ACTUAL EXAM FOR REAL ESTATE MCQS SUMMARY SOLICITORS ACCOUNTS

ACTUAL EXAM FOR REAL ESTATE MCQS SUMMARY SOLICITORS ACCOUNTS Entry 2 of a Charges Register states that a conveyance dated 5 October 1999, made between Edward Charles Rigley (1) and Euan Andrew Palenbella (2), contains restrictive covenants. The Land Registry does not have a copy of this conveyance. Which ONE of the following statements about the contents of the conveyance is CORRECT? A. A buyer would be bound by the covenants contained in the missing conveyance, because the Charges Register refers to them B. A buyer would not be bound by the covenants contained in the missing conveyance, because the terms of the covenants cannot be ascertained. C. A buyer would be bound by any covenants relating to the Property. D. A buyer would only be bound by the covenants contained in the missing conveyance if the covenants had been stated in full in the Charges Register. - CORRECT ANSWERA buyer would be bound by the covenants contained in the missing conveyance, because the Charges Register refers to them. The covenants in question are contained in a 1999 conveyance. They are identified as being restrictive and so, regardless of the fact that details are unspecified, will bind as the Conveyance appears in the Charges Register. You act for ABC Limited on the purchase of an office building, Sealand House ("the Property"). You have received official copies of the title and have discovered the following entry on the Property Register: "The property has the benefit of the rights reserved in a conveyance dated 14 May 1973 and made between (1) Rouse Limited and (2) Belinda Clark and Andrew Clark. Note: A copy of this conveyance is filed at Land Registry." Which ONE of the following statements is CORRECT? A) The rights burden the Property and will bind ABC Limited should it complete its purchase. B) There is no need to discover anything further about these rights as they do not burden the Property. C) The seller cannot be asked questions about these rights as they do not burden the Property. D) You should request a copy of the 1973 conveyance from Land Registry or from the seller to discover more about the nature of the rights. - CORRECT ANSWER-You should request a copy of the 1973 conveyance from Land Registry or from the seller to discover more about the nature of the rights. The entry reveals that a copy of the 1973 conveyance in which these rights were created is filed at Land Registry. This is a public document and Land Registry would provide you with a copy of it if asked. How do you find out the details of the existence of a restriction regarding a legal charge? - CORRECT ANSWER-You would need to look on the proprietorship register. Restrictions always appear in the Proprietorship Register. What search would reveal answers in their results about adopted roads? - CORRECT ANSWER-The existence of adopted roads would be revealed in the Enquiries of the Local Authority (CON29). Information about adopted roads is contained within the results of the Enquiries of the Local Authority (CON29). The results from a local search for a property using forms LLC1, Con 29 and Con 29O reveal that an extension was built to the rear of the property in 2016, but that no application for planning permission was made at that time. - CORRECT ANSWER-The seller must obtain retrospective planning permission for the erection of the extension before completion of the sale of the property, or the buyer may become liable for planning breaches as the new owner of the Property. Four years has not passed since the erection of the extension and therefore the works will not be deemed to be a lawful development. The contract for the sale of a commercial property is to incorporate the Standard Commercial Property Conditions (Third Edition) without amendment. - CORRECT ANSWER-The definition of the Contract Rate as "4% above the Law Society's interest rate from time to time in force" would not be acceptable to a Buyer. The question requires analysis of which definition of the Contract Rate within a contract incorporating the Standard Commercial Property Conditions (Third Edition) would not be acceptable to a buyer - the only answer which is not acceptable is D which would result in the contract rate being 8% above base rate. A buyer and seller have entered into a contract for the sale of a commercial property which incorporates the Standard Commercial Property Conditions (Third Edition) without amendment. - CORRECT ANSWER-VAT will be payable in addition to the purchase price. In a contract incorporating the Standard Commercial Property Conditions (Third Edition) ("SCPC"), SCPC 2.4 provides that the sale of the property will constitute a supply chargeable to VAT and that the buyer will pay VAT in addition to the purchase price on completion. Assume that contracts are due to be exchanged on the sale and purchase of a property tomorrow. Which ONE of the following statements is WRONG? A) The Law Society's Formula A for Exchanging Contracts could be used if the seller's solicitor is holding one part of the contract signed by their own client and the other part signed by the buyer. B) The Law Society's Formula B for Exchanging Contracts should only be used if the buyer's solicitor is holding one part of the contract signed by the buyer and the seller's solicitor is holding one part of the contract signed by their own client. C) If Law Society's Formula B for Exchanging Contracts is used it is not possible for the solicitors to make any variations to the undertakings contained in the formula. D) If Law Society's Formula B for Exchanging Contracts is used without amendment, the buyer's solicitor will give an undertaking that day to send a banker's dra - CORRECT ANSWER-This question required you to identify the WRONG answer. A and B accurately describe when Formula A and B could be used on exchange of contracts and are therefore correct. When using Formula B (without any amendment), the buyer's solicitor, inter alia, agrees that day to send the deposit by banker's draft or solicitor's client account cheque to the seller's solicitor. Therefore, D is also correct. When using any of the Formulae, it is possible to make variations, but an agreed memorandum should record this and the any variations must be confirmed in writing. It follows that C is wrong and is the answer that you should have chosen. You act for the seller of a freehold storage warehouse. The contract for the purchase of the property incorporates Part 1 of the Standard Commercial Property Conditions (Third Edition) without any amendments. The contractual date for completion is tomorrow. You have just been informed by the solicitors acting for the buyer that they will not be able to complete for two more days. Which ONE of the following is CORRECT? A. The buyer and the seller can be liable to pay compensation for late completion under the Standard Commercial Property Conditions (Third Edition). B. Only the buyer can be liable to pay compensation for late completion under the Standard Commercial Property Conditions (Third Edition). C. The contract rate will be applied to the full purchase price to calculate the amount of compensation to be paid. D. If the seller has any actual loss resulting out of the delay in completion, it will be able - CORRECT ANSWER-Question 9 - B