Property Practice

Question 1

Pre-Market

Answer 1

Steps taken by seller before they market property

Question 2

Stages of Transaction

Answer 2

1. Pre-Market
2. Pre-Contract
3. Exchange of Contracts
4. Pre-Completion
5. Post-Completion

Question 3

Pre-Contract

Answer 3

Stage takes client from agreeing sale to exchanging contract

Question 4

Exchange of Contract

Answer 4

Transaction becomes legally binding, parties cannot withdraw without penalty

Question 5

Pre-Completion

Answer 5

Solicitor makes preparation to complete

Question 6

Post-Completion

Answer 6

Solicitor pays off seller’s mortgage, pay any stamp duty land tax within 14 days, must submit application within priority period

Question 7

Two Important Aspects for Capital Gains Tax

Answer 7

1. Residential property return must be submitted
2. Pay tax within 30 days of completion

Question 8

Principal Private Residence Relief Exemption

Answer 8

1. Seller’s only or main residence
2. Not greater than 0.5 hectare
3. No part of their home has been used exclusively for business purposes

Question 9

EPC Requirement

Answer 9

Valid for 10 years

Question 10

Number of Contracts Issue

Answer 10

2 contracts to buyer’s solicitor

Question 11

First Registration

Answer 11

Within 2 months if unregistered

Question 12

Land Charges Search

Answer 12

Priority Period of 15 days

Question 13

Pre-Completion Search

Answer 13

30 Working Days to Register

Question 14

Pre-Contract Searches Done in Every Case

Answer 14

1. Local Search
2. Local Water Company
3. Environmental search

Question 15

Transaction Specific Searches

Answer 15

1. Search Index Map - Unregistered Title
2. Obtaining Mortgage - Bankruptcy Search
3. Coal Mining Search

Question 16

Local Authorities looking to disapply permitted development

Answer 16

1. Issue Article 4 Direction

Question 17

Formal Application for Planning

Answer 17

1. Outline
2. Detailed
3. 3 years or planning permission lapses

Question 18

Enforcement Time limit for Unpermitted Development

Answer 18

4 years

Question 19

Enforcement Time Limit for Material Change in Use

Answer 19

10 years from first breach

Question 20

Enforcement Time Limit for Health and Safety Non-Compliance

Answer 20

1 year

Question 21

Types of Mortgage

Answer 21

1. Repayment
2. Interest-Only
3. Endowment
4. Pension
5. Sharia Compliant

Question 22

Registering Mortgage Time Periods

Answer 22

1. Registered - Within 30 day priority period
2. Unregistered - Within 2 months of completion
3. Company - Companies House within 21 days of completion

Question 23

Methods of Exchange

Answer 23

1. Person
2. Post
3. Phone

Question 24

Formulae for Exchange of Contracts

Answer 24

1. FA - One solicitor holds both signed parts of contract
2. FB - Each solicitor holds own client’s signed part of the contract
3. FC - Used if chain of transactions

Question 25

Protection when considerable time between exchange and completion

Answer 25

1. Registering an estate contract on charges register 2. Unregistered: c(iv) land charge

Question 26

Pre-Completion Searches

Answer 26

1. Registered Title (OS1 Form) 2. Unregistered Title - Land Charges 3. Priority Periods (RT-30, UT-15 and 2 months to register) 4. Repeat Bankruptcy, Company Searches

Question 27

Time for Completion

Answer 27

Take place by 2pm

Question 28

Post-Completion: Company Charge

Answer 28

Within 21 days of completion

Question 29

Post-Completion: Stamp Duty Land Tax

Answer 29

Submitted within 14 days of completion

Question 30

Stamp Duty Thresholds

Answer 30

1. 125000 2. Commercial: 150000 3. If person owns a residential property and purchases additional property (3% in each band unless under 40k)

Question 31

First Time Buyer Relief

Answer 31

1. Main Residence 2. 0% on 300k 3. 5% up to 500k 4. No relief applies to over 500k

Question 32

Multiple Dwellings Relief

Answer 32

SDLT calculated on average price paid and the multiplied by number of properties

Question 33

Section 25

Answer 33

1. End tenancy or enter into new lease 2. Served within 6-12 months before end of lease

Question 34

Section 26

Answer 34

1. Request new lease 2. Served with 6-12 months 3. Landlord has 2 months to notify whether they will oppose