General Flashcards
What is the name of the Law Society accreditation for residential conveyancing practices?
Conveyancing Quality Scheme
What is a limited title guarantee, and when is it appropriate?
A limited title guarantee is narrower in scope than a full title guarantee; in it, the seller merely warrants that the seller has not created any charges or granted any rights during their period of ownership that have not been disclosed in the contract. A limited title guarantee is typically given by a seller with less knowledge or involvement with the property and is most appropriate when the seller is a personal representative.
When should a solicitor conduct an index map search?
Where title is unregistered.
When title is unregistered, in addition to carrying out the local search, drainage and water search, and environmental search that should be done pre-contract in every purchase, the solicitor should also carry out an index map search to reveal whether the title to the property is already fully or partially registered. This will be done whether the use of the property is residential or commercial.
What are the Permitted Development Rules?
Under the Town and Country Planning (General Permitted Development) Order 1995, certain types of development may be undertaken without express consent. These include small home extensions, porches, fences, and conservatories.
Note that local authority can disapply deemed permission in eg conservation area under Article 4 of the TPwn and Planning Order 1995
mortgage valuation report
Prior to issuing a mortgage offer, the lender will obtain a [BLANK] to confirm that the property represents good security for the loan and require the buyer to provide evidence that they can afford the mortgage.
What permission is needed for work on listed buildings? And what is the enforcement period?
Most work to a listed building requires both planning permission and listed building consent. Building work would certainly require such consents and there is no time limit for enforcement. Local authority may bring an enforcement action at any time.
What is the time limit for enforcement action regarding a material change of use?
The time limit for enforcement in relation to a material change of use is 10 years.
What is the standard method of completion under the Law Societys Conveyancing Protocol?
The Law Society’s Conveyancing Protocol provides that completion will be by post in compliance with the Code for Completion by Post unless the solicitors agree otherwise
A solicitor must [BLANK] following an adverse result on a bankruptcy order.
An adverse result must be notified to the lender.
NB should be done pre-exchange AND pre-completion.
What remedies are available to a buyer if the property is misdescribed in the particulars in the contract?
Under the Standard Conditions of Sale, if the property has been misdescribed in the particulars, the buyer may both rescind (that is, undo the contract and put the parties in the positions they were in before exchange) and seek damages arising from the misdescription.
How can a landlord contract out of the security of tenure protections given a commercial tenant under the Landlord and Tenant Act 1954 (Part II)
Only if the three statutory requirements are satisfied.
- At least 14 days before the tenant completes the lease, the landlord must give what is called a ‘health warning’ – a notice to the potential tenant explaining what the security of tenure is, that the potential tenant is giving up these rights, the consequences of giving up these rights, and that the tenant should seek professional advice.
- The tenant must sign a declaration confirming that they have received the warning and that they agree to contracting out of the Act and the consequences of doing so.
- The lease must contain a reference to the health warning, the declaration, and the agreement to contract out.
In what circumstances is ‘no title guarantee’ appropriate?
No title guarantee is typically given when a seller has no knowledge of the property at all, for example, a mortgagee (bank) in possession.
When is the executed transfer signed and sent? And by who?
The Code for Completion by Post provides that after completion, the seller’s solicitor must act as agent for the buyer’s solicitor, meaning that once the sale proceeds are received, the seller’s solicitor will date and send the executed transfer (and any other relevant documents) to the buyer’s solicitor not later than the end of the working day following completion.
Note that the seller’s solicitor is also required to confirm to the buyer’s solicitor and to whomever holds the keys (such as an estate agent) – by telephone, fax, or email – the date and time at which completion has taken place. This notice must be given as soon as possible after completion.
What is required to change the terms of lease?
A deed of variation.
In what circumstances can a landlord impose an absolute prohibition against assignment?
In long-term commercial leases it is considered reasonable for a landlord to refuse consent to an assignment bc of the high rates of the lease.
In long-term residential leases an absolute prohibition against assignment is considered unacceptable.
In a commercial lease, in what circumstances can a landlord review and amend the rent?
ONLY if there is a rent review provision in the lease.
When must capital gains tax be paid?
IF it is due (personal residence relief exhausted/does not apply), it must be paid within 30 days from date of completion.
When is an energy performance certificate required?
- When a property is built, sold, or rented.
- When there is an existing EPC which is more than 10 years old.
*NB - not required for listed buildings
What document is usually produced when lease is assigned?
A license to assign. Signed by outgoing T, incoming T and landlord.
Usually produced by the landlord’s solicitors, and paid by the outgoing tenant.
Necessary to create privity of contract
What is the doctrine of caveat emptor?
It is the buyer’s responsibility to inspect the property for both patent and latent physical defects in the property.
What is included in the contract package for freehold sale?
- draft contract in duplicate
- PIF and fitting and fixtures form
- any guarantees and planning permission
- copy of the title, relevant support docs, and title plan
What TEN things are included in the contract package for assignment of a lease?
- The draft contract in duplicate.
- Official copies of the leasehold title and plan.
- A copy of the lease of the property.
- The Property Information Form, Leasehold Information Form, and Fittings and Contents Form.
- A copy of the landlord’s freehold register of title and plan.
- A copy of the insurance policy for the whole building.
- A copy of the last three years’ service charge accounts
- service charge budget for coming year (if any)
- details of management company (if any)
- new build warranty - if property is less than 10 years old
What EIGHT things are included in the contract package for a lease?
- The draft contract in duplicate.
- The Property Information Form
- Replies to pre-contract enquries
- A copy of the landlord’s freehold register of title and plan.
- A copy of planning permission and buildings regs consent
- service charge budget for coming year (if any)
- details of management company (if any)
- new build warranty - if property is less than 10 years old
What is included in a Contract Incorporating the Standard Conditions of Sale?
Three parts:
- the particulars of sale
- the standard conditions of sale, and
- the special conditions of sale
Under the Standard Conditions of Sale, the VAT is [included/excluded] in the purchase price.
VAT is included in the purchase price.
How is VAT applicable in commercial lease?
A lease of commercial premises is generally exempt from VAT, but a landlord may elect to tax in order to recover input tax
When is full title guarantee appropriate?
When the seller is entitled to sell the property and will do all in their power to transfer the title to the buyer free from all charges or encumbrances other than those disclosed.
When is limited title guarantee appropriate?
When the seller warrants that they have not created any charges or granted any rights during their period of ownership that have not been disclosed.
Under the Standard Conditions of Sale, if the parties have not included a completion date, when will completion be held?
20 working days after exchange of contracts.
What form is annexed to a conveyancing contract to indicate personal property that is included or excluded from the sale
Fittings and contents form
What does it mean when the buyer’s solicitor ‘raises requisitions on title’?
The buyer’s solicitor has found a potential defect in title and has raised an enquiry with the seller’s solicitor.
How can defect in title be resolved?
- deed of variation
- deed of rectification - solve issue properly
- indemnity insurance - for any loss flowing from the defect in title
What search must be conducted to obtain information about village green?
Special and optional element of the local search.
