Topic 5 Practical Aspects Of Property & Mortgage Law Flashcards
1
Q
What are the aims of Land Registration?
A
Provide an ^ detail of land ownership
1. Accurate
2. Up-to-date
3. Continuing
2
Q
Land Registration also may alert prospective buyers to what?
A
- Rights 3rd parties may have over the land
- Obligations owners may have over land
3
Q
In Scotland land registration is the responsibility of who?
A
Registers of Scotland
4
Q
These are what in relation to registered land?
- Compulsory registration of property at transfer
- Lease over 7 years
- Legal mortgage created on it
- Unregistered land owner registers it voluntarily
A
Types of first registration of land
5
Q
The 3 registers for registered land are?
A
- Property Register
- Proprietorship Register
- Charges Register
6
Q
Which of the 3 registers for registered land covers these?
- The land
- Title Number
- Plan of the property (easements that are beneficial to the property)
A
Property Register
7
Q
Which of the 3 registers for registered land covers these?
- Name & address of the estate & owner
- Nature of the title
- Date of registration
- Property restrictions on ownership
- Class of title
A
Proprietorship Register
8
Q
Which of the 3 registers for registered land covers these?
- Rights of any mortgagee
- Non-owning spouse’s interest (under Family Law Act 1996)
- Negative easements & restrictive covenants
A
Charges Register
9
Q
What class of title is the below?
- Clear title is established
- Most secure & desirable
- Freehold & Leasehold (where the lease is at least 21 years)
A
Absolute
10
Q
What class of title is the below?
- Only applies is lease is more than 7 years
- Freehold is in doubt as the Freeholder has not produced evidence of ownership
A
Good Leasehold
11
Q
What class of title is the below?
- Applicant cannot produce the title deeds/Proof of title
- Must apply using copy documents & statutory declarations. Explain why documents cannot be produced
A
Possessory
12
Q
When assessing a mortgage on a property with Possessory title what type of insurance would a lender look to obtain?
A
Indemnity insurance
13
Q
What class of title is the below?
- Not a form of title but can lead to occupier gaining title to the land
A
Squatters Rights
14
Q
Squatters Rights is also know as?
A
Adverse Possession
15
Q
What type of land would this relate to for Squatters Rights (Adverse Possession)?
- Intentional occupation of land for 12 years with no objection legal owner become Possessory owner
- ## If Possessory title is held for 12 years & no counter claims are received title can be upgraded to Absolute
A
Unregistered Land
16
Q
What type of land would this relate to for Squatters Rights (Adverse Possession)?
- Land intentionally occupied for 10 years without objection from legal owner
- If no objection is received on application they become Absolute owner
- Usually refused if registered owner opposses the application
A
Registered Land
17
Q
What class of title is the below?
- Very rare
- Occurs when there is a deficit in the title Absolute & Good Leasehold cannot be guaranteed
A
Qualified title
18
Q
Although not a legal requirement. Within how many days should a transfer of registered land take?
A
30 days
19
Q
The 30 day period of transfer legal land is called the what?
A
Priority period
20
Q
The “Conveyancer” is who?
A
Person who transfers the legal ownership of a property
21
Q
What happens if property registration is not registered within 2 months of a transfer
A
Legal transfer becomes void
22
Q
When a Conveyancer is establishing good title to see if anything might affect the sale this is called “Root of Title” but how far back would they search?
A
15 years at least
23
Q
What type of land charge is this?
- Legal mortgages not protected by title deeds (Puisne Mortgage)
- Second & subsequent charges
A
Class C (1)
24
Q
What type of land charge is this?
Notification of spouse’s interest from provisions of Family Law Act 1996
A
Class F
25
What does "Running with the Land" mean?
Rights and obligations relating to a property that are passed on to subsequent owner. **Owners are subject to these conditions**
26
What is an "Easement"?
A right that one property has over the land of another
27
These are what in relation to "Easements"?
- An Easement must involve **2 properties**
- Easement attaches to & is the benefit of the land not the owner
Points relating to Easements
28
Relating to Easements the land that has rights over another is called?
Dominant tenement
29
Relating to Easements the land over which the right is held is called?
Servient tenement
30
Positive Easements do what?
Give the owner the right to do something on their neighbours land
**Right of Way**
31
Negative Easements do what?
Gives the land owner the right to stop the neighbour doing something on their own land which would have an negative impact on the land owner's property
32
What is "Right of Light"?
The right an existing property owner has to light.
E.G can stop a developer building too close to their property on adjacent land so they can secure light to their own property
33
What is an "Easement by Necessity"?
Easement that is in place because it enables the land owner to do something essential
34
These are what in relation to "Easements"?
- Same person takes control of dominant & servient lands
- Easement reaches formal expiry
- Ended by dominant land owner through negotiation
How an "Easement" is removed
35
What are "Covenants"?
Restrictions place by a landowner on those who subsequently buy or lease the land
36
What is the person who owns the "Covenant" known as?
The beneficiary (as the Covenant is designed to benefit them)
37
What is a "Positive Covenant"?
States that a subsequent owner **must do something**
38
What is a "Restrictive Covenant"?
States that a subsequent owner **must not** do something
39
Which type of Covenants "runs with the land"?
Positive or Restrictive
Restrictive
40
The first person subject to a positive covenant may still be subject to it so what might they do if they sell the property?
Add a clause to the deed making a further sale conditional on the covenant being included
41
These are what in relation to "Restrictive Covenants"
- Maintain a front garden (do not covert to a parking area)
- Do not enclose a front garden
- Do not keep caravans on the property
- Seek permission from a builder to build an extension or add a front porch
Developer imposed "Restrictive Covenants"
42
What is "Chancel Repair Liability"?
Repair to a church's chancel (area around the alter) through **tithes (Levies)**
43
As land was sold by the church it become the responsibility of the new owners for chancel repairs. The new owners were know as?
Lay Rectors
44
Parochial Church Councils (PCC) can choose who can pay for chancel repairs.
True? or False?
True
45
How do Parochial Church Councils (PCC) provide warnings a property has chancel repair liability?
1. Must register notice of liability to the land registry
2. **(Unregistered property)** must have a "Caution against first registration" will be informed when the property is sold & can note interest on land registry entry
46
In relation to "Chancel Repair Liability" the below are what?
- Register property is sold without notice of caution registered by a PPC before sale
- Unregistered property without a caution entered before it's first registration
How a Parochial Church Councils (PCC) loses it's right to register a notice of caution
47
How can a property owner protect themselves against Chancel Repair Liability?
Take out Chancel Repair Liability insurance
48
What is a "Title Guarantee"?
A contract for the sale of a property
49
These are what?
- With full title
- With limited title
- With no guarantee
Types of property guarantee
50
What type of title guarantee is the vendor giving?
- Sell free from any charges & encumbrances
- Free from 3rd parties
Full title guarantee
51
What type of title guarantee is the vendor giving?
- Since they have owned the property they have not created any charge or encumbrances that still subsit over it
- As far as they are aware nobody else has either
Limited title guarantee
52
The Family Law Act (1996) updated to the Civil Partnership Act 2004 is important to who?
Non property owning spouses
53
How do Non property owning spouses register an interest in a property?
- (Registered property) Entry on the charges register at land registry
- (Unregistered property) Land Charges Register
54
What does Family Law Act (1996) updated to the Civil Partnership Act 2004 do for a spouse?
Enables them to continue to occupy a property or provide them to access to occupy the property
55
What form might a Non-owning spouse who would not be a party to a mortgage be asked to sign
**Consent to mortgage form** waiving rights of residence
56
What would a Non-owning spouse swear before in Scotland renouncing their rights to a property?
Notary Public
57
What might a lender need to watch out for where a consent to mortgage forms are concerned?
Anybody with **occupational rights (overriding interest)** of anyone who did not sign a "Consent to Mortgage Form"
58
What must a lender do when considering matrimonial & other interests?
1. Search for register of charges
2. Ask about adult occupants
3. Obtain a consent to mortgage
59
These are what in relation to a lenders option after a title search?
- Take steps like search of relevant registers, consent to mortgage
- Declining to lend
- Insist of property revaluation
- Take out indemnity insurance
Steps that a lender can take if title issues occur
60
Indemnity insurance for a defective title is likely to be charged at what?
0.10% of the property value
61
Whose rights are these under the mortgage deed?
- Levy charges
- Call in the debt
- Insure the property
- Meet statutory conditions
Lender's rights
62
Whose rights are these under the mortgage deed?
- Let the property
- Transfer the mortgage
- Make further advances
Lender's rights
63
Whose rights are these under the mortgage deed?
- Make payments
- Insure the property
- Comply with legislation
- Seek consent before letting
Borrower's rights
64
Whose rights are these under the mortgage deed?
- Repair & access
- Title Conditions
- Leasehold property
Borrower's rights
65
Where are rights over unregistered landed registered?
Land Charges Registry
66
Is a vendor deemed to covanent if they only can offer a limited title guarantee?
Yes they can sell if they either a full title guarantee or a limited title guarantee
67
Once a Parochial Church Council (PCC) has registered a Chancel Repair Liability on a property. Who would be liable just future owners or all future owners including the current owner?
All future owners including the current owner
