CRITICAL APPROACHES TO PROPERTY LITIGATION

Question 1

A farmer is selling his freehold farm which he acquired in 1979. He has handed the unregistered title deeds to his solicitor, but there is one small field to which he has no deeds. He confirms that he has farmed that field since 1979 without anyone else’s permission. The solicitor has recommended that an application be made to HM Land Registry for voluntary first registration of title to the field.

Which of the following best describes the class of title which is likely to be granted if the field is registered?

a) Absolute.

b) Possessory.

c) Qualified.

d) Good leasehold.

e) No class of title.

Answer 1

B) Possessory

This is because a possessory title will normally be granted at the time of first registration of the title to the land where the unregistered title was based either on adverse possession or on title deeds which had been lost or destroyed.

Question 2

A solicitor is acting for the buyer of a country cottage built around 150 years ago. Access to the cottage from the nearest public highway is over an unadopted track which has unregistered title. The seller has produced satisfactory evidence to establish that the cottage has the benefit of a prescriptive right of way over the track. However, the registered title to the cottage makes no mention of any such right of way.

Which of the following statements correctly describes the advice which the solicitor should give to the client regarding the access over the track?

a) The right must be completed by registration in the title to the cottage, otherwise it is ineffective at law.

b) The right is not registrable in the title to the cottage as it was created by prescription and can therefore only exist in equity.

c) The right takes effect as a legal easement for the benefit of the cottage even though it is not registered in the title to the cottage.

d) The right takes effect as a legal easement but must be registered in the title to the cottage in order for the benefit to pass to subsequent owners.

e) The right must be registered as a land charge in order to be effective and bind the owners of the unregistered track.

Answer 2

c) The right takes effect as a legal easement for the benefit of the cottage even though it is not registered in the title to the cottage.

This is because a prescriptive easement takes effect as a legal easement even though it is not created by an express grant and has not been registered.

Question 3

A building company is purchasing a plot of development land which it intends to use for residential housing. The land has registered freehold title. The official copy register entries of the title show that the land is registered with a possessory class of title.

Which one of the following statements concerning possessory class of title is correct?

a) It is only granted where the applicant for first registration was able to produce title deeds, but these were not sufficient to show a good holding title.

b) It can be granted only if the applicant for first registration is in actual possession of the land or in receipt of the rents and profits from it (s9(5) Land Registration Act 2002).

c) It has the same effect as absolute title, except that it is subject to the adverse possession of a third party subsisting at the time of first registration.

d) It is a permanent class of title granted at the time of first registration and cannot subsequently be altered.

e) It is only granted in cases where the applicant for first registration was in adverse possession of the land.

Answer 3

b) It can be granted only if the applicant for first registration is in actual possession of the land or in receipt of the rents and profits from it (s9(5) Land Registration Act 2002).

A possessory title can subsequently be upgraded to an absolute title if the title has been registered for at least 12 years and the proprietor is still in possession or (in cases of ‘lost deeds’) the missing title deeds have been found.

Question 4

A businessman is proposing to take a short lease of an office suite for a term of four years. The lease is to be at a market rent and with a premium of £500 for the grant of the lease. He wishes to keep the costs low and asks his solicitor whether an oral lease would be sufficient to create a legal lease.

Which one of the following statements best describes whether an oral lease would suffice?

a) An oral lease would be sufficient to create a legal lease because the lease is for a term of less than five years for no premium.

b) An oral lease would not be sufficient to create a legal lease because although it is a short lease there is a premium payable.

c) An oral lease may possibly be sufficient to create a legal lease, depending upon whether or not the landlord’s reversionary title is registered.

d) An oral lease would be sufficient to create a legal lease because the lease is for a term not exceeding seven years and is not therefore registrable at HM Land Registry.

e) An oral lease would not be sufficient to create a legal lease because the term is for a period exceeding three years.

Answer 4

e) An oral lease would not be sufficient to create a legal lease because the term is for a period exceeding three years.

This is because a lease for a term of more than three years, taking effect immediately and reserving the best rent reasonably available, must be made by deed if it is to take effect as a legal lease (s52(1) Law of Property Act 1925). As the lease will not be for a term exceeding seven years, it will not have to be registered at HM Land Registry in order to take effect at law (s27 Land Registration Act 2002). It may, however, be protected by entry of a notice in the register of the landlord’s title, as it is for a term exceeding three years (s33(d) Land Registration Act 2002). However, even if such a notice is not entered, the lease will be protected as an overriding interest (Sch 3, para 4, Land Registration Act 2002).

Question 5

A solicitor is acting for the buyer of a lodge, which originally formed part of a large estate but was sold off several years ago. The lodge has a registered title, but there is no entry in the register relating to any easements over the remainder of the estate. The buyer’s solicitor raises a pre-contract enquiry about this with the seller’s solicitor, who responds that the lodge has the benefit of any easements implied under s62 of the Law of Property Act 1925.

Which one of the following statements best describes when s62 will operate on a sale of part of an estate?

a) Only where there has been prior diversity of occupation of the land transferred and the land retained.

b) Only where there is no contrary intention expressed in the transfer that s62 is not to operate.

c) Only where the title to the estate is unregistered, because s62 does not apply to registered land.

d) Only where the transfer expressly provides for s62 to operate.

e) Only where there has been no prior diversity of occupation of the land transferred and the land retained.

Answer 5

b) Only where there is no contrary intention expressed in the transfer that s62 is not to operate.

Question 6

A couple are buying a house and attend a meeting with their solicitor to go through the purchase documentation. The house has a registered title and their solicitor shows them the title plan and explains its significance.

Which one of the following statements is correct in relation to most title plans?

a) It shows the precise position of the legal boundaries of the registered title.

b) It shows the title numbers of any adjoining registered titles over which the property has the benefit of easements.

c) It shows the general position of the legal boundaries of the registered title.

d) It shows whether any roads adjoining the property are registered under their own title number.

e) It shows the physical nature of the legal boundaries of the registered title.

Answer 6

c) It shows the general position of the legal boundaries of the registered title.

Question 7

A recently married couple are buying a new house together in their joint names. One of them has no children; the other has children from a previous marriage, to whom she would like her interest in the property to pass after her lifetime. The couple are contributing unequal amounts towards the purchase price and want their respective interests in the property to reflect those contributions.

What would be the most appropriate way for the couple to hold the legal and beneficial ownership of the property in these circumstances?

a) They should hold the legal estate as joint tenants and should also hold the beneficial interest as joint tenants.

b) They should hold the legal estate as joint tenants but should hold the beneficial interest as tenants in common in specified shares.

c) They should hold the legal estate as tenants in common and should also hold the beneficial interest as tenants in common in unequal shares.

d) They should hold the legal estate as tenants in common but should hold the beneficial interest as joint tenants.

e) They should hold the legal estate as joint tenants but should hold the beneficial interest as tenants in common in equal shares.

Answer 7

b) They should hold the legal estate as joint tenants but should hold the beneficial interest as tenants in common in specified shares.

Question 8

A solicitor is acting for the buyer of a freehold house which has a registered title. The buyer is currently living in rented accommodation and has no property to sell. They are funding the purchase partly with a mortgage loan. The seller has an existing mortgage on the house.

Which of the following statements correctly describes the normal sequence of the key steps which will be taken by the buyer’s solicitor?

a) Approve draft contract; receive mortgage offer; exchange contracts; prepare draft transfer.

b) Obtain redemption figures for existing mortgage; carry out all searches; exchange contracts; approve draft transfer.

c) Carry out pre-contract searches; exchange contracts; receive mortgage offer; prepare completion statement.

d) Carry out pre-completion searches; exchange contracts; pay stamp duty land tax; send balance of purchase price to seller’s conveyancer.

e) Exchange contracts; receive mortgage offer; redeem existing mortgage; pay stamp duty land tax.

Answer 8

a) Approve draft contract; receive mortgage offer; exchange contracts; prepare draft transfer.

Question 9

A couple are buying a house on a popular housing estate which was built around 20 years ago. They know the property needs some minor repairs and redecorating but other than that they do not intend to make any changes to it. They are obtaining a mortgage from their bank to fund the purchase. They are considering what type of survey might be appropriate.

Which one of the following would be most appropriate in the circumstances?

a) A full structural survey.

b) A mortgage valuation report.

c) A homebuyer’s valuation and survey report.

d) A survey commissioned by the mortgage lender.

e) No survey.

Answer 9

c) A homebuyer’s valuation and survey report.

Question 10

The owner of a large Grade II listed property has just sold part of his garden to a developer, who intends to build several new houses on the land. The land comprises an area of 1 hectare. The owner has owned and lived in the property as his home for over ten years. He has already used his full capital gains tax (CGT) annual allowance on the sale of other assets. He wishes to know whether the principal private residence exemption will apply to his capital gain arising from the sale.

Which of the following statements best describes the position regarding CGT on any gain made by the owner on the sale?

a) The whole gain will be exempt because the area of the land does not exceed the statutory limit of 1 hectare.

b) The whole gain will be exempt because the past use of the whole area of the land has been residential and this will continue to be the case following the sale.

c) One half of the gain will be exempt because it relates to the area of land within the statutory limit of 0.5 hectare; the remainder will not be exempt.

d) None of the gain will be exempt because the area of the land exceeds the statutory limit.

e) The whole gain will be exempt because the land forms part of the garden of a Grade II listed building.

Answer 10

c) One half of the gain will be exempt because it relates to the area of land within the statutory limit of 0.5 hectare; the remainder will not be exempt.

Question 11

A property investor owns a portfolio of properties and is selling a house which he bought as a buy-to-let nine months ago. The house has been let throughout his period of ownership. He is concerned as to whether, for capital gains tax (CGT) purposes, the principal private residence exemption will apply to the gain he will make on the sale.

Which one of the following statements best describes the position regarding CGT on the sale?

a) There will be no CGT payable because non-residence up to the first 12 months of ownership does not preclude the exemption from applying.

b) There will be CGT payable because the exemption does not apply to a buy-to-let property which has not been used by the seller as their residence.

c) There will be no CGT payable because non-residence for up to the last nine months of ownership does not preclude the exemption from applying.

d) There will be CGT payable because the exemption does not apply where the seller owns more than one residential property at the same time.

e) There will be no CGT payable because the house has been occupied for residential purposes throughout and the exemption will therefore apply.

Answer 11

b) There will be CGT payable because the exemption does not apply to a buy-to-let property which has not been used by the seller as their residence

Question 12

An unmarried couple are buying a new house to live in together. They are having a small mortgage and are contributing equally to the balance of the purchase price. They have agreed that the name of only one of them should appear on the registered legal title. The buyer whose name will not be on the legal title has asked their solicitor how they can protect their beneficial interest.

Which one of the following statements best describes the step which that buyer can take to protect their beneficial interest?

a) Register themselves as a joint beneficial owner.

b) Register an agreed notice.

c) Register a caution.

d) Register a restriction.

e) Register a C(iv) land charge.

Answer 12

d) Register a restriction

Question 13

A firm of solicitors has just been instructed to act in a commercial property transaction. The firm has not previously acted for the client. A trainee conveyancer is assisting in the matter and as part of their development they ask their supervising partner about the position regarding complaints under the SRA Standards and Regulations (SRASR).

Which one of the following statements best describes a requirement regarding the firm’s complaints procedure?

a) It must be in the form set out in the appendix to the SRASR.

b) It must be brought to the attention of the client at the time of engagement.

c) It must be set out in a form approved by the Law Society.

d) It may contain provision for reasonable costs to be charged by the firm for unjustified complaints.

e) It must provide for a decision on the complaint to be made by a partner and for this to be final and binding.

Answer 13

b) It must be brought to the attention of the client at the time of engagement.

Question 14

The owner of a commercial property has just completed their sale of a buy to let property. The terms of the sale were originally agreed in February and contracts were exchanged in March. Completion took place in May and the transfer to the buyer was registered in June. The seller asks their solicitor to confirm the date of the disposal for capital gains tax (CGT) purposes.

Which one of the following statements best describes the deemed date of disposal for CGT purposes?

a) The date the buyer’s offer was accepted by the seller.

b) The date of exchange of contracts.

c) The date the balance of the purchase price was paid upon completion.

d) The date nominated in writing by the seller to HM Revenue and Customs.

e) The date the transfer to the buyer was registered at HM Land Registry.

Answer 14

b) The date of exchange of contracts.

Question 15

A solicitor is acting for a recently married couple who are buying a new house together. They have each been married before and one of them has children from a previous marriage. They will be contributing unequal amounts to the purchase and will be funding the remainder of the purchase price by way of a mortgage loan. The solicitor has read the Law Society Practice Note on joint ownership and will be meeting with the couple shortly to discuss their purchase, including their co-ownership of the property.

Which one of the following statements best describes a recommendation of the practice note?

a) Expressly limiting advice to that relating to the legal estate only, not the equitable interests.

b) Confirming that the beneficial interests must always be held as beneficial tenants in common where the contributions to the purchase price are unequal.

c) Clarifying how the beneficial interests are to be held and advising as to the use of a declaration of trust.

d) Advising that a trust of land will arise at the time of purchase and its terms cannot be subsequently altered.

e) Declining to give advice as to joint ownership in circumstances where the clients are unlikely to wish to hold the beneficial interests as beneficial joint tenants.

Answer 15

c) Clarifying how the beneficial interests are to be held and advising as to the use of a declaration of trust. correct

Question 16

The buyer of a house has attended an initial meeting with his solicitor to confirm his instructions. At the meeting, the solicitor explains that his firm will be adopting the Law Society Conveyancing Protocol (LSCP) in relation to the transaction.

Which one of the following statements in relation to the LSCP is correct?

a) Its adoption in residential property transactions is compulsory for all firms of solicitors.

b) It is a quality accreditation scheme which seeks to ensure firms operate to consistently high standards.

c) It can be adopted only by firms of solicitors which are members of the Conveyancing Quality Scheme (CQS).

d) Its adoption does not mean compliance takes precedence over the obligation to act in the client’s best interests.

e) If one party’s solicitor will not be adopting it, this precludes the other party’s solicitor from doing so during the transaction.

Answer 16

d) Its adoption does not mean compliance takes precedence over the obligation to act in the client’s best interests.

Question 17

A house was purchased by four friends, A, B, C and D, some years ago. They originally held as beneficial joint tenants. Notice of severance was served upon the other co-owners by D, who died shortly afterwards having left his beneficial share to C. Recently, C died intestate and A and B have decided to sell the house. A and B ask their solicitor to explain what share of the proceeds of sale they will jointly be entitled to.

Which one of the following statements correctly describes their share of the proceeds of sale?

a) 100 per cent.

b) 75 per cent.

c) 66.66 per cent.

d) 50 per cent.

e) 25 per cent.

Answer 17

b) 75 per cent

Question 18

The owner of a freehold house is selling the property for £250,000. It was bought five years ago for £200,000 and has been used as a buy-to-let property throughout. Contracts for the sale have just been exchanged. The owner spent £10,000 on an extension to the property and will have incurred a total of £4,700 in costs for the original purchase and the subsequent sale of the house. The owner is a higher rate taxpayer and has not made any other capital gains in the current tax year.

How much capital gains tax (CGT) liability, based on these facts, will the owner incur on completion of the sale?

a) None, because the house has been used as a private residence throughout.

b) £5,274.

c) £8,204.

d) £6,000.

e) £14,000.

Answer 18

c) £8,204.

Question 19

A company is selling a commercial building and its solicitor has already issued a draft contract to a prospective buyer. The company now instructs that it wishes a draft contract to be issued to another prospective buyer, so that there will be a ‘contract race’.

Which one of the following statements represents best practice as to whether the solicitor may act in a contract race?

a) The solicitor cannot act because it would impose an unfair burden upon the prospective buyers and cause them potentially wasted costs.

b) The solicitor can act provided the client confirms its instructions in writing that it wishes to deal with more than one buyer at the same time.

c) The solicitor can act because it is a commercial transaction and the buyers can therefore be expected to understand the implications.

d) The solicitor can act provided all buyers are immediately informed that there is a contract race and the client gives consent to this disclosure.

e) The solicitor cannot act unless the seller agrees to indemnify the unsuccessful party for any wasted legal costs they incur.

Answer 19

d) The solicitor can act provided all buyers are immediately informed that there is a contract race and the client gives consent to this disclosure.

Question 20

Contracts have just been exchanged on the sale of a residential property. A 10 per cent deposit has been paid by the buyer’s solicitor to the seller’s solicitor. The contract incorporates the Standard Conditions of Sale (5th edn, 2018 revision) and contains no special conditions as to the deposit. The seller has a related purchase and also has an existing mortgage on the property she is selling.

Which one of the following statements is correct as to how the deposit is to be held by the seller’s solicitor?

a) The entire deposit will be held as agent of the seller and can therefore be released to her immediately.

b) All or part of the deposit may be used as a deposit on the seller’s related purchase, with the balance held as stakeholder until completion.

c) The entire deposit will be held as stakeholder and cannot be released to the seller until completion.

d) All or part of the deposit may be used to discharge the seller’s mortgage prior to completion, with the balance held as stakeholder until completion.

e) One half of the deposit may be held as agent of the seller and can therefore be released to her immediately; the balance must be held as stakeholder until completion.

Answer 20

b) All or part of the deposit may be used as a deposit on the seller’s related purchase, with the balance held as stakeholder until completion.

Question 21

A seller’s solicitor has submitted a draft contract for the sale of a property to the buyer’s solicitor. The seller is the sole legal and equitable owner of the property. The buyer’s solicitor is checking through the draft contract.

Which type of title guarantee would normally be inserted into the draft contract in these circumstances?

a) Limited title guarantee.

b) Legal title guarantee.

c) Unlimited title guarantee.

d) Full title guarantee.

e) No title guarantee.

Answer 21

d) Full title guarantee.

Question 22

The owner of a freehold house is selling the property, which is free of any mortgage or lease. Contracts have just been exchanged, with completion in a month’s time. The buyer has requested permission to start moving into the property during the intervening period. The contract utilises the Standard Conditions of Sale (5th edn, 2018 revision) and there are no special conditions relating to occupation of the property by the buyer pending completion.

Which one of the following statements best describes the position under the Standard Conditions of the contract regarding such occupation?

a) The Standard Conditions contain no provisions relating to such occupation.

b) The Standard Conditions provide that such occupation will be permitted on the basis that the buyer is a licensee not a tenant.

c) The Standard Conditions provide that such occupation will be permitted on the basis that the buyer is a tenant at will.

d) The Standard Conditions provide that such occupation will be permitted on the basis that the buyer is now the beneficial owner.

e) The Standard Conditions provide that no such occupation will be permitted.

Answer 22

b) The Standard Conditions provide that such occupation will be permitted on the basis that the buyer is a licensee not a tenant.

Question 23

An accountant is acting as executor of their deceased client’s estate and is selling a property owned by the deceased. The executor’s solicitor has advised that the contract should provide for the executor to sell with limited title guarantee.

Which one of the following statements best describes the correct reason for that advice?

a) The executor has no capacity to give a full title guarantee but is able to give a limited title guarantee.

b) The executor’s authority is limited to the extent of the assets within the deceased’s estate and their title guarantee should therefore be limited accordingly.

c) The executor will have only limited personal knowledge of the property and should therefore give only a limited title guarantee.

d) The executor is a member of a firm of accountants which is a limited liability partnership and their title guarantee should therefore be limited to reflect this.

e) The executor holds the property in a limited capacity and should therefore give only a limited title guarantee.

Answer 23

c) The executor will have only limited personal knowledge of the property and should therefore give only a limited title guarantee. correct

Question 24

A couple are selling their home, which is registered in their joint names, and contracts are to be exchanged soon. Their daughter, aged 19, currently lives with them at the property. The buyer will be taking out a mortgage to assist in his purchase of the property. The daughter’s occupation has been disclosed in the Property Information Form TA6. The buyer’s solicitor has agreed with the sellers’ solicitor the step which will be required in relation to the daughter.

Which one of the following statements best describes the step which will be required in relation to the daughter?

a) She must vacate the property prior to exchange of contracts so that there is no risk of her occupation binding the buyer.

b) She must transfer all rights she may have in the property to the buyer on completion.

c) She must sign the contract to agree to release all rights she may have in the property and to vacate on completion.

d) She must sign a declaration postponing any rights she may have in the property in favour of the buyer’s mortgage lender.

e) She must be added as a co-party to the transfer and execute it as a deed.

Answer 24

c) She must sign the contract to agree to release all rights she may have in the property and to vacate on completion.

Question 25

Contracts have just been exchanged for the sale of a flat. Completion is to take place on a date which falls ten working days after the date of exchange. The contract incorporates the Standard Conditions of Sale (5th edn, 2018 revision) (SCS). The buyer’s solicitor now needs to submit the draft transfer to the seller’s solicitor.

Which one of the following is the minimum period before the completion date within which the draft transfer must be submitted?

a) Seven working days.

b) Eight working days.

c) Ten working days.

d) Twelve working days.

e) Fifteen working days.

Answer 25

b) Eight working days.

Question 26

A draft contract for the sale of a residential property has just been submitted to the buyer’s solicitor. The contract incorporates the Standard Conditions of Sale (5th edn, 2018 revision). When checking the draft, the buyer’s solicitor notices that the specified ‘Contract rate’ is 10 per cent and intends to suggest an amendment to this.

Which one of the following statements best describes the rate which would normally be specified in such a contract?

a) Four per cent.

b) Five per cent.

c) The Bank of England base rate.

d) Four per cent above the base rate of a specified high street bank.

e) The Solicitors Regulation Authority rate.

Answer 26

d) Four per cent above the base rate of a specified high street bank.

Question 27

A solicitor is acting for the buyer of a field for £10,000. The contract incorporates the Standard Conditions of Sale (5th edn, 2018 revision) (SCS) and the parties are ready to exchange. Given the small scale of the transaction, the seller’s solicitor has suggested dispensing with a specified completion date in the special conditions.

Which one of the following statements best describes the effect of doing so?

a) Completion will be deemed to be required within a reasonable time, not exceeding 30 days from the date of exchange.

b) The contract will be void for uncertainty.

c) Completion will take place when a date has been mutually agreed in writing by the parties following exchange.

d) The contract will be valid but unenforceable.

e) Completion is to take place 20 working days after the date of the contract.

Answer 27

e) Completion is to take place 20 working days after the date of the contract.

Question 28

A residential conveyancing transaction is nearing exchange. The draft contract prepared by the seller’s solicitor incorporates the Standard Conditions of Sale (5th edn, 2018 revision) (SCS). The contract document incorporates the normal pre-printed Special Condition 6, which relates to representations and which applies except in cases of fraud or recklessness.

Which one of the following statements best describes the effect of this special condition?

a) Neither party may rely on any representations made by the other, whether written or oral.

b) Either party may rely upon any representations made by the other, provided these were made in writing.

c) The seller may rely upon any representations made by the buyer, provided they were communicated by the buyer’s solicitor.

d) The buyer may rely upon any representations made by the seller, even if these were made orally.

e) Either party may rely upon any representations made by the other, whether written or oral.

Answer 28

b) Either party may rely upon any representations made by the other, provided these were made in writing.

Question 29

The owner of a commercial unit is selling the property. Her solicitor has sent to her the Commercial Property Standard Enquiries form CPSE.1, so that she can consider the replies which are to be given. In response to certain of the enquiries, the owner suggests inserting ‘not as far as the seller is aware’. The giving of such a response has been considered by the courts in case law.

Which one of the following statements best describes the effect of that case law?

a) Such a response is not permitted and the seller must instead respond definitively.

b) Such a response implies a warranty that there is nothing for the seller to disclose.

c) Such a response signifies that the seller has a matter to disclose but is unwilling to disclose it.

d) Such a response carries automatic relief from liability for the seller even the response is shown to be inaccurate.

e) Such a response implies that the seller has made all reasonable investigations before giving the response.

Answer 29

e) Such a response implies that the seller has made all reasonable investigations before giving the response. correct

Question 30

A solicitor is acting for the buyer of a freehold house. The title was first registered some years ago and the house has been sold twice since then. Contracts have been exchanged. The contract incorporates the Standard Conditions of Sale (5th edn, 2018 revision) (SCS). The solicitor is preparing the draft transfer and is considering whether it is necessary to include an indemnity covenant by the buyer in respect of covenants referred to in the charges register.

Which one of the following would the solicitor need to check before deciding whether to include an indemnity covenant?

a) What class of title is shown in the proprietorship register of the registered title.

b) Whether there was an indemnity covenant given in the conveyance which triggered first registration.

c) What type of title guarantee is to be given by the seller in the transfer.

d) Whether there is an indemnity covenant by the seller in the charges register of the registered title.

e) Whether there is a condition in the contract in respect of the inclusion of an indemnity covenant in the transfer.

Answer 30

e) Whether there is a condition in the contract in respect of the inclusion of an indemnity covenant in the transfer.

Question 31

The two executors of a deceased sole owner of a house are selling the property in their capacity of personal representatives. The contract has been prepared for signature, in readiness for exchange of contracts.

Which one of the following statements best describes whether either or both of the executors will need to sign the contract?

a) It is obligatory for both executors to sign a single copy of the contract.

b) It is permissible for one executor to sign the contract provided they have the authority of the other to do so.

c) It is necessary for each executor to sign a separate but identical copy of the contract.

d) Neither executor needs to sign the contract as the solicitor will automatically have authority to sign on their behalf.

e) Neither executor needs to sign the contract as the sale automatically falls within their powers as executors.

Answer 31

b) It is permissible for one executor to sign the contract provided they have the authority of the other to do so.

Question 32

The owner of a dilapidated house is selling the property. They already have a number of interested buyers, but have not yet decided whether to sell the property by private treaty or at a public auction. The seller discusses the sale with their solicitor and asks about the form of contract required, as they would like to keep the costs low. The solicitor explains that certain requirements for a contract for the sale of land are imposed by statute.

Which one of the following statements correctly describes an aspect of those statutory requirements?

a) The contract may be made orally or in writing, provided it incorporates all the agreed terms.

b) Once a valid contract has been entered into, its terms cannot be subsequently varied.

c) The seller and buyer must sign the contract in duplicate, so that each has a fully signed copy of the contract on exchange.

d) The requirements apply to contracts by private treaty but not to contracts by public auction.

e) A contract in writing must fully set out all the agreed terms, as incorporation of a document by reference is not permitted.

Answer 32

d) The requirements apply to contracts by private treaty but not to contracts by public auction.

Question 33

The executors of the deceased owner of a house are selling the property. The property is in a rural area and was originally purchased by the deceased owner in the 1970s. The executors are currently unable to locate any title documents for the property.

What would be the purpose of carrying out an official search of the index map in respect of the property?

a) To ascertain the whereabouts of the unregistered title deeds to the property.

b) To identify whether the whole or any part of the property has a registered title.

c) To confirm whether the executors are now the registered owners of the property.

d) To provide an official copy of the title plan for the registered title to the property.

e) To provide a priority period for an application for first registration by the executors.

Answer 33

b) To identify whether the whole or any part of the property has a registered title

Question 34

A house-building company is purchasing land for development from an engineering company which has owned the land for many years. The land has a registered title. A local authority search in Form CON29 has already been carried out.

Which one of the following additional pre-contract searches would be required in consequence of these specific circumstances?

a) Environmental search.

b) Flood search.

c) Commons registration search.

d) Limestone mining search.

e) Clay mining search.

Answer 34

a) Environmental search.

Question 35

The owner of a freehold house, which she bought around seven years ago, now wishes to sell the property. It is a Grade II listed property. The owner is unsure as to the rules regarding an Energy Performance Certificate (EPC) for the property.

Which one of the following statements relating to an EPC is correct?

a) It is required in relation to all residential properties.

b) It gives a property an energy efficiency rating from 1 to 7.

c) It contains recommendations about how to reduce energy use.

d) It is valid for five years.

e) It must be obtained as soon as possible after exchange of contracts.

Answer 35

c) It contains recommendations about how to reduce energy use.

Question 36

A solicitor is acting for the buyer of a commercial unit and is just about to undertake a local search in respect of the property. The buyer asks their solicitor to explain what a local search involves.

Which one of the following describes the two main parts of a local search?

a) Land charges search and physical inspection of the property.

b) Commons registration search and water company search and enquiries.

c) Local land charges search and standard enquiries of the local authority.

d) Search of the planning charges register and enquiries of the Land Registry.

e) Search of the index map and optional enquiries of the local authority.

Answer 36

c) Local land charges search and standard enquiries of the local authority.

Question 37

A solicitor has been instructed by the buyer of a parcel of land. At their initial meeting, the solicitor mentions to the buyer that they will be utilising the services of the National Land Information Service (NLIS). The buyer has not heard of the NLIS before and asks for further details.

Which one of the following best describes the explanation the solicitor should give to the buyer as to the role of the NLIS?

a) It provides title information in relation to land owned by government departments and local authorities.

b) It provides a centralised database for town and country planning matters.

c) It provides a single point of enquiry for making pre-contract searches.

d) It provides national valuation data for residential and commercial properties.

e) It provides a record of information relating to the ownership of unregistered land.

Answer 37

c) It provides a single point of enquiry for making pre-contract searches.

Question 38

A local property firm regularly receives referrals from a firm of surveyors in the same area. One of the partners at the firm of surveyors wishes to put a formal fee-sharing arrangement in place with the firm regarding any clients they refer to the law firm to carry out their residential conveyancing.

What must the law firm do in these circumstances to ensure they are not in breach of the SRA Code of Conduct for Solicitors (CCS)?

a) Ensure that the surveyors only refer their clients to your firm.

b) Ensure the surveyor supplies you with their client lists so that you can contact them directly to promote your legal services.

c) Ensure the fee-sharing arrangement is confidential between the firm and the surveyor.

d) Ensure that the clients are informed of the fee-sharing arrangement in writing.

e) Ensure the agreement is reciprocal. The firm must always refer clients to the surveyors.

Answer 38

d) Ensure that the clients are informed of the fee-sharing arrangement in writing.

Question 39

A businessman is buying a freehold commercial unit in London, which has an unregistered title. The land on which the unit is built was previously owned by a company until 1980. The land has previously been used for a variety of different purposes, including engineering. The unit is currently owned by a local authority, which bought it in 1980.

Which one of the following statements best describes a group of pre-contract searches which will need to be undertaken for this property?

a) Company search, environmental search, coal mining search.

b) Environmental search, local authority search, index map search.

c) Local authority search, tin mining search, environmental search.

d) Coal mining search, clay mining search, company search.

e) Index map search, coal mining search, limestone mining search.

Answer 39

b) Environmental search, local authority search, index map search.

Question 40

A solicitor is acting for the buyer of a house which has a registered title. The house was first registered in 2004 following a sale. The house was the subject of a further sale which was registered in 2012. The house is built on land which is near the church within a Church of England parish. There is no entry in the register as to chancel repair liability.

Which one of the following statements best describes whether the buyer’s solicitor would need to carry out a chancel repair liability search?

a) There would be no need to carry out a chancel repair liability search because the title was registered under the Land Registration Act 2002.

b) A chancel repair liability search should be carried out because chancel repair liability will take effect as an overriding interest in relation to a transfer to the buyer.

c) There would be no need to carry out a chancel repair liability search because there has been a registered transfer on sale subsequent to first registration of title.

d) There would be no need to carry out a chancel repair liability search because no entry has been made in the register in respect of any chancel repair liability.

e) A chancel repair liability search should be carried out because there has been no registered transfer on sale after 12 October 2013.

Answer 40

e) A chancel repair liability search should be carried out because there has been no registered transfer on sale after 12 October 2013.

Question 41

A solicitor is acting for a client in the purchase of a house for £250,000 and has just received the local land charges official search certificate from the local authority. The client asks the solicitor about the extent to which the accuracy of the official search certificate can be relied upon.

Which one of the following statements best describes the position in relation to such a search certificate?

a) The official search certificate is relied upon at the buyer’s own risk and no liability can attach to the local authority.

b) The official search certificate is guaranteed by the local authority as at the date of the local search result.

c) The official search certificate is guaranteed by HM Land Registry.

d) The official search certificate is guaranteed by the local authority for a period of six months from the date of issue.

e) The official search certificate is guaranteed by the local authority but only to a maximum liability of £50

Answer 41

b) The official search certificate is guaranteed by the local authority as at the date of the local search result.

Question 42

A solicitor is acting for the buyer of a house from a married couple. The buyer is obtaining a mortgage from a building society. The completion date has been agreed and the parties are in a position to exchange contracts. The buyer’s solicitor advises the buyer that a physical inspection of the house prior to exchange would be advisable.

Which one of the following statements in relation to such an inspection is correct?

a) It enables a check to be made for the existence of any covenants which could affect the property.

b) It is carried out by the buyer’s solicitor.

c) It enables a check to be made as to who is in actual occupation of the property.

d) It is carried out by the buyer’s mortgage lender.

e) It enables the buyer’s mortgage lender to make a final decision as to whether to make a mortgage offer to the buyer.

Answer 42

c) It enables a check to be made as to who is in actual occupation of the property.

Question 43

The buyer of a property intends to build a large extension at the rear, once they have completed their purchase. When they meet with their solicitor to go through the purchase documentation prior to signing the contract, the solicitor advises that there is a particular matter revealed by the local search which will need further investigation as regards the proposed extension.

Which one of the following statements best describes that particular matter?

a) The property is situated within a smoke control area.

b) The property adjoins common land.

c) A public footpath runs near to the property.

d) The property is not a listed building.

e) A tree preservation order relates to a tree at the property.

Answer 43

e) A tree preservation order relates to a tree at the property.

Question 44

A solicitor is acting for a company which is buying a development site. The site was previously used for industrial purposes prior to its purchase as vacant land by the seller. The solicitor has carried out an environmental search which reveals the site is affected by contamination. The company is concerned by this and asks its solicitor whether further investigation as to its potential liability for remediation costs is necessary before it commits to buying the site.

Which one of the following statements best describes whether such further investigation is necessary?

a) Further investigation as to potential liability for remediation costs is not necessary because only the original polluter can be liable.

b) Further investigation as to potential liability for remediation costs is necessary because the buyer will automatically be liable if it becomes the new owner.

c) Further investigation as to potential liability for remediation costs is not necessary because only the local authority can be liable.

d) Further investigation as to potential liability for remediation costs is necessary because the buyer will potentially be liable if it becomes the new owner.

e) Further investigation as to potential liability for remediation costs is not necessary because only the seller can be liable.

Answer 44

d) Further investigation as to potential liability for remediation costs is necessary because the buyer will potentially be liable if it becomes the new owner.

Question 45

A mortgage lender is intending to take repossession proceedings in respect of a property over which it has a registered charge, so that it can then sell the property. The house has a registered title and there is a sole registered proprietor. As an initial step, the lender carries out an application to HM Land Registry using Form HR3.

Which one of the following statements best describes the purpose of such an application?

a) To obtain an official copy of the mortgage deed.

b) To enter a restriction in the register to prevent any disposition by the current proprietor .

c) To enter a notice in the register as to the repossession proceedings.

d) To search the register as to whether any home rights notice has been registered or applied for.

e) To register the lender as proprietor of the property.

Answer 45

d) To search the register as to whether any home rights notice has been registered or applied for. correct

Question 46

A building company is buying a parcel of land for residential development. Its solicitor has carried out pre-contract searches, which reveal that part of the land is registered under the Commons Registration Act 1965.

Which one of the following statements best describes why further enquiries will need to be made regarding this registration?

a) To ascertain whether the commons registration relates to the land being registered as a town or village green.

b) To clarify whether the land has the benefit of any rights of common over adjoining land.

c) To identify whether the land has a registered commonhold title.

d) To check whether the land is subject to any rights over common parts in favour of a management company.

e) To establish whether the title to the land is vested in a number of individuals as tenants in common.

Answer 46

a) To ascertain whether the commons registration relates to the land being registered as a town or village green.