TOPIC 7 - The legal aspects of property purchase Flashcards
After how many years of training and qualifying employment can a conveyancer apply for a full licence?
Two years.
Three years.
Five years.
Five years.
Which of the following can be protected by defective title insurance?
The purchaser only.
The lender only.
Both the lender and purchaser.
Both the lender and purchaser.
Defective title insurance can be arranged to protect the lender, the purchaser or both.
A lender’s solicitor carries out a bankruptcy search on the vendor. What is the purpose of the search?
To check the vendor’s overall credit rating.
To check whether the vendor is entitled to receive the proceeds of the sale.
To check whether the vendor has ever been bankrupt.
To check whether the vendor is entitled to receive the proceeds of the sale.
A search of which register at the Land Registry would identify restrictions attaching to a property?
Land Charges Registry.
Covenant and Easement Registry.
Local Land Charges Registry.
Local Land Charges Registry.
A Land Charges Registry search is carried out if the land is unregistered to check for puisne mortgages or spousal interests. There is no Covenant and Easement Registry search.
A solicitor has drawn up a draft contract. Which of the following would not be included? Select all the correct answers.
a) Property details.
b) Agreed sale price.
c) Amount of the mortgage.
d) Deposit required.
e) Buyer details.
f) Insurance details.
c) Amount of the mortgage.
f) Insurance details.
Which document is a formal and binding contract between mortgagee and mortgagor?
The purchase contract.
The mortgage deed.
The mortgage offer.
The mortgage deed.
Which of the following statements is true in relation to the house-buying process?
No further searches are required once contracts have been exchanged.
The legal charge for the mortgage takes effect at completion.
The buyer’s solicitor files a stamp duty land tax return and pays the applicable tax shortly before completion.
The legal charge for the mortgage takes effect at completion.
After exchange of contracts, the buyer’s solicitor carries out a further bankruptcy search and final Land Registry searches to make sure nothing has changed and that the report on title is consistent with the application details. The stamp duty land tax return is filed and the tax paid after completion.
Once in force, the contents of a mortgage deed can be varied:
on the instruction of the mortgagee without the consent of the mortgagor.
on the instruction of the mortgagor without the consent of the mortgagee.
only with the consent of both parties to the contract.
only with the consent of both parties to the contract.
What type of insurance must a solicitor have in case of claims of negligence against them?
Public liability insurance.
Partnership insurance.
Law Society insurance.
Professional indemnity insurance.
Professional indemnity insurance.
Why is it important for the lender to be provided with certificate of title?
For insurance purposes.
To meet record-keeping requirements.
If the title is defective, the lender may not be able to exercise its rights over the property.
If the title is defective, the lender may not be able to exercise its rights over the property.
Town planning issues will be highlighted by a Local Land Charges Registry search. True or false?
True False
False. They would be shown in enquiries of the local authority
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 seller’s property information form.
Disclosure form.
Key features illustration.
The seller’s property information form.
Which of the following would not be contained in a draft sale contract?
Details of the property being sold.
The amount of the mortgage loan.
Details of the buyer and vendor.
The agreed deposit.
The amount of the mortgage loan.
Which of the following processes is not carried out between exchange of contracts and completion?
The vendor’s solicitor obtains a settlement figure to repay any outstanding mortgage on their property.
The buyer’s solicitor applies for release of mortgage funds.
The buyer signs the mortgage deed.
The vendor completes a ‘seller’s property information form’.
The vendor completes a ‘seller’s property information form’.
The legal charge for the mortgage takes effect:
from completion.
from the point where the solicitor registers the new owner at the Land Registry.
from the point where contracts are exchanged.
when the lender issues its offer of advance.
from completion.
