Title Issues Flashcards
What is the primary purpose of investigating unregistered land title?
A) To verify the seller’s ownership and ensure registrability
B) To determine the market value of the property
C) To confirm if any prior planning permissions exist
D) To check compliance with environmental regulations
A) To verify the seller’s ownership and ensure registrability
Explanation:
A solicitor must confirm valid ownership and ensure title can be registered, not assess property value or planning permissions.
A valid root of title must meet all of the following conditions except:
A) Be at least 15 years old
B) Clearly describe the land
C) Transfer both legal and beneficial ownership
D) Be registered as a land charge
D) Be registered as a land charge
Explanation:
A root of title does not need land charge registration, but must be at least 15 years old, transfer ownership, and describe the land.
How is a puisne mortgage (a second or third mortgage) protected in unregistered land?
A) By noting it in the proprietorship register
B) By registering it as a Class C1 land charge
C) By signing an indemnity covenant
D) By obtaining a statutory declaration
B) By registering it as a Class C1 land charge
Explanation:
A puisne mortgage must be registered as a Class C1 land charge to be enforceable.
What information does a land charges search on unregistered land provide?
A) The registered proprietor’s name and address
B) Any pending first registration applications
C) Any existing encumbrances such as restrictive covenants and mortgages
D) The official title plan of the property
C) Any existing encumbrances such as restrictive covenants and mortgages
Explanation:
A land charges search identifies mortgages, restrictive covenants, and easements. Title plans are only for registered land.
During investigation, the solicitor discovers that a conveyance is missing in the chain of title.
What should they do?
A) Proceed with the transaction if the seller confirms no defects
B) Obtain indemnity insurance to protect against future claims
C) Ignore the issue if the break is older than 20 years
D) Ask the buyer to register the land before proceeding
B) Obtain indemnity insurance to protect against future claims
Explanation:
A missing conveyance can create ownership disputes. Indemnity insurance protects against future claims.
The seller presents a root of title dated after compulsory first registration for the area.
What should the solicitor advise?
A) Proceed as long as the seller provides an indemnity
B) Apply for first registration immediately after completion
C) Ignore the issue if the deed appears valid
D) Require the seller to register the title before proceeding
D) Require the seller to register the title before proceeding
Explanation:
If compulsory first registration applies, the seller must register the land before selling.
A solicitor discovers that a land charge search was not conducted for a previous owner in the chain of title.
What should they do?
A) Assume no charges exist and proceed
B) Require a new land charge search before continuing
C) Ignore it if the last transaction was over 30 years ago
D) Register the title as absolute immediately
B) Require a new land charge search before continuing
Explanation:
A land charge search must be conducted for each previous owner to confirm no binding land charges exist.
A conveyance from 1996 does not show stamp duty payment or a certificate of value.
What is the best course of action?
A) Ask the seller to pay the outstanding duty
B) Proceed as long as the deed is signed
C) Assume the duty was paid due to the age of the document
D) Obtain indemnity insurance and continue
A) Ask the seller to pay the outstanding duty
Explanation:
A conveyance without a stamp duty certificate could be unenforceable. The seller must pay any outstanding duty.
A Class D2 restrictive covenant appears on a land charges search, but the original deed is missing.
What should the solicitor do?
A) Proceed and assume it no longer applies
B) Apply to the Upper Tribunal to remove the covenant
C) Ignore it if the seller confirms compliance
D) Request a copy from the Land Charges Department
D) Request a copy from the Land Charges Department
Explanation:
A restrictive covenant must be verified, as it may affect the buyer’s ability to use the property.
A buyer’s solicitor finds that a positive covenant exists, but the chain of indemnity covenants was broken several transactions ago.
What is the most appropriate action?
A) Advise the buyer to refuse to give an indemnity covenant
B) Require the seller to reinstate the indemnity chain
C) Assume the covenant does not bind the land
D) Obtain indemnity insurance before proceeding
D) Obtain indemnity insurance before proceeding
Explanation:
If the chain of indemnity covenants is broken, indemnity insurance is the safest option before proceeding.
