The Role of a Property Solicitor in a Freehold Transaction Flashcards
What is the primary concern of a buyer in a property transaction?
A) How much will it cost and how long will it take?
B) Whether the lender is satisfied with the transaction
C) Ensuring the property is easy to sell in the future
D) Making sure the seller receives payment on time
Answer: A) How much will it cost and how long will it take?
📌 Explanation: Buyers often prioritize speed and cost, but must also ensure legal security in the transaction.
Which of the following is not a key duty of a solicitor acting for a buyer?
A) Confirming the seller’s right to sell the property
B) Checking if the property is physically suitable for the buyer’s needs
C) Ensuring the mortgage lender profits from the transaction
D) Identifying third-party rights affecting the property
C) Ensuring the mortgage lender profits from the transaction
📌 Explanation: A solicitor must ensure the buyer’s interests are protected, not prioritize lender profits.
What is the primary concern of a lender in a property transaction?
A) Ensuring the transaction is quick and easy for the buyer
B) Maximizing the seller’s profit
C) Ensuring the property’s value is enough to cover the mortgage loan
D) Helping the buyer find the best interest rate
C) Ensuring the property’s value is enough to cover the mortgage loan
📌 Explanation: The lender needs to know that if the buyer defaults, the property can be sold to recover the loan.
When acting for the seller, which of the following is not a key responsibility of a solicitor?
A) Ensuring the seller receives the sale proceeds
B) Transferring legal ownership to the buyer
C) Investigating the buyer’s financial situation
D) Providing the buyer’s solicitor with necessary information
C) Investigating the buyer’s financial situation
📌 Explanation: The buyer’s solicitor and lender are responsible for investigating finances, not the seller’s solicitor.
Liam is buying a property and discovers a third-party right of way runs through his garden.
What should his solicitor do?
A) Ignore it, as it does not affect the purchase price
B) Inform Liam and check if the right affects property use
C) Cancel the transaction immediately
D) Negotiate a discount with the seller
B) Inform Liam and check if the right affects property use
📌 Explanation: Buyers must know about any third-party rights, as they could restrict how they use the property.
Anna is selling her property and still has a mortgage on it.
What must her solicitor do before the sale is completed?
A) Ensure the existing mortgage is repaid upon sale
B) Transfer the mortgage to the buyer
C) Cancel the sale, as mortgaged properties cannot be sold
D) Ignore the mortgage, as the buyer takes responsibility
A) Ensure the existing mortgage is repaid upon sale
📌 Explanation: A seller’s solicitor must ensure that all existing mortgages are repaid from the sale proceeds.
Josh buys a house but later discovers the seller did not legally own the property.
Which solicitor failed in their duty?
A) The buyer’s solicitor
B) The seller’s solicitor
C) The lender’s solicitor
D) The estate agent
A) The buyer’s solicitor
📌 Explanation: A buyer’s solicitor must check that the seller has the right to sell the property.
Sophie is buying a house and the seller fails to disclose that the property is subject to a restrictive covenant.
Who is responsible for discovering this issue?
A) The seller’s solicitor
B) The buyer’s solicitor
C) The mortgage lender
D) The Land Registry
B) The buyer’s solicitor
📌 Explanation: A buyer’s solicitor must check all legal restrictions affecting the property before completion.
Tom applies for a mortgage, but his lender later discovers he falsely claimed to have a higher salary.
What is the likely consequence?
A) The lender can cancel the mortgage and take legal action
B) The lender must honor the mortgage anyway
C) The buyer’s solicitor is responsible for verifying Tom’s salary
D) Tom can sue the lender for canceling the agreement
Answer: A) The lender can cancel the mortgage and take legal action
📌 Explanation: Mortgage fraud is a serious issue, and lenders have the right to cancel fraudulent agreements.
David is buying a house with a mortgage. Just before completion, his solicitor discovers that the property is subject to an undisclosed legal charge from a previous owner.
What should David’s solicitor do?
A) Proceed with the purchase, as the lender will resolve the issue later
B) Inform David and the lender immediately, and ensure the charge is removed before completion
C) Ignore the charge, as it does not affect David’s use of the property
D) Cancel the transaction without informing David
B) Inform David and the lender immediately, and ensure the charge is removed before completion
📌 Explanation: A buyer’s solicitor must ensure the property is free from undisclosed security interests (such as old mortgages or legal charges) before completion to protect both the buyer and lender.
