1): Key Elements of a Freehold and/or Leasehold Residential/Commercial Property Transaction

Question 1

What are the stages of a property transaction?

Answer 1

pre-contract stage

Post-contract stage/ pre-completion

completion

post-completion

Question 2

What is done in the pre-contract phase?

Answer 2

Buyer’s solicitor:
-AML checks, conflict checks, -client care letter
-Raise pre-contract searches/inquiries
-Amend & approve contract
-Prepare mortgage & exchange report

Seller’s solicitor:
-AML checks, client care letter
-Check title, draft contract, answer inquiries
-Draft contract, prepare pre-contract docs

Question 3

What happens in the post-contract/pre-completion stage?

Answer 3

Buyer: Draft transfer deed, submit report on title

Seller: Approve transfer deed, reply to pre-completion inquiries

Question 4

What happens in the completion stage?

Answer 4

Agree time, place, method

Buyer pays purchase price

Question 5

What happens in post-completion stage?

Answer 5

Buyer: SDLT/LTT, register title at HMLR

Seller: Release keys, redeem mortgage

Question 6

What are the three Land Registry registers?

Answer 6

property register

proprietorship register

charges register

Question 7

what is included on the property register?

Answer 7

Description of land (address, plan, freehold/leasehold)

Question 8

What is included on the proprietorship register?

Answer 8

Identifies current owner & title class:

Absolute Title: strongest, full ownership

Possessory Title: possession only, e.g. lost title deeds

Qualified Title: defect prevents absolute title

Good Leasehold Title: lease valid but freehold not guaranteed

Question 9

What is included on the charges register?

Answer 9

Lists encumbrances:

Covenants

Easements

Charges or Mortgages

Leases

Notices

Question 10

Where are the official copies of title and plan for the property available?

Answer 10

HMLR

seller should supply Official copies to seller (not less than 6 months old)

+

copy of title plan filed at HMLR

+ official copies of any docs referred to in registers and filed at HMLR where the full details are not set out in register

the official copies will show entries on 3 registers

Question 11

What is the seller’s solicitor required to do to prove ownership of unregistered land?

Answer 11

Select a document that will be the good root of title.

Prepare an epitome of title – a schedule of all title documents (conveyances, mortgages, plans, etc.).

List, number and identify all supporting documents.

Question 12

What must the epitome of title establish?

Answer 12

A “root of title” – this is a document that begins the chain of ownership.

There must be an unbroken chain of title from the root to the current owner.

The root must be at least 15 years old (s.44, Law of Property Act 1925).

Question 13

What are the requirements for a good root of title?

Answer 13

Shows ownership of both legal and equitable interest.

Contains a recognisable description of the property.

Does not cast doubt on the title (e.g. no ambiguity or defects).

Question 14

Give examples of documents that can be a good root of title.

Answer 14

Conveyance on sale or legal mortgage (at least 15 years old).

Voluntary assent or conveyance made after 1925.

Must be at the start of a continuous chain of ownership up to the present day.

Question 15

What does the epitome of title include (if available)?

Answer 15

Conveyances (sale/gift)

Leases and surrendered leases

Legal mortgages and their discharges

Grants of representation / assents (devolution on death)

Name changes of estate owners

Documents pre-dating the root with restrictive covenants

Memoranda (e.g. part-sale endorsements)

Powers of attorney used to execute documents

Question 16

What is the purpose of reviewing attached documents in the epitome?

Answer 16

To confirm that all transfers and transactions are valid and consistent with ownership.

Identify any adverse interests or gaps in the chain.

Question 17

Which searches will a solicitor conduct after reviewing the docs attached to epitome of title?

Answer 17

Index Map Search (Form SIM)

Central Land Charges registry Search (Form k15)

Question 18

What is the Index Map Search (Form SIM) used for?

Answer 18

Checks if land is registered at HMLR.

Detects if there’s a pending first registration or a caution against registration.

Question 19

What is the Central Land Charges Registry Search (Form K15) used for?

Answer 19

Searches against current/previous owners for equitable interests that are registrable as Land Charges.

May reveal the following:
C(iv) – Estate contract
D(ii) – Restrictive covenant
D(iii) – Equitable easement
F – Home right

Question 20

What should you check in the Property Register?

Answer 20

Property description matches contract.

Title number matches contract.

Freehold or leasehold description is correct.

Check if land has been removed from title & reflected in contract.

Question 21

What should you check in the Charges Register?

Answer 21

Check for encumbrances (e.g. mortgages, restrictive covenants, leases).

Confirm which (if any) will be removed or discharged on completion.

Question 22

What should you check in the Proprietorship Register?

Answer 22

Title class corresponds with contract.

Confirm seller is the registered proprietor.

Question 23

What should you check on the Title Plan?

Answer 23

Contract land must match title plan.

Ensure no unregistered or differently registered parts.

Check for excluded parts on plan.

Look for any hatching or colouring (may indicate easements or rights).

Question 24

How do you establish Chain of Ownership?

Answer 24

Must be unbroken to present seller.

Supported by full documentation.

Question 25

What should you check in the Description of Land?

Answer 25

Consistent description of property & plans throughout the epitome.

Question 26

What should be verified regarding Stamp Duties & Execution?

Answer 26

Correct stamp duty paid on all prior docs. Proper execution of prior documents (signed/witnessed).

Question 27

What searches must be done regarding Encumbrances?

Answer 27

Land Charges Search (e.g. D(ii), D(iii), F). Index Map Search (e.g. to reveal if land is registered or not).

Question 28

What checks are needed regarding Easements?

Answer 28

Confirm easements benefit the land (e.g. right of way). Will appear in: Charges Register (registered land), or Conveyance (unregistered). Must highlight any cost obligations or use restrictions.

Question 29

What should be done about Mines & Mineral Reservations?

Answer 29

Check Property Register (registered) or conveyance (unregistered). Index Map Search reveals separate title & owner of minerals. If reserved, they’re not sold with land.

Question 30

What to look for in Declarations of Rights to Light & Air?

Answer 30

Check for any reservations over neighbouring land. If rights affect enjoyment/use of land, notify buyer.

Question 31

What are the key issues with Co-Ownership?

Answer 31

Co-owned land may be: Joint tenants – right of survivorship applies. Tenants in common – no survivorship; passes under will/intestacy.

Question 32

What should a solicitor do when purchasing land from co-owners?

Answer 32

Check if any co-owner has died. Confirm if trust needs to be overreached to allow disposal.

Question 33

What covenants must be flagged to the buyer?

Answer 33

1. Restrictive covenants: Limit use of land. Registered land: in Charges Register. Unregistered land: in conveyance (must be Class D(ii) Land Charge). 2. Positive covenants: Often require financial outlay. Charges Register (registered) or conveyance (unregistered). Don’t run with the land but often supported by indemnity covenants forming chain of indemnity.

Question 34

What checks should a solicitor make regarding existing mortgages during title investigation?

Answer 34

Identify existing mortgages and ensure they will be discharged at completion. 1. In registered land: Found in the Charges Register. May be accompanied by a restriction in the Proprietorship Register requiring lender consent. 2. In unregistered land: Located in the epitome of title among title documents.

Question 35

What checks should a solicitor make regarding leases?

Answer 35

Ensure lease is disclosed to buyer. 1. In registered land: Lease >7 years = registered in Charges Register (binds buyer). Lease ≤7 years = overriding interest if tenant in actual occupation. 2. In unregistered land: Legal lease will be found in a deed and included in the epitome of title.

Question 36

What is the function of a Notice in title investigation?

Answer 36

Protects an interest in a registered estate/charge (e.g. restrictive covenant). 1. Binds future acquirers of the land. 🔹 Can be: Agreed (with proprietor’s consent) Unilateral (without consent) 🔹 Maintains priority of interest against subsequent interests.

Question 37

What are Home Rights under the Family Law Act 1996?

Answer 37

Rights of non-owning spouse/civil partner to occupy. 🔹 Registered land: Registered as a notice of charge. 🔹 Unregistered land: Registered as a Class F Land Charge. ❗ Must be removed before completion — cannot be overreached.

Question 38

When must title investigation issues be reported to the client?

Answer 38

Title defects or unclear entries. Matters requiring seller clarification. Contract changes (e.g. removing encumbrances). Major concerns affecting use — report immediately to client/lender.

Question 39

When is first registration of unregistered land compulsory?

Answer 39

✅ Freehold conveyance ✅ Lease >7 yrs granted or assigned ✅ Assent/vesting assent (freehold or lease >7 yrs) ✅ First legal mortgage (freehold or lease >7 yrs) ✅ Reversionary lease (starts >3 months after grant) ✅ Partition or trustee appointment (freehold/lease >7 yrs)