Property Practice
PROPERTY PRACTICE: REVISION NOTES
CONTENT
1. Freehold
a. Key elements
b. Finance
c. Investigation of registered and unregistered freehold title
d. Preparation for and exchange of contracts
e. Pre-completion
f. Completion and post-completion
2. Leasehold
a. Leasehold covenants
b. Procedural steps for the grant of a lease or underlease
c. Procedural steps for the assignment of a lease
d. Termination of a lease
e. Security of tenure under a business lease
3. Planning
4. Taxation
FREEHOLDS
KEY ELEMENTS OF THE TRANSACTION
1. Exchange of contracts Not compulsory but useful in fixing the completion
date. Parties are not bound to the transaction until the contracts are exchanged.
a. In writing
b. Contains all terms
c. Signed by both parties
2. Completion the bulk of the purchase money is paid to the seller and the
transfer deed is completed to transfer the money to the buyer.
3. Registration
Consider conflicts of interest before acting Solicitor cannot usually act for more
than one party if there is a conflict of interest or a significant risk of conflict.
Buyer and seller = high risk of conflict of interest CANNOT USUALLY ACT
Buyer and lender = residential transaction with mortgage on standard terms/
commercial property with separate representatives CAN sometimes ACT
Joint borrowers Usually acceptable (Consider Etridge guidelines to check
spouse has been properly informed)
Contract Race = Compliance with P1.2 and 1.4 of The Code of Conduct (do not
take unfair advantage of Clients and do not attempt to mislead Clients).
FINANCE
Mortgages
Two common types of mortgage:
1. Repayment mortgages Borrower makes monthly payments in instalments of
the original amount borrowed and also of the interest chargeable on the loan
,Property Practice
2. Interest-only mortgages Borrower makes monthly payments to the lender
comprising of the interest chargeable on the loan. Lower payments but will need
to justify how remainder of loan will be paid at the end of the term.
See taxation of property also.
INVESTIGATION OF TITLE
Freehold Registered Land
1. Deduce title
2. Seller to supply buyer with the official copies less than six months old
The official copies will show entries:
Section on the Official Key information
Copies
Property Register Description of the land, indicating freehold
Any easements/rights
Anything excluded from the title
Proprietorship Register Current owners
Class of Title
Absolute
Possessory – title deeds lost through adverse
possession
Qualified – specific defect
Whether a lease is held as tenancy in common or joint
owners
Charges Register Identifies the encumbrances:
Positive and restrictive covenants
Easements
Charges
Leases
Notices
Wording for a tenancy in common in the proprietorship register:
‘No disposition by a sole proprietor of the registered estate (except a trust corporation) under which capital
money arises is to be registered unless authorised by an order of the court’
If only one owner as one dies, a trustee must be appointed to overreach interest. Death certificate to be
provided.’
Freehold unregistered Land
1. Find a good root of title using the Epitome of title
2. Check for an unbroken chain of ownership – stamp duties and correct
execution of deeds
3. Check for proper execution and stamp duties
Good root of title (s44 LPA 1925) must be:
Shows who owns entire interest
Recognisable description of the land
Is at least 15 years old best indication would be a conveyance
PRE-CONTRACT SEARCHES
, Property Practice
The buyer’s solicitor will need to carry out the appropriate searches and enquiries to find
out as much as possible about the property before the client contracts to buy it.
Online search providers can be used such as the NLIS hub or the CoPSO.
Registered Land Searches
For all properties
Search Action Form/s
Survey and Advise on the most appropriate type of survey and
personal personally inspect the property
inspection
Local Search Local land charges search: charges/restrictions LLC1
and tree preservation orders
Standard enquiries search: Planning CON29
permissions, restrictions on development and road
repair CON29O
Optional enquiries search: rights over common
land, pollution and environmental matters
Water and Raised with undertaker, usually the water company CON29DW
drainage Checks whether the property is connected OR
to a public sewer and water supply Commercial
Who is responsible for maintaining this DW
Enquiries to the Standard questions about the property, compliance
seller with any covenants, planning permissions,
boundary maintenance issues, VAT status
(commercial).
Environmental Will be raised to some extent in the Desktop
searches CON29/CON29O but desktop search used where search
specific risk.
Flood search Free search at environment agency or specialist Free
report can be obtained where risk identified. screening
Chancel repair Should be used for all properties
search
Specific searches
Search Where this should be used Form/s
Mining searches Properties in a coal mining area /minerals CON29M
reservation in title . Search with local coal
authority
Canal and River Where the property is adjacent to the canal/river.
Trust The Canal and River Trust will perform the enquiry.
Commons search Where property adjacent to open land. CON29O
Railways Specific proposal with network rail
Highways Where there appears to be land separating CON29
property from the highway. Enquire with Local
Highway authority.
Company search Where there is a company as one of the parties.
Companies House online application – checking for
insolvency.
Bankruptcy Where acting for the lender. Via the Land Charges K16
search Department.
Unregistered land searches
Index Map Search (SIM) with the Land Registry
Land Charges Search – K15 to the Land Charges Department in Plymouth.
PROPERTY PRACTICE: REVISION NOTES
CONTENT
1. Freehold
a. Key elements
b. Finance
c. Investigation of registered and unregistered freehold title
d. Preparation for and exchange of contracts
e. Pre-completion
f. Completion and post-completion
2. Leasehold
a. Leasehold covenants
b. Procedural steps for the grant of a lease or underlease
c. Procedural steps for the assignment of a lease
d. Termination of a lease
e. Security of tenure under a business lease
3. Planning
4. Taxation
FREEHOLDS
KEY ELEMENTS OF THE TRANSACTION
1. Exchange of contracts Not compulsory but useful in fixing the completion
date. Parties are not bound to the transaction until the contracts are exchanged.
a. In writing
b. Contains all terms
c. Signed by both parties
2. Completion the bulk of the purchase money is paid to the seller and the
transfer deed is completed to transfer the money to the buyer.
3. Registration
Consider conflicts of interest before acting Solicitor cannot usually act for more
than one party if there is a conflict of interest or a significant risk of conflict.
Buyer and seller = high risk of conflict of interest CANNOT USUALLY ACT
Buyer and lender = residential transaction with mortgage on standard terms/
commercial property with separate representatives CAN sometimes ACT
Joint borrowers Usually acceptable (Consider Etridge guidelines to check
spouse has been properly informed)
Contract Race = Compliance with P1.2 and 1.4 of The Code of Conduct (do not
take unfair advantage of Clients and do not attempt to mislead Clients).
FINANCE
Mortgages
Two common types of mortgage:
1. Repayment mortgages Borrower makes monthly payments in instalments of
the original amount borrowed and also of the interest chargeable on the loan
,Property Practice
2. Interest-only mortgages Borrower makes monthly payments to the lender
comprising of the interest chargeable on the loan. Lower payments but will need
to justify how remainder of loan will be paid at the end of the term.
See taxation of property also.
INVESTIGATION OF TITLE
Freehold Registered Land
1. Deduce title
2. Seller to supply buyer with the official copies less than six months old
The official copies will show entries:
Section on the Official Key information
Copies
Property Register Description of the land, indicating freehold
Any easements/rights
Anything excluded from the title
Proprietorship Register Current owners
Class of Title
Absolute
Possessory – title deeds lost through adverse
possession
Qualified – specific defect
Whether a lease is held as tenancy in common or joint
owners
Charges Register Identifies the encumbrances:
Positive and restrictive covenants
Easements
Charges
Leases
Notices
Wording for a tenancy in common in the proprietorship register:
‘No disposition by a sole proprietor of the registered estate (except a trust corporation) under which capital
money arises is to be registered unless authorised by an order of the court’
If only one owner as one dies, a trustee must be appointed to overreach interest. Death certificate to be
provided.’
Freehold unregistered Land
1. Find a good root of title using the Epitome of title
2. Check for an unbroken chain of ownership – stamp duties and correct
execution of deeds
3. Check for proper execution and stamp duties
Good root of title (s44 LPA 1925) must be:
Shows who owns entire interest
Recognisable description of the land
Is at least 15 years old best indication would be a conveyance
PRE-CONTRACT SEARCHES
, Property Practice
The buyer’s solicitor will need to carry out the appropriate searches and enquiries to find
out as much as possible about the property before the client contracts to buy it.
Online search providers can be used such as the NLIS hub or the CoPSO.
Registered Land Searches
For all properties
Search Action Form/s
Survey and Advise on the most appropriate type of survey and
personal personally inspect the property
inspection
Local Search Local land charges search: charges/restrictions LLC1
and tree preservation orders
Standard enquiries search: Planning CON29
permissions, restrictions on development and road
repair CON29O
Optional enquiries search: rights over common
land, pollution and environmental matters
Water and Raised with undertaker, usually the water company CON29DW
drainage Checks whether the property is connected OR
to a public sewer and water supply Commercial
Who is responsible for maintaining this DW
Enquiries to the Standard questions about the property, compliance
seller with any covenants, planning permissions,
boundary maintenance issues, VAT status
(commercial).
Environmental Will be raised to some extent in the Desktop
searches CON29/CON29O but desktop search used where search
specific risk.
Flood search Free search at environment agency or specialist Free
report can be obtained where risk identified. screening
Chancel repair Should be used for all properties
search
Specific searches
Search Where this should be used Form/s
Mining searches Properties in a coal mining area /minerals CON29M
reservation in title . Search with local coal
authority
Canal and River Where the property is adjacent to the canal/river.
Trust The Canal and River Trust will perform the enquiry.
Commons search Where property adjacent to open land. CON29O
Railways Specific proposal with network rail
Highways Where there appears to be land separating CON29
property from the highway. Enquire with Local
Highway authority.
Company search Where there is a company as one of the parties.
Companies House online application – checking for
insolvency.
Bankruptcy Where acting for the lender. Via the Land Charges K16
search Department.
Unregistered land searches
Index Map Search (SIM) with the Land Registry
Land Charges Search – K15 to the Land Charges Department in Plymouth.
