Property Practice

Question 1

Stages of Transaction (5)

Answer 1

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

Question 2

Pre-Contract

Answer 2

Stage takes client from agreeing sale to exchanging contract

Question 3

Exchange of Contract

Answer 3

Transaction becomes legally binding, parties cannot withdraw without penalty

Question 4

Pre-Completion

Answer 4

Solicitor makes preparation to complete

Question 5

Post-Completion

Answer 5

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

Question 6

Two Important Aspects for Capital Gains Tax (2)

Answer 6

1. Residential property return must be submitted
2. Pay tax within 60 days of completion

Question 7

Principal Private Residence Relief Exemption from CGT (3)

Answer 7

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 8

Law Society Conveyancing Protocol (3)

Answer 8

1. Standardised forms and best practice
2. Only applies to residential protocols
3. Not new builds or commercial property

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 (3)

Answer 14

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

Question 15

Transaction Specific Searches (3)

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 (1)

Answer 16

1. Issue Article 4 Direction

Question 17

Formal Application for Planning (3)

Answer 17

1. Outline - Work must start within 2 years from approval
2. Reserved - Full application within 2 years from approval
3. Detailed - 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

Issue a certificate of title to lender

Answer 21

1. Notice to receive COT is 5-7 working days

Question 22

Registering Mortgage Time Periods (3)

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

Formulae for Exchange of Contracts (3)

Answer 23

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 24

Protection when considerable time between exchange and completion (2)

Answer 24

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

Question 25

Pre-Completion Searches (4)

Answer 25

1. Registered Title (OS1 Form) (OS2 - Part Registered Title) 2. Unregistered Title - Land Charges 3. Priority Periods (RT-30, UT-15 and 2 months to register) 4. Repeat Bankruptcy, Company Searches

Question 26

Post-Completion: Company Charge

Answer 26

Within 21 days of completion

Question 27

Post-Completion: Stamp Duty Land Tax

Answer 27

Submitted within 14 days of completion

Question 28

Stamp Duty Thresholds (3)

Answer 28

1. Residential: 250000 2. Commercial: 150000 3. If person owns a residential property and purchases additional property (3% in each band unless under 40k)

Question 29

First Time Buyer Relief (4)

Answer 29

1. Main Residence 2. 0% on 425K 3. 5% up to 625K 4. No relief applies to over 625k

Question 30

Multiple Dwellings Relief

Answer 30

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

Question 31

When 6 or more properties purchased

Answer 31

1. Can choose to apply non-residential property rates instead 2. Can't apply MDR if this used

Question 32

Order to complete (3)

Answer 32

1. Served on defaulting party 2. Completion in 10 working days 3. Reduced deposit becomes full deport

Question 33

Innocent Misrepresentation (2)

Answer 33

1. Rescission 2. Sue for Damages in lieu of rescission

Question 34

Section 25 (2)

Answer 34

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

Question 35

Section 26 (3)

Answer 35

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

Question 36

Compensation for no fault grounds (2)

Answer 36

1. Occupied premises for atleast 14 years, twice the ratable value of the holding 2. If less than 14 years, the ratable value of the holding

Question 37

Cotracting Out of 1954 Act (3)

Answer 37

1. Written Statutory Notice 2. Served 14 days before the tenant completes the lease 3. Can waive 14 days if formal statutory declaration is signed