Report on Title Flashcards
What is the primary purpose of a report on title?
A) To summarise the solicitor’s findings on the property title and any risks.
B) To provide a property valuation for the buyer.
C) To confirm mortgage approval from the lender.
D) To calculate the buyer’s Stamp Duty Land Tax liability.
A - The primary purpose of a report on title is to summarise the solicitor’s findings on the property title and any risks.
Explanation: The report on title provides the buyer with an overview of the property’s legal status, including burdens, rights, and potential risks.
Which document is NOT typically included in a report on title?
A) Search results
B) Replies to enquiries
C) Property marketing brochure
D) Title documents
C - A property marketing brochure is NOT typically included in a report on title.
Explanation: The report on title is based on legal documents, not promotional materials, so a property marketing brochure is irrelevant.
Under CCS 6.4, a solicitor must:
A) Ensure the client is aware of all material facts about the property.
B) Guarantee the financial value of the property.
C) Give investment advice on the property’s future value.
D) Recommend specific estate agents to the client.
A - Under CCS 6.4, a solicitor must ensure the client is aware of all material facts about the property, but NOT guarantee financial value.
Explanation: Solicitors must disclose all material information affecting the client’s decision but are not responsible for valuation.
Which of the following is a limitation of a report on title?
A) It does not include a survey of the property’s physical condition.
B) It does not contain information on restrictive covenants.
C) It does not mention any mortgage details.
D) It does not include planning permission details.
C - A report on title does not mention mortgage details unless they specifically affect title.
Explanation: The solicitor does not assess financial arrangements unless they directly impact ownership or transfer.
A solicitor discovers that an extension on the property lacks planning permission. What is the best course of action?
A) Ignore it, as the sale will still proceed.
B) Inform the client and consider indemnity insurance or retrospective consent.
C) Immediately cancel the purchase contract.
D) Proceed with the purchase but inform the Land Registry.
B - The solicitor should inform the client and consider indemnity insurance or retrospective consent.
Explanation: The client must be made aware of potential legal risks, and possible solutions such as indemnity insurance should be explored.
What does CCS 8.6 require from solicitors?
A) To communicate information in a way the client understands.
B) To provide a financial appraisal of the property.
C) To conduct property surveys on behalf of the client.
D) To register the title automatically on behalf of the buyer.
A - CCS 8.6 requires solicitors to provide information in a way the client understands but does NOT mandate automatic registration.
Explanation: Solicitors must explain legal matters clearly, avoiding jargon where necessary.
A solicitor identifies a restriction in the proprietorship register. What should they do?
A) Advise the client on its implications and potential removal.
B) Ignore it if it does not affect the property’s physical structure.
C) Recommend the buyer cancels the transaction immediately.
D) Report it to the local council for resolution.
A - A solicitor should advise the client on the implications of a restriction in the proprietorship register and potential removal.
Explanation: Restrictions can limit the owner’s rights, so the client must be informed of their impact and possible solutions.
Why is caveat emptor important in property transactions?
A) Because the buyer assumes responsibility for investigating the property before purchase.
B) Because the seller is required to provide a full history of all property defects.
C) Because the Land Registry ensures the property is in perfect condition before registration.
D) Because the solicitor guarantees that no defects exist in the property title.
A - Caveat emptor is important because the buyer assumes responsibility, but the Land Registry does NOT ensure condition.
Explanation: The principle of “buyer beware” means the buyer must conduct due diligence before committing to the purchase.
Which of the following would be included in the ‘Matters Burdening the Property’ section of a report on title?
A) Easements and restrictive covenants.
B) The buyer’s mortgage offer.
C) The estimated value of the property.
D) The buyer’s intended use of the property.
A - Easements and restrictive covenants would be included in the ‘Matters Burdening the Property’ section of a report on title.
Explanation: These legal obligations may limit how the property can be used.
How does a solicitor protect themselves from professional negligence claims when preparing a report on title?
A) By clearly stating any limitations on liability in the report.
B) By guaranteeing that no defects exist in the title.
C) By conducting a full structural survey of the property.
D) By providing a market valuation of the property.
A - A solicitor protects themselves from professional negligence claims by clearly stating any limitations on liability in the report, NOT by providing valuations.
Explanation: Clearly outlining the scope of the solicitor’s responsibilities helps prevent misunderstandings and liability issues.
