Transfer of the freehold estate

Question 1

How can the transfer of a freehold estate be achieved?

Answer 1

*Sale

*Gift

*Will

*Operation of law - automatic transfer in certain situations e.g. bankruptcy.

Question 2

What are the three stages of a freehold transaction?

Answer 2

1. Exchange of contracts
2. Completion of the Deed
3. Registration

Question 3

What happens at pre-exchange?

Answer 3

• When an offer has been accepted and both parties agree in principle, the buyer will normally make various enquiries before committing to the purchase by the formal exchange of contracts.
• This will involve carrying out various searches and confirming that the seller actually owns the land.
• Buyer will want to find out if any proprietary rights burden the land.

Question 4

What happens at exchange of contracts?

Answer 4

• Once the buyer is happy to commit to the purchase, the parties will enter into a binding contract in which they agree the price and other terms.
• At this point, the parties become legally committed to buy/sell. The buyer usually pays the deposit at this stage.

Question 5

What are the requirements for a binding contract?

Answer 5

1. The contract must be in writing
2. It must contain all the expressly agreed terms
3. It must be signed by both parties.

Question 6

What is a deed known as in registered and unregistered land?

Answer 6

The deed is known as a conveyance in unregistered land or a transfer in registered land.

Question 7

What are the requirements for a valid deed?

Answer 7

1. A deed must make clear on its face that it is intended to be a deed.
2. Must be validly executed.
3. Must be delivered.

Question 8

When does legal title pass when unregistered land is being transferred?

Answer 8

When the deed is signed.

Question 9

When does registered land transfer?

Answer 9

Once registration has taken place.

Question 10

How long does the new owner have to register unregister land?

Answer 10

In relation to unregistered land, the new owner must register the land within two months of completion, otherwise the legal title will revert back to the seller.

Question 11

How do you make it clear on the face of the document that it is intended to be a deed?

Answer 11

Labelling the document as a deed.

Question 12

How is a deed validly executed?

Answer 12

Valid execution means that where the grantor (i.e. the seller) is an individual, then the deed must be signed by the seller in the presence of a witness.

The witness needs to sign the deed to confirm that he or she has witnesses the signing of the deed by the individual entering into that deed. This is described as `attesting’ the signature in the statute.

Question 13

How is a deed delivered?

Answer 13

In practice, delivery takes place by dating the document, which the parties’ solicitors will do.