W4 Exchange of Contracts (Special Conditions in a Property Contract) Flashcards
Your client is buying a house from a man who is an owner and an occupier of the house. Your review of the official copies reveals the registered proprietors as the man and woman who hold the property as tenants in common. You have been informed that the woman has died. Which ONE of the following would you include in the contract?
(a) The man is to transfer the property with full title guarantee.
(b) The man is to transfer the property with limited title guarantee in the transfer deed and appoint a second trustee who will give full title guarantee in the transfer deed.
(c) The man is to transfer the property with full title guarantee and agrees to appoint a second trustee who will give limited title guarantee in the transfer deed.
(d) The man is to transfer the property with limited title guarantee
Answer: (c)
A buyer from a sole surviving tenant in common would be expecting a title guarantee from both the surviving tenant in common AND from the second trustee appointed to overreach any beneficial interest in the property. However, the second trustee is often not appointed until completion. The sole surviving tenant in common will be named as the ‘Seller’ in the contract and will agree (by way of a special condition) to appoint the second trustee on completion. A trustee will usually agree only to give limited title guarantee as it has limited knowledge of the property.
You are acting for the buyer of a residential property. In the replies to enquiries, the seller disclosed that their adult child occupiers the property with them.
Which pre-written special condition would you expect to be included in the contract in light of this?
(a) The property is sold with vacant possession - this should be included to include the details of the adult son in occupation
(b) Title guarantee - this should be included so that the title guarantee given by the seller is varied from full to limited
(c) Occupier’s consent - the adult son should sign the contract to confirm they will vacate on or before completion
(d) This cannot be covered by a pre-written special condition. Rather, a tailor made special condition would need to be drafted
Answer: (c)
The seller’s solicitor would need to obtain the signature of the adult child, who would need to be advised to seek independent legal advice.
A buyer and seller have agreed that the washing machine and dryer (not integrated)should be included in the sale of a property.
How should the buyer ensure this is documented in the contract?
The buyer should ensure pre-written special condition 3(a) is included and attach a list of any other fittings/chattels that are agreed the buyer will purchase.
