PROP_01 — Residential Purchase: Title Investigation, Mortgage & Lender Obligations
SOLICITOR INSTRUCTIONS
(Read time: 10 minutes)
Email from Supervising Partner
From: Greta Johnson – Partner, Property Department
Sent: Today’s date
To: Candidate
Subject: Nathan and Rebecca Cole – Purchase of 23 Hawthorn Crescent
Nathan and Rebecca Cole are new clients. They are purchasing 23 Hawthorn Crescent,
Langford, a freehold semi-detached house, for £375,000. They are first-time buyers.
They are funding the purchase with a mortgage of £300,000 from Langford Building Society.
We are also acting for the lender. The deposit of £37,500 (10%) is payable on exchange, to
be held as stakeholder. Completion is to take place 28 days after exchange.
The seller is Farhana Ahmed, represented by Harrison & Webb Solicitors. The memorandum
of sale from the estate agents is attached.
The official copies of the title have been received. I have noticed the following matters which
need to be discussed with the clients:
• There is a restrictive covenant on the title dating from 1962 preventing any trade,
business or profession being carried on at the property. Nathan has mentioned he
runs a small graphic design business from home.
• The property was extended approximately three years ago (a single-storey rear
extension). The seller has provided a building regulations completion certificate but
there is no planning permission on the file. The extension appears to fall within
permitted development rights, but this needs to be confirmed.
• The search results reveal that the local authority has approved plans for a new
access road which will run along the rear boundary of the property, approximately 30
metres from the house.
Nathan and Rebecca are buying the property as joint owners. They have not discussed how
they wish to hold the property.
Our costs for the purchase are £2,000 plus VAT. The cost of today’s interview is included in
that figure.
Please see Nathan and Rebecca today. Your attendance note should cover title issues, the
mortgage, the search results, how the property should be held, and any professional conduct
issues including our duties to the lender.
Thanks, Greta Johnson
KEY ISSUES TO IDENTIFY IN PREPARATION
,• Restrictive covenant – trade/business restriction vs Nathan’s home business; breach
risk; indemnity insurance
• Planning/building regs – extension without express planning permission; permitted
development; building regs certificate obtained
• Search results – proposed access road near rear boundary; impact on property value
and enjoyment; duty to report to lender
• Joint ownership – joint tenants vs tenants in common; implications for first-time
buyers
• Mortgage and lender duties – acting for both buyer and lender; duty to report material
matters to lender; CML Handbook
• SDLT – first-time buyers relief; nil rate up to £425,000 (check current threshold)
• Conduct – conflict of interest acting for buyer and lender (substantially common
interest exception); duty of confidentiality to both clients
,PROP_01 — Residential Purchase: Title Investigation, Mortgage & Lender Obligations
FULL INTERVIEW SCRIPT (25 minutes)
CLIENT = Nathan Cole (32) and Rebecca Cole (30), first-time buyers. SOLICITOR =
Candidate.
─── GREETING (approx. 1–2 minutes) ───
SOLICITOR: Good morning. You must be Mr and Mrs Cole. My name is [Your Name], I’m a
solicitor in the Property department. Lovely to meet you both. Please come through and take
a seat.
NATHAN: Thank you. Please, call us Nathan and Rebecca.
SOLICITOR: Of course. I hope you had a pleasant journey in?
REBECCA: Yes, no problems. We’re very excited about the house.
SOLICITOR: I’m sure you are – it’s an exciting time.
─── OPENING (approx. 2–3 minutes) ───
SOLICITOR: I understand from Greta’s note that you’re purchasing 23 Hawthorn Crescent
for £375,000 with a mortgage from Langford Building Society. Is that all correct?
NATHAN: Yes, that’s right.
SOLICITOR: Excellent. Let me explain how today will work. I expect us to be about 25
minutes. I’ll first ask you some questions about your plans for the property and your
circumstances. Then I need to talk you through some important matters that have come up
from the title documents and searches. I’ll also explain the conveyancing process and the
next steps. Does that sound alright?
REBECCA: Yes, that’s fine.
SOLICITOR: Greta has already confirmed our costs – £2,000 plus VAT for the purchase,
which includes today’s meeting. You’ll receive a client care letter setting out everything
formally. I should also mention that we are acting for your mortgage lender, Langford
Building Society, as well as for you. This is standard practice in residential purchases, and
the interests are treated as substantially the same. However, I do have reporting obligations
to the lender, which I’ll explain as we go. Everything you tell me is confidential as between
you and me, but if something arises that I am required to report to the lender, I will let you
know. Is that clear?
NATHAN: Yes, understood.
─── LISTENING (approx. 3–4 minutes) ───
SOLICITOR: Could you start by telling me a bit about the property and your plans?
NATHAN: It’s a three-bed semi, been extended at the back. Nice garden. It’s perfect for us –
we’ve been renting and this is our first purchase.
, REBECCA: We love the area. Good schools, close to my parents.
NATHAN: One thing I should mention – I run a small graphic design business. It’s just me,
working from a laptop in the spare room. No clients visit or anything. I was wondering if that
would be an issue?
SOLICITOR: Thank you for mentioning that – it is actually something I need to discuss with
you, so we’ll come to it shortly. Anything else about your plans for the property?
REBECCA: Not really. We just want to move in and make it our home.
─── FILL IN DETAIL (approx. 4–5 minutes) ───
SOLICITOR: Let me ask a few specific questions. First, you’re buying as a married couple.
Have you thought about how you’d like to own the property – I mean the legal structure of
the ownership?
NATHAN: Not really. What do you mean?
SOLICITOR: When two people buy a property together, there are two ways to hold it. The
first is called a joint tenancy. This means you both own the whole property together, and if
one of you were to pass away, the property would automatically pass to the survivor. The
second is called a tenancy in common, where you each own a defined share – it could be
50/50 or any other split. With a tenancy in common, your share would pass under your will
rather than automatically to the other person. For a married couple buying their first home
together, a joint tenancy is the most common choice, and it means you don’t need to worry
about what happens to the property if something were to happen to one of you. Does that
make sense?
REBECCA: Yes. I think joint tenancy sounds right for us.
NATHAN: Agreed.
SOLICITOR: Good. I’ll note that down. Now, the mortgage – £300,000 from Langford
Building Society. Have you received and accepted your formal mortgage offer?
NATHAN: Yes, we got it last week.
SOLICITOR: Could you send me a copy when you get a chance? I’ll need to check the
conditions. And the deposit – £37,500. Where is that coming from?
REBECCA: Our savings. We’ve been saving for three years.
SOLICITOR: Thank you. I’ll need to carry out anti-money laundering checks, which means
I’ll need to verify your identities and the source of the deposit funds. I’ll send you a list of
what’s needed. Have you brought any ID with you today?
NATHAN: Yes, we’ve got passports and utility bills.
SOLICITOR: Perfect, I’ll take copies before you leave.
─── ADVISING (approx. 8–10 minutes) ───
SOLICITOR INSTRUCTIONS
(Read time: 10 minutes)
Email from Supervising Partner
From: Greta Johnson – Partner, Property Department
Sent: Today’s date
To: Candidate
Subject: Nathan and Rebecca Cole – Purchase of 23 Hawthorn Crescent
Nathan and Rebecca Cole are new clients. They are purchasing 23 Hawthorn Crescent,
Langford, a freehold semi-detached house, for £375,000. They are first-time buyers.
They are funding the purchase with a mortgage of £300,000 from Langford Building Society.
We are also acting for the lender. The deposit of £37,500 (10%) is payable on exchange, to
be held as stakeholder. Completion is to take place 28 days after exchange.
The seller is Farhana Ahmed, represented by Harrison & Webb Solicitors. The memorandum
of sale from the estate agents is attached.
The official copies of the title have been received. I have noticed the following matters which
need to be discussed with the clients:
• There is a restrictive covenant on the title dating from 1962 preventing any trade,
business or profession being carried on at the property. Nathan has mentioned he
runs a small graphic design business from home.
• The property was extended approximately three years ago (a single-storey rear
extension). The seller has provided a building regulations completion certificate but
there is no planning permission on the file. The extension appears to fall within
permitted development rights, but this needs to be confirmed.
• The search results reveal that the local authority has approved plans for a new
access road which will run along the rear boundary of the property, approximately 30
metres from the house.
Nathan and Rebecca are buying the property as joint owners. They have not discussed how
they wish to hold the property.
Our costs for the purchase are £2,000 plus VAT. The cost of today’s interview is included in
that figure.
Please see Nathan and Rebecca today. Your attendance note should cover title issues, the
mortgage, the search results, how the property should be held, and any professional conduct
issues including our duties to the lender.
Thanks, Greta Johnson
KEY ISSUES TO IDENTIFY IN PREPARATION
,• Restrictive covenant – trade/business restriction vs Nathan’s home business; breach
risk; indemnity insurance
• Planning/building regs – extension without express planning permission; permitted
development; building regs certificate obtained
• Search results – proposed access road near rear boundary; impact on property value
and enjoyment; duty to report to lender
• Joint ownership – joint tenants vs tenants in common; implications for first-time
buyers
• Mortgage and lender duties – acting for both buyer and lender; duty to report material
matters to lender; CML Handbook
• SDLT – first-time buyers relief; nil rate up to £425,000 (check current threshold)
• Conduct – conflict of interest acting for buyer and lender (substantially common
interest exception); duty of confidentiality to both clients
,PROP_01 — Residential Purchase: Title Investigation, Mortgage & Lender Obligations
FULL INTERVIEW SCRIPT (25 minutes)
CLIENT = Nathan Cole (32) and Rebecca Cole (30), first-time buyers. SOLICITOR =
Candidate.
─── GREETING (approx. 1–2 minutes) ───
SOLICITOR: Good morning. You must be Mr and Mrs Cole. My name is [Your Name], I’m a
solicitor in the Property department. Lovely to meet you both. Please come through and take
a seat.
NATHAN: Thank you. Please, call us Nathan and Rebecca.
SOLICITOR: Of course. I hope you had a pleasant journey in?
REBECCA: Yes, no problems. We’re very excited about the house.
SOLICITOR: I’m sure you are – it’s an exciting time.
─── OPENING (approx. 2–3 minutes) ───
SOLICITOR: I understand from Greta’s note that you’re purchasing 23 Hawthorn Crescent
for £375,000 with a mortgage from Langford Building Society. Is that all correct?
NATHAN: Yes, that’s right.
SOLICITOR: Excellent. Let me explain how today will work. I expect us to be about 25
minutes. I’ll first ask you some questions about your plans for the property and your
circumstances. Then I need to talk you through some important matters that have come up
from the title documents and searches. I’ll also explain the conveyancing process and the
next steps. Does that sound alright?
REBECCA: Yes, that’s fine.
SOLICITOR: Greta has already confirmed our costs – £2,000 plus VAT for the purchase,
which includes today’s meeting. You’ll receive a client care letter setting out everything
formally. I should also mention that we are acting for your mortgage lender, Langford
Building Society, as well as for you. This is standard practice in residential purchases, and
the interests are treated as substantially the same. However, I do have reporting obligations
to the lender, which I’ll explain as we go. Everything you tell me is confidential as between
you and me, but if something arises that I am required to report to the lender, I will let you
know. Is that clear?
NATHAN: Yes, understood.
─── LISTENING (approx. 3–4 minutes) ───
SOLICITOR: Could you start by telling me a bit about the property and your plans?
NATHAN: It’s a three-bed semi, been extended at the back. Nice garden. It’s perfect for us –
we’ve been renting and this is our first purchase.
, REBECCA: We love the area. Good schools, close to my parents.
NATHAN: One thing I should mention – I run a small graphic design business. It’s just me,
working from a laptop in the spare room. No clients visit or anything. I was wondering if that
would be an issue?
SOLICITOR: Thank you for mentioning that – it is actually something I need to discuss with
you, so we’ll come to it shortly. Anything else about your plans for the property?
REBECCA: Not really. We just want to move in and make it our home.
─── FILL IN DETAIL (approx. 4–5 minutes) ───
SOLICITOR: Let me ask a few specific questions. First, you’re buying as a married couple.
Have you thought about how you’d like to own the property – I mean the legal structure of
the ownership?
NATHAN: Not really. What do you mean?
SOLICITOR: When two people buy a property together, there are two ways to hold it. The
first is called a joint tenancy. This means you both own the whole property together, and if
one of you were to pass away, the property would automatically pass to the survivor. The
second is called a tenancy in common, where you each own a defined share – it could be
50/50 or any other split. With a tenancy in common, your share would pass under your will
rather than automatically to the other person. For a married couple buying their first home
together, a joint tenancy is the most common choice, and it means you don’t need to worry
about what happens to the property if something were to happen to one of you. Does that
make sense?
REBECCA: Yes. I think joint tenancy sounds right for us.
NATHAN: Agreed.
SOLICITOR: Good. I’ll note that down. Now, the mortgage – £300,000 from Langford
Building Society. Have you received and accepted your formal mortgage offer?
NATHAN: Yes, we got it last week.
SOLICITOR: Could you send me a copy when you get a chance? I’ll need to check the
conditions. And the deposit – £37,500. Where is that coming from?
REBECCA: Our savings. We’ve been saving for three years.
SOLICITOR: Thank you. I’ll need to carry out anti-money laundering checks, which means
I’ll need to verify your identities and the source of the deposit funds. I’ll send you a list of
what’s needed. Have you brought any ID with you today?
NATHAN: Yes, we’ve got passports and utility bills.
SOLICITOR: Perfect, I’ll take copies before you leave.
─── ADVISING (approx. 8–10 minutes) ───
