conveyancing

Question 1

Conveyancing

Answer 1

• term of art to describe the legal process of buying and selling property
• owner’s powers s23 LRA 2002- include the right of substitution
• need for formality
  in england and wales 4 basic steps to convey property

STAGE 1
Negotiation and Agreement
-viewing and offer
- leads to agreement to buy subject to contract
- Solicitors instructed
NOTE: nothing at this stage is legally binding - either party may withdraw
- purchaser needs sto get finance in place- usually from bank
- requires a deposit from purchasers’ own funds
- can come from equity value in the current home
- in mortgage arrangements-borrower is mortgagor; the lender is mortgagee
- survey required: most expensive is full structural survey; next is home condition report and least is valuation report
- all cost money but remember- nothing is binding yet
- mortgage agreed in principle and offer made in writing
- further negotiation can occur at this stage on results from survey
- Pitt v PHH asset management Ltd 1994 : gazumping- lockout agreement possible
- gazundering
- the problems with chains
- the demise of teh HIP

Question 2

STEP 2

Answer 2

• after all negotiations over remember fixtures and fittings) contracts drafted
• s2 law of property act (MP) 1989- requires formality for such contracts
• daye agreed for formal exchange of contracts, date agreed for completion
• purchaser has to provide deposit - usually 10% of price
• solicitors will then agree exchange
• once exchange occurs, the transfer of property is binding
• if purchaser backs out- lose deposit
• court will typically enforce a specific performance remedy on vendor- equitable remedy- purchsers have equitable interest from the exchange- discretionary
  Cobbe v Yeoman’s Row Ltd (2008) - must establish equitable right
• Patel v Ali (1984)- must be in the interests of justice to enforce specific performance (transfer of property

Question 3

STEP 3

Answer 3

-transfer or conveyance of the legal estate
- Further legal searches made post exchange –
differ between registered and unregistered
land
* Registered land – proof held at Registry on
register of title but purchaser should inspect
(remember overriding interests?)
* Remember purchaser now bound to proceed
anyway*
- with unregistere land- the vendor has to produce title deeds showing root of title back at least 15 years
- land charges registers searched
- deed of transfer drafted - s1 LP (MP) act 1989- formalities required for land transfer
- completion date confirmed

Question 4

STEP 4

Answer 4

completion and registration
- on completion date- transfer deedd, mortgage documents and all relevant paperwork sent to land registry
- registration gap
- in registered land- legal title is not transferred until the trasfer is registered
- awkward period where new owner has equitable title only
- need to address registration gap LRA 2002 and electronic conveyancing
- once implement, completion and regostration happen simultaneously
-2002: other measure: chain managers
- triggers events fpr unregistered land

Question 5

minor interest- a hidden danger

Answer 5

• interests that override registered disposition(sales of registered land schedule 3 LRA 2002
• a person will not be in actial occupation under schedule 3 para 2 lLRA 2002 if they do not tell a purchaser about theit interest when asked and could reasonable have been expected to do so or
  -Their interest is one that would not have been
  obvious on a reasonably careful inspection of
  the land at the time of the purchase unless
  the purchaser actually knew of the interest