Freehold

Question 1

Pre-contract steps

Answer 1

Seller:
- Contract
- Deduce Title

Buyer
- Raise enquiries
- Searches
- Report on title
- Investigate title

Question 2

Pre-completion steps

Answer 2

Buyer:
- Requisitions
- Pre-completion searches
- Prepare TR1

Question 3

Post completion steps

Answer 3

Seller
- Redeem mortgage and send evidence to buyer
- pay CGT if not main residence

Buyer
- Pay SDLT within 14 days
- Register at LR (ideally 30 working days)

Question 4

Types of survey

Answer 4

Basic Valuation: (only identifies obvious major defects)
Homebuyer Report: more detailed than a basic valuation
Full Structural Survey: most detailed and best if listed, renovations

Question 5

Types of mortgage

Answer 5

Capital repayment: repay capital and interest monthly so at end of term nothing left to pay
Interest only: only repay interest. At end of term have to pay capital in a lump sum.

Question 6

Deducing title meaning

Answer 6

Prove ownership

Registered land: copies + plan + docs if not extracted on title
Unregistered: Epitome of title (root + chain + pre-root if referred to on root)

Question 7

Good root of title

Answer 7

Adequately described: plan (or ref to plan)
Beneficial and legal ownership: no division + valid conveyance
Casts no doubt: no PoA or different name (unless evidence)
Dated pre compulsory registration: 1990 / 1998

Question 8

Chain of title docs to include and exclude

Answer 8

Include:
- Name change
- Mortgages
- PoAs
- Death certificates
- Grants of rep

Exclude:
- expired leases
- trust deeds
- searches
- planning permission
- plans

Question 9

Land charges register search - names if unregistered

Answer 9

All legal owners from root for period of ownership (but root person from 1926).

NOT poAs or Trustees

Question 10

COnsiderations if there is an easement benefitting property

Answer 10

Adequate: legally and practically
Maintenance: amount + how often
Adoption: check CON29 - risk that if frontage have to contribute
Registered: must be on charges register of burdened land (if unregistered then enter caution against first registration)

Question 11

Classes of title

Answer 11

Absolute: no issues with ownership
Possessory: occupation but no deeds
Qualified: something is missing
Good Leasehold: no evidence of freehold title

Question 12

How to deal with sale if co-owner died

Answer 12

JT = death certificate
TiC = death cert + appoint second trustee

Question 13

Advice is buyer wants to breach a covenant

Answer 13

1. insurance
2. release by agreement with PWB
3. Lands tribunal
4. reduction in PP

Question 14

Standard searches

Answer 14

Local searches
- LLC1: granted planning, enforcement and stop notices, Article 4 directions, tree preservations listed buildings, conservation area
- CON29: all planning, building regulations, adoption, rights of way, contaminated land notices

Drainage and water ways = connected to pipes

Desktop environmental = indicates if subsidence, flooding or contamination are risks

Chancel repair = liability to contribute to maintenance of pre-reformation church

Question 15

Searches against title / seller pre-contract

Answer 15

If unregistered land:
- Land charges searches against seller
- SIM search to show extent of property

If seller is a company: company search
if mortgage: bankcrtuprcy search against seller

Question 16

Standard conditions - deposit

Answer 16

10% held as stakeholder (agent if onward purchase)

Question 17

standard conditions - completion date and time

Answer 17

2pm 20 working days after exchange

Question 18

standard conditions - VAT

Answer 18

residential = pp is inclsuive of VAT
commercial = pp is exclusive of VAT (if no VAT to pay then amend by special condition A1)

Question 19

VAT rules in property

Answer 19

No VAT is payable unless commercial property new build (under 3 yrs old) or LL elected to tax.

Question 20

Consequences of exchange

Answer 20

1. Binding - cannot withdraw without consequences
2. Buyer bears risk of loss or damage so shoudl take out insurance

Question 21

pre-completion searches

Answer 21

OS1 (OS2 if part): name of lender from date of copy. priority period of 30 working days (no changes can be made to title)

If unregistered then do a land charges search instead against name of seller (K15). Gives priority period of 15 working days.

If act for lender: K16 against buyer. 15 working day priority period. Means that if bankruptcy then lender can get monies back.

Question 22

Deed clause wording - TR1

Answer 22

individual:
Signed as a deed by X in the presence of:
Signature:
Witness Signature:
NAME:
ADDRESS

company
Executed as a deed by affiing the common seal of CO NAME in the presenence of:
D1
D2 / secretary

Executed as deed by CO acting by director and secretary / 2Ds:
Signature
Signature

Executed as a deed by CO acting by director in the presence of:
Signature
Signature of witness
NAME
ADDRESS

Question 23

SDLT rules

Answer 23

Payable on PP + VAT (may deduct contents)
Submit SDLT 1 within 14 days (30 days if wales)

Question 24

completion delayed

Answer 24

No impact unless notice to complete is served.

Notice to complete = must top up deposit to 10% / complete within 10 working days of notice.

if complete within 10 working days of notice:
- contractual interest for every day delayed including date should have happened at contract rate on purchase price
- damages if losses exceed contractual interest

if do not complete:
- recission
- deposit
- damages