SQE 1 FLK 2 > Property Practice > Flashcards

Property Practice Flashcards

(62 cards)

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1
Q

What are the buyer’s pre-contract searches? (4)

A
  • Local search
  • Drainage & water search
  • Environmental search
  • Index map search
  • Chancel liability search
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2
Q

When is an index map search required?

A

If land is unregistered

or

has not been transfered to a new registered proprietir since 13 October 2013

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3
Q

Use classes of commercial buildings

A

Class E: commercial uses - shops, office space, medical business, indoor leisure etc…

Class F.1: non-residential institutions - galleries, courts etc…

Class F.2: small shops selling essential goods

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4
Q

Remedies available to the buyer before completion for inaccurate statements by error of the seller

A
  • Damages
  • Rescission
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5
Q

Purpose of damages (remedy for buyer)

A

To put the buyer in the position they would have been in had the property been as described

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6
Q

Purpose of rescission and when it’s available (remedy for buyer)

A

Only available if:
- An error or omission was made fraudulently or recklessly

OR

  • The buyer would be taking the property substantially different in quality, quantity, or tenure than expected

OR

  • Contract specifies that time is of the essence and there is a delay
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7
Q

When interest is available as a remedy and what the interest is (remedy for buyer)

A

Availablle when there is delay of completion

  • The amount equivalent to the purchase price & content price
  • Rate applied to the period between the contractual completion date and actual date its completed
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8
Q

Compensation for tenant (2)

A
  • If tenant occupied the property for at least 14 years: twice the rateable value of the holding
  • If less than 14 years: the rateable value of the holding
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9
Q

What are the seller’s post-completion tasks for assignment of an existing lease?

A

Send the original lease and the original license to assign (if applicable) to the buyer’s solicitor

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10
Q

What are the buyer’s post-completion tasks for assignment of an existing lease?

A
  • Arrange for the payment of SDLT
  • Serve notice to the landlord of the assignment and notice of any new mortgage
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11
Q

What are the local search optional searches, that require a fee?

A
  • Private body road proposal
  • Major gasline pipe
  • Common land / green village (common’s registration search)
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12
Q

What is the purpose of an index map search?

A

Used when land is unregistered to find out if it is fully or partially unregistered

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13
Q

What are the particulars of sale?

A

The part of the contract that includes the key transactions details regarding the parties, purchase price, and details of the property

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14
Q

What is the property information form

A

The document containing practical information for the buyer about the property

Includes: occupiers, disputes, permissions etc.

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15
Q

When is it not necessary for a couple selling their property to provide a marriage certificate?

A

When the title already shows they are registered in their married name

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16
Q

What is the purpose of the Commercial Property Standard Enquiries?

A

Contains practical information about the property in commercial transactions

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17
Q

A license to assign

A

The document which a landlord gives formal consent to an outgoing tenant to assign the lease

Signed by all parties

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18
Q

What does an official search with priority reveal?

A

Any entries added to the seller’s register of title since the official copies were provided

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19
Q

When does a party’s right to seek interest arise when the other party fails to complete on time?

A

It arises automatically when the other party fails to complete on time

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20
Q

What statutory protection does the Landlord and Tenant Act 1954 (Part II) give to commercial tenants in regards of the end of a lease?

A

Security of tenure:

The tenant does not have to vacate the property unless one of the statutory methods of terminating the lease is used

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21
Q

At what stage must planning permission for change of use be applied for?

A

Before exchange of contracts

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22
Q

To be a good root, the document must..?

A

Deal with the whole legal and equitable interest in the property

Contain an adequate description of the property
And

Be at least 15 years at the date of the contract

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23
Q

What searches must be domed pre-contract in every transaction?

A

Local search
Drainage and water search
Environment search

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24
Q

What is a mortgage valuation report for?

A

Obtained by the lender to confirm that the property represents good security for the loans

And

Requires the buyer to provide evidence that they can afford the mortgage

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25
SDLT is payable on the VAT inclusive price for?
SDLT on a new commercial building
26
What should a solicitor advising two buyers who wish to hold the beneficial estate as tenants in common, advice the buyers to do?
Enter a declaration of trust setting out their shares of the ownership
27
What's the certificate that the seller most provide the buyer in regards of the property's energy use?
The Energy Performance Certificate
28
Purpose of the Code for Leasing Business Premises
Sets out best practices for transactions involving new commercial leases Produced by the Royal Institution of Chartered Surveyors
29
What is the title plan?
A document showing the location of the property with a red outline indicating the land included in the title
30
What should the contract package include?
- The draft contract in duplicate - A Property Information Firm - Fittings and Contents Form - Deducing title (copy of seller's title) - A copy of the title plan - Any guarantees or planning permissions
31
What is the purpose of the Fittings and Contents Form?
It sets out personal property included (and excluded) in the transaction Annexed to and becomes part of the contract
32
What is the buyer's right in response to the seller's breach of duty to disclose latent defects and burdens?
The right to withdraw from the contract after exchange and Claim damages for losses
33
What is the doctrine of caveat emptor?
Buyer beware
34
What should the contract package on grant of a new lease include? (no need to memorise, just know)
- The draft contract with draft lease annexed - Seller's freehold title - The PIF - Replies to standard pre-contract enquiries - Copy of planning permission, building regulations etc. (for a newly built block) - New build warranty (if building less than 10 years old) - Service charge budget (for a new build development) Details of management company + Memorandum & Articles of Association
35
What should the contract package on assignment of an existing lease include? (no need to memorise, just know)
- Draft contract in duplicate - Official copies of leasehold title and plan - Copy of the lease of the property - PIF - Leasehold Information Form - Fittings and Contents Form - Copy of landlord's freehold register of title and plan - Copy of insurance policy & latest premium receipt - Copy of any new build warranty, planning permissions, and building regulations consent (if less than 10 years old)
36
How many parts is the Contract Incorporating the Standard Conditions of Sale divided into and what are they?
- Particulars of sale: names of parties, leasehold or freehold?, title guarantee, completion date, purchase price - The standard conditions of sale: payment of VAT, deposit, risk of loss etc. - The special conditions of sale: conditions specific to the particular transaction
37
What does the Standard Conditions of Sale provide in regards to VAT for the prices?
The purchase price and contents price include VAT UNLESS the contract is amended
38
When can a title other than full title guarantee be provided?
When the Standard Conditions are amended
39
What does full title guarantee, guarantee?
- Seller is entitled to sell the property - Seller will at their own cost do all in their power to transfer the purported title to the buyer - Seller is selling the property free from all charges or encumbrances other than those disclosed in the contracts
40
What does a limited title guarantee warrant?
- Seller has not created any charged or granted any rights during their period of ownership that have not been disclosed int he contract
41
What is the best way of resolving a defect in title, and what if those aren't available?
Deed of variation or deed of rectification If not possible, indemnity insurance
42
What does a local search show?
- Local financial land charge registrations made against the property by the local authority - Planning agreements - Whether there are listed buildings on the property - Tree preservation orders - Enquiries on roads, public rights of way, planning permissions & building regulations - Form includes optional searches (3)
43
When must a company search be conducted, by who, and for what?
- The seller is a company - By the buyer's solicitor - Shows whether the company is subject to any winding up or liquidation proceedings
44
What are the reserved matters for Outline Planning Permission?
Specific details not decided in initial outline approval but must be approved later, before building starts: - Appearance - Landscaping - Layout - Scale - Access
45
Types of mortgages
- Repayment mortgage: interest & capital monthly - Interest only mortgage : interest monthly, capital at the end of term - Endowment and pension mortgage: interest & premiums from policy monthly, capital sum paid by policy at the end of term - Sharia compliant mortgage
46
What does the Completion Information and Undertakings form include?
- Details of the client account - Amount due on completion - Collection of keys to the property - Undertaking to pay off mortgage and provide evidence of discharge
47
What are the four types of deed and who drafts a purchase deed?
- Transfer: TR1 (whole of the land) TR2 (part of the land) - Assent: used by PRs - Conveyance: older doc used for unregistered land - Assignment: was used for unregistered leasehold land Drafted by buyer's solicitor
48
What is an engrossment, what are it's parts, who is it prepared by?
- It is the final version of the lease - Two parts: - Original signed by the landlord - Counterpart signed by the tenant
49
What is the completion statement required from each solicitor?
- Buyer's: Shows the sum required from the buyer to complete - Seller's: Shows how much the seller will have after completion
50
Code for Completion by Post established by the Law Society
- Seller's solicitor acts as the agent of the buyer's solicitor - Buyer's solicitor sends money by bank transfer of case, seller's solicitor notifies upon receiving - Seller's solicitor confirm to buyer's solicitor by phone, fax, or email the time completion takes place, and notified keyholder to release keys
51
When is an additional 3% added to each rate band for the purposes of SDLT, what is the exception?
When a person already owns residential property and buys an additional residential property Except where the transaction is under £40,000
52
On the grant of a new lease, what is SDLT chargeable on and how is it calculated briefly?
Chargeable on: - Lease premium and - Net present value Calculated separately
53
What tax relief is available for SDLT?
- First-time home buyer's provided purchase price does not exceed £625,000 0% on 425,000 5% on 425,000 - 625,000
54
A notice to complete can be served..
At any time after the completion date by a part who is ready, able, and willing to complete
55
Remedies available to seller when buyer is in default
- Rescind - Retain deposit - Resell the property and - Claim damages (resale price - contract price (taking into account deposit))
56
Remedies available to buyer is seller is in default
- Rescind - Reclaim deposit with interest at contractual rate and - Claim damages (put buyer in position they would have been in if seller performed (giving credit for any reclaimed deposit))
57
What are the only viable claims after completion?
By the buyer: - Breach of title guarantee - Damages for misrepresentation
58
When/how may a landlord and tenant contract out of the security of tenure?
- Landlord served a health warning at least 14 days before lease is complete - Tenant signs a declaration confirming the have seen the health warning and agree - The lease references to the health warning, the tenant's declaration, and the agreement to contract out (so all of the above)
59
What are the discretionary grounds for termination of tenancy?
- Tenant's breach of obligation - Landlord requiring the whole property for subsequent letting
60
What are the mandatory grounds for termination of tenancy?
- The availability of suitable alternative accommodation - Landlord intends to demolish or reconstruct the premises - Landlord intends to occupy the premises
61
For what grounds of terminating tenancy is the tenant entitled to compensation?
- Require the whole premises for letting - Demolish the premises - Intend to occupy the whole of the premises
62
When is a chancel liability search required
- When title to land is unregistered - When title to land is registered and has not been transferred since 13 October 2013
SQE 1 FLK 2
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