Topic 7 Flashcards
The legal aspects of property purchase (29 cards)
What is the main reason a solicitor is involved in a property transaction?
Although not legally required, lenders insist legal formalities be carried out by a qualified person, typically a solicitor, to ensure proper legal processes are followed.
What are three key areas a solicitor might advise on during a property purchase?
The purchase/sale transaction, the mortgage and related matters like life assurance, building and contents insurance.
What happens to solicitor fees if a purchase does not complete?
Some may reduce fees depending on how far the process has progressed, but many services like title searches are non-refundable.
What is a licensed conveyancer?
A specialist qualified in property law who can handle conveyancing but not general legal matters like a solicitor.
What is professional negligence in conveyancing?
When a solicitor fails in their duty of care, such as missing a title defect, and causes loss or damage.
What protection is there if a solicitor is negligent?
Solicitors carry professional indemnity insurance to ensure clients are compensated if damages are awarded.
What is the purpose of investigating title?
To confirm the property is as described, is legally owned by the seller, and is free from restrictions affecting the sale.
What does the certificate of title confirm?
That the title is good, the seller is entitled to sell, and the buyer’s legal name and property searches are accurate.
Why is title investigation important to lenders?
Because defects in title can affect the lender’s security and ability to enforce its rights over the property.
What is one benefit of land registration in title investigation?
It makes the process more straightforward as registered details are guaranteed to be accurate.
What happens if title defects are found?
The solicitor advises on legal remedies or insurance to protect the lender’s interest.
What types of insurance can cover title defects?
Specific or block policies that may cover the lender, borrower, and future purchasers.
What is a Land Registry search used for?
To check property, ownership, and charges if the land is registered.
What does a Land Charges Registry search check?
For puisne mortgages or spousal interests on unregistered land.
What is checked in a Local Land Charges Register search and local authority enquiries?
Obligations/restrictions on the land and planning details that may affect the property.
What is the purpose of a bankruptcy search?
To ensure the buyer isn’t bankrupt and the seller is entitled to the sale proceeds.
What does a commons registration search identify?
Whether the land is common land, often relevant for rural or undeveloped land.
What is a puisne mortgage?
A mortgage on unregistered land without the title deeds, ranking behind the first-charge holder.
What is a spousal interest?
An interest a non-owning spouse can register in a property under the Family Law Act 1996.
Can a remortgage be completed without standard property searches?
Yes, by using search indemnity insurance to speed up the process while protecting against risks.
What key information must the vendor provide before exchange of contracts?
The vendor must complete a Law Society Property Information Form (TA6), confirming what is included in the sale and answering questions about boundaries, disputes, environmental risks, services, insurance, changes to the property, and more.
What is the purpose of the property information form (TA6)?
It provides the buyer with important details about the property, such as occupiers, environmental issues, disputes, planning history, and what is included in the sale.
What is the difference between fixtures and fittings?
Fixtures are permanently attached (e.g. fitted kitchens), typically included in the sale. Fittings are removable (e.g. curtains), and not included unless specified.
What does the buyer’s solicitor do to prepare for mortgage completion?
They prepare the mortgage deed, liaise with the lender to ensure funds are transferred on time, and may handle assignments of life assurance or other related transactions.
