Unit 3 Topic 5 Flashcards
Practical aspects of property and mortgage law
Which of the following pieces of information in respect of a plot of registered land would be found at the Proprietorship Register? (5.2.1)
A. A plan of the property
B. Any beneficial easements
C. The class of the title
D. Restrictive covenants
C. The class of the title
The class of title will be set out in the Proprietorship Register.
In relation to registered land, a search of the Charges Register can be used to: (5.2.1)
A. Verify the class of title
B. Confirm the ownership of boundaries
C. Confirm the name and address of the estate and the owner
D. Check for any negative easements
D. Check for any negative easements
Details of negative easements can be found in the Charges Register.
Which of the following is true of easements? (5.3.1)
A. They are for the benefit of the owner
B. The land that enjoys the right over the other site is known as the servient tenement
C. They cannot be removed by a court
D. The two plots must be close to each other
D. The two plots must be close to each other
An easement must involve two properties and the plots must be close to each other.
Wendy lives in the end house of a terrace. Adjacent to the property is a wall which Wendy has an obligation to maintain. This is known as: (5.3.2)
A. A restrictive covenant
B. An easement
C. A positive covenant
D. Personalty
C. A positive covenant
A positive covenant states what an owner-occupier must do.
Which of the following would be recorded in the Charges Register at the Land Registry? (5.2.1)
A. Details of the land and its title number
B. Name and address of the estate and the owner
C. Restrictive covenants
D. Class of title
C. Restrictive covenants
Restrictive covenants can be found in the Charges Register. These are conditions that state what the property owner must do, for example, the requirement to maintain a front garden and not turn it into a parking space.
How can a non-owning spouse’s interest in unregistered land be protected? (5.2.2)
A. By entering the appropriate details in the Charges Register at the Land Registry
B. By registration through the Land Charges Registry
C. By lodging relevant details with the title deeds
D. By registration through the Local Land Charges Registry
B. By registration through the Land Charges Registry
Be careful with this question and note that it refers to ‘unregistered land’. Notification of a spouse’s interest in unregistered land is made at the Land Charges Registry.
Margo has applied for a further advance from her lender. Since she took out her original
loan ten years ago, she has married Gerry (who is now a party to the mortgage) Her 20-year-old daughter Barbara has now left home but often visits for the weekend. From whom, if anyone, will the lender require a consent-to-mortgage form? (5.5)
A. Barbara
B. Margo
C. Gerry
D. No one
D. No one
A lender needs to exercise great care because it may later be bound by the occupational rights (ie the overriding interest) of a person who was not revealed at the time of application and who did not sign a consent to mortgage form. In this question, a consent-to-mortgage form is not required from anyone, because Gerry is now a party to the mortgage and Barbara is not in permanent occupation.
Which of the following is true of easements? (5.3.1)
A. An easement attaches to the landowner, not the land itself.
B. An easement cannot force a landowner to fence the land
C. Encirclement of a piece of land can lead to an easement by necessity
D. They cannot be removed by the courts
C. Encirclement of a piece of land can lead to an easement by necessity
Encirclement means that a landowner has ownership of a piece of land that surrounds another person’s property. The property must have access, so an easement of necessity is created, which allows the person to cross the encircling land to access their property.
What right, if any, does the lender have if a compulsory purchase order is made on a mortgaged property? (5.7)
A. Call in the whole mortgage debt
B. Increase the interest rate
C. Change the conditions of the mortgage deed
D. No action may be taken
A. Call in the whole mortgage debt
The mortgage deed sets out the terms and conditions of the mortgage, which comprises the rights the lender has and what the borrower must do. One of the lender’s rights is that if a compulsory purchase order is made, the whole debt can be ‘called in’.
Martyn has put his house on the market. He is registered as the owner at the Land Registry, but at the time of registration he was unable to provide the title deeds or other proof of title. What form of title does Martyn have? (5.2.1)
A. Qualified
B. Possessory
C. Absolute
D. Limited
B. Possessory
Martyn has possessory title, which means that although he is registered as the owner, there is no protection to stop someone else claiming that they owned it before it was registered.
In relation to the lender’s rights, when it makes a further advance, a new mortgage deed: (5.7)
A. is not required.
B. is required in all circumstances.
C. must be issued only where total borrowing exceeds 85% loan-to-value.
D. must be offered to the borrower and issued where the borrower requires it.
A. is not required.
The mortgage deed sets out the terms and conditions of the mortgage, which comprises the rights the lender has and what the borrower must do. One of the lender’s rights is that further advances can be made, without the need for a new mortgage deed.
If details of easements come to light during the legal work on a property purchase, which of the following actions could the lender take? (5.6)
A. Insist on a mortgage indemnity guarantee policy.
B. Reduce the amount of the offer.
C. Require defective title insurance.
D. Arrange for the easements to be
removed.
B. Reduce the amount of the offer.
If the valuer of a property is aware of any easements, their effects will be included in the valuation. If they only come to light later, for example during the legal work, then the valuation may need to be reviewed and the lender may not be prepared to lend as much as they would have done.
Which of the following can be described as an easement? (5.3.1)
A. The right to purchase a lease
B. A right of way
C. A shared boundary
D. A restrictive covenant
B. A right of way
An easement is a right that one property has over the land of another. Examples include rights of way, rights to light or prospect (the view), rights to ventilation, or even rights to hang a sign on another person’s house.
Jan and Dean are considering the purchase of a Victorian semi-detached house, which is close to a medieval church. Due to the location of the property, the couple’s solicitor is likely to recommend: (5.3.3)
A. Defective title indemnity cover
B. Chancel repair liability insurance
C. A drainage search
D. A specialist mining search
B. Chancel repair liability insurance
The owner of a property may not know whether the PCC has the right to register a notice on the property. To address the risk of a potential liability, chancel repair liability insurance can be arranged.
