Topic 7 The Legal Aspects Of Property Purchase Flashcards
A licenced conveyor must have met what criteria that has been recognised by recognised conveyancing organisation
- Study
- Qualification
- Experience
These are what in relation to an advocate or solicitor?
- Purchase/sale transaction
- Mortgage itself & related questions
- Ensuring the property is covered by life assurance
Questions that a Solicitor/Conveyancer may be asked
Fees for a legal service such as title searches cannot be refunded once this service has been provided?
True or False
True
What type of insurance would a Solicitor/Conveyancer hold to protect against claims of negligence?
Indemnity insurance
In eastern Scotland some Scottish solicitors act as selling agents for houses. Why is this attractive for a vendor?
Single firm is acts as selling & legal advice which can save on costs
What is involved in an “Investigation of Title”?
- Enquires to ensure a property is what it is claimed to be
- Free from restrictions that would affect the sale
A solicitor/Conveyancer would produce a “Certificate of Title” what does this process find out?
- That the vendor is the legal owner
- Vendor is entitled to sell the property
What could a defective title mean for a buyer?
They could not have purchased what they thought they had
What could a defective title mean for a lender?
They may not be able to rights over the property (affects it’s security)
How could an insurance company protect against a defective title?
Can arrange specific or block policies to cover something a solicitor may fail to identify
What search is this that a solicitor/conveyancing may carry out?
- Carried out if land is registered & involves a search of the property, proprietorship & charges registers
Land Registry Search
What search is this that a solicitor/conveyancing may carry out?
Carried out if the land is unregistered to check for pusine mortgages or spousal interest
Land Charges Registry Search
What is “Professional Indemnity insurance”?
Insurance taken out to cover legal expenses if they are alleged to have negligent
What search is this that a solicitor/conveyancing may carry out?
- Identifies details of obligations & restrictions attaching to the property. (Transferred to Land Registry)
- Enquiries to the local authority identify road changes, town planning schemes etc affecting property & land
Local Land Charges Registry search & Enquiries of the Local Authority
What search is this that a solicitor/conveyancing may carry out?
- Carried out to ensure applicant is not bankrupt
- Check is vendor has right to receive sale proceeds
Bankruptcy Search
What search is this that a solicitor/conveyancing may carry out?
Check that the land is not common land
Commons Registry search
What is a “Puisne Mortgage”?
Mortgage where the lender on Unregistered land does not have the title deeds as security for the mortgage
For a lender who holds the title deeds on unregistered land is considered to be first charge holder
True or False
True
Is a “Puisne Mortgage” holder in the same position as a first charge holder?
No
They are viewed as second or subsequent charges holder
What is “Spousal Interest”?
Non-owning spouse has lodged an interest in the property using Family Law Act 1996
In the cases of a re-mortgage it is common for a lender to allow a borrower’s Solicitor/Conveyancer to arrange “Search Indemnity Insurance” rather than carry out standard property searches why is this done?
Covers the homeowner & lender financial consequences that might have arisen as a result of the searches required
These are what in relation to a “Law Society Property Information Form”?
- Property boundaries & responsibility for maintenance
- Occupiers
- Environmental
- Disputes with neighbours
- Notices affecting the property
What is included in on the form
These are what in relation to a “Law Society Property Information Form”?
- Guarantees & Warranties
- Insurance on the property
- Parking arrangements (including rights for other vehicles)
- Arrangements & rights relating to property (Including informal arrangements)
What is included on the form
These are what in relation to a “Law Society Property Information Form”?
- Changes to the property
- Planning & Building control matters
- Fittings included in sale or fixtures that are to be removed
- Other issues to do with the mechanics of the sale
What is included on the form
What are “Fixtures”?
Thinkfixed
Items that are permanent additions to the property
Items that are
- Screwed in
- Nailed down
- Plumed in
Is it normal or not normal for “Fixtures” to be included in the sale?
Normal
What are “Fittings”?
Items that it would be reasonable for the vendor to take with them
- Carpets
- Furniture
It is the responsibility of which Solicitor/Conveyancer to ensure the mortgage deed is ready for completion?
Buyer’s solicitor
It is the responsibility of which Solicitor/Conveyancer to ensure the draft sales contract is ready for completion?
Vendor’s solicitor
This is what in relation to a “Draft Sales Contract”?
- Terms & conditions of the purchase
- Buyer & Vendor details
- Property being sold
- Agreed sale price
- Agreed deposit to be paid
What is included in the Draft Sales Contract
Once contracts have been exchanged it is customary for a deposit of how much purchase price to be paid to the Vendor’s solicitor?
10%
In Scotland the completion date is know as?
Date of Entry
In Scotland the final acceptance of an offer to purchase is called what?
The missives
Who has to complete these tasks after completion of a property transfer?
- File a “Stamp Duty Land Tax” return on (effective) completion
- Apply for registration of the new owner at the land registry
- Mortgage to be noted at the land registry if applicable
- Send a bill to the buyer to cover conveying fees & disbursements
Buyer’s solicitor/conveyancer
Within how many days must a “Stamp Duty Land Tax” return must be completed?
14 days
Expenses paid on the buyers behalf such as SDLT and registration fees are called what are called what?
Disbursements
A vendor who is an undischarged bankrupt is entitled to receive the proceeds of a sale?
True or False
False
Their assets are controlled by an insolvency practitioner
The purchaser is the only person who could be protected by defective title insurance?
True or False
False
It could protect a buyer and seller
