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Property > Untitled spreadsheet - Sheet1 > Flashcards

Untitled spreadsheet - Sheet1 Flashcards

1
Q

What does caveat emptor mean?

A

Buyer beware = buyer takes property as they find it

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2
Q

2 exceptions to caveat emptor?

A

Misrepresentation, latent incumbrances & title defects

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3
Q

Where can misrepresentations arise?

A

Estate agents particulars of sale or auction particulars, remarks made by seller on viewing, any communication from seller or seller’s solicitors

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4
Q

What happens if seller makes misrepresentations?

A

Seller cannot mislead buyer by concealing physical defects or answering dishonestly. If buyer is induced by such conduct then remedies in common law for misdescription, or under Misrepresentation Act, or contract of sale

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5
Q

What is a latent incumbrance?

A

Something which is not apparent or cannot be discovered when inspecting the property

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6
Q

When is seller under duty to disclose latent incumbrances?

A

When he is aware or has a means to know about them, acting reasonably and diligently

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7
Q

What is a defect in title?

A

A matter that brings into question the seller’s ownership of the property, or the rights & burdens that affect the property

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8
Q

When is a Homebuyer report suitable?

A

Most properties in reasonable condition aged less than 150 years

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9
Q

When is a full structural survey suitable?

A

Especially where property is listed, has had renovations or extensive alterations are planned

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10
Q

What is a capital repayment mortgage?

A

Borrower repays the capital sum by monthly payments, together with the interest amount added each month. At the end the loan is paid off in full

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11
Q

What is interest only mortgage?

A

Borrower only pays the interest on the loan. Capital is generally only repaid by sale of the property but if the value goes up they may have equity

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12
Q

How many days do you have to pay SDLT in England?

A

14 calendar days

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13
Q

How many days do you have to pay Land Transaction Tax in Wales?

A

30 calendar days

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14
Q

Who deduces title?

A

Seller

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15
Q

Who investigates title?

A

Buyer

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16
Q

What are the title documents?

A

Land Registry official copies of register, Land Registry title plan, Copies of any documents referred to but not already extracted in official copies of register

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17
Q

What 4 issues must be considered if a property has the benefit of a right of way?

A

Registration of the burden, adequacy, maintenance, adoption

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18
Q

Why must we consider registration of the burden of a right of way?

A

To be enforceable, the burden must also be registered against the land over which the right of way passes (servient land)

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19
Q

Why must maintenance be considered if a property benefits from a right of way?

A

The person using the right of way is obliged in common law to contribute towards its maintenance

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20
Q

What does the class of title mean?

A

Indicates how satisfied the Land Registry is with the registered proprietor’s proof of ownership to the property

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21
Q

What is qualified title?

A

When there is a specific defect in the title, e.g. deed known to contain covenants or easements missing on first registration

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22
Q

What is possessory title?

A

When registered proprietor has shown they have physical possession of property, but has no title deeds or is claiming through adverse possession (‘squatters’ rights)

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23
Q

What is good leasehold title?

A

When the leaseholder cannot provide evidence of landlord’s title to the land. Can often be upgraded easily if landlord’s title has been registered since the grant of the lease.

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24
Q

How to follow up if property does not have title absolute?

A

Report it to client & explain what it means, check mortgage lender’s requirements, consider obtaining title indemnity insurance to cover risks, consider possibility of upgrading to title absolute if missing docs can be found

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25
Q

How can legal title be held by co-owners?

A

As joint tenants only

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26
Q

How can beneficial title be held by co-owners?

A

As joint tenants or as tenants in common

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27
Q

How can you tell if beneficial interest is held as TIC?

A

Land Registry will add a restriction to the proprietorship register

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28
Q

What is the right of survivorship?

A

Deceased joint tenant’s interest in property accrues to the remaining co-owner (i.e. it doesn’t pass via their will)

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29
Q

What does seller need to do if they are a surviving beneficial tenant in common?

A

Appoint a second trustee (often solicitor) to sign contract & execute transfer deed with them so that buyer overreaches beneficial interests

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30
Q

What does buyer need to do to be sure that property will be sold free of mortgage?

A
  1. check early on that seller will have sufficient funds to clear the mortgage, 2. ensure there is a term of the contract before exchange that mortgage will be redeemed on completion, 3. obtain appropriate undertaking from seller’s solicitor to redeem mortgage from proceeds of sale on completion
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31
Q

What entries will there be in the Register if there is a mortgage/charge?

A

2 entries in Charges Register and 1 entry in Proprietorship register

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32
Q

What to do when there is a positive covenant in the charges register?

A

Examine whether it affects the property, by considering whether there is a chain of indemnity

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33
Q

What to do if land’s current use is in breach of a covenant, but no objection has been received?

A

Obtain an indemnity insurance policy (usually at seller’s expense)

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34
Q

What to do if buyer’s proposed use of land would breach a covenant?

A

Try to get insurance (but more difficult), before then trying to approach the person with benefit for consent to the breach of covenant

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35
Q

What shows title for unregistered land?

A

Epitome of title which is schedule of title deeds & documents accompanied by copies of them

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36
Q

What is involved in deducing unregistered title?

A

Seller’s solicitor identifies which deeds and documents are relevant, list in epitome of title. Supply copies of listed documents to buyer and deliver originals to buyer on completion. Most important doc to identify is the root of title

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37
Q

What is root of title?

A

Means the deed can be relied upon as providing the title

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38
Q

4 Requirements for a good root of title?

A
  1. must be dated more than 15 years ago, 2. deals with both the legal & beneficial title to the property, 3. adequately describes the extent of the land being conveyed, 4. does not cast doubt on the seller’s title
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39
Q

Date for compulsory first registration for transfer of land for value?

A

1 Dec 1990

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40
Q

Date for compulsory first registration for transfer of land other than for value?

A

1 Apr 1998

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41
Q

Do expired leases need to be included in the epitome of title?

A

No

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42
Q

Does the current seller’s mortgage need to be included in the epitome of title?

A

Yes

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43
Q

Do old planning permissions need to be included in the epitome of title?

A

No

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44
Q

Requirements for all deeds in chain of title for unregistered land?

A

All deeds must be validly executed and stamped

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45
Q

Formalities for valid deed under LP(MP)A?

A

Clear on its face that it is intended to be a deed, signed & witnessed, delivered as a deed (dated)

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46
Q

Formalities for valid deed under common law

A

Clear on its face that it is intended to be a deed, signed & witnessed, sealed if before 31 Jul 1990, delivered (dated)

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47
Q

Stamps required on old conveyances?

A

Stamp for stamp duty: if before 1 Dec 2003. And “Particulars Delivered” stamp if after 1931

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48
Q

3 requirements to assume seller who is surviving co-owner was a beneficial joint tenant?

A
  1. conveyance from seller to buyer states that seller is beneficially entitled to the whole property,
  2. there is no memorandum of severance converting interests into beneficial TIC attached to the conveyance, and
  3. there is no bankruptcy order or petition registered against the seller
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49
Q

What to do if seller is a surviving sole joint tenant?

A

Ask for certified copies of deceased joint tenant’s death certificate

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50
Q

What to do if seller is surviving sole TIC?

A

Ask for second trustee to be appointed in the conveyance to buyer to overreach the beneficial interest of the deceased

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51
Q

What class of Land Charge is a puisne mortgage?

A

c(i)

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52
Q

What class of Land Charge is an estate contract?

A

c(iv)

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53
Q

What class of Land Charge is a restrictive covenant?

A

d(ii)

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54
Q

What class of Land Charge is an equitable easement?

A

d(iii)

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55
Q

What class of Land Charge is a home right?

A

F

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56
Q

What should be present if mortgage has been discharged on unregistered land?

A

Vacating receipt

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57
Q

Effect of restrictive covenants on unregistered land?

A

Only binding if burden is registered as d(ii) land charge

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58
Q

Effect of positive covenants on unregistered land?

A

Only binding if there is a chain of indemnity covenants

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59
Q

What to look for when given an unregistered conveyance?

A

ABCD: A (adequacy): description of land needs to be adequate; B (be): at least before 1 Dec 1990; C: (cast no doubt): on seller’s title; D: (deal): with legal & beneficial title

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60
Q

Which account to take searches inc VAT out of?

A

Take out of business account

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61
Q

What to consider when there is a right of way on the Register?

A

AMAR: A (adequacy - is it adequate for purposes?): M (maintenance - does client have to maintain it?): A (adoption - does local authority have any plans to adopt the road?): R (registration - has )

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62
Q

What is a SIM search?

A

Search of Index Map

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63
Q

When is report on title sent to client?

A

Before exchange

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64
Q

What are standard searches applicable to all properties?

A

Local search, Drainage & water enquiries, desktop environmental search, chancel repair liability

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65
Q

What other searches may be standard depending on type of title/seller?

A

Land charges search (for unregistered land), Search of the index map (for land subject to mineral rights), companies search

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66
Q

What optional searches might be done depending on property?

A

CON29O, Highways search, coal mining search, Cheshire salt, tin clay & limestone, phase I/Phase II survey, Flood search, utility providers, railways (inc undergound, crossrail, HS2), Waterways

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67
Q

What is CON29 form?

A

Standard enquiries of local authority search

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68
Q

What is LLC1 form?

A

Local land charges search

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69
Q

What is desktop environmental search?

A

Indicates whether property used for potentially contaminative land uses, contains info on likelihood of flooding & susceptibility to natural subsidence

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70
Q

What is chancel repair liability?

A

Liability for parishioners to cover costs for church roof repairs

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71
Q

What is purpose of coal mining CON29M search?

A

Identifies risk of subsidence for properties in area that could be subject to coal mining. Says whether any compensation has already been paid

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72
Q

What is purpose of Cheshire Salt search?

A

When property falls within area that could be subject to brine subsidence

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73
Q

What is Environmental Phase 1 survey?

A

More detailed than desktop environmental search & includes site inspection

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74
Q

What is Environmental Phase 2 survey?

A

Taken when phase 1 study indicates risk of contamination. Soil/water samples tested to indicate whether contaminated or not

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75
Q

What is a flood search?

A

Where a property is known to have flooded in the past

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76
Q

What are standard replies for Commercial property?

A

CPSE1. additional forms for different transactions.

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77
Q

What are standard replies forms for residential forms?

A

Property information form, fittings & contents form

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78
Q

Is seller absolved from liability if they answer ‘not so far as the seller is aware’ to pre-contract enquiries?

A

No, if the answer should have been yes.

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79
Q

When is a SIM search necessary?

A

Where property is unregistered, or has more than one title, or registered title refers to mineral rights.

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80
Q

What is purpose of Central Land Charge Search (K15)?

A

Where property is unregistered, central land charge search is carried out against full names of seller and all previous owners referred to in epitome of title

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81
Q

When is Bankruptcy search carried out?

A

Against seller if transaction not happening at full market value, or against buyer if buyer is taking out a mortgage

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82
Q

Where would you find out whether a public footpath crosses a property?

A

Local Authority Search Result (CON29)

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83
Q

When is planning permission needed?

A

Whenever there is development on land, unless: building works only affect interior, building works do not materially affect external appearance of building, change of use are within same use class

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84
Q

What happens if use of land is sui generis?

A

Do not belong to a use class. Any change to or from that use will require planning permission

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85
Q

What is a certificate of lawfulness?

A

Not planning permission but confirms that work either doesnt constitute ‘development’ or falls within GPDO

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86
Q

What is listed building consent?

A

Consent (separate from planning permission) needed to demolish, alter or extend a building

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87
Q

What is conservation area consent?

A

In Wales only - consent needed to demolish unlisted building in conservation area

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88
Q

What are time limits for planning local authority enforcement notice?

A

Must give 28 days notice that land must be restored to condition it was before unauthorised development, or comply with any conditions or limitations imposed by planning permission. After 28 days can fine landowner & enter land to carry out work at owner’s expense

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89
Q

What is a stop notice?

A

Local authority can give stop notice after it has given enforcement notice - requiring that specified activity stop immediately. But not for anything that has carried on for more than 4 years.

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90
Q

What is a breach of condition notice?

A

Similar to enforcement notice by local authority but only concerned with breach of conditions or limitations to planning permission

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91
Q

What are time limits for enforcement?

A

Local authority must take enforcement action within 4 years for building works or change of use to single dwelling house, 10 years for other changes of use or breach of planning condition

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92
Q

Can local authority enforce planning outside of time limits?

A

Where breach of planning control has been deliberately concealed, local authority can apply to Mags court for planning enforcement order

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93
Q

When do local authority enforcement time limits begin?

A

When building is substantially completed

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94
Q

Time limits for prosecution for breach of building regulations?

A

6 months after discovering breach to prosecute person responsible in Mags court. Prosecution may take place up to 2 years after completion of building work.

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95
Q

Time limits for Enforcement notice for breach of building regulations?

A

LA has 1 year after completion of the building work to serve enforcement notice. Gives landowner 28 days to alter or remove the work.

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96
Q

Time limits for injunction for breach of regulation?

A

If the work is unsafe then no time limit for injunction

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97
Q

Buyers options on discovering breach of planning or building regulations?

A

Indemnity insurance, invite seller to regularise matter before completion (Put in contract), withdraw from transaction

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98
Q

Who requests CPSEs?

A

Buyer’s solicitor

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99
Q

When may a solicitor breach the Law Society Conveyancing Protocol?

A

If they: use non-Protocol standard enquiries indiscriminately, raise enquiries that seek the seller’s opinion rather than fact

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100
Q

How should seller’s solicitor respond to enquiries that do not comply with Law Society Conveyancing Protocol?

A

Does not have to deal with them

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101
Q

What happens if solicitor breaches Law Society Conveyancing protocol?

A

Law Society may require an explanation

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102
Q

What is a certificate of title?

A

Document in which solicitor certifies that title to the property is satisfactory for lending purposes

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103
Q

Can solicitor act for buyer and lender?

A

Residential transactions yes commercial transactions no

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104
Q

Requirements for a land contract to be valid?

A

Be in writing; incorporate all terms which parties have expressly agreed; be signed by (or on behalf of) each party to the contract

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105
Q

What is full title guarantee?

A

Offered in most cases. Means property is free of all incumbrances other than those disclosed in the contract, and those which it didn’t and couldn’t reasonably have known about

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106
Q

What is limited title guarantee?

A

Given by sellers with little knowledge of the property e.g. executors of deceased estate. Means no incumbrances created during seller’s period of ownership

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107
Q

What does no title guarantee mean?

A

Seller does not guarantee the seller’s right to sell the property, or that the property is free of incumbrances. Buyer has no remedy against seller if a title issue arises after completion.

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108
Q

What does contract rate do?

A

Sets interest that is payable by the defaulting party for the delayed completion

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109
Q

What does Special Condition 6 do?

A

Allows parties to specify that deposit & balance will come from an account other than the buyer’s solicitor’s client account

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110
Q

What does Special Condition 8 do?

A

Provides space for specific terms of transfer or draft transfer to be annexed, e.g. for sale of part where seller wishes to reserve rights

111
Q

What does Special Condition 9 do?

A

Options to tick for VAT treatment, capital allowances & rights of residential tenants in the property

112
Q

Does sale of commercial property over 3 years old inc VAT?

A

Only if owner has opted to tax

113
Q

What is a transfer of a going concern and is it taxable supply for VAT?

A

A transaction where seller uses the property for the business of letting to produce rental income, and buyer will do the same, and meets certain other requirements. Not a taxable supply for VAT.

114
Q

What is a redemption figure?

A

Amount needed to pay off the loan (Get this from lender & check sale proceeds will cover it)

115
Q

What undertakings are imposed on solicitors by Law Society Formula B?

A

Hold signed contract to the other solicitor’s order; post signed contract to other solicitor that day by first class post, DX or hand delivery; send deposit in form of payment specified by the contract

116
Q

When is Law Society Formula A used?

A

Where the same solicitor holds contracts signed by both buyer and seller.

117
Q

When is Law Society Formula C used?

A

When it is a chain transaction (but it is complex so not used for all)

118
Q

What is exchange with a release?

A

When doing related sales and purchases. Release contract to solicitor who is dealing with related transaction. So if manage to exchange on related transaction by agreed time, then first contract is treated as exchanged, but if not it is cancelled.

119
Q

What is a memorandum of exchange?

A

Document with key contract terms for the file

120
Q

Who is report on title written by & sent to?

A

Written by buyer’s solicitor & sent to the buyer

121
Q

Who is certificate of title written by & sent to?

A

Written by buyer’s solicitor & sent to the lender’s solicitor

122
Q

When is certificate of title sent?

A

Sent before completion so funds can be released. Draft certificate is sent before exchange.

123
Q

When is VAT chargeable on property?

A

New commercial property (within 3 years) or if owner has opted in

124
Q

What is the assumption in the SCPCs re VAT?

A

Assumed that commercial property is VATable supply. Would change this in the special conditions

125
Q

What form does transfer take for registered land?

A

Land Registry forms commonly TR1

126
Q

What form does transfer take for unregistered land?

A

May be transferred in the form of a conveyance; but in practice usually used LR form TR1

127
Q

What form is used for transfer of part of a registered title?

A

TP1

128
Q

What pre-completion searches does buyer’s solicitor do for registered land?

A

Search with priority at Land Registry against title number. Confers priority period of 30 working days in favour of person searching.

129
Q

What pre-completion searches does buyer’s solicitor do for unregistered land?

A

Land charges search. Confers priority period of 15 working days.

130
Q

When is a solvency search needed?

A

By buyer’s solicitor on the buyer when acting for buyer and lender

131
Q

What is usual form for requisitions on title?

A

Law Society form TA13 ‘Completion information and undertakings’

132
Q

What does seller’s solicitor undertake to redeem the mortgages?

A

Law Society Code for Completion by Post

133
Q

What is recommended form of undertaking for seller’s solicitor to provide in respect of the mortgage?

A

To undertake forthwith to pay the lender the money required to redeem the mortgage and to forward Form DS1 to the buyer’s solicitor as soon as the seller’s solicitor receives it from the lender

134
Q

Is rescission automatically available to non-defaulting party if there is failure to complete?

A

No

135
Q

What is effect of notice to complete?

A

Makes time of the essence. Parties must then complete within ten working days.

136
Q

Seller’s remedies if there is failure to complete after notice to complete is served?

A

May rescind the contract; and also: forfeit deposit & any interest accrued on it, resell the property and any contents included in it, claim contractual damages

137
Q

Buyer’s remedies if there is failure to complete after notice to complete is served?

A

May rescind the contract and also: demand return of the deposit with any interest accrued on it, claim contractual damages or specific performance

138
Q

When must a charge given by a company be registered at Companies House post-completion?

A

Within 21 days of day after creation of the charge

139
Q

What form is used for application for registration post-completion?

A

Form AP1

140
Q

What form is used for application for first registration?

A

Form FR1

141
Q

What is deadline for registration post-completion for unregistered land?

A

Two months from completion otherwise transaction is void

142
Q

What is included in allowable expenditure for CGT?

A

Original cost, incidental costs of acquisition, subsequent expenditure enhancing asset’s value, incidental costs of disposal

143
Q

What are rates of CGT?

A

Basic rate taxpayers CGT is 10%, higher rate taxpayers CGT is 20%

144
Q

When is principal private private residence/dwelling exemption for CGT available?

A

You have one home & have lived in it as main home all the time you have owned it; you have not used part of it for business only; the grounds are less than 5000 sqm; you did not buy it just to make a gain

145
Q

What are upper rate gains for CGT higher rates?

A

Basic taxpayer pays 18% CGT; higher rate tax payer pays 28% CGT

146
Q

What different ways can TR1 be signed by company?

A

If company seal: 2 directors or director + company secretary. Or if no seal: 2 directors, director + company secretary, or director + witness.

147
Q

What is the correct wording for execution of TR1?

A

If individual: signed as a deed. If company: executed as a deed.

148
Q

When should you register client’s interest at Land Registry?

A

Within 30 days of OS1 priority search so other entries cannot be made

149
Q

Which solicitor is responsible for ordering the official copies and at what stage in the transaction?

A

Seller’s solicitor, pre-exchange

150
Q

Which solicitor is responsible for deducing title and at what stage in the transaction?

A

Seller’s solicitor, pre-exchange

151
Q

Which solicitor is responsible for preparing the contract and at what stage in the transaction?

A

Seller’s solicitor, pre exchange

152
Q

Which solicitor is responsible for providing replies to pre-contract enquiries and at what stage in the transaction?

A

Seller’s solicitor, pre-exchange

153
Q

Which solicitor is responsible for raising pre-contract searches and at what stage in the transaction?

A

Buyer’s solicitor pre-exchange

154
Q

Which solicitor is responsible for preparing report on title and at what stage in the transaction?

A

Buyer’s solicitor pre-exchange

155
Q

Which solicitor is responsible for investigating title and at what stage in the transaction?

A

Buyer’s solicitor pre-exchange

156
Q

Which solicitor is responsible for drafting certificate of title and at what stage in the transaction?

A

Buyer’s solicitor pre-exchange

157
Q

Which solicitor is responsible for approving the contract and at what stage in the transaction?

A

Buyer’s solicitor pre-exchange

158
Q

Which solicitor is responsible for approving the draft transfer and at what stage in the transaction?

A

Seller’s solicitor pre-completion

159
Q

Which solicitor is responsible for ordering the redemption statement and at what stage in the transaction?

A

Seller’s solicitor pre-completion

160
Q

Which solicitor is responsible for raising requisitions on title and at what stage in the transaction?

A

Buyer’s solicitor pre-completion

161
Q

Which solicitor is responsible for submitting final certificate of title and at what stage in the transaction?

A

Buyer’s solicitor pre-completion

162
Q

Which solicitor is responsible for draft transfer and at what stage in the transaction?

A

Buyer’s solicitor pre-completion

163
Q

Which solicitor is responsible for raising OS1 search and at what stage in the transaction?

A

Buyer’s solicitor pre-completion

164
Q

Which solicitor is responsible for sending completion papers and at what stage in the transaction?

A

Seller’s solicitor post-completion

165
Q

Which solicitor is responsible for registering charge at CH and at what stage in the transaction?

A

Buyer’s solicitor post-completion

166
Q

Which solicitor is responsible for paying SDLT and at what stage in the transaction?

A

Buyer’s solicitor post-completion

167
Q

Which solicitor is responsible for submitting land registry application and at what stage in the transaction?

A

buyer’s solicitor post-completion

168
Q

What is the reversion of a lease?

A

Means at end of lease term the property reverts to the landlord

169
Q

What is an FRI lease and what does it mean?

A

Full repairing and insuring lease - any costs are met by the tenant

170
Q

What should tenant do if lease includes obligation to maintain in good and substantial repair?

A

Big obligation so should get an inspection to include Schedule of condition and amend obligation to be only to keep or improve in standard it was found re schedule of condition

171
Q

When does lease term expire if “from and including”?

A

Expires day before the day named in relevant year

172
Q

When does lease term expire if it is “from”?

A

Expires on that day named in the relevant year

173
Q

How is rent usually expressed in commercial FRI lease?

A

Expressed as a yearly figure but payable quarterly

174
Q

What is stepped rent?

A

Certain rent for e.g. 2 years, then increase for next 2 years and so on

175
Q

What is index-linked rent?

A

Rent increased by reference to agreed measure of inflation

176
Q

Example of index used for index-linked rent review?

A

Consumer price index

177
Q

What is a turnover rent?

A

Rent calculated based on tenant’s turnover at the property

178
Q

What is an open market rent review?

A

Ascertaining rent based on comparable premises and certain principles

179
Q

What is considered by the valuer in an open-market rent review?

A

Rent payable for comparable premises + terms of the hypothetical lease

180
Q

What are the basic assumptions of the hypothetical lease?

A

The premises are vacant & available; there is a willing landlord and a willing tenant

181
Q

Who does the Code for Leasing Business Premises apply to?

A

Applies to members of RICS and RICS regulated firms

182
Q

When can members not follow “good practice” requirements in Code for Leasing Business Premises?

A

When there are exceptional circumstances - may need to justify to RICS

183
Q

What are mandatory requirements of Code for Leasing Business Premises?

A

Lease negotiations must be constructive & collaborative; Unrepresented party must be advised about existence of the Code & recommended to seek professional advice; landlord responsible for ensuring heads of terms are compliant with the Code

184
Q

Which solicitor is responsible for preparing draft lease & when?

A

Landlord’s solicitor pre-exchange

185
Q

Which solicitor is responsible for reviewing the draft lease & when?

A

Tenant’s solicitor pre-exchange

186
Q

What are the necessary searches if a lease is registrable?

A

OS1 (lease of whole) or OS2 (lease of part)

187
Q

What is the effect if the lease is silent on alterations?

A

Tenant free to carry out alterations subject to doctrine of “waste”, i.e. cannot carry out alterations which reduce the value of the premises

188
Q

What is effect of s19(2) LTA on qualified covenants against alterations?

A

Converts into fully qualified covenant, insofar as proposed alterations are improvements from the point of view of the tenant

189
Q

What is tenant’s statutory right to carry out improvements?

A

Can apply for court permission if alterations: add to letting value of the proeprty, are reasonable & suitable to the character of the property, will not diminish the value of any other property belonging to the landlord

190
Q

What is effect if lease is silent on the user?

A

Tenant free to use premises for anything

191
Q

What is effect of s19(3) LTA on consent for change of use?

A

Landlord may not charge a lump sum or increase the rent for giving consent, unless the change of use also requires structural alterations

192
Q

What is meant by tenant’s covenant strength?

A

Tenants ability to pay the rent and comply with the lease obligations

193
Q

What is effect of assignment of a lease on covenants for a tenant in new leases?

A

Generally tenant obtains automatic release from covenants upon assignment

194
Q

What is the effect of an AGA on the former tenant?

A

Former tenant may be liable for obligations of their immediate successor (because they are guaranteeing them)

195
Q

How long does an AGA last?

A

For the period the assignee is the tenant of the premises (only immediate successor to tenant who gave the AGA)

196
Q

What can tenant claim if landlord does not act reasonably in witholding or delaying consent?

A

May be able to claim for damages

197
Q

When can landlord insist on an AGA if the lease is silent?

A

Only when reasonable to do so

198
Q

What is the effect of assignment on covenants in an old lease?

A

Old tenant remains liable and new tenant is only liable for things it directly covenants with the landlord

199
Q

Does privity of contract exist between landlord and undertenant?

A

No

200
Q

Does privity of estate exist between landlord and undertenant?

A

No

201
Q

What will be drafted in an underletting if exchange does take place?

A

An agreement for underlease

202
Q

What does tenant have to provide if underletting a lease over 7 years?

A

Official copy of registered freehold title

203
Q

What does the tenant need to provide if underletting a lease of 7 years or less?

A

An official copy of the landlord’s freehold title together with a copy of the lease

204
Q

What search is carried out for underletting of the whole?

A

OS1

205
Q

What search is carried out for underletting of part?

A

OS2

206
Q

What search is carried out when underlease is not registrable?

A

OS3

207
Q

What are 4 forms of alienation?

A

Assignment, underletting, charging a lease, sharing occupation

208
Q

Who is responsible for drafting the lease?

A

Landlord’s solicitor

209
Q

Who is responsible for reviewing/amending the lease?

A

Tenant’s solicitor

210
Q

Who is responsible for reviewing CPSEs in leasehold transaction?

A

Tenant’s solicitor

211
Q

Who is responsible for providing title documents in leasehold transaction?

A

Landlord’s solicitor

212
Q

Who is responsible for reviewing & sending requisitions on title in leasehold transaction?

A

Tenant’s solicitor

213
Q

When do security of tenure provisions apply?

A

Any tenancy

214
Q

Who can apply to court for renewal of lease in secured tenure?

A

Landlord or tenant

215
Q

Which 4 types of tenancies are specifically excluded from security of tenure?

A

Agricultural tenancies

216
Q

Can periodic tenancies be contracted out of security of tenure?

A

No

217
Q

What is 2 stage procedure for contracting out of security of tenure?

A
  1. Landlord serves warning notice on tenant in prescribed form (before the parties complete the lease)
218
Q

What must lease contain for procedure for contracting out of security of tenure?

A

Reference to both the notice and the declaration of contracting out

219
Q

What happens at the end of the contractual term of a protected tenancy?

A

Tenant has the right to stay in occupation

220
Q

Can a landlord evict a tenant after the end of a protected tenancy?

A

No

221
Q

2 ways a landlord can end a protected tenancy?

A

Forfeit the lease if there has been a breach of the tenant’s covenants

222
Q

5 ways a tenant can end a protected tenancy?

A

Vacate at end of contractual term

223
Q

When must 25 notice be served?

A

No less than 6 months and no more than 12 months before the date of termination

224
Q

What is a ‘friendly’ s25 notice?

A

Indicates landlord is willing to renew the lease to start the day after date of termination

225
Q

What is a hostile s25 notice?

A

Indicates landlord intends to oppose renewal of the lease

226
Q

What is effect of a mandatory ground for s25 notice?

A

If landlord establishes this ground, the court must grant possession to the landlord

227
Q

What is effect of a discretionary ground for s25 notice?

A

If the landlord establishes this ground, it is down to the court’s discretion whether to grant possession to the landlord

228
Q

What is a compensatory ground for s25 notice?

A

If ground relies on no fault of the tenant

229
Q

What is a non-compensatory ground for s25 notice?

A

If ground relies on tenant’s fault

230
Q

How is compensation calculated for s25 notices?

A

1x rateable value if business has occupied the premises for less than 14 years

231
Q

Is breach of tenant repairing obligation discretionary or mandatory for s25 notice?

A

Discretionary

232
Q

Is persistent delay in paying rent discretionary or mandatory for s25 notice?

A

Discretionary

233
Q

Is other substantial breaches of tenant obligations discretionary or mandatory for s25 notice?

A

Discretionary

234
Q

What are requirements for tenant to serve a s26 notice?

A

Must have lease that originally granted a term of more than one year; minimum notice period of 6mo, maximum notice period of 12 months; notice is to expire on the proposed commencement date of the renewal lease.

235
Q

What must landlord do if receives a s26 notice from tenant?

A

Has 2 months to serve a counter-notice

236
Q

When must s27 notice be served?

A

Must give 3 months notice of the intended termination date, which must be no earlier than the date on which the contractual term ends

237
Q

Can landlord serve s25 notice after tenant has served s27 notice?

A

No

238
Q

Can tenant serve a s26 notice after it has served a s27 notice?

A

No

239
Q

When can parties apply to court to renew lease after service of a s25 notice?

A

At any time after service, before the date of termination specified in the notice

240
Q

When can parties apply to court to renew lease after s26 notice?

A

After either landlord has served a counter-notice or if not then 2 months have elapsed after service of s26 notice. Deadline is day before proposed commencement date of the new lease.

241
Q

Under what terms will court’s renewal of a lease be?

A

Can be for a term up to 15 years, at open market rent & other terms determined having regard to current terms & circumstances

242
Q

Is interim rent upwards only?

A

No

243
Q

What happens if court orders grant of a new lease or termination of existing lease?

A

Existing tenancy is brought to an end 3 months and 21 days after the date of the order

244
Q

What is termination of a lease by surrender?

A

The tenant fives up its leasehold interest to the landlord (with the landlord’s agreement)

245
Q

What is termination of a lease by merger?

A

The tenant acquires the landlord’s interest or a third party acquires both

246
Q

How can a break clause exercised by the landlord in a protected tenancy be effective?

A

The lease that would otherwise be protected must be contracted out

247
Q

What is notice period required for a weekly tenancy?

A

Residential: 4 weeks

248
Q

What is notice period for a monthly tenancy?

A

1 month

249
Q

What is notice period for a quarterly tenancy?

A

1 quarter

250
Q

What is notice period for a yearly tenancy?

A

6 months

251
Q

What is a reverse premium?

A

A premium paid by the tenant to give up its interest

252
Q

What is limit on action for debt proceedings?

A

Limited to rent due in the 6 years before proceedings were issued

253
Q

When can Commercial rent arrears recovery be used?

A

Premises are purely commercial, minimum 7 days principal rent is owed, the lease has not been forfeited

254
Q

What notice must be given to a tenant of intention to enter premises under CRAR?

A

7 clear days (not inc sundays & bank hols)

255
Q

What must notice include for CRAR?

A

Amount of debt & how to repay it, details of power being used to enforce the debt & contact details for the enforcement agent

256
Q

When can landlord forfeit the lease for non-payment of rent?

A

As soon as the lease allows

257
Q

When can landlord forfeit the lease for non-rent covenants?

A

Must serve s146 notice detailing alleged breach & giving tenant reasonable opportunity to remedy it

258
Q

How can implied waiver of forfeiture arise?

A

Landlord does some unequivocal act recognising continuing existence of the lease; with the knowledge of the breach in question; and communicates that to the tenant

259
Q

What is meaning of ‘once and for all’ breach?

A

Once landlord waives the right to forfeiture, it will never be able to regain it for that breach

260
Q

What are once and for all breaches?

A

Non-payment of rent, unlawful assignment or underletting, insolvency event

261
Q

When can tenant apply for relief from forfeiture?

A

When the landlord has served a s146 notice or starts process of forfeiture

262
Q

When does Leasehold Property (Repairs) Act apply?

A

Lease is for term of 7 years or more and there are at least 3 years left to run

263
Q

What does tenant do if landlord serves s146 notice of intention to forfeit/damages for breach of repair and LP(R)A applies?

A

Has 28 days to serve a notice = landlord must get leave from the court before proceeding

264
Q

What is measure of damages for breach of repair claim?

A

Loss of value to the landlord’s reversion

265
Q

What does Jervis v Harris do?

A

Gives landlord right to enter property, carry out any repairs & recover cost of doing so from the tenant

266
Q

What order can the court make when using the power to order the grant of a new tenancy for a new duration?

A

The court can only order the grant of a new tenancy on such terms as it determines under the 1954 act for a term not exceeding 15 years

267
Q

What is standard contract interest rate?

A

4% above base rate

268
Q

What is standard completion time in SCS?

A

2:00 PM

269
Q

What is effect of money being received after completion time in SCS?

A

Treated as having been received the next working day

270
Q

What is standard completion time in SCLC?

A

2:00 PM

271
Q

What is standard completion date in SCLC?

A

20 working days after date of contract

272
Q

What is effect of money being received after completion time in SCLC?

A

Treated as having been received the next working day

273
Q

What is standard completion date in SCS?

A

20 working days after date of contract

Property (1 decks)

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