Transfer of a Freehold Estate Flashcards
Question 1:
Which of the following is the most common method of transferring a freehold estate?
A) Gift
B) Sale
C) Will
D) Operation of Law
B) Sale
📌 Explanation: The majority of freehold transfers occur through sale, requiring legal formalities.
What is title in the context of freehold transfer?
A) The physical land
B) The legal ownership of land
C) A personal right to use land
D) A lease agreement
B) The legal ownership of land
📌 Explanation: Title refers to ownership of an estate, not the physical land itself.
Which of the following is not a formal way to transfer a freehold estate?
A) Exchange of contracts
B) Registration
C) Completion of the deed
D) Handing over the keys
D) Handing over the keys
📌 Explanation: Legal title transfers only through a valid deed and registration, not simply by handing over keys.
Which law sets the requirements for a valid contract for the sale of land?
A) LRA 2002
B) LPA 1925
C) LP(MP)A 1989, s 2
D) Law of Trusts Act 1996
C) LP(MP)A 1989, s 2
📌 Explanation: LP(MP)A 1989, s 2 states that a land contract must be in writing, include all terms, and be signed by both parties.
At which stage does the buyer legally acquire the freehold estate in registered land?
A) Exchange of contracts
B) When the seller moves out
C) On completion of the deed
D) Upon registration
D) Upon registration
📌 Explanation: In registered land, legal title only passes after registration at HM Land Registry (LRA 2002, s 27(1)).
Lucy agrees to buy a house from Tom. She pays a 10% deposit, and they sign a contract. A week later, Tom finds another buyer offering more money and refuses to complete the sale.
What are Lucy’s rights?
A) She can force the sale through specific performance.
B) She must find another property.
C) She can demand double her deposit back.
D) She has no legal rights until registration.
A) She can force the sale through specific performance.
📌 Explanation: After exchange of contracts, the deal becomes legally binding, allowing Lucy to enforce it through specific performance.
Jake buys an unregistered freehold estate and completes the transfer deed. He forgets to register it within two months. What happens?
A) He remains the owner but must pay a penalty.
B) He loses legal title, and ownership reverts to the seller.
C) The Land Registry automatically registers it for him.
D) He can register it at any time without consequences.
B) He loses legal title, and ownership reverts to the seller.
📌 Explanation: Under LRA 2002, ss 4 & 6, unregistered land must be registered within two months. If not, legal title reverts to the seller.
Which of the following is not a method of transferring a freehold estate?
A) Gift
B) Lease
C) Will
D) Operation of law
B) Lease
📌 Explanation: A lease does not transfer the freehold estate; it only grants possession for a fixed period.
Which stage of a freehold sale makes the transaction legally binding?
A) Exchange of contracts
B) Payment of deposit
C) Signing a mortgage
D) Moving into the property
A) Exchange of contracts
📌 Explanation: Once contracts are exchanged, the parties are legally committed to the transaction.
Which document is used to legally transfer a freehold estate?
A) Lease agreement
B) TR1 form (Transfer Deed)
C) Mortgage agreement
D) Restrictive covenant
B) TR1 form (Transfer Deed)
📌 Explanation: In registered land, the TR1 form is the standard deed of transfer required for legal ownership change.
Which legislation states that a deed must be used to transfer a legal estate?
A) LRA 2002
B) LP(MP)A 1989, s 1
C) LPA 1925, s 52(1)
D) Conveyancing Act 1990
C) LPA 1925, s 52(1)
📌 Explanation: LPA 1925, s 52(1) states that a legal estate can only be transferred via a deed.
Which of the following is not required for a valid land contract under LP(MP)A 1989, s 2?
A) The contract must be in writing
B) The contract must be witnessed by a solicitor
C) The contract must contain all agreed terms
D) The contract must be signed by both parties
B) The contract must be witnessed by a solicitor
📌 Explanation: A solicitor’s witness is not a legal requirement, but both parties must sign the contract, which must be in writing and contain all terms.
Which event typically happens first in the process of selling a freehold estate?
A) Completion of the deed
B) Exchange of contracts
C) Registration at the Land Registry
D) Mortgage payment by the buyer
B) Exchange of contracts
📌 Explanation: Exchange of contracts occurs first, making the sale legally binding.
Which law states that a legal title in registered land only transfers upon registration?
A) LRA 2002, s 27(1)
B) LPA 1925, s 52(1)
C) LP(MP)A 1989, s 2
D) Land Charges Act 1972
A) LRA 2002, s 27(1)
📌 Explanation: LRA 2002, s 27(1) states that legal title does not pass in registered land until registration is completed.
If a buyer fails to register unregistered land within two months, what happens?
A) The buyer is fined but retains ownership
B) The transaction is automatically completed
C) The legal title reverts to the seller
D) The Land Registry registers the land automatically
C) The legal title reverts to the seller
📌 Explanation: Under LRA 2002, ss 4 & 6, failure to register unregistered land within two months means legal title reverts back to the seller.
What happens at the point of completion in a freehold sale?
A) The seller moves out, and the buyer collects the keys
B) The buyer registers the land at HM Land Registry
C) The contract becomes legally binding
D) The buyer pays the deposit
A) The seller moves out, and the buyer collects the keys
📌 Explanation: Completion is the point where the full payment is made, and the buyer takes possession.
What is the main function of the Land Registry?
A) To oversee mortgage agreements
B) To record land ownership and legal interests
C) To approve leasehold agreements
D) To settle property disputes
B) To record land ownership and legal interests
📌 Explanation: The Land Registry keeps a national record of who owns each piece of land in England and Wales.
Ben wants to buy a registered freehold house. He exchanges contracts with the seller, signs the TR1 transfer deed, and pays the full purchase price. However, he forgets to register the transfer at the Land Registry.
Who is the legal owner of the property at this point?
A) Ben, since he paid for the property
B) The seller, because registration has not taken place
C) The Land Registry, which holds title temporarily
D) Ben and the seller jointly
B) The seller, because registration has not taken place
📌 Explanation: In registered land, legal ownership does not pass until registration is complete (LRA 2002, s 27(1)).
Emily is buying an unregistered freehold property. The seller signs the deed of transfer, and Emily completes payment. However, Emily does not register the land within two months.
What happens next?
A) Emily remains the legal owner
B) The legal title reverts to the seller
C) The Land Registry automatically registers the land for her
D) Emily must pay a penalty fee but retains ownership
B) The legal title reverts to the seller
📌 Explanation: In unregistered land, failure to register within two months means the title reverts to the seller (LRA 2002, ss 4 & 6).
James owns a registered freehold estate. He agrees to sell the property to Sarah. They exchange contracts, meeting all the LP(MP)A 1989, s 2 requirements. Before completion, James unexpectedly dies without a will, and his estate is managed by an administrator. Sarah insists the sale should continue because the contract is legally binding, but James’ brother, Mark, claims ownership reverts to him as next of kin.
Who is entitled to the property, and why?
A) Sarah, because she has an enforceable contract and can seek specific performance
B) Mark, because James’ death cancels the contract, and next of kin inherit under intestacy rules
C) The administrator of James’ estate, who can choose whether to proceed with the sale
D) Neither party, as legal title remains uncertain until the court decides
Answer: A) Sarah, because she has an enforceable contract and can seek specific performance
📌 Explanation:
Once contracts are exchanged, the sale becomes legally binding.
Under estate law, contracts entered into before death are still enforceable against the deceased’s estate.
Sarah can enforce the contract via specific performance, compelling the administrator to complete the transfer on James’ behalf.
Mark has no automatic ownership claim, as title does not revert to heirs until the estate is settled.
