W4 Exchange of Contracts (Acting for lender & Certificates of title)

Question 1

Definition of a mortgage offer

Answer 1

A formal offer by the lender to lend. It is subject to the lender being satisfied with the transaction and the security (i.e. the property) and will set out the terms and conditions of the loan.

Question 2

Definition of certificate of title

Answer 2

A document in which a solicitor certifies that the title to the property is satisfactory for lending purposes

Question 3

Which of the following statements correctly describes the purpose of a certificate of title?

(a) It sets out the risks and issues relating to the property and provides advice and opinions on those risks/issues

(b) The certificate is a guarantee of a clear and good title to a property

(c) It confirms to the recipient matters relating to the property through a series of statements of facts and disclosures

(d) It confirms that the security over the property is valid and enforceable

(e) It sets out the terms of the security deed that the recipient is entering into

Answer 3

Answer: C

Question 4

Define a legal charge

Answer 4

The deed that creates the security interest and is registered at the land registry.

Question 5

Define a facility letter

Answer 5

The commercial equivalent of a mortgage offer. This will set out the terms and conditions of the loan.