Prop prac

Question 1

What are set of steps to follow when acting in the sale and/or purchase of a home for an owner-occupier called?

Answer 1

Law Society Conveyancing Protocol

Question 2

How will a seller’s solicitor obtain the title deeds to a property that is mortgaged?

Answer 2

By giving an undertaking to the bank requesting the title deeds on the basis that the deeds are retained pending redemption of the mortgage

The undertaking will state that the solicitor not release the unregistered title deeds to the buyer until the seller is in a position pay off the seller’s mortgage on completion.

Question 3

What is a latent defect?

Answer 3

an issue which is not apparent from physical inspection of the property

A latent defect must be disclosed by the seller in the contract. If a seller breaches their duty of disclosure, the buyer may have the right to withdraw from the contract after exchange and claim damages for losses

Question 4

What are the different priority periods?

Answer 4

Registered title: 30 working /business days to complete and register

Unregistered land: 15 working days to complete
2 months to register

Question 5

What is the amount of deposit required under the Standard Conditions of Sale?

Answer 5

10% of the same amount

But the buyer and seller may negotiate the deposit payable

Question 6

What is a commons registration search?

Answer 6

The commons registration search is an optional part of the local search.

It is used to discover whether the property abuts or is adjacent to a town or village green in common land, that is, it will discover land that is designated for public use

Question 7

What is included in a local search?

Answer 7

A local search has two parts:

the first part reveals whether there are registrations by the local authority in the local land charges register.

the second part is a standard set of enquiries of the local authority which include questions about roads fronting the property, public rights of way, and planning entries and building regulations relevant to the property

Question 8

When does a planning permission lapse?

Answer 8

After 3 years

After planning permission is issued, the development must commence within three years of the date of the permission or it lapses

Question 9

What is the enforcement period for building w/o planning permission?

Answer 9

The enforcement period for building without planning permission is four years (that is, if development is undertaken without permission, the local authority has four years to bring an enforcement action)

Question 10

What is the enforcement period for unauthorised change of use?

Answer 10

10 years is the enforcement period for unauthorised change of use

Question 11

What is a repayment basis mortgage?

Answer 11

repayment basis mortgage is one that includes an element of capital and interest in each payment. It is the most common type of mortgage. At the end of the mortgage term, the entire loan is paid off

Question 12

What is the certificate of title?

Answer 12

The certificate of title is a document confirming that the title is good and marketable and acts as a request for the release of the mortgage advance

Question 13

What priority period is conferred by a pre-completion search, namely the official search with priority against the whole of a registered title (OS1)?

Answer 13

30 working days

Question 14

What is the effect of the notice to complete?

Answer 14

Service of the notice to complete makes time of the essence. If the defaulting party fails to complete within 10 working days, the innocent party can then rescind the contract

(buyer also becomes immediately liable to pay the deposit value equivalent to 10% of the purchase price even if the contract stipulates less than 10%)

Question 15

When must a notice be served to end a tenancy under the Landlord and Tenant Act 1954?

Answer 15

6-12 months before the tenancy ends

Question 16

What are the 3 methods of completion?

Answer 16

personal attendance
post
agent
(PPA)

Question 17

Where are notices and restrictions registered for registered land?

Answer 17

Notices: the Property Register (any rights benefit)

Restrictions: the Proprietorship Register

Question 18

Where are encumbrances noted for registered land?

Answer 18

Charges register (eg: restrictive covenants)

Question 19

What are the time limits for serving enforcement breaches?

Answer 19

4 years for unauthorised building works

10 years for all other breaches

Question 20

What are the time limits for enforcement action of breaches of building regulation?

Answer 20

10 years (from date of breach)

(diff from breaches of planning permission; which is 4 and 10 yrs)

Question 21

What are the time limits for registering a mortgage?

Answer 21

Registered land: 30 days

Unregistered land: 2 months

Company: 21 calendar (NOT business/working)days (with a Certi of Registration of Mortgage from Companies House)

Question 22

A seller has agreed to sell their property to a buyer at a price of £100,000. The buyer is getting a 95% mortgage. They have applied for the mortgage offer and it is awaited. The buyer meets a friend in the pub who tells them that the purchase will not go ahead because the buyer does not have a 10% deposit to offer.

Is the buyer’s friend correct?

Answer 22

No, because under the Standard Conditions of Sale, the buyer and seller may negotiate the deposit payable (10% is provided but is negotiable)

Question 23

A seller and buyer exchanged contracts for the sale and purchase of the seller’s residential dwelling. The completion date is in two weeks’ time. They exchanged using the Standard Conditions of Sale (5th edition – 2018 revision) unamended. Yesterday the dwelling burnt down. The buyer thinks that he is not required to complete.

Is the buyer correct?

Answer 23

The buyer is incorrect; he will be required to complete because under the Standard Conditions of Sale, the buyer takes the risk in the property between exchange of contracts and completion. This means that the buyer is obliged to proceed with the purchase regardless of what happens to the property after exchange

Question 24

Where should reference to the right-of-way appear on a title?

Answer 24

Charges Register of the burdened title

Question 25

A solicitor acting for a buyer has started their investigation of the unregistered title which has been provided by the seller's solicitor. The buyer's solicitor notes that there is a conveyance dated 5 June 1995 to the current seller contained in the epitome of title. Which of the following best indicates how the buyer's solicitor should proceed?

Answer 25

The best way for the buyer's solicitor to proceed would be to return the epitome to the seller's solicitor and require them to make an application for first registration of the title to the land. The conveyance is dated after 1 December 1990, and it is clear from the facts that the title is still unregistered because they refer to the epitome of title. The conveyance dated 5 June 1995 was a trigger for first registration. Accordingly, requiring the seller to make the application for first registration is the appropriate response

Question 26

A married couple have viewed a property which they are very interested in buying. However, they were concerned when they viewed the property to see that there were a number of horses roaming freely on the open grassland at the front of the property. They also noticed a number of local people walking their dog across the land. What will the solicitor acting for the couple do to discover the nature of the activities which they observed?

Answer 26

The commons registration search is an optional part of the local search. It is used to discover whether the property abuts or is adjacent to a town or village green in common land, that is, it will discover land that is designated for public use.

Question 27

When must development begin after planning permission in granted?

Answer 27

Within 3 years otherwise it lapses

Question 28

How is an estate contract registered?

Answer 28

Regis land: Unilateral notice on the seller's charges register Unregis land: C(iv) land charge against seller's full name

Question 29

What is an engrossment?

Answer 29

Final version of a lease is called engrossment (when terms of a lease have been agreed it is called an engrossed lease)

Question 30

When does title pass?

Answer 30

Regis land: When purchaser becomes registered at Land Registry Unregi land: on completion

Question 31

What is the deadline for SDLT?

Answer 31

14 days (calendar NOT business) after completion

Question 32

After contracts were exchanged with respect to 10 acres of farmland, a conveyancing solicitor carries out a full land charges search and has noted that there is a C(i) puisne mortgage entry on the land charges search result. What action would the buyer's solicitor take with respect to this entry?

Answer 32

C(i) land charges entry denotes a second or subsequent charge not protected by the deposit of title deeds in the unregistered system. Thus, the seller's solicitor will require an undertaking for the mortgage to be repaid (that is, redeemed) out of the sale proceeds and for the land charges entry to be removed (required to redeem and not pay off as seller needs the money to pay first)

Question 33

When does the title of property pass?

Answer 33

for unregis: on completion for regis: on registration with HMLR

Question 34

What are the statutory grounds for terminating a commercial lease that an LL has?

Answer 34

1. Alternative acco 2. LL requires whole prop (if sublet by tenant) 3. LL intends to demolish or reconstruct 4. LL intends to occupy All these grounds are MANDATORY for the Court to refuse a new tenancy (these are non fault grounds and compensation is available)

Question 35

When does the Court have discretion to refuse to renew a commercial tenancy?

Answer 35

1. Tenant's failure to carry out repairing obligations 2. Persistent delay in paying rent 3. Tenant's substantial breach of other obligations (these are fault grounds)

Question 36

How are completion funds be transferred under the Law Society's Conveyancing Protocol and the Code for Completion by Post?

Answer 36

The buyer's solicitor will send funds by a bank transfer of cash.

Question 37

What is the time limit for registering a charge at Companies House?

Answer 37

21 days (NOT working days)

Question 38

If the solicitors do not agree otherwise, what method will be used to complete the transaction?

Answer 38

Post 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

Question 39

A man has decided to sell his home in Sheffield so that he can retire to Christchurch in Dorset. The solicitors for the parties have agreed to use the Law Society's Conveyancing Protocol and the Code for Completion by Post. Contracts have already been exchanged, which incorporate the Standard Conditions of Sale unamended. what is a requirement under the Code after the sale proceeds are received?

Answer 39

The seller's solicitor (as agent of buyer's sol) will date the executed transfer and send it to the buyer's solicitor by first class post or document exchange no later than the DAY after completion.

Question 40

A first-time buyer has put in an offer to buy a property which has recently been extended by the seller. The first-time buyer has instructed her solicitor and has paid money on account of searches. The first-time buyer is very cautious and wants to be sure that all is in order regarding the extension. She telephones her solicitor to discuss this point. How would the solicitor find out more detail about the extension and the documentation relating to it?

Answer 40

From looking at the Property Information Form and the results of a local search To find out more about the extension, the solicitor would look at the Property Information Form ('PIF') and the results of a local search. The seller should disclose the fact that they have carried out building works on the PIF. Details of the planning and building regulation documentation will be revealed by the local search

Question 41

If the seller has to pay CGT, when must it be paid?

Answer 41

Within 60 days from the completion date

Question 42

Under the Standard Conditions of Sale, are the purchase price and the contents price are exclusive of VAT?

Answer 42

No They include VAT

Question 43

Is a commercial lease exempt from tax?

Answer 43

Generally yes but a landlord may elect to tax in order to recover input tax

Question 44

What is a full title guarantee?

Answer 44

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 (a limited title guarantee warrants that they have not created any charges or granted any rights during their period of ownership that have not been disclosed)

Question 45

Under the Standard Conditions of Sale, if the parties have not included a completion date, when will completion be held?

Answer 45

20 working days after exchange

Question 46

What form is annexed to a conveyancing contract to indicate personal property that is included or excluded from the sale?

Answer 46

A fittings and contents form

Question 47

What are the optional enquiries of local authority?

Answer 47

Road proposals, gas pipelines, house in multiple occupation, environmental pollution notices, prop abuts common land and village green

Question 48

which search reveals the current and former use of the land?

Answer 48

environmental search

Question 49

How does a buyer's solicitor typically carry out a bankruptcy search?

Answer 49

through HMLR's online portal (bankruptcy search is BOTH a pre-contract and pre-completion search by the buyer's sol)

Question 50

Where would the solicitor for a buyer of commercial property look to find information about the property's boundaries, the condition of the property, fire safety information, planning regulations, and the like?

Answer 50

The response from the seller's solicitor to the Commercial Property Standard Enquiries (CPSE) that the buyer's solicitor would send to the seller's solicitor

Question 51

What is the maximum age for pre-completion searches at the date of completion, other than HMLR priority searches, required by the UK Finance Mortgage Lender's Handbook?

Answer 51

6 months

Question 52

What is an engrossment?

Answer 52

The final version of a lease prepared by the landlord's solicitor and including an original signed by the landlord and the counterpart signed by the tenant.

Question 53

What is the minimum amount of time an innocent party must give the other party to complete under a notice to complete?

Answer 53

10 working days

Question 54

Under the Standard Conditions of Sale, when may an innocent party seek rescission of the contract?

Answer 54

Whenever there has been a misrepresentation by the other party Whenever there has been a misdescription of the property by the other party and the innocent party would be taking something substantially different to what was expected (both rescission and damages available) When the landlord's consent is required and the licence to assign is not forthcoming. Fraud or recklessness

Question 55

Which Commercial leases are exempt from the security of tenure provisions under the Landlord and Tenant Act 1954 (Part ll)?

Answer 55

leases for a maximum period of 6 months

Question 56

When must the landlord serve the tenant with a health warning notice?

Answer 56

At least 14 days before completion of the lease

Question 57

How long does a LL have to inform the tenant whether they intend to agree to a new lease after a S-26 notice by the tenant?

Answer 57

2 months

Question 58

A solicitor is acting for a client in relation to the purchase of a property. The buyer and seller agree a 10% deposit on exchange of contracts and that a solicitor will hold the deposit as agent for the seller. Under this agreement, which solicitor will hold the funds and what is the consequence of the deposit being held by a solicitor as agent for the seller?

Answer 58

The seller's solicitor will hold the deposit and may pay over the deposit to the seller immediately after exchange. (standard conditions provide for stakeholder)

Question 59

When is deposit paid over when held as a stakeholder?

Answer 59

On completion (when held as agent, its paid after exchange)

Question 60

What are the different types of title gurantees?

Answer 60

A full title guarantee includes a guarantee that the seller is entitled to sell the property, that they will do all in their power to transfer the purported title to the buyer, and that they are selling the property free from all charges or encumbrances other than those disclosed in the contract. This type of guarantee is generally given by a seller who owns the full legal and equitable interest in the property and has lived at the property 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, for example, the seller is a personal representative No title guarantee would be given by a seller who has no knowledge of the property at all, for example, a mortgagee in possession

Question 61

What kind of searches are conducted after contract completion?

Answer 61

Unregis land: full land charges search Regis land: official search with priority

Question 62

In a Protocol transaction, who prepares the contract package?

Answer 62

the seller's solicitor will draft the contract and send the contract package to the buyer's solicitor. The contract package will comprise: the draft contract in duplicate; the Property Information Form and Fittings and Contents Form, both completed by the seller; a copy of the seller's title (or epitome of title if the title is unregistered), any other relevant title documents, and title plan; and any guarantees or planning permissions

Question 63

When are two administrators required to apply for a grant of representation?

Answer 63

When there is a minor beneficiary

Question 64

What are the requirements of a health warning?

Answer 64

A landlord may contract out (that is, opt out) of the security of tenure protections given a tenant under the Landlord and Tenant Act 1954 (Part II) only if the three statutory requirements are satisfied. First, 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. Second, 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. And finally, the lease must contain a reference to the health warning, the declaration, and the agreement to contract out

Question 65

A buyer has agreed to purchase a residential leasehold flat. The solicitors for the seller and the buyer are using the Law Society's Conveyancing Protocol and the Code for Completion by Post. Which warranties will the seller's solicitor give pursuant to the Protocol?

Answer 65

That the solicitor is authorised to act by the true seller

Question 66

When is statutory compensation available to a tenant?

Answer 66

if the ground serving as the basis for termination is not the fault of the tenant, statutory compensation is available unless other suitable premises are available

Question 67

A paralegal in a busy conveyancing department is working in the pre-completion team. Their principal has taken the afternoon off and has left a note for the paralegal requesting that they apply for the mortgage advance. The paralegal has looked through the file and is not sure how to do this. What should the paralegal do to comply with their principal's request?

Answer 67

To apply for a mortgage advance, a certificate of title ('CoT') is submitted to the lender. A CoT involves the solicitor confirming a series of statements which confirm to the lender that the title is good and marketable. The CoT also acts as a request for drawdown of the mortgage advance.

Question 68

What kind of tenancies fall outside the scope of Tenant Act 1954 (Part II) ('1954 Act') ?

Answer 68

The 1954 Act does not apply to fixed-term tenancies which do not exceed six months

Question 69

A man has instructed a solicitor to act in relation to the sale of the man's house. The Contract Incorporating the Standard Conditions of Sale (5th edition – 2018 revision) will be used, unamended. The buyer is offering a 10% deposit on exchange of contracts. The seller has a related purchase in which he is buying a holiday home in France and he wishes to use the deposit towards this purchase. Can the seller use the deposit for his related purchase?

Answer 69

No, because the standard conditions of sale permit the use of a deposit for a related purchase of a property only for the seller's residence in England and Wales.

Question 70

A limited company is buying the freehold of a commercial unit. The seller's solicitor has sent the contract package to the buyer company's solicitor. Which document in the contract package will give the buyer company practical information about the property, such as disputes and notices?

Answer 70

It is clear from the question that this is a commercial transaction. In a commercial transaction, such information is included in the Commercial Property Standard Enquiries; the Property Information Form

Question 71

A lease of a commercial factory unit contains the following clause: 'The tenant must not assign the whole or part of the demised premises to any person whatsoever without the prior written consent of the landlord'. What is the name of the document which gives effect to the above clause?

Answer 71

A licence to assign is the document by which a landlord gives formal consent to an outgoing tenant to assign the lease

Question 72

A solicitor is acting for a first-time home buyer who will be financing her purchase with a mortgage. The conveyance is taking place under the Law Society Conveyancing Protocol (the 'Protocol'). The buyer is anxious to see a copy of the contract and asks her solicitor when this will be ready. In a Protocol transaction, who prepares the contract package?`

Answer 72

In a Protocol transaction, the seller's solicitor will draft the contract and send the contract package to the buyer's solicitor. The contract package will comprise: the draft contract in duplicate; the Property Information Form and Fittings and Contents Form, both completed by the seller; a copy of the seller's title (or epitome of title if the title is unregistered), any other relevant title documents, and title plan; and any guarantees or planning permissions.

Question 73

How can the court decide on rent when there is a dispute between the tenant and LL on the rent price?

Answer 73

Based on open market value of rent

Question 74

What is included in the purchase price?

Answer 74

Under standard conditions, the purchase price includes the amount payable for land and fixtures (NOT fittings)

Question 75

How can a co living spouse protect their right in a house?

Answer 75

Notice in registered land Class F charge in unregis land

Question 76

Who has the responsibility to conduct the Land Charges search?

Answer 76

The seller's solicitor (against the name of the seller and all previous owners listed in the Epitome of Title)

Question 77

What are the requirements for a witness to be able to attest a will?

Answer 77

Physical and mental presence (sound mind, not intoxicated) Minors can also sign a will Legal incompetence of a witness does NOT invalidate the will

Question 78

Where does completion take place for a commercial leasehold prop? (under Standard Conditions)

Answer 78

At the seller solicitor's office or at some place that the seller specifies

Question 79

Who applies for the consent (from LL) to let, assign or sub-let?

Answer 79

Seller applies Under SCS, the seller should apply for such consent at its own cost and use all reasonable means to apply for consent. Either party has the right to rescind the contract if LL has not provided consent within 3 working days before completion.

Question 80

When must a lease be drafted as a deed (writing+signed)?

Answer 80

When the lease is for 3 years or more (under 3 year; simple agreement) A premium is being paid The lease does NOT begin immediately

Question 81

What interest does a buyer hold in a prop after exchange but before completion?

Answer 81

Beneficial interest (legal int passes after registration)

Question 82

What kind of interest does a minor hold in a property?

Answer 82

Only equitable and NOT legal (a minor cannot dispose off a legal estate in land)

Question 83

What kind of warranties does a seller provide?

Answer 83

Warranty that there are no latent effects of title

Question 84

Which payments are due to the seller on completion of a commercial transaction?

Answer 84

Apportioned ground rent, apportioned service charge, purchase price balance and any other agreed sums

Question 85

Which tenancies are covered by the LTA Act 1954?

Answer 85

Tenancies for business and exceeding 6 months

Question 86

Which parties' solicitor drafts the transfer deed?

Answer 86

Generally the buyer's sol (spl conditions can be inserted to change this) The buyer sends the draft transfer at least 12 days in advance of completion The seller approves/amends at least 4 days after the receipt Buyer sends engrossment of the transfer draft at least 5 working days before completion

Question 87

What document document you need to see when dealing with a PR during sale?

Answer 87

Certified copy of grant of representations (it gives PR powers to deal with estate and execute docs)

Question 88

What is a chancel search?

Answer 88

A chancel search is carried out by a solicitor during a domestic conveyance. It establishes whether the property might be affected by a potential chancel repair obligation to the local Parish Church

Question 89

What is the seller's duty between exchange and completion re the prop?

Answer 89

Keep the prop in reasonable care

Question 90

In what circumstances can a court change the terms of a lease?

Answer 90

When they are reasonable (onus of reasonable falls on party asserting chnage)

Question 91

What kind of docs can a buyer request from a seller while investigating docs that predate the root of title?

Answer 91

Abstract or copies of docs containing prior encumbrances if they appear to affect the property and have survived beyond the root of title

Question 92

How does a sol check for bankruptcy orders against a party?

Answer 92

Carry out a Land Charges search in the party's name

Question 93

Against whose names should land searches be conducted?

Answer 93

All previous owners referred in the epitome of title from 1926 onwards (when the land registration system came into existence)

Question 94

When must a second trustee be appointed to overreach the interests of a dead joint tenant?

Answer 94

If there is a Form A Restriction (registered land) on the Proprietorship Register Otherwise only a death certificate for JT prop is enough