LAND Flashcards
(48 cards)
If a blank front page of a contract for sale has been sent to a buyers solicitor to review (drafted w the Standard Commercial Property Conditions (third edn - 2018 revision (‘SCPC’)) - will compensation be payable under the contract should completion be delayed due to buyer default?
Yes, SCPC contains contractual entitlement to compensation. This will be calculated at The Law Society’s interest rate from time to time in force
for easements or profits to be legal they must…
be created either forever (estate in fee simple absolute) or for a fixed duration
Is an implied trust legal in nature?
no, IT IS EQUITABLE, it doesn’t appear in s1(1) or (2) LPA 1925
If a partner makes significant improvements to the property owned by their partner what type of trust does this form?
implied trust
How can an equitable interest be overreached?
The seller appoints another trustee (there must be a minimum of two) to sign away rights w the purchase price.
What does ‘assignment’ mean
The transference of a lease from one tenant (assignor/assignee) to a third party (buyer/assignee)
what should a third party assignee solicitor check for before the lease is assigned?
- they have the landlords consent.
- the original lease meets assignees requirements
how do landlords give consent to third party assignments?
via licence.
- they will want to check references to ensure assignee is financially strong
- will also want with a direct covenant from Assignee or AGA from assignor
will a Landlord require an undertaking before they consent to a third party assignment? and from who?
Yes.
- LL solicitors will require an undertaking from the assignors solicitors to pay for legal and other professional costs involved
How can a third party rescind an assignment contract under The Standard Conditions of Sale (SCS) - leases
- if the LL doesn’t consent within 3 working days of completion
- or LL consent is subject to conditions the assignee reasonably objects
- Can rescind by serving notice
How can a third party rescind an assignment contract the Standard Commercial Property Conditions (SCPC)
- LL not consents at completion date
- LL given 5 extra days
- Assignor notifies buyer
- Assignee serves notice on LL
- takes 6 months to rescind
Who prepares the licence to assign to a third party?
The landlord solicitor
what are the key provisions that landlord require to assign a third party lease (on or post 1st jan 1996)
Assignor provides AGA
what are the key provisions that landlord require to assign a third party lease (pre 1st jan 1996)
assignee enters direct covenants w LL otherwise assignor is trapped by privity of contract
what do Authorised Guarantee Agreements do?
a. guarantee assignee will perform the T’s covenants in the lease – incl pay rent
b. promise to perform the covenants if the assignee doesn’t
c. indemnifying the LL for the assignees failure to pay rent or observe other covenants
d. promise to take a new lease if liability of assignee of insolvency occurs
what happens when there is a transfer of deed to a third party assigner? (leases)
- Usually prepared by assignees solicitor
- Assignment of reg lease: TR1 form under Land Reg rules 2003
- Un reg lease: assignment of lease over 7 years will = compulsory registration TR1 form
- Lease under 7 years: deed of assignment format so that registration isn’t triggered.
Is SDLT/LTT payable on third party assignments to a lease?
yes.
- Payable on any available purchase price charged by assignor
- not payable on rent
what are the requirments of a deed? and what legislation is it found in?
- Deed needed (meets criteria of s 52 LPA 1925)
- In writing, clear on face, signed, witnessed, delivered.
what is an estate contract?
a contract to transfer a legal lease or freehold = estate contract.
- Complies w s 2 LMPA 1989
- Clean hands (Specific performance remedy)
what are the characteristics of a lease?
- Estate must be for a duration permitted for a leasehold estate
- Grants exclusive possession
- Correct formalities
what are a landlords covenants to a tenant?
- Quiet enjoyment* (Landlord doesn’t act/interfere) (protection from Eviction Act 1977 stops landlord from unlawfully depriving possession)
- Insurance
- Respect of fitness of property* (landlord must repair the structure (exterior and interior) of dwelling house, keep installation of gas, water elec working, repair heating)
what act can a tenant use to prevent a landlord from alienation?
A tenant can use the Landlord Tenant Act (LTA) 1988 to impose an obligation on a landlord to not unreasonably withhold consent for alienation.
Landlord has the option to
1. Give consent (unless unreasonable)
2. Write notice of decision incl conditions: most popular condition is an Authorised guarantee agreement (AGA)
3. Refuse and give reasons why
what is Commercial rent arrears recovery (CRAR)
- Only available against Tenants in possession
- LL enters premises to seize T’s goods and sell them
- Arrears and rent = paid off by tenants goods
*rent due exceeded 7 days rent minimum
Do you need a court order to use CRAR? (Commercial Rent Arrears Recovery)
no
