Property Flashcards
(8 cards)
Property searches
Local - adopted roads/planning permission and breaches/conservation area
Environmental – contaminated land/flood
Water and drainage – connected to water and drainage services location of nearest sewers and pipes
Mining - pass mining works/mineshaft/licenses
Chancel - parish risk of Chancel liability
Physical inspection - condition of property/rights away/vacant/occupiers
Mortgage repayment types
Repayment - the loan is repaid over the term and capital and interest is paid.
Endowment - linked to a life assurance policy policy pays off capital high risk.
Interest only - the mortgage payments only pay off the interest not the capital capital is due at the end of the mortgage term
Lease terms
Demise premises - describes the premises as defined in the lease
Term-describes the length of the lease when it was originally entered into
Residue of the term - the number of years left to run on the lease.
Assignment - the lease has already been signed by the original landlord and the original tenant
Assignor - refers to the current tenant
Assignee - persons becoming the new tenant
License to assign - a document in which the landlord gives their consent
Co-Ownership options
Joint tenants -both owners will own the whole of the property. They will not have a quantified share of the property and cannot leave their interest in the property under the terms of their Will. On the death of one of the owners their share passes to the survivor automatically by a process called survivorship. The survivor then owns the entire property.
Tenants in common -both owners of the property own a specified share in the property there is no survivorship with tenants in common. This can be set up as equal or unequal shares, if the title is silent on the matter it is assumed that they hold in equal shares if a purchaser wants to hold the property in unequal shares a declaration of trust is required.
Covenant - is an obligation to do or not do something which is capable of binding successive owners of the property
Restrictive covenants – no action is required to comply with them. They are negative in nature.
Breach of restrictive covenant – requesting an express release of the covenant from the party with the benefit of it/making a court application for the release of the covenant.
Indemnity policy - protect against the risk of a person with the benefit of the covenant trying to enforce it.
Steps following exchange (purchaser)
• Send the agreed deposit and signed contract to the sellers solicitor
• Inform the client of exchange and advise to put buildings insurance on risk
• Prepare completion statement and request any funds due from client
• Draft the TR1 and send it to the sellers solicitors for approval - noting any indemnity covenant.
• Send the complete information and undertaking’s form (TA13) to the sellers solicitor to complete and return. Ensure it contains any undertaking to discharge any mortgages on the title.
• Undertake pre-completion searches/bankruptcy search/OS1 (name of lender is mortgage) note 30 working days expiry
• Advise client to physically inspect the property
• Submit certificate of title to the lender
Setting up a matter for completion (acting for buyer)
• method of completion-postal completion by adoption of law Society of England and Wales, code for completion by post (2019) (TA 13)
• Set up the telegraphic transfer of the completion money to the seller solicitors
• Completion takes place when the seller solicitors receives funds and release the keys
• submit our bill
Steps to take after completion (acting for buyer)
• Submit form SDLT1 online and pay the stamp duty tax within 14 days of completion
• Submit the registration of the title to HM land registry within the 30 working day OS1 priority period - with form AP1/evidence of discharge/TR1/ Mortgage Deed
• Check lenders requirements
