Property Practice MCQS Flashcards
Which of the following statements best describes why the parties to a property transaction will often appoint a solicitor?
A) To ensure there are sufficient funds to finance the transaction.
B) To investigate the physical condition of the land and any buildings on it
C) To identify any potential issues and offer practical solutions
D) There will be rights, obligations and restrictions on the property that will need advising on.
D) There will be rights, obligations and restrictions on the property that will need advising on
(Correct. In addition, property is a very valuable asset and a property transaction involves a lot of documentation)
Which of the following correctly describes the seller’s aims in a property transaction?
A) Ensure there are sufficient funds to finance the purchase
B) Ensure the seller has the right to sell the property
C) Identify any third party rights affecting the property
D) Identify any third party rights affecting the property
E) Ensure the property transaction is tied in with any related transaction and meets their business requirements.
E) Ensure the property transaction is tied in with any related transaction and meets their business requirements.
(Correct. This is one of the seller’s aims in a property transaction)
Which of the following correctly describes the buyer’s aims in a property transaction?
A) Identify the rights that the property enjoys.
B) Effect a legal transfer of the property to the buyer
C) Realise funds from the sale transaction and repay any mortgage on the property.
D) Ensure that the buyer has the right to buy the property.
A) Identify the rights that the property enjoys.
(Correct. The buyer will wish to identify the different rights that benefit and burden the property)
In which of the following stages in a conveyancing transaction does most of the work take place?
A) Pre-contract to exchange
B) Pre-completion to completion
C) Post-completion
A) Pre-contract to exchange
(Correct. The most work is pre-contract when the buyer is trying to find out as much as possible about the property before becoming contractually bound)
At what point in a property transaction do the parties become contractually committed to the deal?
A) Completion
B) When the TR1 is executed
C) Exchange of contracts
D) When Heads of Terms are agreed
E) Registration of the transfer deed at the Land Registry
C) Exchange of contracts
(Correct. At exchange of contracts, the buyer will pay a deposit (usually 10% of the purchase price), and a legally binding contract comes into existence)
At what stage in a property transaction is the buyer recognised as the new legal owner?
A) When the TR1 is executed
B) Registration of the buyer at the Land Registry
C) Exchange of contracts
D) Completion
E) When Heads of Terms are agreed
B) Registration of the buyer at the Land Registry
(Correct. Legal title to the property will not pass until the transfer deed is registered at the Land Registry)
At which stage in the property transaction is SDLT paid?
A) Pre-contract to exchange
B) Pre-completion to completion
C) Post completion
C) Post completion
(Correct. SDLT is a government tax a purchaser may have to pay depending on the price of the property. If SDLT is payable, this will be paid by the buyer post-completion)
At which stage in a property transaction does the buyer’s solicitor request mortgage funds from the buyer’s mortgage lender?
A) Pre-completion to completion
B) Pre-contract to exchange
C) Post completion
A) Pre-completion to completion
(Correct. Prior to completion the buyer’s solicitor will request mortgage funds from the lender so that it has the balance of the purchase price (less the deposit paid at exchange) in its account prior to completion taking place, the point at which the balance is transferred to the seller’s solicitor)
Which of the following options is not a source of information about the property for the buyer?
A) The draft contract
B) Replies to standard pre-contract enquiries
C) Official copies from the Land Registry
D) Physical survey
E) Pre-contract search results
A) The draft contract
(Correct. Information about the property will not come from the draft contract. The contract will document the terms agreed between the parties)
To which party is the principle of caveat emptor most relevant?
A) It is equally relevant to both parties
B) The buyer
C) The seller
B) The buyer
(Correct. The principle means that a buyer takes the property as it finds it. It cannot turn around after exchange of contracts to the seller and try pull out of the deal because there is something wrong with the property. The principle is therefore most relevant for the buyer)
Which of the following options best describes the principle from the case of Hardy v Griffiths?
A) There is an onus on the seller to disclose any physical defects in the property.
B) A seller does not have to disclose information about rising damp or dry rot in replies to enquiries.
C) There is no onus on the seller to disclose any physical defects, it is for the buyer to discover them.
D) A buyer can claim misrepresentation if the seller fails to disclose any information in the replies to enquires. It is not even necessary for the buyer to have read the replies.
E) A buyer can pull out of a deal before contracts are exchanged.
C) There is no onus on the seller to disclose any physical defects, it is for the buyer to discover them
(Correct. This demonstrates the application of the principle of ‘caveat emptor’)
In which of the following situations would co-ownership issues not need to be considered?
A) An individual buying a house to be held on trust for his grandchildren
B) Four friends are buying a property together
C) Two individuals buying a property from which they will run their business
D) A man is buying a property by himself with a contribution to the purchase price from his brother
E) A company is buying a property
E) A company is buying a property
(Correct. Only one entity is buying the property here so co-ownership issues do not need to be considered)
Which of these following statements applies in respect of the equitable title (ownership)?
A) You can only hold the title as joint tenants
B) You can hold the title as joint tenants or tenants in common.
C) You must be over 18 to hold the title
D) You can only hold the title as tenants in common
E) There can only be a maximum of 4 who hold the title
B) You can hold the title as joint tenants or tenants in common
(Correct. There is more flexibility regarding the equitable ownership. There is no limit to the number of equitable owners, a minor can hold the equitable title and the equitable owners can choose to hold the title as joint tenants or tenants in common)
Your client is buying a 1950s house that has been lived in continuously. Which of the following correctly explains the advice you should give your client about surveys?
A) A home buyer’s survey should be carried out because this is the most detailed survey
B) A structural survey should be carried out as this is the only survey that gives a valuation.
C) A homebuyer report would be appropriate for this kind of property.
D) A basic valuation need only be carried out because this is all a lender requires
E) A full structural survey should be carried out because this is the most detailed survey
C) A homebuyer report would be appropriate for this kind of property
(Correct. The basic survey should not be relied upon, and a homebuyer report will give the buyer important detail about the house)
You are acting for the seller of a property. Which of the following types of tax do you need to consider may be payable by your client depending upon the circumstances?
A) SDLT and VAT
B) Capital Gains Tax and VAT
C) VAT only
D) SDLT only
E) Capital Gains Tax and SDLT
B) Capital Gains Tax and VAT
(Correct. Capital Gains Tax (CGT) is a tax on the profit when you sell of an asset. It may therefore be payable depending upon the circumstances. VAT (value added tax) is a tax where a business charges VAT on its sales and recovers VAT on its purchases. It may be payable, you would need more information from the client)
Two clients are buying a property together. They are contributing in equal proportions to the purchase price but have stated they want to be able to pass their share in the property under a will should they die during the ownership of the property. Which of the following correctly explains the best advice you should give your clients?
A) The equitable title should be held by them as joints tenants because they are contributing equal proportions to the purchase price
B) The equitable title should be held by them as joints tenants because the right of survivorship will apply
C) The equitable title should be held by them as tenants in common because the right of survivorship will not then apply
D) The legal title should be held by them as tenants in common because the right of survivorship will not then apply
E) The legal title should be held by them as joints tenants because the right of survivorship will apply
C) The equitable title should be held by them as tenants in common because the right of survivorship will not then apply
(Correct. The clients have advised us they do not want the right of survivorship to apply, they wish to be able to leave their share of the property under a will. Therefore, they should hold the equitable title as tenants in common, which means they are seen as owning their own share in the property)
Which of the following statements is correct in respect of interest rates?
A) A high risk borrower is likely to be charged a higher interest rate
B) The interest rate is the cost of debt for the lender
C) The higher the interest rate the lower the monthly payments that a borrower will make
D) A low risk borrower is likely to be charged a higher interest rate
E) A high risk borrower is likely to be charged a lower interest rate
A) A high risk borrower is likely to be charged a higher interest rate
(Correct. When the borrower is consider a high risk, the interest rate they will be charged will be higher. This means the cost of the debt for the borrower is higher. This reflects the risk the lender is taking by loaning to the borrower)
A borrower is repaying monthly sums on their mortgage loan. At the end of the term they will have repaid all sums owed through these repayments. Which of the following types of mortgage loan will the borrower have?
A) A capital repayment mortgage
B) An interest only mortgage
C) A pension mortgage
D) A sharia-compliant mortgage
E) An endowment mortgage
A) A capital repayment mortgage
(Correct. A Capital Repayment mortgage is the basic way of repaying all mortgages. With repayment mortgages, each month you repay some of the interest you owe plus some of the money (capital) borrowed. At the end of the period the borrower will have paid back everything they owe and will own their home outright)
Which of the following would be classed as a disbursement for a buyer in a property transaction?
A) SDLT
B) The purchase price
C) A mortgage loan
D) Legal Fees
E) Proceeds from any related sale
A) SDLT
(Correct. SDLT would be classed as a disbursement, along with search fees and Land Registry fees. A buyer must have sufficient funds to pay for these in addition to the costs of the transaction)
You act for a buyer who is buying a house with a loan to be secured by a mortgage. You also act for the mortgage lender.
One of the conditions of the mortgage is that the buyer will meet the balance of the purchase price from their own funds, and not further borrowing.
You are due to exchange tomorrow, or the seller has indicated that they may withdraw from the transaction. The deposit has arrived today. Your accounts department tell you that the payment has been made from a company who only deal in personal loans.
How should you proceed?
A) You should notify your lender client, and let your client know when you have their response.
B) You should advise your client that you will need to disclose this to your lender client, and if your client does not give their consent to you doing this, you will need to cease acting for both buyer and lender.
C) Under the Conveyancing Protocol, you should advise the seller’s solicitor of the issue so that they understand the cause of the delay.
D) Given the urgency of the transaction, you should exchange, but raise this issue with the client before completion.
E) You should advise your client that the loan company should have made the payment to your client, and then from their account to you, so that it would appear as a cash advance.
B) You should advise your client that you will need to disclose this to your lender client, and if your client does not give their consent to you doing this, you will need to cease acting for both buyer and lender
(This is correct. In residential transactions it is common for the buyer’s solicitor to act for the lender because there is unlikely to be a conflict of interest between these parties.
On the facts, you have a duty to disclose (CCS 6.4) all information material to the matter which you have knowledge, which includes the fact the balance of the purchase price is being met by a company who deal in personal loans, not the buyer ie in breach of one of the conditions of the mortgage.
The duty of confidentiality (CCS 6.3) that you owe your buyer client will override the duty, which means you cannot disclose this information without the permission of the buyer.
If the buyer does not give consent, you will have to cease to act for the lender. You would be advised to stop acting for the buyer as well)
A solicitor is acting for a buyer of a registered freehold title in England. Part of the purchase price is to be funded by a mortgage loan.
Which of the following options describes what the buyer’s solicitor will do after completion of the purchase?
A) Pay Stamp Duty Land Tax and register the buyer as owner of the property, and the lender as a chargee, at the Land Registry.
B) Report on title to the buyer.
C) Nothing. Completion marks the end of the transaction.
D) Exchange contracts.
E) Pay off the outstanding balance of the seller’s mortgage.
A) Pay Stamp Duty Land Tax and register the buyer as owner of the property, and the lender as a chargee, at the Land Registry
(Correct. These are the main tasks for the buyer’s solicitor to carry out after completion)
You are acting for the buyer of a property. In an effort to speed up the sale, you submit searches which will involve an expense to your client. These form part of your investigation of title. At what point in the transaction would you expect to send these?
A) After you have ensured that the draft contract is in final form.
B) After completion.
C) After receiving a draft contract and before exchange of contracts.
D) As soon as your client indicates that they have put an offer in on the property.
E) After exchange of contracts.
C) After receiving a draft contract and before exchange of contracts.
(Correct. Any issues which might arise need to be dealt with in the contract. You don’t necessarily know who the buyer is once you have received instructions from your seller client - you need the Heads of Terms. After agreeing the contract is too late - and the contract will be agreed by exchange. After completion is far too late. The best answer here is before exchange of contracts. Often it is once you have received the Heads of Terms - you will send the official copies and the standard CPSE replies if your firm has some prepared. If not, the buyer’s solicitor will send their standard set of CPSEs and enquiries)
You act for a client buying a house at a price of £200,000 with the help of an 80% mortgage. Searches and enquiries have been carried out, and you have agreed with the seller’s solicitor to aim for exchange by no later than the end of next week.
You receive a call from the seller’s solicitor to say that the seller has had an offer from a third party of £210,000 and that your client will need to match it, or the seller will sell to the third party.
Your client tells you that they were already overstretching themselves, and it will be impossible to do this.
How do you advise your client?
A) Your client can see if they can persuade the seller to honour the original price, but if the seller refuses, then your client will unfortunately lose the property.
B) You advise your client that as you are holding the contract, you can exercise a lien over it and refuse to return it to the seller’s solicitor until they honour the original price agreed.
C) You should ask to see proof of the third party’s offer, as a seller may only withdraw from an existing sale if a genuine offer has been received.
D) Your client should be prepared to lose the property, but at least they can recover the costs of their searches and survey from the seller.
E) You should see whether your client wishes for you to refer it to a litigation colleague to issue proceedings to force the sale to proceed
A) Your client can see if they can persuade the seller to honour the original price, but if the seller refuses, then your client will unfortunately lose the property
(Correct. Until exchange of contracts, either party can walk away from the deal without incurring any liability. The seller can choose to sell to another party who is offering a higher price without any liability - this is know as ‘gazumping’ in practice. There is no obligation on the seller to prove another genuine offer has been received and the buyer would not be able to recover the costs of their searches and survey from the seller)
You act for a client buying a house near an industrial plant. When viewing the house, your client was concerned by offensive chemical smells coming from the plant. The seller reassured your client both verbally and in a written reply to enquiries that it only happens once or twice a year when the plant carry out a particular process.
The contract incorporated the Standard Conditions of Sale (Fifth Edition).
Following completion, your client calls to say that the plant emits the smell every weekend. Correspondence with the plant operator confirms that they carry out the process weekly, and have done for the last few years. Your client’s surveyor gives the opinion that the house is worth £20,000 less than it would be if the seller’s statement had been correct.
Which of the following options best describes if your client can make a claim for damages?
A) Your client cannot make a claim against the seller because of the principle of caveat emptor
B) Your client cannot make a claim against the seller because it is a subjective matter and most of the neighbours are not offended by the smell
C) Your client may wish to a claim for damages from the seller based on misrepresentation
D) Your client cannot make a claim for damages as it has not suffered any loss in the circumstances
E) Your client may wish to claim for damages from the search provider as this should have been flagged in the desktop environmental report
C) Your client may wish to a claim for damages from the seller based on misrepresentation
(Correct. Although the principle ‘caveat emptor’ means the buyer takes the property as it find its and there is no onus on the seller to disclose patent incumbrances or physical defects in the property, the seller cannot mislead the buyer by answering questions dishonestly, which it has done here. The standard conditions of sale do not require the buyer the prove they were induced to reply on the conduct or statement; it is sufficient to prove that there was an error or omissions, which there has been there. The client can therefore make a claim for damages)
Which is the correct order of the three registers in the Official Copies?
A) 1) Proprietorship Register, 2) Property Register, 3) Charges Register.
B) 1) Charges Register, 2) Property Register, 3) Proprietorship Register.
C) 1) Property Register, 2) Proprietorship Register, 3) Charges Register.
D) 1) Property Register, 2) Charges Register, 3) Proprietorship Register.
E) 1) Charges Register, 2) Proprietorship Register, 3) Property Register.
C) 1) Property Register, 2) Proprietorship Register, 3) Charges Register.
Which of the following documents are required to deduce title to registered land?
A) Estate agent’s particulars, official copies of the register, a survey report, title plan and copies of all documents referred to in the official copies.
B) Survey report, official copies of the register and title plan.
C) Official copies of the register.
D) Official copies of the register, title plan and copies of documents referred to in the official copies where the relevant rights have not been fully extracted.
E) Title plan, official copies of the register and copies of all documents referred to in the official copies.
D) Official copies of the register, title plan and copies of documents referred to in the official copies where the relevant rights have not been fully extracted.
(Correct, you have understood which documents comprise the title to registered land)
Which one of the following entries, appearing on the official copies, is not fully extracted, so that the buyer’s solicitor would need to see a copy of the underlying document?
A) A conveyance of the land in this title dated 17 February 1900 contains restrictive covenants details of which are set out in the schedule of restrictive covenants hereto.
B) The land has the benefit of a right of way contained in a conveyance dated 27 March 1970.
C) The Transfer to the proprietor contains a covenant to observe and perform the covenants referred to in the Charges Register and of indemnity in respect thereof.
D) Restriction: Except under an order of the Registrar no disposition by the proprietor of the land is to be registered without the consent of the proprietor of the charge dated 2 June 2003 in favour of the City and County Bank Public Limited Company referred to in the Charges Register.
E) The land has the benefit of the following right contained in a conveyance dated 15 August 2000: a right of way on foot and with vehicles over the roadway shown hatched black on the plan.
B) The land has the benefit of a right of way contained in a conveyance dated 27 March 1970
(Correct. The buyer’s solicitor would need to see a copy of this conveyance to establish the details of the right of way eg which piece of land the right of way is over and any restrictions on its use)
Which ONE of the following statements about the Property Register and its possible contents is CORRECT?
A) The Property Register describes the property using the postal address and also by referring to the Title Plan.
B) The Property Register must always contain the benefit of a right of way.
C) The Property Register contains the name of the registered proprietor.
D) An extracted right is the same thing as an excluded right.
A) The Property Register describes the property using the postal address and also by referring to the Title Plan.
The property your client is considering buying has the benefit of a right of way in the Property Register and the right of way extracted on the register does not refer to maintenance obligations.
Which ONE of the following is the most accurate list of the issues you need to consider and advise on in relation to this right?
A) Adequacy, Adoption and Registration of the burden.
B) Registration of the benefit and Registration of the burden.
C) Maintenance, Adoption, Registration of the burden and Adequacy.
D) Adequacy, Adoption, Registration of the benefit and Registration of the burden.
E) Maintenance, Adequacy, Adoption and Registration of the benefit.
C) Maintenance, Adoption, Registration of the burden and Adequacy.
(Correct. You have understood the four issues to consider and discuss when the property has the benefit of a right of way)
The following entry appears in the property register of the official copies of a property your client is purchasing:
“A right of way to pass and repass day or night on foot only over the land coloured blue. Note: the land coloured blue is shown hatched black on the filed plan.”
Which ONE of the following statements in respect of this right is CORRECT?
A) As the right of way is on foot only, the local authority cannot adopt the private road to make it into a public highway.
B) The purchaser will not have to contribute towards maintenance of the right of way as there is no obligation to do so mentioned in the right.
C) The burden of the right of way should be registered in the charges register of the servient land.
D) The right of way is not extracted and so you will need to see a copy of the deed granting the right.
E) If the right of way is not adequate for your client the solutions are either to seek insurance to cover breach, or approach the person with the benefit or go to the Upper Tribunal (Lands Chamber) to have the right modified.
C) The burden of the right of way should be registered in the charges register of the servient land.
(Correct. If the servient land is unregistered you would put a caution against first registration over the land so that you can ensure the burden of the right of way is registered in the charges register once the servient land is registered)
The seller is usually the registered proprietor. Which of the following situations would be an exception to this?
A) Where the seller is the executor of a deceased person’s estate
B) Where the seller is a limited liability partnership
C) Where the seller is a company
D) Where there is more than one individual legal owner
A) Where the seller is the executor of a deceased person’s estate
(This is correct. The seller is usually the registered proprietor. An exception would be where the seller is the executor of a deceased person’s estate)
The following extract from official copies for a freehold property in London contains the entire Proprietorship Register for that property. Please read the extract and the information that follows and then answer the question below.
Proprietorship Register
Title Absolute
Proprietor(s): LUCY WATSON AND OWAIN HUTCHISON: of 1 Greenslade Avenue, London (W12 7JH).
The value as at 7 October 2001 was £375,000.
RESTRICTION: Except under an order of the Registrar no disposition by a proprietor of the land is to be registered without the consent of the proprietor of the charge dated 7 October 2001 in favour of Rydale Bank referred to in the Charges Register.
The heads of terms for the sale of the above property state that Lucy Watson is the seller. Owain Hutchison has died.
Which ONE of the following statements is the most accurate advice to a buyer client on the issue of who will sell the property?
A) Lucy Watson and Owain Hutchison held the property as tenants in common so the buyer would need to see an official copy of Owain Hutchison’s death certificate and a second trustee should be appointed to receive the purchase monies with Lucy Watson thereby overreaching any beneficial interests in the property. Both Lucy and the second trustee will be the sellers.
B) Lucy Watson can sell on her own as she and Owain Hutchison held the property as beneficial joint tenants and on Owain’s death his beneficial interest passed to Lucy under the doctrine of survivorship so the buyer just needs to see an official copy of Owain’s death certificate.
C) Lucy Watson and Rydale Bank will sell the property together as Owain’s interest in the property passed to the Bank, who have a mortgage over the property, on his death.
D) The Restriction on the Proprietorship Register indicates that the buyer must purchase the property from Rydale Bank.
B) Lucy Watson can sell on her own as she and Owain Hutchison held the property as beneficial joint tenants and on Owain’s death his beneficial interest passed to Lucy under the doctrine of survivorship so the buyer just needs to see an official copy of Owain’s death certificate
(Correct. Lucy and Owain were beneficial joint tenants (because there was no tenant in common restriction in the Proprietorship Register) so on Owain’s death, Lucy could sell on her own because Owain’s beneficial interest had passed to Lucy under the doctrine of survivorship. The buyer just needs to see an official copy of Owain’s death certificate)
Which one of these entries in the Proprietorship Register relates to co-owners of the property?
A) RESTRICTION: No disposition by a sole proprietor of the registered estate (except a trust corporation) under which capital money arises is to be registered unless authorised by an order of the court.
B) RESTRICTION: no disposition of the registered estate by the proprietor of the registered estate is to be registered without the consent signed by the proprietor for the time being of the charge dated the 17 June 2005 in favour of Redminister Building Society referred to in the charges register.
C) The Transfer to the Proprietors contains a covenant to observe and perform the covenants referred to in the Charges Register and of indemnity in respect thereof.
A) RESTRICTION: No disposition by a sole proprietor of the registered estate (except a trust corporation) under which capital money arises is to be registered unless authorised by an order of the court.
(Correct. This is the tenant in common Restriction)
If a buyer pays the purchase money to two trustees, why does the buyer not need to worry about the beneficial interests of any other deceased co-owners?
A) Because the rule of survivorship applies.
B) Because only two people can hold the legal estate.
C) Because the buyer only needs to worry about the legal estate, not any beneficial interests.
D) Because any such interests will be overreached.
D) Because any such interests will be overreached.
(Correct. You have understood the concept of overreaching)
Which of the following statements about the entries on the official copies relating to a mortgage / charge is correct?
A) If there is a mortgage / charge over the property, there will be two entries in the Charges Register and one entry in the Proprietorship Register regarding it.
B) If there is a mortgage / charge over the property, there will be one entry in the Charges Register and one entry in the Proprietorship Register regarding it.
C) If there is a mortgage / charge over the property, there will be three entries in the Charges Register regarding it.
D) If there is a mortgage / charge over the property, there will be two entries in the Charges Register and no entries in the Proprietorship Register regarding it
A) If there is a mortgage / charge over the property, there will be two entries in the Charges Register and one entry in the Proprietorship Register regarding it
(Correct. A mortgage / charge will have two entries in the Charges Register giving details of the mortgage / charge and also one entry in the Proprietorship Register – the lender’s Restriction)
The buyer will need to be certain it acquires the land free of any mortgage a seller has. Which of the following options is NOT something the buyer’s solicitor should be doing to ensure this happens?
A) Checking in enquiries that the seller will have sufficient funds to clear the mortgage
B) Ensuring that it is a term of the contract that the mortgage will be redeemed on completion
C) Obtaining an appropriate undertaking from the seller’s solicitor to redeem the mortgage from the proceeds of sale on completion
D) Ensuring it transfers the buyer’s purchase monies to the lender on completion so that the lender can redeem its mortgage loan before then transferring the balance to the seller
D) Ensuring it transfers the buyer’s purchase monies to the lender on completion so that the lender can redeem its mortgage loan before then transferring the balance to the seller
(This is correct. The buyer’s solicitor will not transfer the purchase monies to the seller’s lender, it will sell them to the seller’s solicitor. The other options are all something the buyer’s solicitor should ensure it does to make sure the buyer takes the land free of the seller’s mortgage)
Which one of the following could appear in the Charges Register?
A) The benefit of an easement.
B) A lender’s Restriction.
C) An indemnity covenant given by the seller when it bought the property.
D) A tenant in common Restriction.
E) A lease granted out of the property.
E) A lease granted out of the property.
(Correct. A lease granted out of the property burdens the property and appears in the Charges Register)
Which of the following best describes whether a positive covenant registered in the charges register will bind the buyer of a registered freehold property?
A) The buyer will not be bound by the positive covenant unless there is also a charge restriction in the proprietorship register.
B) The buyer will not be bound by the positive covenant despite it appearing in the charges register as positive covenants do not run with the land and so cannot bind buyers of the property.
C) The buyer will be bound by the positive covenant as it is registered in the charges register of the property.
D) The buyer will be contractually bound by the positive covenant if an indemnity covenant note appears in the proprietorship register as the seller will require an indemnity covenant from the buyer.
D) The buyer will be contractually bound by the positive covenant if an indemnity covenant note appears in the proprietorship register as the seller will require an indemnity covenant from the buyer.
(Correct. Positive covenants do not run with the land but can be made contractually binding if there is a chain of indemnity covenants. An indemnity covenant note on the proprietorship register shows whether the seller gave an indemnity covenant and the standard conditions in the contract require the buyer to give an indemnity covenant if the seller did)
The Charges Register of a property contains a restrictive covenant stating that external alterations may not be made except with the consent of the Vendor, his heirs or assigns. The seller of the property added a front porch onto the property eleven years ago without obtaining consent. The buyer of the property thinks the front porch is not in keeping with the building and is removing it on completion.
Which one of the following is the most correct on these facts?
A) The seller’s solicitor should arrange an insurance policy covering the past breach of the covenant.
B) The buyer’s solicitor should arrange an insurance policy covering the past breach of the covenant.
C) No solution is needed as, since the restrictive covenant breach occurred more than ten years ago, the person owning the land with the benefit of the covenant is unable to claim for any loss.
D) The past breach is not continuing and so no solution is needed unless the person owning the land with the benefit of the covenant has claimed they suffered loss.
D) The past breach is not continuing and so no solution is needed unless the person owning the land with the benefit of the covenant has claimed they suffered loss.
(Correct. As the buyer is removing the porch (the alteration which breached the restrictive covenant), the past breach will not be continuing and so a solution is not needed unless the person owning the land with the benefit of the covenant has complained about the breach or claimed for loss)
DKT Ltd is buying a property and is concerned about covenants that burden the land. In particular DKT is concerned that its use as a textiles dyeing factory would breach a covenant which prohibits use as a factory. It has heard from the seller that they have spoken to the person owning the land with the benefit of the covenant who has indicated that they might consent to a breach of the covenant, for a price.
What is the next step you would recommend, in order to deal with this future breach?
A) Contact the person owning the land with the benefit of the covenant to request an easement to use the property as a textile dyeing factory.
B) Contact the Upper Tribunal (Lands Chamber) to get the covenant waived or removed.
C) Contact an insurance company for a quote for insurance in respect of the proposed breach.
D) Contact the person owning the land with the benefit of the covenant to request their written consent for the proposed breach.
D) Contact the person owning the land with the benefit of the covenant to request their written consent for the proposed breach.
(Correct. As the person owning the land with the benefit of the covenant has already been approached insurance is no longer available as an option (otherwise getting an insurance quote would have been the first solution to attempt). We are requesting permission to breach a covenant here so easements are not relevant. The Upper Tribunal (Lands Chamber) is a last resort as it is time consuming and expensive)
Which one of the following statements about insurance for breach of a restrictive covenant is correct?
A) The seller will pay the initial premium for the insurance policy and thereafter the buyer will pay the annual insurance premiums for the policy.
B) Insurance for a future breach of a restrictive covenant is expensive because it is difficult for the insurer to assess the risk of the breach occurring.
C) Insurance must be tried before approaching the person owning the land with the benefit of the covenant.
D) S.19(1) FSMA 2000 prevents a solicitor from arranging an insurance policy for breach of a restrictive covenant.
E) The buyer would have to arrange any insurance policy so that it was covered (ie protected) by the policy.
C) Insurance must be tried before approaching the person owning the land with the benefit of the covenant
(Correct. Once the person owning the land with the benefit of the covenant (PWB) is approached insurance will be unavailable since the PWB has been alerted to the breach and is now much more likely to be aware they can make a claim for loss)
Which of the following best sets out the remedies, in the order they should be attempted, for a future breach by the buyer of a binding positive covenant?
A) 1) Insurance against the PWB claiming loss caused by the breach, 2) Approaching the PWB for consent to breach the covenant.
B) 1) Insurance against the PWB claiming loss caused by the breach, 2) Approaching the PWB for consent to breach the covenant, 3) Going to the Upper Tribunal (Lands Chamber) to have the covenant modified or discharged.
C) 1) Seller to remedy the breach / reduce the purchase price, 2) Insurance against the PWB claiming loss caused by the breach, 3) Approaching the PWB for consent to breach the covenant, 4) Going to the Upper Tribunal (Lands Chamber) to have the covenant modified or discharged.
D) 1) Approaching the PWB for consent to breach the covenant, 2) Insurance against the PWB claiming loss caused by the breach.
E) 1) Seller to remedy the breach / reduce the purchase price, 2) Insurance against the PWB claiming loss caused by the breach, 3) Approaching the PWB for consent to breach the covenant
A) 1) Insurance against the PWB claiming loss caused by the breach, 2) Approaching the PWB for consent to breach the covenant.
(Correct. As the breach is a future one to be carried out by the buyer, the seller will not remedy it. The PWB should not be approached prior to an insurance quote being obtained as once the PWB is approached insurance will not be available (it will be a condition of the insurance that the PWB has not been and will not be approached). The Upper Tribunal (Lands Chamber) is not available for positive covenants (s.84 LPA 1925))
Which of the following statements is the most accurate description of an epitome of title?
A) An epitome is a list of title documents relating to a specific property.
B) An epitome is a set of copies of relevant title documents with a front sheet setting out details of the documents.
C) An epitome is a set of copies of the title register.
D) An epitome is a set of original relevant title documents with a front sheet setting out details of the documents.
E) An epitome is a set of copies of relevant title documents.
B) An epitome is a set of copies of relevant title documents with a front sheet setting out details of the documents.
What are the dates for compulsory first registration for 1) transfers of land for value and 2) transfers of land other than for value?
A) 1) 1 December 1990 and 2) 31 July 1990
B) 1) 1 April 1998 and 2) 1 January 1996
C) 1) 31 July 1990 and 2) 1 December 1990
D) 1) 1 December 1990 and 2) 1 April 1998
E) 1) 1 January 1996 and 2) 1 December 1990
D) 1) 1 December 1990 and 2) 1 April 1998
A seller is selling unregistered land with the following history:
- The seller bought the land in 1977 for £3,000 with a mortgage. The 1977 conveyance states that the land is sold subject to covenants in a conveyance dated 3 June 1956.
- In 1978 the seller granted a five year lease of the land for value.
- The mortgage is still in place, and the seller intends to discharge it from the proceeds of sale.
Which of the following best describes the relevant documents to include copies of in the epitome of title for the land?
A) The 1956 conveyance and the 1977 conveyance.
B) The 1956 conveyance, the 1977 conveyance, the 1978 lease and the seller’s mortgage
C) The 1956 conveyance, the 1977 conveyance, and the seller’s mortgage.
D) The 1977 conveyance, the 1978 lease and the seller’s mortgage.
C) The 1956 conveyance, the 1977 conveyance, and the seller’s mortgage
(Correct. Whilst the 1956 conveyance is a pre-root document, it is cross-referred to in the root of title. The 1978 lease does not need to be included as it has expired)
You act for a client Susan Wilson on the sale of an industrial building. Title to the property is unregistered. The deeds packet contains the following documents:
- Conveyance dated 1988 between Acton (Millinery) Ltd and Susan Wolston.
- Bundle of searches and enquiries dated 1988.
- Mortgage dated 1988 between Royal Bank of Scotland plc and Susan Wolston.
- Planning permission dated 1990 for an extension to the building.
Which one of the following best describes the documents which must be included in the epitome?
A) All of the documents listed.
B) - Conveyance dated 1988 between Acton (Millinery) Ltd and Susan Wolston.
- Mortgage dated 1988 between Royal Bank of Scotland plc and Susan Wolston.
- Planning permission dated 1990 for an extension to the building.
C) - Conveyance dated 1988 between Acton (Millinery) Ltd and Susan Wolston.
- Mortgage dated 1988 between Royal Bank of Scotland plc and Susan Wolston.
- Bundle of searches and enquiries dated 1988.
D) - Conveyance dated 1988 between Acton (Millinery) Ltd and Susan Wolston.
E) - Conveyance dated 1988 between Acton (Millinery) Ltd and Susan Wolston.
- Mortgage dated 1988 between Royal Bank of Scotland plc and Susan Wolston.
E) - Conveyance dated 1988 between Acton (Millinery) Ltd and Susan Wolston.
- Mortgage dated 1988 between Royal Bank of Scotland plc and Susan Wolston.
(Correct. The 1988 conveyance is the root conveyance (the conveyance to the current seller) and must be included. The 1988 mortgage is the current seller’s mortgage, entered into at the same time as the root conveyance. This must be included in the epitome, even though it will be redeemed at completion (and even if it has already been redeemed, as it post-dates the root of title))
A root of title conveyance containing covenants is dated 2 September 1989. The conveyance was from a company (the seller) to an individual (the buyer). Which one of the following would be correct execution of the root?
A) The seller should have executed the conveyance by two directors or one director and the company secretary signing it. The buyer should have executed the conveyance by signing with a witness, sealing and delivering it.
B) The buyer should have executed the conveyance by two directors or one director and the company secretary signing it. The seller should have executed the conveyance by signing with a witness and delivering it.
C) The seller should have affixed their company seal in the presence of two directors or one director and the company secretary who have both signed the conveyance. The buyer should have executed the conveyance by signing with a witness, sealing and delivering it.
D) The seller should have affixed their company seal in the presence of two directors or one director and the company secretary who have both signed the conveyance. The buyer should have executed the conveyance by signing with a witness and delivering it.
E) The seller should have executed the conveyance by two directors or one director and the company secretary signing it. The buyer should have executed the conveyance by signing with a witness and delivering it.
C) The seller should have affixed their company seal in the presence of two directors or one director and the company secretary who have both signed the conveyance. The buyer should have executed the conveyance by signing with a witness, sealing and delivering it
(Correct. These were correct execution methods for conveyances dated pre 31 July 1990)
What should you do if, acting for a buyer, the epitome of title contains an unstamped root of title conveyance?
A) Get the seller to arrange for the root conveyance to be stamped as soon as possible.
B) Pull out of the purchase as you cannot retrospectively stamp a conveyance.
C) Arrange for the seller to get the root conveyance stamped as soon as possible after completion.
D) Nothing as it is only a problem if one of the parties wants to rely on it in court.
A) Get the seller to arrange for the root conveyance to be stamped as soon as possible
(This is correct. You would need to see evidence of this before exchange and completion)
You are acting for the buyer of an unregistered property and the seller’s solicitor has provided you with the epitome of title to the property. The epitome contains:a 1989 conveyance and a 1977 conveyance.
The 1989 conveyance contains a PD stamp and sets out the extent of the property by reference to the 1977 conveyance.
The 1977 conveyance contains a plan showing the extent of the property and has a PD stamp and an ad valorem stamp.
Which of the following statements is correct?
A) The 1989 conveyance could be a good root of title provided it contains a certificate of value.
B) The 1989 conveyance cannot be a good root of title as it does not contain a plan showing the extent of the property.
C) The 1989 conveyance cannot be a good root of title as the property should have been registered for the first time when it was conveyed in 1989
D) The 1977 conveyance is the good root of title as it is the only conveyance which complies with all the requirements of a good root of title.
A) The 1989 conveyance could be a good root of title provided it contains a certificate of value
(Correct. The 1989 conveyance does not have an ad valorem stamp but provided it has a certificate of value (to go with the PD stamp) then it has been correctly stamped. The last date for compulsory first registration was 1 December 1990 and you have no information to tell you that the property was in an area that was subject to compulsory first registration before this date. Provided the 1977 conveyance (with plan) is included in the epitome, it does not matter that the description of the property in the 1989 conveyance is only by reference to the 1977 conveyance)
Which one of the following statements is correct regarding covenants in an unregistered title?
A) Positive covenants bind a purchaser if they are registered as a class d(ii) land charge.
B) Positive covenants can be ignored as they do not bind the land.
C) An indemnity covenant means that the original covenantor is not liable for the covenants to which the indemnity covenant relates.
D) Restrictive covenants bind a purchaser if they are registered as a class d(ii) land charge.
E) If a deed refers back to an earlier deed containing covenants, then those covenants will only be relevant if the earlier deed is provided in the epitome.
D) Restrictive covenants bind a purchaser if they are registered as a class d(ii) land charge
(Correct. The registration of the restrictive covenant allows it to bind a purchaser)
A seller has given a first mortgage over its unregistered property to A Bank PLC and a second mortgage to B Bank PLC.
Which of these would you expect to see registered at the Central Land Charges Registry?
A) Neither mortgage.
B) Neither. Both mortgages appear on the charges register.
C) The mortgage to A Bank PLC.
D) The mortgage to B Bank PLC.
E) Both mortgages.
D) The mortgage to B Bank PLC
(Correct. This second mortgage is a puisne mortgage which is protected by a Class C(i) land charge)
Assume the year is 2022. Your client is buying an unregistered property (the ‘Property’).
The root of title is a conveyance dated 1 December 1989 between Joanne Holmes (Vendor) and Edouard Matignon (Purchaser).
The root of title includes reference to the fact the Property is subject to covenants created in a conveyance dated 3 January 1955 made between Harold Branagh (Vendor) and Alison Sykes and Jonathan Sykes (Purchasers).
Which one of the following is the correct list of the CLC searches that should be carried out?
A) CLC searches against
1) Harald Branagh from 1925 – 1955,
2) Alison Sykes and Jonathan Sykes from 1955 – 1989,
3) Joanne Holmes from 1955 – 1989; and
4) Edouard Matignon 1989 - 2022
B) CLC searches against
1) Harold Branagh from 1926 – 1955,
2) Alison Sykes and Jonathan Sykes from 1955 – 1989,
3) Jo Holmes and Joanne Holmes from 1955 – 1989; and
4) Edouard Matignon 1989 - 2022
C) CLC searches against
1) Harold Branagh from 1926 – 1955,
2) Alison Sykes and Jonathan Sykes from 1955 – 1989,
3) Joanne Holmes from 1955 – 1989; and
4) Edouard Matignon 1989 - 2022.
D) CLC searches against
1) Harold Branagh from 1926 – 2022,
2) Alyson Sykes and Jonathan Sykes from 1926 – 2022,
3) Joanne Holmes from 1926 – 2022; and
4) Edward Matignon 1926 - 2022
E) CLC searches against
1) Harold Branagh from 1925 – 1955,
2) Alison Sykes and Jonathan Sykes from 1925 – 1989,
3) Joanne Holmes from 1925 – 1989; and
4) Edouard Matignon 1925 - 2022.
C) CLC searches against
1) Harold Branagh from 1926 – 1955,
2) Alison Sykes and Jonathan Sykes from 1955 – 1989,
3) Joanne Holmes from 1955 – 1989; and
4) Edouard Matignon 1989 - 2022.
(Correct. Those are the estate owners with the correct spelling of their names and the search periods are correct)
A buyer is buying an unregistered freehold property. The epitome reveals the following information: Company A sold the property in 1945 to Company B and Company B sold the property in 2003 to Company C. Company C is the current owner and seller of the property.
Which one of the following best sets out the Central Land Charges searches (Form K15) (‘CLC searches’) which the buyer’s solicitor should carry out pre-exchange?
A) CLC searches against: (1) Company A for the period 1925 – 1945; (2) Company B for the period 1945 – 2003; (3) Company C for the period 1945 – 2003.
B) CLC searches against: (1) Company A for the period 1926 – 1945; (2) Company B for the period 1945 – 2003; (3) Company C for the period 2003 – present date.
C) None. These are pre-completion searches.
D) CLC searches against: (1) Company A for the period 1926 – 1945; (2) Company B for the period 1945 – present date; (3) Company C for the period 2003 - present date.
E) CLC searches against: (1) Company A for the period 1926 –present date; (2) Company B for the period 1926 – present date; (3) Company C for the period 1926 – present date.
B) CLC searches against: (1) Company A for the period 1926 – 1945; (2) Company B for the period 1945 – 2003; (3) Company C for the period 2003 – present date
(Correct. CLC searches are carried out against previous owners of the property for their periods of ownership.
You would need a CLC search against Company A. As you don’t know when they bought the property, you would carry out the search from 1926, the year when the CLC register was started. However, you do know that Company A sold the property in 1945, so you only need search up to then.
The CLC search against Company B will be for the period 1945 to 2003, as you know that this is the period that they owned it.
The CLC search against Company C will be for the period of their ownership, being 2003 to the current year.
Note that the searches against companies A and B can be relied upon whenever they are dated, so if the seller’s solicitor provides them, the buyer’s solicitor need not carry out fresh searches. However, the search against Company C will need to be carried out again just before completion to confer priority)
A solicitor is acting for a lender which is lending 80% of the purchase price to the buyer of a registered commercial property. The buyer has agreed to the lender taking a first ranking fixed charge over the property after completion. The buyer has also agreed not to deal with or dispose of the property during the term of the loan without X Bank’s consent and for all relevant entries to be made in the Land Registry official copies.
What will the lender’s solicitor look for when examining the Land Registry official copy of the title to the property after completion to confirm the relevant entry or entries relating to X Bank have been correctly registered?
A) An entry referring to X Bank’s charge in the Charges Register.
B) An entry referring to a restriction on dealings in the Proprietorship Register and an entry referring to X Bank’s charge in the Charges Register.
C) An entry referring to a restriction on dealings in the Charges Register and an entry referring to X Bank’s charge in the Proprietorship Register.
D) An entry referring to a restriction on dealings in the Property Register and an entry referring to X Bank’s charge in the Charges Register.
E) A restriction on dealings in the Proprietorship Register.
B) An entry referring to a restriction on dealings in the Proprietorship Register and an entry referring to X Bank’s charge in the Charges Register
(This is correct. Charges such as mortgages are recorded in the Charges Register and any entries restricting the current proprietor’s ability to deal with the property are recorded in the Proprietorship Register)
You are acting for the buyer of a residential house on a plot of registered freehold land which is part of a new development so the buyer is buying part of a larger plot. The buyer has agreed to enter into the following covenants: (1) “not to use the Property for anything other than a private residence” and (2) “to erect and hereafter maintain a fence of no less than 2 metres in height along the northern and western boundaries of the Property”.
What types of covenants are these and on which of the registers at Land Registry for the title to the Property would you expect to see the two covenants registered?
A) (1) and (2) are both positive covenants and would be registered on the Charges Register.
B) (1) is a positive covenant and (2) is a restrictive covenant and both would be registered on the Proprietorship Register.
C) (1) is a restrictive covenant and (2) is a positive covenant and only (1) would be registered on the Charges Register.
D) (1) and (2) are both restrictive covenants and both would be registered on the Charges Register.
E) (1) is a restrictive covenant and (2) is a positive covenant and both would be registered on the Charges Register.
E) (1) is a restrictive covenant and (2) is a positive covenant and both would be registered on the Charges Register.
(Correct. Both restrictive and positive covenants are registered on the Charges register at the Land Registry. The Proprietorship Register deals with restrictions on the owner of the land’s ability to deal with it rather than restrictions over the land.
Restrictive covenants are contracts entered into between the covenantor (the owner of the burdened land) and the covenantee (the owner of the land taking the benefit) which restrict the right of the covenantor and their successors in title to freely use the burdened land eg a restrictive covenant not to use the property for anything other than a dwelling house. The covenant could be worded positively but still be a restrictive covenant eg a covenant to use the property only as a residential dwelling.
Positive covenants are contracts entered into between the covenantor (the owner of the burdened land) and the covenantee (the owner of the land taking the benefit) which require the covenantor to do something with / on / to the property e.g. to build and maintain a fence along the boundary of the property. The covenant could be worded restrictively but still be a positive covenant e.g. not to allow the boundary fence to fall into disrepair.
An aid to working out whether a covenant is restrictive or positive (regardless of whether it is worded negatively or positively) is the ‘hand in the pocket test’. If you have to ‘put your hand in your pocket’ i.e. pay out money to comply with the covenant then it is a positive covenant (one obliging you to do something))
You are acting for the buyers of a property. The seller is Mark Arthur. The seller’s solicitor tells you that Philip Arthur recently died. You review the official copies, which contain the following entry:
Proprietor(s): PHILIP ARTHUR and MARK ARTHUR of 35 Yewdale Road, Leeds, LS3 8QP
RESTRICTION: no disposition by a sole proprietor of the registered estate (except a trust corporation) under which capital money arises is to be registered unless authorised by an order of the court.
Which one of the following statements best explains what you need to do in respect of this entry in the Proprietorship Register?
A) You need to see a certified copy of the death certificate and then Mark Arthur can sell as a sole proprietor.
B) You do not need to do anything, the right of survivorship will apply so Mark Arthur can sell as a sole proprietor.
C) You need to ensure another trustee is appointed to pay the purchase money to so the restriction will not apply.
D) You do not need to do anything as Philip Arthur has died so the restriction is no longer relevant.
E) You do not need to do anything, this is for the seller’s solicitors to deal with.
C) You need to ensure another trustee is appointed to pay the purchase money to so the restriction will not apply
(This is correct. This restriction tells us Mark and Philip are beneficial tenants in common and prevents a sale by a sole owner. This means a sale by Mark alone is not permitted and would not be registered by the Land Registry. A second trustee needs to be appointed in order to comply with the restriction. This will overreach Philip’s beneficial interest, which will have passed under his estate because the right of survivorship will not have applied on his death)
Your firm is investigating title on behalf of a client who is buying a commercial property. The seller’s solicitor has deduced title. There is a restrictive covenant in the Charges Register of the Official Copies for the Property not to make any alterations to the property. In the CPSE Replies the seller admits that they have breached this restrictive covenant by building an extension to the rear of the property. There is no indemnity covenant in the Proprietorship Register.
Which one of the following options is the best advice for your client?
A) Restrictive covenants do not bind successors in title unless there is an indemnity covenant on the Proprietorship Register.
B) Restrictive covenants bind successors in title so the buyer should obtain restrictive covenant insurance to cover liability for breach of covenant.
C) Restrictive covenants bind successors in title so the seller should obtain restrictive covenant insurance to cover liability for breach of covenant.
D) Your client should not proceed with the purchase as the title is defective.
E) Restrictive covenants do not bind successors in title so no further action is required.
C) Restrictive covenants bind successors in title so the seller should obtain restrictive covenant insurance to cover liability for breach of covenant
(Correct. The burden of restrictive covenants bind successors in title as long as they are correctly registered, which is likely, as the restrictive covenant referred to is in the Charges Register of the Official Copies. As restrictive covenants run with the land and bind successors in title, they do not require an indemnity covenant in the Proprietorship Register to make them binding unlike a positive covenant.The seller has breached this restrictive covenant, and as a past breach it is the seller who is responsible for obtaining restrictive covenant insurance. While the other answer options might sound plausible, they are each incorrect. Note also that a firm of solicitors cannot arrange an insurance policy under section 19(1) FSMA 2000 unless they are authorised or exempt)
You act for a client company who is buying a piece of registered, undeveloped land that only has access to adopted highway via a private right of way. The burden of the right of way is registered against the registered title of the servient land. The wording of the right is as follows: “… to pass and repass with or without motorcars over the lane coloured blue …”
The lane coloured blue is just large enough to allow one car at a time to drive along it. The client intends to develop the land as an office for the client’s business with just two car parking spaces for the company directors.
Is the right likely to be sufficient for the client’s plans for the property?
A) Yes. It is legally sufficient and physically adequate.
B) No. It is not legally sufficient, but it is physically adequate.
C) Yes. It is legally sufficient and physically adequate. However, the right should additionally be checked on the CON29 replies.
D) No. It is neither legally sufficient nor physically adequate.
E) No. It is legally sufficient, but not physically adequate.
D) No. It is neither legally sufficient nor physically adequate
(Correct. Although the lane may be sufficient for the ultimate intended use of the property, it will not be sufficient for the construction of the office. Construction requires heavy vehicles such as dumper trucks and cement mixers. They will not be able to access the site due to both the physical and legal constraints of the right of way)
When is a report on title sent to a purchaser?
A) After exchange of contracts.
B) Before exchange of contracts
C) After completion.
D) Upon being instructed by the client
B) Before exchange of contracts
(This is correct. It is a report setting out all the matters relating to a property that the purchaser must review and make their mind up whether to buy the property. A purchaser is committed to purchase the property at exchange of contracts therefore the report must be sent out in good time before this point. It is unlikely that as soon as a solicitor has been instructed by the client that they would have had the search results and carried out the title investigation. It usually takes a few weeks for a solicitor to carry out the title investigation and then compile the report)
Which ONE of the following matters is typically reported on in a report on title?
A) An opinion on the value of the property.
B) Details of the inspection of the property by the conveyancer.
C) Details of the conveyancer’s terms and conditions of business.
D) Details of any rights benefiting the property.
D) Details of any rights benefiting the property.
(This is correct. The rights benefitting the property will be evident in the conveyancer’s title investigation of the property. The conveyancer would not have inspected the property and indeed it would make it clear as a limitation in the report that such an inspection had not taken place. The conveyancer’s terms and conditions of business would have been sent to the client upon being instructed. The report will not advise on the value of the property and whether the property is being purchased for the right price. This is something a surveyor would be able to advise on, not a solicitor)
A solicitor is preparing a report on title. Which of the following approaches will best help the solicitor meet its conduct requirements?
A) Giving the client only that information which would put the client off continuing with the purchase in a way that the client can understand.
B) Giving the client only that information which would put the client off continuing with the purchase, and it is for the client to question anything that they do not understand.
C) Giving the client all material information of which the solicitor has knowledge in a way that the client can understand.
D) Giving the client all material information of which the solicitor has knowledge in precise language, and it is for the client to question anything that they do not understand.
C) Giving the client all material information of which the solicitor has knowledge in a way that the client can understand
(Correct. A well drafted report on title will help with these requirements)
From where would you order any official searches from?
A) The Land Registry
B) Companies House
C) National Land Information Service
D) A channel provider, such as SearchFlow
E) The Local Authority in which the property is located
D) A channel provider, such as SearchFlow
(Correct. The searches themselves are provided by channel providers (who offer an ‘ordering service’), such as SearchFlow, Thames Water Property Searches and GlobalX. Requesting searches via such channel providers is a typical trainee / paralegal job)
Which of the following searches does NOT form part of the ‘local search’?
A) Enquiries of the Local Authority (CON 29)
B) Local Land Charges Search (LLC1)
C) Additional Local Authority Enquiries (CON 29O)
D) Highways search
D) Highways search
(Correct. This is a search with the Highways Authority, rather than the Local Authority. The Local Search are enquiries with the Local Authority of the property)
Which of the following searches would you always order in a transaction?
A) Con29O (additional local search enquiries)
B) Waterways search
C) Company search
D) CON 29M (Coal Mining and Brine Search)
E) Drainage and Water
E) Drainage and Water
(Correct. This search will always be carried out. The search checks matters such as whether foul and surface water from the property drain to a public sewer, and whether the property is connected to a mains water supply)
Where would you expect to find out whether a public footpath crosses a property?
A) The Local Authority Search Result (CON29).
B) The Local Land Charges Search Result (LLC1).
C) The Property Register of the Official Copy.
D) Search of the Index Map Result (SIMR).
A) The Local Authority Search Result (CON29)
(Correct. There is a question to the local authority at enquiry 2.2 asking if there are any public rights of way (which would include footpaths) that abut or cross the property.
The Local Land Charges Search Result does not record details of footpaths, instead it records charges such as general and specific financial charges, planning charges, listed buildings charges. The Property Register of the Official Copy reveals rights benefitting the property such as private rights of way, not public footpaths. The Search of the Index Map Result reveals whether the area searched is registered or unregistered land, it does not provide any information on an any specific rights of way and indeed the Land Registry does not record public footpaths on its registers)
Your client is buying a house that has just had a loft conversion. Your client has asked you whether you can tell from the pre-contract papers whether the seller obtained any building regulation approval relating to the loft conversion. Where would you expect to find the answer?
A) The Local Authority Search Optional Enquiries (CON29O)
B) The Local Land Charges Search Result (LLC1).
C) The Local Authority Search Result (CON29).
C) The Local Authority Search Result (CON29).
(Correct. There is a question to the local authority at enquiry 1.1(f) asking if there are any building regulation approvals and completion certificates issued in respect of the property)
Which of the following statements is correct in relation to the Local Land Charges Search (LLC1)?
A) The LLC1 is an official search of the Register maintained by the Land Registry.
B) The LLC1 will reveal details of any application for planning permission that has been refused.
C) In every transaction the LLC1 is submitted to the local authority together with the CON29O enquiries.
D) The LLC1 reveals planning permissions and restrictions against permitted development (known as an Article 4 Direction).
E) The LLC1 result will reveal whether the property registered is common land or town or village green under the Commons Registration Act 1965 or the Commons Act 2006.
D) The LLC1 reveals planning permissions and restrictions against permitted development (known as an Article 4 Direction).
(Correct. The LLC1 is always carried out and the result reveals among other matters planning permissions granted (not refused) and restrictions against permitted development (an Article 4 Direction). In every transaction the LLC1 is submitted to the local authority (usually via an online search platform such as Searchflow) together with the CON29. The solicitor may raise additional enquiries on CON29O but this is not required in every transaction. It is the CON29O that will reveal whether a property is registered as common land or town or village green, not the LLC1)
A man is the sole owner of a freehold property. The property is currently let out as office premises. The man plans to carry out internal works to the property so that it can be let out as a single private dwelling house when the current occupant’s lease comes to an end.
Will the man require planning permission for his plans for the property?
A) No, the internal works do not constitute development and nor does the change of use because it is a change to a single private dwelling house.
B) Yes, he will require planning permission for both the internal works and the change of use because they are developments which are not permitted.
C) No, the internal works do not constitute development and nor does the change of use because the change is within the same use class.
D) Yes, although he will not require planning permission for the internal works, he will require planning permission for the change of use.
E) No, the internal works do not constitute development and nor does the change of use.
D) Yes, although he will not require planning permission for the internal works, he will require planning permission for the change of use
(Correct. s. 55(2)(a) TCPA 1990 states that internal works do not constitute development. Classes E(g) (offices) and C3 (dwelling house) of TCP(UC)O 1987 were the relevant use classes. Changing from one use class to another is a ‘development’ because it is a material change in use’ unless the change is one that is permitted under Part 3, Schedule 2 GPDO 2015. Under the GPDO this is not a change of use that is ‘permitted development’. It would have been a change from B1 to C3 under the pre-1 September TCP(UC)O 1987 but was also not permitted under the GPDO 2015 so does not fall within the transitional provisions)
What is the effect of a property being in a conservation area?
A) If a planning permission is granted the development must then be commenced within three months of the planning permission. The LPA may have made an Article 4 Direction.
B) It will be impossible to obtain planning permission for any proposed development of the property and the LPA may have made an Article 4 Direction.
C) Any planning permission granted for development is likely to be subject to more onerous conditions than if the property was outside of the conservation area and the Local Planning Authority (LPA) may have made an Article 4 Direction.
D) The LPA is under a duty to make an Article 4 Direction in respect of all property in a conservation area.
E) The LPA will make an Article 4 Direction and constructing new buildings is prohibited.
C) Any planning permission granted for development is likely to be subject to more onerous conditions than if the property was outside of the conservation area and the Local Planning Authority (LPA) may have made an Article 4 Direction.
(Correct. Areas are designated conversation areas because they have a special character or appearance and hence it is likely that any planning conditions (e.g. bricks to be in keeping with the surrounding buildings) will be more onerous than in areas outside of such an area. Article 4 Directions are also very common in conservation areas)
A company is the owner of a warehouse. The property is currently vacant. The company plans to carry out substantial internal works involving removing internal structural walls so that it can be let out as a restaurant.
What planning consents will the company require?
A) Planning permission for the material change of use and building regulation consent for the internal works.
B) Building regulation consent for the internal works.
C) Planning permission and building regulation consent for the internal works.
D) Planning permission for the change of use.
E) Planning permission for the internal works, planning permission for the material change of use and building regulation consent for the internal works.
A) Planning permission for the material change of use and building regulation consent for the internal works
(Correct. The building works are internal works and therefore do not constitute development (s.55(2) TCPA 1990). Planning permission for the internal works is not required. The change of use of the property from a warehouse (Class B8) to a restaurant (Class E(b)) is a ‘material change of use’ which constitutes ‘development’ and hence planning permission is required for the change of use. This change does not fall within the GPDO 2015, nor would it fall within the transitional provisions (being a change in the pre-1 September TCP(UC)O 1987 from B8 to A3). As internal works are taking place, building regulation consent is required)
A house was built three years ago and the owner is now selling it to your client.
Which of the following statements best describes the legislation regarding planning control?
A) If planning permission had been needed, the time limit for the local authority to bring enforcement action for the seller not obtaining planning permission is 4 years from the date of substantial completion.
B) If building regulations approval had been needed, the local authority must serve an enforcement notice for the seller having not obtained it within six months from the date of completion of the building work that is in breach.
C) The seller need not have obtained building regulations approval for the building of the house.
D) If planning permission had been needed the time limit for the local authority to bring enforcement action for the seller not obtaining planning permission is 10 years from the date of substantial completion
E) If building regulations approval had been needed, the time limit for the local authority to apply for an injunction for the seller having not obtained it is 10 years from the date of completion of the building work that is in breach.
A) If planning permission had been needed, the time limit for the local authority to bring enforcement action for the seller not obtaining planning permission is 4 years from the date of substantial completion.
(Correct. The correct time limit for enforcement of lack of planning permission is 4 years from the date of substantial completion (s. 171B TCPA 1990))
Which one of the following statements is the most accurate description of a Planning Enforcement Notice?
A) It flushes out information about potential planning breaches.
B) Non-compliance could result in a fine and the local authority carrying out the necessary work at the land owner’s expense.
C) It cannot exist independently of a Planning Contravention Notice.
D) It cannot require buildings to be demolished.
E) It invites the recipient to respond about how any breach may be satisfactorily remedied.
B) Non-compliance could result in a fine and the local authority carrying out the necessary work at the land owner’s expense.
Your client is buying a house that had a substantial kitchen extension constructed recently. The seller has confirmed that buildings regulations consent has not been obtained. Which one of the following statements is good advice to give to your client in the circumstances?
A) Advise the buyer to obtain a Regularisation Certificate before exchange of contracts.
B) Advise the buyer to obtain indemnity insurance upon completion.
C) Building Regulations consent is not required because extending a house is permitted development under GPDO 2015 provided the seller complied with the criteria laid out therein
D) Request that the buyer inspects the kitchen and to report back to you if they think the works present any problems.
E) Request that the seller obtains a Regularisation Certificate before completion.
Correct
Correct. Building Regulations is concerned with how the works take place – so building materials, insulation, health and safety, fire escapes are all matters that building regulations covers. All works whether internal or external require Building Regulations. The seller should be asked to rectify the situation and obtaining a Regularisation Certificate is retrospective consent by the local planning authority that they are happy with the construction work. If you did not obtain a Regularisation Certificate, the local planning authority could apply for an injunction at any time requiring your client to alter or remove works. This would not be fair since it is the seller who should have obtained the consent and who should pay for any works that need to be carried out in order to obtain the correct approval.
E) Request that the seller obtains a Regularisation Certificate before completion.
(Correct. Building Regulations is concerned with how the works take place – so building materials, insulation, health and safety, fire escapes are all matters that building regulations covers. All works whether internal or external require Building Regulations. The seller should be asked to rectify the situation and obtaining a Regularisation Certificate is retrospective consent by the local planning authority that they are happy with the construction work. If you did not obtain a Regularisation Certificate, the local planning authority could apply for an injunction at any time requiring your client to alter or remove works. This would not be fair since it is the seller who should have obtained the consent and who should pay for any works that need to be carried out in order to obtain the correct approval)
Which one of the following is correct regarding Commercial Property Standard Enquiries (the ‘CPSEs’)?
A) The CPSEs are raised in all residential property transactions.
B) The CPSEs will be requested by the buyer’s solicitor.
C) The CPSEs are delivered after exchange of contracts.
D) No supplemental enquiries may be raised in addition the CPSEs.
B) The CPSEs will be requested by the buyer’s solicitor
(Correct. The buyer will request the CPSE.1 and any relevant supplemental CPSE enquiries are raised usually by email. The seller’s solicitor will then ask their client to complete and when received back, will send on to the buyer’s solicitor)
Which one of the following is a requirement when using the Law Society Conveyancing Protocol (the ‘Protocol’)?
A) Raising an additional enquiry to clarify issues arising out of the buyer’s mortgage.
B) Confirm and update where necessary replies to enquiries if completed more than two months earlier.
C) Additional enquiries seeking the seller’s opinion may be raised.
D) Submission to the buyer’s solicitor of Property Information Form (TA6) and CPSE.2.
E) Additional enquiries relating to any issues may be raised.
B) Confirm and update where necessary replies to enquiries if completed more than two months earlier
(Correct. This is from paragraph 15 of the Protocol)
A company is selling a piece of land. In preparing replies to enquiries, the company director states that the company “is not aware of any disputes with neighbouring properties”. The company director can find no disputes in her file for the property. However, the site manager of the land did have a significant verbal dispute (not written down) with the neighbouring land, which he did not bring to the attention of the director.
After completion, the buyer finds out about the dispute. Is the seller protected against a claim by the wording of the reply?
A) No, because the seller should not give a reply without being certain as to its truth and the wording “is not aware” has no effect.
B) Yes, because the seller has checked her records.
C) No, because the seller can only rely on written evidence to provide replies to enquiries.
D) No, the director should have spoken to the site manager.
Correct
Correct. The seller should make reasonable efforts to check records AND speak to appropriate people in the organisation
D) No, the director should have spoken to the site manager.
(Correct. The seller should make reasonable efforts to check records AND speak to appropriate people in the organisation)
Which one of the following is correct regarding the Law Society’s Conveyancing Protocol (the ‘Protocol’)?
A) The Protocol can be used in residential transactions of freehold and leasehold property.
B) The Protocol can be used in commercial transactions of freehold and leasehold property.
C) The Protocol can be used in residential transactions of newly built homes.
D) The Protocol must be followed by all solicitors.
A) The Protocol can be used in residential transactions of freehold and leasehold property.
When using the Law Society’s Conveyancing Protocol, which list accurately sets out what the solicitors agree to adopt?
A) Standard Conditions of Sale (incorporated into the contract), Property Forms, Formulae for exchange, Code for Completion by Telephone.
B) Standard Conditions of Sale (incorporated into the contract), Property Forms, Formulae for exchange, Code for Completion by Post.
C) Standard Commercial Property Conditions (incorporated into the contract), Property Forms, Formulae for exchange, Code for Completion by Post.
D) Standard Conditions of Sale (incorporated into the contract), Property Forms, Formulae for completion, Code for Completion by Post.
E) Standard Conditions of Sale (incorporated into the contract), Commercial Property Standard Enquiries, Formulae for exchange, Code for Completion by Post.
B) Standard Conditions of Sale (incorporated into the contract), Property Forms, Formulae for exchange, Code for Completion by Post.
Which one of the following actions would constitute compliance with the Law Society’s Conveyancing Protocol (‘the Protocol’)?
A) A buyer’s solicitor sending two pages of standard enquiries, as well as the Property Forms to the seller’s solicitor.
B) A seller’s solicitor sending to the buyer’s solicitor official copies of the register that are eight months old.
C) A buyer’s solicitor additional pre-contract enquiry as follows: “Has the property ever suffered from an infestation of rodents?’
D) A CQS solicitor not following the Protocol without any justification.
C) A buyer’s solicitor additional pre-contract enquiry as follows: “Has the property ever suffered from an infestation of rodents?’
(Correct. This is an enquiry of fact, not opinion and the seller should give a reply)
You act for a client who intends to buy a registered freehold in the countryside. The client has asked you to look in the pre-contract papers to see whether a public footpath crosses the property.
Where would you normally expect to find the answer?
A) Search of the Index Map Result.
B) The Commons Registration Search Result.
C) The Local Land Charges Search Result.
D) The Local Authority Search Result.
E) The Property Register of the Official Copy.
D) The Local Authority Search Result
(Correct. There is a question to the local authority at enquiry 2.2 asking if there are any public right of ways (which would include footpaths) that abut or cross the property. While the other answer options might sound plausible, they are each incorrect. The Local Land Charges Search Result does not record details of footpaths, instead it records charges such as general and specific financial charges, planning charges, listed buildings charges, light obstruction notices. The Property Register of the Official Copy reveals rights benefiting the property such as private rights of way, not public footpaths. The Search of the Index Map Result reveals whether the area searched is registered or unregistered land, it does not detail any specific rights of way and indeed the Land Registry does not record public footpaths on its registers. The Commons Registration Search result (this is an optional enquiry in the Local Authority Search) will reveal whether the property is registered common land or town or village green under the Commons Registration Act 1965 or the Commons Act 2006)
Imagine last year Proporation Limited built a patio and porch along the full width of the rear of the Property and did not obtain the requisite planning permission. Which of the following statements best sets out NHL’s potential liability if it buys the Property without planning permission being in place?
A) The local authority can serve a stop notice on NHL requiring it to stop the ongoing breach and demolish the patio and porch.
B) The local authority can serve an enforcement notice on NHL requiring it to pay a fine of up to £20,000.
C) The local authority has four years from the date of substantial completion of the patio and porch to take enforcement action against NHL.
D) NHL will have no liability as it did not carry out the works.
E) The local authority can serve a breach of condition notice against NHL because it is a condition of lawful development that planning permission is obtained before development takes place.
C) The local authority has four years from the date of substantial completion of the patio and porch to take enforcement action against NHL.
You act for a landlord client who has received a planning enforcement notice from the local authority. The landlord owns a commercial unit (‘Premises’) and five years ago, finished converting the Premises from a storage centre to a wine bar. The enforcement notice claims the landlord’s conversion works were carried out without planning permission and the material change of use wasn’t authorised under permitted development rights.
Which of the following best describes the advice you would give to the landlord regarding the enforcement periods for the two alleged breaches of planning law?
A) The local authority can enforce against the landlord for carrying out works without planning permission because the works were carried out to effect the change of use and the time limit for changing use without authorisation is still running.
B) The local authority is unable to enforce against the landlord for either breach because they have allowed the wine bar to trade for the past five years without issuing a complaint.
C) The local authority is unable to enforce against the landlord for lack of planning permission for both the works and material change of use because service of the enforcement notice is defective – the notice should have been sent to the tenant of the Premises instead of to the landlord.
D) The local authority is out of time to enforce against the landlord for the lack of planning permission for the building work but they are within the time limit to enforce for the unauthorised change of use.
E) The local authority is out of time to enforce against the landlord for the lack of planning permission for both the works and change of use because more than four years have passed since the works and change of use were completed.
D) The local authority is out of time to enforce against the landlord for the lack of planning permission for the building work but they are within the time limit to enforce for the unauthorised change of use
(Correct. This answer reflects the enforcement periods for lack of planning permission for works (four years) compared to lack of planning permission for a material change of use (ten years))
You are acting for the purchaser of a registered commercial freehold property and in order to complete the report on title for the client you need to locate information from the searches about the following issues:
• Whether the property is a listed building
• Whether a contaminated land notice has been served.
• Building regulations previously granted.
• Flooding risk
• Whether the boundary fence needs repair.
Which of the following options best describes the searches and/or enquiries you would use to obtain the information needed?
A) CON29 search; environmental desktop search and Commercial Property Standard Enquiries.
B) CON29 search and waterways search.
C) LLC1 search; CON29 search and environmental desktop search.
D) LLC1 search; CON29 search; environmental desktop search and Commercial Property Standard Enquiries.
E) LLC1 search; CON29 search; waterways search and Commercial Property Standard Enquiries.
D) LLC1 search; CON29 search; environmental desktop search and Commercial Property Standard Enquiries.
(This is correct. Whether the property is listed will appear in the LLC1. Contaminated land notices and building regulations approval are only detailed in the CON29. Flooding risk appears in the environmental desktop search and the seller will confirm in the CPSEs whether the fence needs repairing)
You have recently been instructed to act for a buyer on the purchase of an industrial unit. The seller built a large extension to the rear of the unit in September 2008. The seller’s solicitor has sent you the replies to CPSEs and you note that the seller did not obtain building regulations approval for the extension.
Is this a problem for the buyer?
A) No as the building works were carried out over ten years ago and therefore are outside the local authority’s enforcement period re: the lack of building regulations approval.
B) No as the seller was responsible for the building works in 2008 it will not become a problem for the buyer.
C) Yes as you would need to check the building regulations approval conditions as if breached there is a ten year enforcement period by the local authority starting from the date of the breach of condition.
D) Yes as there is no time limit for enforcement re: the lack of building regulations approval by the local authority.
E) No as the building works were carried out over four years ago and therefore are outside the local authority’s enforcement period re: the lack of building regulations approval.
D) Yes as there is no time limit for enforcement re: the lack of building regulations approval by the local authority
(Correct. The local authority can apply to court to enforce the building regulations by injunction at any time. While the other answer options might sound plausible, they are each incorrect.
Breach of conditions apply to planning permission only.
The four year enforcement period related to planning permissions.
The ten year enforcement period related to planning permissions.
The liability for lack of building regulations approval will pass to the buyer on completion)
A planning officer for a local authority has become aware of a potential planning issue. Five years ago, a commercial property within the local area has been redeveloped into a single residential property without obtaining any planning permissions.
Which of the following options should the planning officer take for this breach of planning control?
A) Serve an Enforcement Notice on the proprietor as the enforcement period for this change of use is unlimited.
B) There is nothing he can do as the planning contravention is outside the enforcement period from the date of the change of use.
C) Apply to court for an injunction to restore the property to its lawful use.
D) Serve an Enforcement Notice on the proprietor as the planning contravention is within the enforcement period from the date of the change of use.
E) Nothing as the change of use is permitted as general development
B) There is nothing he can do as the planning contravention is outside the enforcement period from the date of the change of use
(Correct. This change of use of a building to a single residential property has a four year enforcement period which has now expired. While the other options appear plausible they are not. This change of use of a building to a single residential property has a four year enforcement period which has now expired. The enforcement period for change of use is not unlimited. An injunction applies mainly to lack of building regulations. This is not a permitted development)
