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Land Law & PLP > Land Law > Flashcards

Land Law Flashcards

1
Q

Form required to discharge a mortgage of whole land

A

DS1 Form

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2
Q

Form required to discharge a mortgage of part

A

DS3 Form

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3
Q

How is the priority of legal mortgages determined?

A

Registration (regardless of the date of creation)

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4
Q

How is the priority of equitable mortgages determined?

A

Creation (regardless of registration)

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5
Q

What is the effect of notice of equitable mortgage in the Charges Register in relation to a later legal mortgage?

A

Takes priority

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6
Q

What are the consequences of failing to register an equitable mortgage in relation to a subsequent registrable disposition i.e. transfer of freehold?

A

Loss of priority

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7
Q

What is the effect of a deed of priority in relation to mortgages?

A

Lenders can agree to alter the position that would apply according to the priority rules by entering a deed of priority or inter-creditor deed. Any agreement would need to be registered at the Land Registry.

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8
Q

What are the remedies available to the lender of a legal mortgage?

A

Debt action; Repossession; Sale; Appointment of a receiver; Foreclosure

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9
Q

What are the remedies available to the lender of an equitable mortgage?

A

Debt action; Appointment of a receiver; Foreclosure

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10
Q

What is the exception that the burden of freehold covenants doesn’t pass at common law?

A

The doctrine of mutual benefit

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11
Q

What are the requirements of the doctrine of mutual benefit?

A
  1. A clear link between burden and benefit;
  2. A genuine choice as to whether to take the benefit.
  3. The burden and benefit must have been conferred in the same transaction.
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12
Q

What are the requirements for the burden of a freehold covenant to pass in equity?

A
  1. The covenant must be restrictive;
  2. The covenant must accommodate the dominant land: (i) covenantee and successor covenantee must hold an interest in the dominant land;
    (ii) covenant touches and concerns the land;
    (iii) dominant/servient land must be close in proximity;
  3. There must be intention that the covenant will run;
  4. There must be notice of the covenant i.e. has it been properly protected?
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13
Q

What are the three categories under which rights can be protected in registered land? i.e. transfer of freehold is a X.

A
  1. Registrable dispositions
  2. Interests protected by entry
  3. Overriding interests
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14
Q

List the types of registrable dispositions under Registered Land

A
  1. Transfer of freehold/leasehold.
  2. Legal lease of more than 7 years.
  3. Legal charge.
  4. Legal grant or reservation of an easement.
  5. Grant of a landlord’s right of entry i.e. right of forfeiture.
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15
Q

List the types of interests that can be protected by notice in Registered Land.

A
  1. Estate contracts.
  2. Restrictive covenants affecting freehold land
  3. Equitable easements.
  4. Legal leases between 3 and 7 years (optional).
  5. *Beneficial interest in a trust of land (restriction).
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16
Q

List the type of overriding interest in Registered Land

A
  1. Legal leases for 7 years of less.
  2. Equitable interests of someone in actual occupation;
  3. Implied legal easements and profits a pendre.
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17
Q

Requirements for overreaching

A

The money must be paid to at least two trustees.

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18
Q

Limitation period for a debt action in relation to a mortgage

A
  1. Debt > 12 years.
  2. Interest > 6 years.
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19
Q

Principle of caveat emptor

A

‘Buyer beware’ i.e. general rule that the buyer takes the property as he finds it. No onus on the seller to disclose patent (obvious) incumbrances or physical defects in the property; it is up to the buyer to fully investigate them.

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20
Q

Seller’s duties in relation to latent incumbrances

A

Duty to disclose latent incumbrances of which it is aware or has the means to know, acting reasonably or diligently.

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21
Q

What is contained in the Property Register?

A

Describes the property (freehold or leasehold); address or description; refers to title plan; rights benefiting the property; exclusions.

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22
Q

What is contained in the Proprietorship Register?

A

Gives the registered proprietor’s name and address, class of title and entries affecting ownerships (for companies, the company number is also included).

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23
Q

What is contained in the Charges Register?

A

Rights burdening the property i.e. mortgage, covenants, leases.

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24
Q

Mandatory/minimum searches for a transfer of freehold

A
  1. Local authority search (CON29);
  2. Local Land Charges enquiry (LLC1 );
  3. Drainage and water enquiries;
  4. Desktop environmental search;
  5. Chancel repair liability
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25
Q

Standard form of pre-contract enquiries for commercial property

A

Commercial Property Standard Enquiries (CPSE)

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26
Q

Difference between title guarantee and class of title

A
  1. Tittle guarantee is a contractual guarantee given by the seller in a contract for a transfer of land.
  2. Class of title is guaranteed by the Land Registry.
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27
Q

Effect of completion date being left blank in the contract

A

Default 20 working days

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28
Q

Effect of completion time being left blank in the contract

A

Default 2pm

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29
Q

Who drafts the legal charge in a transfer of land?

A

Lender’s solicitor

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30
Q

List the lending documents for a transfer of land

A
  1. Mortgage offer;
  2. Facility letter;
  3. Certificate of title.
  4. Legal charge i.e. deed.
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31
Q

Prescriptive format of certificate of title for commercial property

A

City of London Law Society (CCLS) Certificate of Title

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32
Q

Lender can sue for material errors in relation to the certificate of title. True/false

A

True

33
Q

Define certificate of title

A

Document in which a solicitor certifies that the title to the property is satisfactory for lending purposes.

34
Q

Legal charge (document)

A

Deed that creates the security document and must be registered at the Land Registry.

35
Q

S2 LPMPA requirements

A

A contract for the transfer of land must be:
1. In writing;
2. Containing all the terms expressly agreed by the parties;
3. Signed by both parties or their representatives.

36
Q

Purpose of land contract

A
  1. Fix a completion date;
  2. Attach conditions to the sale i.e. S to repair roof;
  3. Tie related transactions;
  4. Set out related obligations i.e. buy furniture.
37
Q

Standard form contract for residential transactions

A

SCS – Standard Conditions of Sale. Mandatory when the parties adopt the Law Society Conveyancing Protocol.

38
Q

Standard form contract for commercial transactions

A

SCPC – Standard Commercial Property Conditions

39
Q

When can special conditions be included in a residential property contract?

A

It must be absolutely necessary.

40
Q

Full title guarantee

A

Property is free of all incumbrances other than those disclosed in the contract and those which the seller couldn’t have reasonably known about.

41
Q

Limited title guarantee

A

No incumbrances have been created over the property during the seller’s period of ownership i.e. executor.

42
Q

If the seller inherited the property, the period of limited guarantee is extended to the last transaction for value. True/false

A

True

43
Q

How can the time be made of essence in a land contract?

A

Notice to complete is served.

44
Q

Default date and time for completion under SCS/SCPC.

A

20 working days and 2pm.

45
Q

What happens if the buyer agrees to pay a deposit lower than 10% for the property and defaults/notice to complete is served?

A

The whole 10% becomes due immediately.

46
Q

Under SCS/SCPC how is the seller’s solicitor to kept the deposit?

A

Stakeholder

47
Q

VAT on residential property

A

Exempt unless newly developed.

48
Q

VAT on commercial property

A

Property 3 years or older is exempt unless the seller decides to tax it

49
Q

Who bears the burden of risk to the property from the contract onwards?

A

Buyer.

50
Q

No title guarantee

A

Seller does not guarantee that the property is free of encumbrances (B has no remedy against S).

51
Q

Latent incumbrances

A

Rights burdening the property that are not apparent on inspection i.e. covenants and easements.

52
Q

Defects in title

A

Issues that cast doubt on the seller’s ownership of the property or the rights that affect it i.e. deed containing covenants has been lost.

53
Q

Difference between SCS and SCPC in relation to specified incumbrances

A

Under the SCS, the seller needs to disclose any incumbrances registered at the Land Registry, the Land Charges registry and Companies House.

Under the SCPC, the buyer is deemed to buy the property subject to any incumbrances that would be revealed by a prudent buyer’s searches and enquiries. This places the onus on the buyer to make all relevant searches.

54
Q

Payment of deposit under SCS and SCPC

A

SCS – electronically or by cheque from the buyer’s solicitor client account.
SCPC – electronically only.

55
Q

What are ‘special conditions’?

A

Pre-written standard conditions used in land contracts to modify the contract i.e. from default full title guarantee to limited title or to change default completion time or VAT treatment.

56
Q

VAT treatment of residential property

A

Usually zero-rated or exempted and treated as VAT inclusive in the SCS.

57
Q

VAT Treatment of commercial property

A

Standard-rated unless 3 years or older and the seller opts in.

58
Q

What is the consequence or a seller opting to tax a property they are selling?

A

Standard-rated in a subsequent sale. Any tenants of the property would have to pay VAT on their rent.

59
Q

Transfer of a going concern (TOGC)

A

Where the seller uses the property for the business of letting to produce rental income, and the buyer will do the same, the transaction is a TOGC and not a taxable supply.

60
Q

What is the standard position regarding VAT under the SCPC?

A

Tax is charged at the standard rate.

61
Q

Undertakings given under Formula B

A
  1. Each solicitor holds the signed contract to the other’s orders.
  2. Contract to be posted that same day by first class, DX or hand delivery.
  3. B’s solicitor to send deposit.
62
Q

When is Formula A used? and Formula C?

A

A –When contracts are being exchanges but both held by the same solicitor.
C – chain transactions (B normally used and transactions tied).

63
Q

After contract exchange, B holds equitable title in the property. How is this protected?

A

Registered land – notice on the register.
Unregistered land – land charge.

64
Q

Who completes the searches if the property is being sold by auction?

A

The seller

65
Q

Deeds used to transfer land

A

TR1 – transfer of whole freehold/leasehold;
TP1 – transfer of part freehold/leasehold
TR5 – portfolio of properties

66
Q

When does a transferee execute a deed?

A
  1. Tenant in common;
  2. Holding on trust for another;
  3. Indemnity covenant and any other obligation.
67
Q

What kind of undertaking does a buyer’s solicitor give to a lender’s solicitor in a commercial transfer of land?

A

Undertaking to only use the mortgage money for the appropriate/proper purpose.

68
Q

When is a deed delivered?

A

When dated

69
Q

OS1 search for Registered Land

A
  1. Launched from the date that the official copies were dated.
  2. Confers priority of 30 working days.
  3. Should be carried out as late as possible before completion.
  4. Searched against title.
70
Q

Form K15 Form

A
  1. Used for pre-completion searches in unregistered land against the Land Charges Register.
  2. Confers 15 working days priority.
  3. Should be carried out as late as possible.
  4. Only needs to be carried out against the current landowner.
71
Q

Solvency searches (pre-completion)

A
  1. Form K16 – bankruptcy search carried against the buyer when acting for the lender (15 working days priority).
  2. Buyer is a company – Companies House search immediately before completion (no priority).
  3. Seller is a company – Companies House search immediately before completion (no priority).

Note – unusual to carry out a bankruptcy search against an individual seller.

72
Q

Requisitions on title

A

Pre-completion questions sent by B’s solicitor i.e. keys arrangements, undertaking to redeem mortgage (DS1).

  1. Residential – TA13
  2. Commercial – CPSE SCR.
73
Q

How is completion normally carried out?

A

By post.

74
Q

Does the buyer’s solicitor give an undertaking on completion?

A

No

75
Q

Notice to complete

A

Makes time of essence by giving parties 10 working days to complete starting the day after the service of notice. Once served, it cannot be withdrawn unless both parties agree.

76
Q

By when does the seller’s solicitor undertake to send the deed of transfer?

A

Next working day after completion.

77
Q

What is the deadline to register unregistered land?

A

2 months form completion (transaction void).

Note – no deadline for registered land but priority lost under OS1.

78
Q

Effect of the seller being made bankrupt after contracts have been exchanged

A

The contract is binding on the trustee in bankruptcy and on completion the buyer should take a transfer of the property from the trustee.

79
Q

When exchanging by post, when does exchange become binding on the parties?

A

When the seller’s contract is posted to the buyer’s solicitor.

Land Law & PLP (3 decks)

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