The Transfer Deed

Question 1

What form must a land transfer take to be valid?

A. A Deed
B. A verbal agreement with a witness
C. A written agreement signed by both parties
D. A statutory declaration

Answer 1

A. A deed
Explanation: Section 52 Law of Property Act 1925 requires transfers of land to be by deed.

Question 2

Who is responsible for drafting the transfer deed by default?

A. The seller’s solicitor
B. The buyer’s solicitor
C. The court
D. The Land Registry

Answer 2

B. The buyer’s solicitor
Explanation: Under SCS and SCPC, the buyer’s solicitor drafts the TR1 unless otherwise agreed.

Question 3

What is the purpose of Panel 7 in the TR1 form?

A. To transfer title from transferor to transferee
B. To declare the purchase price
C. To describe the property’s boundaries
D. To outline restrictive covenants

Answer 3

A. To transfer title from transferor to transferee
Explanation: Panel 7 contains the transfer wording that legally transfers ownership.

Question 4

A buyer is purchasing property as joint tenants with their spouse. How should this be recorded in the TR1?

A. Leave Panel 10 blank
B. Tick the ‘tenants in common’ box
C. Tick the ‘joint tenants’ box
D. Write a declaration of trust in Panel 6

Answer 4

C. Tick the ‘joint tenants’ box
Explanation: Panel 10 is where the declaration of trust is recorded. Joint tenants share the whole interest equally.

Question 5

Which of the following would require the buyer to sign the TR1?

A. When the buyer is a sole transferee
B. When the buyer is holding on trust for themselves
C. When there is an indemnity covenant in Panel 11
D. When the buyer is not named in the mortgage

Answer 5

C. When there is an indemnity covenant in Panel 11
Explanation: The buyer must sign the TR1 if they take on an obligation, such as an indemnity covenant.

Question 6

A buyer agrees to pay £250,000 for a freehold house. What option should be selected in Panel 8 of TR1?

A. No monetary consideration
B. Consideration other than money
C. Payment of a sum of money
D. Transfer pursuant to court order

Answer 6

C. Payment of a sum of money
Explanation: Most common consideration in conveyancing is a monetary amount.

Question 7

A sole surviving tenant in common is selling the property. What must be done to enable a valid sale?

A. The buyer signs a power of attorney
B. The TR1 is executed by the surviving tenant only
C. A second trustee must be appointed
D. A deed of covenant is sufficient

Answer 7

C. A second trustee must be appointed
Explanation: To overreach the equitable interest, at least two trustees must execute the sale.

Question 8

You are acting for a seller who is a company and uses a company seal. What execution method should be used?

A. One director signs in front of a witness
B. One authorised signatory signs under power of attorney
C. Two directors sign
D. The company seal is affixed with one or more authorised signatories

Answer 8

D. The company seal is affixed with one or more authorised signatories
Explanation: Companies using seals must follow their Articles. One method is affixing the seal with signatures.

Question 9

In a portfolio sale involving 20 registered titles, which transfer form is appropriate?

A. TR5
B. TP1
C. TR1
D. AP1

Answer 9

A. TR5
Explanation: TR5 is used to transfer multiple registered (and optionally unregistered) titles.

Question 10

The buyer’s solicitor sends the TR1 to the seller’s solicitor for approval. What is the next step once approved?

A. The buyer executes the deed
B. The TR1 is submitted to HM Land Registry
C. The seller executes the deed
D. The buyer’s solicitor dates the TR1

Answer 10

C. The seller executes the deed
Explanation: The seller must execute the transfer deed; the date is added on completion.