4. Drafting C and Exchange Flashcards
1
Q
Statute governing format of contract
A
s.2 LP(MP)A
2
Q
Way to describe property on C for unreel land
A
By ref to conveyance in epitome
3
Q
7.6.5
A
SCPC on if S gave IC, B also gives
4
Q
What happens to SCPCs if property is not standard rated
A
Remove ‘exclusive of VAT’ on front + incorporate Condition A1
5
Q
What does B’s S check about mortgage
A
CLLS draft agreed to? Offer accepted by B?
6
Q
Two examples of latent incumbrances
A
RCs and RoW
7
Q
Framework for drafting additional special conditions
A
Who is to perform, what, and when
8
Q
What issues does S’s S check prior to exchange (3)
A
Existing loan, enquiries + C, and deposit
9
Q
How can you stop the operation of s.62 LPA
A
Tick pre-printed special condition
10
Q
What SCPC applies if standard rated
A
2
11
Q
What will always be a variation to Formula B
A
Payment of deposit by TT (unless already sent)
12
Q
What is no title guarantee
A
No remedy against S
13
Q
Way to describe property on c for reg land
A
Address
14
Q
SCPC on if S gave IC, B also gives
A
7.6.5
15
Q
S.62 LPA
A
All fixtures and objects benefitting the property automatically pass w/ the property
16
Q
SCPC 8.1
A
Property is at risk of B from date of C
17
Q
What must Ss both get from their client prior to exchange
A
Signature on C, obtain instructions on completion, get authority to exchange
18
Q
Who must execute PD for partnerships
A
All partners
19
Q
What must always be done to document exchange
A
An attendance note
20
Q
What incumbrances are listed in 4.1.2 as binding B
A
Specified, discoverable, or impossible for S to know
21
Q
What does S’s S check for deposit prior to exchange
A
Agreed amount, received in advance, and how does S hold the deposit?
22
Q
What does S’s S check prior to exchange for existing loan
A
Gets provisional redemption figure
23
Q
What does Formula B rely on
A
Undertakings
24
Q
IB(11.5)
A
S is advised to keep records of when undertakings given and when discharged
25
How are SCPCs incorporated
Expressly
26
How can you change presumed full title guarantee
Pre-printed special condition
27
Format for regularisation certificate as condition
The Seller will provide the Buyer with a Regularisation Certificate for [X building] constructed in [year] on the Property from [X] District Council, on or before the Completion Date.
28
What must B's S report to him prior to exchange
Terms of C + ensure acceptable
29
Why is CLLS sent in draft for approval prior to exchange?
To ensure money will be advanced on completion.
30
SCPC on B deemed to buy subject to all listed in that section
4.1.2
31
What does B's S check about deposit
Amount agreed + cleared funds in client account
32
Three possible ways to exchange
Person, post and by phone
33
4.1.2 covers what
Encumbrances that B buys subject to
34
What does s.2 LP(MP)A require of the C
Writing, incorporating all agreed terms, and signed by/on behalf of all parties
35
When do both sides become legally bound
On exchange
36
What happens if Formula B is varied
Must be confirmed in writing in Conveyancer's Box
37
Why is it an issue if B occupies prior to completion
B may lose incentive to complete
38
SCPC on presuming title guarantee to be full
7.6.2
39
Why must M not be mentioned as specified incumbrance on front page of C
Undoes 4.1.2(d), as then becomes specified under (a)
40
SCPC on time for completion presumed to be 2pm
9.1.2
41
What issues must B's S check
All docs + searches done and satisfactory; all issues dealt w/
42
How do you deal w/ pre-printed special conditions when picking those that apply
Cross through the ones not used + renumber
43
When is a property standard rated
Built in last 3 years or S opted to tax
44
Format for non-owning occupiers as special condition
The Seller will provide on the Completion Date an original Declaration of Waiver (in the form attached to this contract) signed by [X] and dated at the date of this contract.
45
What two kinds of encumbrances must S disclose
Latent and defects in title
46
What must B's S check for the contract prior to exchange
Signed most recent agreed version?
47
What can happen if S fails to correctly describe the property on the contract
Can = MR + BoC under 10.1
48
Format for removal of part of property (e.g. fixture)
On or before The Completion Date, the Seller shall remove [x] currently located/affixed [location], provided the Seller makes good any damage caused to the reasonable satisfaction of the Buyer.
49
3.2.1 SCPC
Deposit presumed to be 10%
50
What is the deposit presumed to be + per what
10%, 3.2.1
51
O(11.2)
S must comply w/ undertakings within agreed or reasonable time
52
Property is at risk of B from date of C
SCPC 8.1
53
When is actual indemnity covenant given
In Purchase Deed
54
Three financial agreements B's S should check prior to exchange
Deposit, mortgage and draft financial statement for B
55
What happens to formatting of removal of part of property if subject to LB consent
Put 'provided the Seller receives LB consent from X DC...'
56
What contents automatically pass w/ the property per s.62 LPA
All fixtures and objects benefitting the property
57
SCPC on B buys free of mortgage
4.1.2(d)
58
Procedure for exchange
S confirms holding signed C + BS confirms deposit; completion dated agreed + written; exchange agreed; C dated + undertakings given
59
How can you vary deposit presumed to be 10% under 3.2.1
By special condition
60
7.6.2
Title guarantee presumed to be full
61
Format for repair of property (for breach of PC)
Prior to the Completion Date, the Seller shall put [the fence on the boundary of the Property] into a good state of repair in accordance with covenant [x] of the Schedule of covenants contained in the Charges Register of Title Number [x]
62
9.1.2
Time for completion presumed to be 2pm
63
What DoC does S have from exchange, towards the property
Reasonable care, NOT to insure
64
What do Ss need to report to client post-exchange
Inform them of exchange, completion date, financial issues and provide for signing TR1
65
How do you change time for completion
Special condition
66
What encumbrances need S NOT disclose
Any listed in 4.1.2
67
What is limited title guarantee
No 3rd party rights since last sale
68
What must solicitor do if S accepting reduced deposit
Explain consequences
69
How does S usually hold B's deposit
As stakeholder per 3.2.2
70
S must comply w/ undertakings within agreed or reasonable time
O(11.2)
71
Wording of IC
“The Transferee covenants with the Transferor to observe and perform the covenants contained or referred to in entry [X] of the Charges Register of title number [X] and to indemnify the Transferor against any liability for any future breach or non-observance of those covenants.”
72
How MIGHT Formula B be varied (2)
Stating deposit already received and/or including undertaking to send C on another day
73
What if TiC wants to give full, but 2T only giving limited?
Use special condition
74
How are specified incumbrances referenced on contract
'SI: the matters set out at item [x] of the Charges Register of title number [XXXXX]'
75
How do you avoid issue of B losing incentive to complete, by occupying prior to completion
B only occupies as licensee w/ special conditions in contract on e.g. hours of access
76
Who can sign on exchange of Cs (other than individual)
Authorised 3rd, S, or officer/P of company/Partnership
77
When would you not tick pre-printed special condition, even if wanted to stop operation of s.62
If using special condition instead
78
What docs/instructions must S's S check prior to exchange
Contract and completion date
79
Who drafts contract and how
S's S, using Heads of Terms
80
What to do on special conditions if lessor staying in occupation after sale of freehold
Give details of lease, including 'occupying pursuant to lease dated [X]'
81
When is wording of indemnity covenant agreed
Contract
82
S is advised to keep records of when undertakings given and when discharged
IB(11.5)
83
What procedure for exchange by phone
Formula B
84
What documents/instructions must B's S check prior to exchange
Contract and completion date
85
What is the guarantee w/ full guarantee
Right to sell + free from 3rd party rights other than those disclosed or impossible
86
What must person in actual occupation sign
Declaration of Waiver and promise to vacate on or before Completion Date
87
What Special Condition will always be checked - one or the other
4 - vacant possession or subject to lease
88
If selling subject to lease in favour of Michael Wood, granted 11th January 2018 for a term of 10 years, what would you write in SCPC SC 4
lease to Michael Wood (occupying pursuant to a 10-year lease dated 11 January 2018)
89
What is the only possible Condition under Section 9 of the SCPCs which might be checked
Condition A1 - not a taxable supply
90
Three examples of things that may be a condition on a contract
Obtain Regularisation certificate, obtain retrospective planning permission, obtain restrictive covenant insurance
91
What to say about undertakings at exchange
They are personally binding and note O(11.2) and IB(11.5)
