ALAN IS INTERESTED IN BUYING A PROPERTY THROUGH THE MODERN METHOD OF AUCTION. THE GUIDE PRICE IS £130,000. ASSUMING THAT THE PROPERTY SELLS AT THE GUIDE PRICE, WHICH OF THE FOLLOWING IS TRUE IF HIS BID IS SUCCESSFUL?
HE WILL HAVE TO:
- exchange contracts and complete the purchase within 28 days of the auction.
- pay a non-refundable £13,000 deposit on the day of the auction.
- pay a non-refundable reservation fee of up to £6,500 on the day of the auction.
- pay compensation of £13,000 if he fails to exchange contracts within 28 days of the auction.
Answer:
Pay a non-refundable reservation fee of up to £6,500 on the day of auction.
ALAN, ANDREW AND ALEX ARE PARTNERS IN A LIMITED LIABILITY PARTNERSHIP, AND HAVE APPLIED IN THE PARTNERSHIP’S NAME FOR A MORTGAGE ON THEIR OFFICE BUILDING. ASSUMING A MORTGAGE IS GRANTED, WHICH OF THE FOLLOWING IS TRUE?
- Each partner will be liable for one third of the mortgage.
- The partners can allocate responsibility for the mortgage between themselves.
- The partners will be jointly and severally liable for the mortgage.
- The partners will have no personal liability for the mortgage.
The partners will have no personal liability for the mortgage.
WHICH OF THE FOLLOWING BORROWERS WOULD NOT BE CLASSED AS A VULNERABLE CUSTOMER UNDER MCOB RULES?
- Maddie, who is remortgaging her home to reduce her outgoings.
- Marcus, who is exercising his right to buy his local authority owned home.
- Maria, who is entering into a sale and rent back arrangement.
- Mike, who is considering a lifetime mortgage.
Maddie, who is remortgaging her home to reduce her outgoings.
RICHARD AND LIZ HAVE DECIDED TO RE-ARRANGE OWNERSHIP OF THEIR HOUSE AS TENANTS IN COMMON. IF RICHARD DIED, LEAVING HIS SHARE OF THE PROPERTY TO THEIR DAUGHTER KAREN:
- Karen could force Liz to sell the property.
- Liz and Karen would automatically be joint equitable owners.
- Liz and Karen would automatically be joint legal owners.
- Liz would be the sole legal owner, and Karen would be an equitable owner.
Liz would be the sole legal owner, and Karen would be an equitable owner.
LEN IS INTERESTED IN BUYING A LEASEHOLD PROPERTY AT AUCTION. THE VENDOR’S SOLICITOR HAS PREPARED A LEGAL PACK FOR PROSPECTIVE PURCHASERS. WHICH OF THE FOLLOWING DOCUMENTS WOULD NOT USUALLY BE INCLUDED IN THE PACK?
A copy of the lease.
A survey report.
Local searches.
Memorandum of sale.
A Survey report
TO MEET THE FCA DEFINITION OF A HOME REVERSION PLAN, IT MUST BE FOR A SPECIFIED PERIOD. THE SPECIFIED PERIOD MUST BE AT LEAST:
10 years.
15 years.
20 years.
25 years.
20 Years
WHICH OF THE FOLLOWING WOULD NOT BE CONTAINED IN A RICS CONDITION REPORT?
A valuation for insurance purposes.
Advice on certain issues for the buyer’s solicitor.
Issues for further investigation.
Serious issues or those needing attention.
A valuation for insurance purposes.
WHICH OF THE FOLLOWING MORTGAGES, TAKEN OUT FOR BUSINESS PURPOSES, WOULD BE REGULATED UNDER MCOB?
A MORTGAGE TAKEN OUT BY:
Angela, who is a partner in a limited liability partnership and wishes to secure a mortgage on her flat to help expand her business.
Clare, who is a self-employed accountant and wishes to arrange a mortgage on a unit in an office development for her business.
George, who is a self-employed electrician, and will secure a mortgage on his family home to raise cash to replace his van.
Gordon, who is a director of a limited company and wishes to secure a mortgage on the family home to inject cash into the company.
George, who is a self-employed electrician and will secure a mortgage on his family home to raise cash to replace his van.
