Property Law

Question 1

Restriction

Answer 1

Prevents the registering of certain dealings (sale by sole power, mortgaging) against the title unless the terms of the restriction are complied with.

Question 2

Goal of Buyer’s Solicitor

Answer 2

BOTH Legal and Beneficial Title pass to the Buyer.

Question 3

Steps to transfer title:

Answer 3

1) Sign CONTRACT
2) Execute Transfer Deed
3) Death certificate (if deceased co-owner)
4) Appopint 2nd trustee if Deceased TC

Question 4

Positive Covenants

Answer 4

A positive Contract between convenantor and covenantee for the covenantee to do sth with/ on/ to property

Question 5

SIM Search

Answer 5

Index map search to check;
- Registered land within the boundaries
- Pending applications for registration
- any cautions against first registration.

Question 6

Validly executed Deed?

Answer 6

Requirements;
1) Clear on its face it is a deed
2) Singed; by the individual seller in this case in the presence of a witness who also signs it (Co: 2 Co D or Co D and S)
3) Sealed - if before 31 July 1990
4) Delivered as a deed; entering the date is acknowledgement that the individual who has signed intends to be bound by it.

Question 7

Land Charges Regsiter

Answer 7

Some rights burdening property will ONLY bind unregistered land if registered at the Land Charges Department of the Land Registry.

–> So to see what interests the Buyer of Unregistered Land will be bound by must conduct K15 Land Charges Search.

–> Buyer will be subject to those equitable interests

–> Leases and Legal Easmenets are NOT registrable/ apparent form epitome of title/ or if acquired by prescription then by inspection of the property.

Question 8

Unregistered land; Deducing and Investigating title

Answer 8

Deducing;
- Seller selects relevant deeds/ documents –> epitome of title (copies and OGs to be given to Buyer on completion)
- Showing epitome of title to buyer = Deducing title.

Investigating:
- Sim Search
- Check Root of title
- Check Chain of title (Requirements for valid execution of covneyances: Validly executed and sealed? Stamp duty paid? if not buyer’s sol must insist it be paid)
- Check the extent of the land conveyed (scale plan)
- Check for any title issues:
1) Mortgages –> ensure all - for all conveyances in the chain - have been discharged + vacating receipt
2) issue of Co-owners; same as for registered title; Assume JT if: 1) No memorandum of severance, 2) No bankruptcy order or petition.
3) Conduct a K15 Land Charges Search against every owner on the chain of title for the period of ownership to see if Buyer will be bound by any equitable interests that burden the land; Some Rights burdening the property will ONLY BIND THE UNREGISTERED LADN if registered at Land Charges Department of the Land Registry (Note: Leases and Legal Easements cannot be protected in this way; Either apparent from epitome of title/ or inspection)

Question 9

When is PP needed? when we have a ‘Development’; but when do we?

Answer 9

1) Building works (external)
2) Material Change of use

Question 10

Certificate of Lawfulness

Answer 10

if not sure whether a development falls within GPDO - apply for certificate of lawfulness.

Question 11

CON290

Answer 11

• Commons search (for common land, villages etc)
• Noise abatement zones
• Road proposals by private bodies
• pipelines
• Areas of outstanding natural beauty

Question 12

Utility Providers search

Answer 12

New development - if connected to utilities

Question 13

Coal mining searches

Answer 13

Brine subsidence (Chesire), Coal mining subsidence, subsidence due to extraction of specific minerals (tin, clay, limestone).

Question 14

if desktop environmental search concern

Answer 14

Phase 1 –> if inspection shows RISK OF CONTAMINATION –> move on to Phase 2; samples

Question 15

Other searches depending on the Seller, Type of Land/ Transaction

Answer 15

Unregistered land; K15, and SIM search

Sale NOT at full market price: Bankruptcy search against the seller

Seller is a company: CH search; does Co exist, solvency, securities it has given.

Question 16

Listed Buildings

Answer 16

Consent Order required to:
DEA
- Demolish
- Extend
- Alter

(evne for internal alterations).

Question 17

Conservation areas

Answer 17

• GPDO restricted
• PP to demolish
• Consent Order to cut down trees.

Question 18

Date that time limits for Planning Enforcement changed

Answer 18

25 April 2024

Question 19

Non compliance with Enforcement Notice

Answer 19

28 days notice;
- if after 28 days still non compliance; can enter into premises and restore LAND and recoup the cost + Criminal Sanctions + Fine.

Question 20

Stop Notce - PP

Answer 20

Notice that SPECIFIED ACTIVITY stop immediately.

Question 21

Building Regulation

Answer 21

Always required when Building Works:

• Erection/ Extension of building
• Installation/ Extension of a service/ fitting controlled under the BR
• Work required for a material change of use of the whole building

Question 22

Options available to buyer upon discovery of breach PP/ BR

Answer 22

1) Withdraw from the transaction

2) Invite Seller to regularise matter before completion ie. removing altering the work OR
- Obtain a retrospective PP for development
- Obtain a regularisation certificate for works that did NOT have BR approval but otherwise comply.

3) Obtain indemnity insurance for breaches (only covers financial loss for enforcement.

Question 23

Implied waiver of the right to forfeit

Answer 23

1) L does some unequivocal act which recognises the continued existence of the lease
2) L has knowledge of the breach in question
3) L communicates that act to the T

Question 24

Facility Letter/Mortgage Offer

Answer 24

• T&Cs
• Subject to the lender being satisfied with the transaction and the security

Question 25

Special Conditions

Answer 25

In SCS - If Law Society Conveyancing Protocol followed must ONLY add special conditions if ABSOLUTELY NECESSARY.

Question 26

Full tittle guarantee

Answer 26

Freed of ALL incumbrances except: - Those DISCLOSED - Those the Seller could NOT reasonably have known about.

Question 27

Deposit Payment

Answer 27

10% of purchase price SCPC: Electronically SCS: Cheque (Buyer's Solicitor client account): Cheque or Electronically.

Question 28

VAT - Zero Rated

Answer 28

Newly constructed residential property (vs residential property which is exempt).

Question 29

Redemption figure

Answer 29

The Seller's solicitor will acquire this PRE EXCHANGE to ensure that the proceeds of sale will cover this (before even selling the property to particular seller ensure the money they are offering are enough to repay the mortgage - if not another buyer should be found ie. Should NOT exchange.

Question 30

Lender's solicitor has to approve the draft Certificate of Title

Answer 30

PRE- EXCHANGE

Question 31

Formula B undertakings

Answer 31

1) Fill in blanks 2) Agree any amendments / special conditions 3) Date the contract - agree with other solicitor Undertakings: - Hold the singed contract to the other solicitors order - Undertake to post the contract that same day by DX/ 1st class post/ hand delivery - BUYER ONLY: Send the Seller's solicitor the deposit.

Question 32

TP1

Answer 32

Transfer of PART of a registered title.

Question 33

TP5

Answer 33

Transfer of a portfolio of registered titles.

Question 34

When does the buyer have to sign the TR1?

Answer 34

- Declaration of trust - Tenants in common (buyers will be) - Indemnity covenant or other obligation will be imposed on the buyer

Question 35

Pre-completion searches

Answer 35

Check and Protect the Buyer's and Lender's ability to obtain title to the property as per the contract

Question 36

What does OS1 do?

Answer 36

Updates OC since initially provided + Identifies any changes made.

Question 37

CH search

Answer 37

Checks for: - Solvency - Crystalization of a floating charge

Question 38

Requisitions on title

Answer 38

Qs the buyer's solicitor needs answering before completion; - For Residential transactions: TA13 form - For Commercial transactions: Firm's precedent form or SCR (Solicitor's completion requirements under CPSE).

Question 40

when failure/ delay to complete:

Answer 40

1) Contractual Compensation 2) Rescission and Common Law damages

Question 41

Stamp Duty Land Tax

Answer 41

SDLT: 14 Days LTT: 30 Days (pio makrya so bigger number)

Question 42

PRR

Answer 42

1) Main home for all time the taxpayer has lived in it 2) Not bought just to make a gain 3 ) Not more than 5k m2 4) Not used for business purposes.

Question 43

Lease essentials

Answer 43

1) Fixed term/ periodic 2) FORMALITIES: By deed if over 3 years 3) Exclusive possession: T must be able to exclude the L (except where the L is exercising right to enter the premises) 4) Reversion: At the end of the lease term, the property revers to the landlord

Question 44

Break clause

Answer 44

Compromise between an unwilling L to grant a shorter lease and a reluctant tenant who does not want to commit; - Allows the reluctant party (T usually) to terminate the lease before the end of the lease term without the agreement of the other. Advantage for L? - A lease for 10 yrs w break clause of 5 is valued HIGHLY bu a surveyor VS. 5 year lease. Disadvantage for T? - Bcs SDLT calculated on the basis of Length of lease --> likely the T will pay more SDLT;

Question 45

2 Types of leases

Answer 45

1) Short lease w market rent 2) Long lease w ground rent

Question 46

Rent for FRI leases:

Answer 46

- expressed as a yearly figure - payable quarterly

Question 47

After rent review

Answer 47

New rent will be documented in a Rent Review Memorandum; -Singed by T and L - Kept w lease for future reference

Question 48

How will rent review affect SDLT

Answer 48

If Rent Review before 5th year anniversary of the lease - likely will affect bcs SDLT is calculated on the first 5 years of rent.

Question 49

Code for leasing Business Premises

Answer 49

NOT apply to tenancies of 6 months or less.

Question 50

Exchange in Leasehold Transactions

Answer 50

When the parties want to commit to completing the lease but are not yet ready or conditions ned to be satisfied; long leases, building has yet to be build.

Question 51

Alterations

Answer 51

if the Lease is silent --> T is free to carry out alterations subject to the doctrine of waste; - Doctrine of waste: T cannot carry out alterations that reduce the value of the premises.

Question 52

Types of Alterations

Answer 52

- Structural Alterations - Non-Structural alterations - Demountable partitioning

Question 53

If consent granted for alterations?

Answer 53

LICENSE FOR ALTERATIONS; Contains T's covenants.

Question 54

What are T's covenants in a license for alterations?

Answer 54

1) To carry out works in accordance with L's requirements 2) To obtain all necessary consents to carry out the alterations (PP, BR) 3)To pay for the L's costs in dealing with the application for license for alterations (Surveyor's costs, Solicitor's costs) 4) To reinstate the premises at the end of the term (if not expressly stated then the L can only require to the extent it is reasonable)

Question 55

STATUTORY RIGHT TO CARRY OUT IMPROVEMENTS

Answer 55

T still has a way to make alteration even if Lease contains an ABSOLUTE covenant rather than a Qualified which can be statutory converted into FQ if the proposed alteration is an improvement --> Statutory Right to carry out Improvements (more generally); 1) Notice of intention to L of intention to carry out improvements (always from the T POV) 2) If L objects --> can apply to court for permission; Court will grant it if: a) Not reduce the value of the premises b) Not reduce the value of any of the other Properties owned by the L c) Is reasonable + suitable to the character of the property

Question 56

Insurance

Answer 56

- The L will have the responsibility of insuring the BUILDING - Will recoup the cost of doing so form the T in the form of service charge contribution (proportionate to the T's part; ie. recoup part if lease of part etc) - The insured risks are EXCLUDED from the T's Repair Obligations (ie. T not have to keep them in good repair).

Question 57

Repair and insurance

Answer 57

A commercial T is almost always responsible for repair of their demise (extent of the premises let to them)

Question 58

SILENT LEASE; what is the impact on the User Covenant and the Alterations covenant?

Answer 58

Alterations: The T can make any alterations they like subject to the Doctrine of Waste User: The T is free to use the premises however they like

Question 59

User covenant

Answer 59

No statutory alterations But the L may not charge a lump sum/ increase rent in order to give consent BUT: they can do so if the change of user requires a structural alteration.

Question 60

Landlord reasons to withhold consent to assign = that are reasonable

Answer 60

1) To do with the relationship between the T and the L 2) The L has reason to believe the Incoming T will be unable to pay rent 3) Related to the Incoming T's proposed use of the land 4) other circumstance prescribed in the lease (rb. circumstances and conditions are agreed between the L and T when initially enter into the lease and if fulfilled they automatically constitute reasonable reason to withhold consent)

Question 61

Date for old vs new leases

Answer 61

1996

Question 62

CPSE 4

Answer 62

Specific to assignments - along w CPSE 1.

Question 63

Main differences between the process for Assignment of Lease vs Underletting:

Answer 63

- In Assignment --> the Assignee/ T2 is the one who prepares the Deed of assignment (TR1 if registrable) - But in UT --> The Outgoing T/ T is the one who prepares the under lease (and L likely to ask to review it to ensure the terms under it are NO LESS ONEROUS than the ones imposed on the current T by the L). VS - Sale of Freehold: the Seller drafts the contract and the Buyer drafts the Transfer Deed. - Grant of a lease: the Landlord's solicitor drafts the lease against the agreed HoTs.

Question 64

Types of Licenses in Leases

Answer 64

1) License for alterations (will contain all T's covenants) 2) License to assign 3) License to underlet (deeds)

Question 65

Security of Tenure

Answer 65

The Fixed term tenancy has to be of OVER 6 Months ≠  1) 12 months bcs of successive tenancies 2) or T is renewable beyond 6 months --> Result: T has occupied for OVER or JUST 12 months.

Question 66

What are contracted out tenancies

Answer 66

ONLY Fixed Term Leases can be contracted out NOT periodic tenancies (Fixed term > 6 months or if under 6 months the T must have been in occupation>= 12 months)

Question 67

Security of Tenure application

Answer 67

Applies to: - any tenancy - where the property is occupied by the T - and are occupied for the purposes of a business - and not of any excluded tenancies.

Question 68

Requirements of CRAR - Commercial Rent Arrears Recovery / Self- help remedy.

Answer 68

1) L must appoint enforcement agent 2) Enforcement agent must give 7 clear days notice of intention to enter T's premises - the Notice should contain; Details of the amount owed, how to pay, contact details of the enforcement agent. 3) if after notice expires without repayment the Enforcement agent can take control of goods up to the value of the debt owed 4) L must serve a further 7 clear days notice fo intention to sell any of the seized goods.

Question 69

Distinguish s 146 VS s 25, 26, 27 §

Answer 69

Notice for forfeiture VS Notices for Security of Tenure

Question 70

S 146 Notice

Answer 70

For all such notices; All but for non payment of rent -> you need to specify the breach + give realisable time for T to remedy the breach

Question 71

Types of forfeiture

Answer 71

1) Peaceable re-entry 2) Apply to court for order for forfeiture

Question 72

Jervis v Harris

Answer 72

Self help clause - Gives L right to enter property - carry out repairs and recover the cost of repair from the T - No need for s 146 Notice - Cost of carrying out repairs treated as a debt (rather than damages) and so can be recovered in full BUT THERE MUST BE A CLAUSE IN THE LEASE FOR THIS TO BE AVAILABLE

Question 73

Action in debt

Answer 73

- Must be a quantifiable breach (ie. not breach of the repair obligation) - Last 6 years limitation period - Advantage; can help preserve the relationship - breathing space

Question 74

Termination of lease

Answer 74

Effluxion of time Break clause Merger Surrender Notice to quit (for periodic lease)

Question 75

Statutory grounds to oppose renewal of T's protected lease

Answer 75

1) T's breach of repairing obligations 2) Persistent non-payment of rent 3) Other substantial breaches of Tenant's covenants 4) L is offering suitable alternative accommodation 5) L intends to reconstruct, demolish, carry out substantial construction work 6) L intends to occupy the premises for itself

Question 76

What are the options to L and T after serving a section 26, 27 notice?

Answer 76

1) Apply to court 2) Negotiations to fix the terms of the new lease 3) Interim rent 4) Court order

Question 77

Landlord's remedies - Overview

Answer 77

1) Damages (court) 2) Debt action (court) 3) Guarantor 4) Rent Deposit 5) Commercial Rent Arrears Recovery - self help remedy 6) Equitable remedies 7) Forfeit

Question 77

Only for breach of Repair Obligation

Answer 77

s146 and if the rent is over 7 years and still has at least 3 years left to run --> possible for the T to serve counter notice within 28 days = makes it even more difficult for the L to issue proceedings.

Question 78

For Breach of Repair Obligations; Neither damages nor Forfeiture = satisfactory solution to L (and specific performance is rarely granted).

Answer 78

Should expressly include at the time the lease is drafted a self-help clause; - Jervis v Harris clause (no need to serve s 146 notice)

Question 79

In the case of repair obligations how are damages measured in favour of the L?

Answer 79

- The Loss of Value to the L's reversion (NOT the actual cost of putting the premises back into full repair)

Question 80

Relied from forfeiture

Answer 80

Once the L serves s s 146 notice or starts the process of forfeiture --> T entitled to apply for relied from forfeiture. Aim of relied: Discretionary remedy that seeks to put the parties BACK into the position had forfeiture not taken place at all; ie. to restore the lease *other parties that derive an interest under the T's lease may also seek relied