Topic 7 - The Legal Aspects of Property Purchase

Question 1

A licensed conveyancer:

Answer 1

A person who has spent at least two years in practical training with a solicitor or licensed conveyancer and has passed a number of specialist exams.

Question 2

Solicitors carry which insurance against professional negligence?

Answer 2

Professional indemnity insurance

Question 3

What searches are carried out by the conveyancer?

Answer 3

• Land Registry search - property, proprietorship and charges registers
• Land Charges Registry search
• Local Land Charges Registry Search and Enquiries of the Local Authority
• Bankruptcy search
• Commons registration search

Question 4

Puisne mortgage

Answer 4

One where the lender does not have the title deeds as security for the mortgage. The lender holding the deeds is considered to be the first-charge holder. A puisne mortgage has the same position as a second-charge.

Question 5

A property information form is completed by who?

Answer 5

The vendor

Question 6

The vendor’s solicitor prepares the draft sales contract. What does this document specify?

Answer 6

• T&Cs of the purchase
• Buyer and vendor details
• The property being sold
• Agreed sale price
• Agreed deposit to be paid of exchange of contracts

Question 7

It is customary for a deposit of how much to be paid by the buyer to the vendor’s solicitor after the exchange of contracts?

Answer 7

10% but a lower one may be accepted. In some cases, no deposit is required at this stage.

Question 8

What has to be done after completion of a purchase?

Answer 8

• File a stamp duty land tax return within 30 days of the effective date of transaction and pay the applicable tax
• Apply for a registration of the new owner at the Land Registry
• Send a bill to the buyer to cover conveyancing fees and disbursements