges register
3) the proprietorship register
4) absolute title
Once contracts are exchanged the vendor is obliged to sell and the purchaser to buy. Either can withdraw but what are the consequences?
Breach of the contract could lead to loss of deposit and court action by either party
What type of insurance must a solicitor have in case of claims of negligence against them?
A) public liability insurance
B) professional indemnity insurance
C) partnership insurance
D) law society insurance
B) professional indemnity insurance
Why is it important for the lender to be provided with certificate of title?
If the title is defective in any way the lender might not be able to exercise its rights over the property and thus the mortgage loan might not be fully secured.
Town planning issues will be highlighted by a local land charges registry search. True or false?
False
They would be shown in enquiries if the local authority
Why might a bankruptcy search be carried out on a vendor?
A vendor who is an undischarged bankrupt would not be entitled to receive the proceeds of the sale, as their assets are controlled by an insolvency practitioner.
Carmen and Joanna had had a long running dispute with their neighbour over his poor maintenance of the boundary wall dividing their properties. On what document were the couple required to declare this issue when they sold their property?
The sellers property information report
Which of the following would normally be classified as a fitting?
A) a built in oven
B) a free-standing wardrobe
C) laminate flooring
D) a bathroom vanity unit
B) a free-standing wardrobe
Which of the following would not be contained in a draft sale contract?
A) details of the buyer and vendor
B) the agreed deposit
C) the amount of the mortgage loan
D) details of the property being sold
C) the amount of the mortgage loan
This is a matter only for the buyer and so wouldn’t be included in the draft sale contract
Which of the following processes is not carried out between exchange of contracts and completion?
A) vendors solicitor obtains a settlement figure to repay any outstanding mortgage on their property
B) the buyer signs the mortgage deed
C) the vendor completes a sellers property information form
D) the buyers solicitor applies for release of mortgage funds
C) the vendor completes a sellers property information form
This is completed before exchange of contracts.
The legal charge for the mortgage takes effect:
A) from the point where the solicitor registers the new owner at the land registry
B) from completion
C) when the lender issues it’s offer of advance
D) from the point where contracts are exchanged
B) from completion
When they new owner has the property
When a borrower is remortgaging, it is possible to minimise the conveyancing work involved by arranging search indemnity insurance. True or false?
True
