SGS 1 Flashcards
(35 cards)
What should you consider when looking at an easement over land your client wants to purchase?
AMAR
- Adequacy
- Maintenance
- Adoption
- Registration against the burdened land
What should you do if a company is the seller?
- Do company search against company number
- Post completion send the land registry a certified copy of the change of name certificate
What must you do if the sellers are joint owners?
- Get them all to sign the contract and transfer deed if they are alive
What must you do when buying from a sole surviving tenant in common?
Make sure you have overreached the deceased tenant-in -common’s beneficial interest
Seller must supply an official/certified copy of a deed of appointment of second trustee.
Appoint a second trustee [if purchase money paid to two trustees it will overreach any beneficial interest of decceased TiC]
Four step outline to discussing restrictive covenant
- Identify issue
- Explain why issue
- Propose solutions
- Evaluate
What are the three main solutions to a restrictive covenant?
- Obtain insurance policy with one-off premium
- Consent from person with the benefit of the covenant
- Upper Tribunal (Lands Chamber)
Which type of breach of covenant are you more likely to be able to get [cheaper] insurance for?
Past breach
What is the test for a positive covenant?
Hand in pocket
When can you ignore positive covenant?
If there is no indemnity covenant
What will the RP expect if they gave an indemnity covenant?
The buyer to give an indemnity covenant to them as well in the TR1
What authority confirms that the buyer will join the indemnity covenant chain?
SCPC 6.6.4
Solutions to existing breach of positive covenant by seller?
- Require seller to remedy
- Negotiate price deduction to cover cost of compliance
Solutions to existing breach of positive covenant by seller when the breach is not capable of remedy?
- Insurance
- Get a release from obligation from PWB
- Cant go to Lands Chamber
What should you do if the buyer is planning a future breach of a positive covenant once they have bought the property (+entered indemnity contract)?
- Warn client of possibility of enforcement from PWB
- Advise about insurance and release
- Try insurance first
In what two ways can the mortgage charge be removed?
- Buyer’s solicitors obtaining form DS1 from the seller’s solicitors immediately after completion and submitting it to the land registry along iwth the application to register the buyer as the new owner
- By the seller’s lender sending an e-DS1 direct to the land registry when it receives sufficient money from the seller to pay off the loan on completion
What should the buyer’s solicitor ask for (in relation to removing mortgage charge)?
An undertaking from the seller’s solicitors in the form recommended by the LS to:
- forward to the seller’s lender such sum from the completion monies as is required to discharge the mortgage
- forward on to the buyer’s solicitor the DS1 or evidence that an e-DS1 has been filed at the Land Registry, once the DS1/such evidence has been received from the bank
What should you require of a non-owning occupier?
That they sign a waiver - waiving possible interest and agreeing to vacate on/before completion (occupier should obtain independent legal advice prior to signing)
Compulsory searches
- LLC1
- CON 29
- Highways search
- Drainage and Water Search
- Desktop environmental Search
- CPSEs
- Structural survey and physical inspection
- Chancel repair search
- SIM
- EPC
William Sindall plc v Cambridgeshire CC
- The seller only has a limited duty to disclose information to the buyer’s solicitor
- However, the seller should be mindful of stating in its replied “not so far as the seller is aware” -> this would amount to an assertion that the seller has made reasonable investigations into the matter
Gordon v Selico Ltd
THe seller cannot deliberately mislead the buyer e.g. by concealing physical defects or answering enquiries dishonestly
Optional searches
- Con 29O
- Company search
- Con 29M
- Waterways search
- Telecoms search
- Gas and electricity utility search
When would you do a CON29O?
When the property is in an area which may be affected by a right of common, e.g. in/near an area of open countryside or in a non-built-up urban area or is a newly build property in a previously non-built-up area
When would you do a company search?
- If the seller is a company
WHen do you do a CON29M?
- Coal mining and brine search
