PROPERTY PRACTICE
Apply to the October 2026 SQE2 sitting onwards. Anything that changes for a later sitting is flagged where it comes up.
KEY TO THESE NOTES
Legislation · Defined term · Red text = key point to remember · EXAM TRAP boxes = common mistakes · PENDING = announced or
passed but not yet in force – not examinable
Also tested in SQE2: money laundering is also examined with Property Practice. It is covered in the Pass Notes Business Law and Practice
notes (Money laundering and financial services).
CONTENTS
CORE KNOWLEDGE AREAS OF FREEHOLD REAL ESTATE LAW AND PRACTICE.................................................................................2
INVESTIGATION OF A REGISTERED AND UNREGISTERED FREEHOLD TITLE...............................................................................................2
PRE-CONTRACT SEARCHES AND ENQUIRIES................................................................................................................................................6
LAW SOCIETY CONVEYANCING PROTOCOL................................................................................................................................................. 7
FINANCE........................................................................................................................................................................................................... 7
ACTING FOR A LENDER....................................................................................................................................................................................7
PREPARATION FOR AND EXCHANGE OF CONTRACTS................................................................................................................................. 7
PRE-COMPLETION...........................................................................................................................................................................................11
CORE KNOWLEDGE AREAS OF LEASEHOLD REAL ESTATE LAW AND PRACTICE..............................................................................13
STRUCTURE AND CONTENT OF A LEASE.....................................................................................................................................................13
PROCEDURAL STEPS FOR THE GRANT OF A LEASE OR UNDERLEASE...................................................................................................... 16
PROCEDURAL STEPS FOR THE ASSIGNMENT OF A LEASE......................................................................................................................... 17
LICENCE TO ASSIGN AND LICENCE TO UNDERLET.....................................................................................................................................19
LEASEHOLD COVENANTS..............................................................................................................................................................................19
REMEDIES FOR BREACH OF A LEASEHOLD COVENANT.............................................................................................................................20
TERMINATION OF A LEASE........................................................................................................................................................................... 22
SECURITY OF TENURE UNDER A BUSINESS LEASE........................................................................................................................23
CORE PRINCIPLES OF PLANNING LAW IN ENGLAND AND WALES............................................................................................................ 24
TAXATION – PROPERTY.................................................................................................................................................................................27
VALUE ADDED TAX 20%............................................................................................................................................................................... 27
CAPITAL GAINS TAX......................................................................................................................................................................................27
CORE PRINCIPLES OF LAND LAW................................................................................................................................................28
NATURE OF LAND..........................................................................................................................................................................................28
TITLE TO LAND.............................................................................................................................................................................................. 30
HOW TO PROTECT INTERESTS.....................................................................................................................................................................30
CO-OWNERSHIP AND TRUSTS..................................................................................................................................................................... 30
PROPRIETARY RIGHTS...................................................................................................................................................................................33
LEASES........................................................................................................................................................................................................... 34
NUMBERS TO REMEMBER....................................................................................................................................................................................41
1
© 2026 Pass Notes Limited. All rights reserved. For the purchaser’s personal study only – do not copy, share or resell.
,CORE KNOWLEDGE AREAS OF FREEHOLD REAL ESTATE LAW AND PRACTICE
INVESTIGATION OF A REGISTERED AND UNREGISTERED FREEHOLD TITLE:
KEY ELEMENTS AND STRUCTURE OF FREEHOLD PROPERTY TRANSACTIONS
PRE-CONTRACT STAGE
BUYER’S SOLICITOR SELLER’S SOLICITOR
1. Searches and Enquiries: Drafting the Contract:
Order searches (e.g. local authority, water and drainage, Prepare draft contract of sale, including:
environmental). Evidence of title (official copies from Land Registry,
Investigate title and confirm seller’s right to sell the land. plan, etc.).
Replies to standard forms (TA6, TA10, etc.).
2. Raising Enquiries:
Raise pre-contract enquiries based on: Title Information:
Results of searches. Prove title – include documents such as the official title register
Title review. and title plan.
Replies to standard forms.
Mortgage Redemption:
3. Obtain Pre-Contract Information: If property is subject to a mortgage:
From seller via standard Law Society forms: o Obtain provisional redemption statement
o TA6 – Property Information Form (6th edition from lender.
– mandatory for CQS firms from 30 March
2026). Execution:
o TA10 – Fittings and Contents Form. Obtain seller’s signature on the contract.
o (If leasehold) TA7 – Leasehold Information
Form (5th edition).
4. Survey:
Advise client to consider instructing a surveyor to carry out a
physical inspection.
5. Finance:
Confirm buyer's source of funds, including:
o Deposit (typically 10% of purchase price).
o Mortgage finance (if applicable) – ensure
mortgage offer is in place.
6. Contract Review:
Review the contract prepared by seller’s solicitor.
Ensure buyer signs the contract when ready to proceed.
EXCHANGE OF CONTRACTS
2
© 2026 Pass Notes Limited. All rights reserved. For the purchaser’s personal study only – do not copy, share or resell.
, Once contracts are signed by both parties, exchange makes the agreement legally binding.
Contract is dated on exchange – this sets the completion date.
Methods of Exchange:
1. In Person:
o Both solicitors meet in person.
o After confirming contract is dated, they physically swap contracts.
2. By Post:
o Buyer’s solicitor sends buyer’s signed contract by post.
o Seller’s solicitor returns seller’s signed contract by post.
o Completion date is inserted once both parts are received.
3. By Telephone – Law Society Formulae:
Formula A:
o One solicitor holds both signed contracts.
o Solicitor inserts the date upon confirmation from the other party.
o Exchange is immediate.
Formula B:
o Each solicitor holds their client’s signed contract.
o By phone, they agree to insert the date and confirm exchange.
o Common in straightforward transactions.
Formula C:
o Used where there is a chain of transactions.
o Solicitors in the chain coordinate via phone.
o Begins at the bottom of the chain, each solicitor confirms they:
Hold their client’s signed contract.
Undertake to exchange with the next party when authorised.
o Culminates in a Formula B exchange at the top of the chain.
POST EXCHANGE AND PRE COMPLETION
BUYER’S SOLICITORS SELLER’S SOLICITORS
Buyer’s Solicitor Responsibilities: Approve Transfer:
Apply for Pre-Completion Searches: o Approve the TR1 drafted by buyer’s solicitor.
o OS1 Search – Protects priority of registration Arrange Execution of TR1:
for 30 working days. o Ensure seller signs the transfer deed in
o K16 Search – Bankruptcy-only search against presence of a witness.
the buyer(s) / borrower(s) – essential when Obtain Final Redemption Figure:
acting for the lender. o Request final figure from seller’s lender for
Prepare Transfer Deed: mortgage repayment.
o Draft TR1 (Transfer Deed) and send to seller’s Prepare Completion Statement:
solicitor for approval. o Confirm amount due on completion.
Mortgage Preparation: o Deduct redemption figure, agent’s fees, legal
o Ensure mortgage funds are requested from costs.
lender in time (usually requires 5 working days’
notice).
Final Completion Statement:
o Prepare statement showing:
Purchase price.
Deductions (e.g. deposit already
paid).
Stamp Duty Land Tax (SDLT).
Legal fees and disbursements.
o Request balance from client to complete.
Arrange for Execution:
o Send TR1 to client for signature in presence of
a witness.
Ensure it is returned before completion
Post-Completion (Buyer’s Solicitor)
2. Register the Transaction:
Submit application to HM Land Registry using:
o AP1 form.
o Certified TR1.
o SDLT5 certificate.
o Mortgage deed (if applicable).
Must be done within priority period (30 working days
from date of OS1).
3. Inform Client:
Send updated title documentation once registration is
3
© 2026 Pass Notes Limited. All rights reserved. For the purchaser’s personal study only – do not copy, share or resell.
, complete.
PROCESS OF ANALYSING LAND REGISTRY OFFICIAL COPY Requirements of a good root of title:
ENTRIES 1. Contains an adequate description of the land
Official copies will show entries on three registers: 2. Deals with both the legal and equitable interests in the
a) The Property register property
b) The Proprietorship register 3. Casts no doubt on the seller’s title; AND
c) The Charges register 4. Must be at least 15 years old at the date of the contract
Property register: will always contain a description of land by EXAM TRAP: A good root must be at least 15 years old – there is
reference to address and title plan. Will also indicate if property is no rule that it must pre-date 1 December 1990.
leasehold/freehold.
It may show that there are easements or rights benefiting the land.
NB: since 1 December 1990 all of England and Wales has been
subject to compulsory registration. If the root post-dates that,
May show that certain things one might usually expect to come
check why the title has not been registered.
with the land, e.g. right to light, right to air over adjacent land, are
excluded from title.
Epitome of title = property’s ownership history
Seller will select relevant documents which evidence purchase and
Proprietorship register: will always identify the current owners
the Epitome of Title. Epitome is an unbroken chain of ownership
and their address. Will also indicate class of title.
from root of title. Includes:
Root of title and any documents referred to in root of title
Includes:
Conveyances
Class of title held
Seller’s current mortgage and any mortgages not yet
Name of current holder of the legal estate
discharged
Any restrictions affecting the title
Also include: name changes, death certificates.
Any indemnity covenants
Any lender restrictions
Buyer not entitled to see pre-root documents.
Any tenants in common restrictions – if there is one,
means property is held as tenants in common not joint
tenants.
Class of title:
1. Absolute title: the most common and best class.
Registered proprietor has vested in them the legal estate
subject only to the entries on the register and overriding
interests.
2. Possessory title: Granted where proprietor is in
possession but has lost title deeds or is claiming through
adverse possession. Means that proprietor is subject to
all adverse interests existing at date of first registration.
3. Qualified title: granted where there is a specific identified
defect which the Registrar feels cannot be overlooked or
‘cured’ by the grant of an absolute title.
Charges register: will identify the incumbrances:
(i) Restrictive covenants – e.g. covenant not to erect or
permit to be erected any additional building or structure
(ii) Positive covenants – e.g. covenant to maintain boundary
wall
(iii) Mortgages affecting the land
(iv) Leasehold estates relating to land
(v) Will show registered date and entry date. Choose earlier
date!
PROCESS OF ANALYSING AN EPITOME OF TITLE AND DEDUCING
OWNERSHIP
Before investigating an unregistered title, check:
Whether title to the property should have already been
registered or is subject of a pending application for first
registration.
A party may have also lodged a caution against first
registration. This means that when application is first lodged,
HM Land Registry will notify the cautioner and give it a limited
period to object; if it does not object, the application
proceeds (ss.15–16 LRA 2002). A caution does not itself
protect the interest. These checks can be done with an Index
Map Search, on Form SIM.
Whether there is a good root of title.
Whether there is an unbroken chain of ownership from the
root to the current seller
Whether the documents have been stamped correctly
Whether the seller has the ability to sell the property, AND
Whether there are any third-party rights in relation to the
land.
4
© 2026 Pass Notes Limited. All rights reserved. For the purchaser’s personal study only – do not copy, share or resell.
Apply to the October 2026 SQE2 sitting onwards. Anything that changes for a later sitting is flagged where it comes up.
KEY TO THESE NOTES
Legislation · Defined term · Red text = key point to remember · EXAM TRAP boxes = common mistakes · PENDING = announced or
passed but not yet in force – not examinable
Also tested in SQE2: money laundering is also examined with Property Practice. It is covered in the Pass Notes Business Law and Practice
notes (Money laundering and financial services).
CONTENTS
CORE KNOWLEDGE AREAS OF FREEHOLD REAL ESTATE LAW AND PRACTICE.................................................................................2
INVESTIGATION OF A REGISTERED AND UNREGISTERED FREEHOLD TITLE...............................................................................................2
PRE-CONTRACT SEARCHES AND ENQUIRIES................................................................................................................................................6
LAW SOCIETY CONVEYANCING PROTOCOL................................................................................................................................................. 7
FINANCE........................................................................................................................................................................................................... 7
ACTING FOR A LENDER....................................................................................................................................................................................7
PREPARATION FOR AND EXCHANGE OF CONTRACTS................................................................................................................................. 7
PRE-COMPLETION...........................................................................................................................................................................................11
CORE KNOWLEDGE AREAS OF LEASEHOLD REAL ESTATE LAW AND PRACTICE..............................................................................13
STRUCTURE AND CONTENT OF A LEASE.....................................................................................................................................................13
PROCEDURAL STEPS FOR THE GRANT OF A LEASE OR UNDERLEASE...................................................................................................... 16
PROCEDURAL STEPS FOR THE ASSIGNMENT OF A LEASE......................................................................................................................... 17
LICENCE TO ASSIGN AND LICENCE TO UNDERLET.....................................................................................................................................19
LEASEHOLD COVENANTS..............................................................................................................................................................................19
REMEDIES FOR BREACH OF A LEASEHOLD COVENANT.............................................................................................................................20
TERMINATION OF A LEASE........................................................................................................................................................................... 22
SECURITY OF TENURE UNDER A BUSINESS LEASE........................................................................................................................23
CORE PRINCIPLES OF PLANNING LAW IN ENGLAND AND WALES............................................................................................................ 24
TAXATION – PROPERTY.................................................................................................................................................................................27
VALUE ADDED TAX 20%............................................................................................................................................................................... 27
CAPITAL GAINS TAX......................................................................................................................................................................................27
CORE PRINCIPLES OF LAND LAW................................................................................................................................................28
NATURE OF LAND..........................................................................................................................................................................................28
TITLE TO LAND.............................................................................................................................................................................................. 30
HOW TO PROTECT INTERESTS.....................................................................................................................................................................30
CO-OWNERSHIP AND TRUSTS..................................................................................................................................................................... 30
PROPRIETARY RIGHTS...................................................................................................................................................................................33
LEASES........................................................................................................................................................................................................... 34
NUMBERS TO REMEMBER....................................................................................................................................................................................41
1
© 2026 Pass Notes Limited. All rights reserved. For the purchaser’s personal study only – do not copy, share or resell.
,CORE KNOWLEDGE AREAS OF FREEHOLD REAL ESTATE LAW AND PRACTICE
INVESTIGATION OF A REGISTERED AND UNREGISTERED FREEHOLD TITLE:
KEY ELEMENTS AND STRUCTURE OF FREEHOLD PROPERTY TRANSACTIONS
PRE-CONTRACT STAGE
BUYER’S SOLICITOR SELLER’S SOLICITOR
1. Searches and Enquiries: Drafting the Contract:
Order searches (e.g. local authority, water and drainage, Prepare draft contract of sale, including:
environmental). Evidence of title (official copies from Land Registry,
Investigate title and confirm seller’s right to sell the land. plan, etc.).
Replies to standard forms (TA6, TA10, etc.).
2. Raising Enquiries:
Raise pre-contract enquiries based on: Title Information:
Results of searches. Prove title – include documents such as the official title register
Title review. and title plan.
Replies to standard forms.
Mortgage Redemption:
3. Obtain Pre-Contract Information: If property is subject to a mortgage:
From seller via standard Law Society forms: o Obtain provisional redemption statement
o TA6 – Property Information Form (6th edition from lender.
– mandatory for CQS firms from 30 March
2026). Execution:
o TA10 – Fittings and Contents Form. Obtain seller’s signature on the contract.
o (If leasehold) TA7 – Leasehold Information
Form (5th edition).
4. Survey:
Advise client to consider instructing a surveyor to carry out a
physical inspection.
5. Finance:
Confirm buyer's source of funds, including:
o Deposit (typically 10% of purchase price).
o Mortgage finance (if applicable) – ensure
mortgage offer is in place.
6. Contract Review:
Review the contract prepared by seller’s solicitor.
Ensure buyer signs the contract when ready to proceed.
EXCHANGE OF CONTRACTS
2
© 2026 Pass Notes Limited. All rights reserved. For the purchaser’s personal study only – do not copy, share or resell.
, Once contracts are signed by both parties, exchange makes the agreement legally binding.
Contract is dated on exchange – this sets the completion date.
Methods of Exchange:
1. In Person:
o Both solicitors meet in person.
o After confirming contract is dated, they physically swap contracts.
2. By Post:
o Buyer’s solicitor sends buyer’s signed contract by post.
o Seller’s solicitor returns seller’s signed contract by post.
o Completion date is inserted once both parts are received.
3. By Telephone – Law Society Formulae:
Formula A:
o One solicitor holds both signed contracts.
o Solicitor inserts the date upon confirmation from the other party.
o Exchange is immediate.
Formula B:
o Each solicitor holds their client’s signed contract.
o By phone, they agree to insert the date and confirm exchange.
o Common in straightforward transactions.
Formula C:
o Used where there is a chain of transactions.
o Solicitors in the chain coordinate via phone.
o Begins at the bottom of the chain, each solicitor confirms they:
Hold their client’s signed contract.
Undertake to exchange with the next party when authorised.
o Culminates in a Formula B exchange at the top of the chain.
POST EXCHANGE AND PRE COMPLETION
BUYER’S SOLICITORS SELLER’S SOLICITORS
Buyer’s Solicitor Responsibilities: Approve Transfer:
Apply for Pre-Completion Searches: o Approve the TR1 drafted by buyer’s solicitor.
o OS1 Search – Protects priority of registration Arrange Execution of TR1:
for 30 working days. o Ensure seller signs the transfer deed in
o K16 Search – Bankruptcy-only search against presence of a witness.
the buyer(s) / borrower(s) – essential when Obtain Final Redemption Figure:
acting for the lender. o Request final figure from seller’s lender for
Prepare Transfer Deed: mortgage repayment.
o Draft TR1 (Transfer Deed) and send to seller’s Prepare Completion Statement:
solicitor for approval. o Confirm amount due on completion.
Mortgage Preparation: o Deduct redemption figure, agent’s fees, legal
o Ensure mortgage funds are requested from costs.
lender in time (usually requires 5 working days’
notice).
Final Completion Statement:
o Prepare statement showing:
Purchase price.
Deductions (e.g. deposit already
paid).
Stamp Duty Land Tax (SDLT).
Legal fees and disbursements.
o Request balance from client to complete.
Arrange for Execution:
o Send TR1 to client for signature in presence of
a witness.
Ensure it is returned before completion
Post-Completion (Buyer’s Solicitor)
2. Register the Transaction:
Submit application to HM Land Registry using:
o AP1 form.
o Certified TR1.
o SDLT5 certificate.
o Mortgage deed (if applicable).
Must be done within priority period (30 working days
from date of OS1).
3. Inform Client:
Send updated title documentation once registration is
3
© 2026 Pass Notes Limited. All rights reserved. For the purchaser’s personal study only – do not copy, share or resell.
, complete.
PROCESS OF ANALYSING LAND REGISTRY OFFICIAL COPY Requirements of a good root of title:
ENTRIES 1. Contains an adequate description of the land
Official copies will show entries on three registers: 2. Deals with both the legal and equitable interests in the
a) The Property register property
b) The Proprietorship register 3. Casts no doubt on the seller’s title; AND
c) The Charges register 4. Must be at least 15 years old at the date of the contract
Property register: will always contain a description of land by EXAM TRAP: A good root must be at least 15 years old – there is
reference to address and title plan. Will also indicate if property is no rule that it must pre-date 1 December 1990.
leasehold/freehold.
It may show that there are easements or rights benefiting the land.
NB: since 1 December 1990 all of England and Wales has been
subject to compulsory registration. If the root post-dates that,
May show that certain things one might usually expect to come
check why the title has not been registered.
with the land, e.g. right to light, right to air over adjacent land, are
excluded from title.
Epitome of title = property’s ownership history
Seller will select relevant documents which evidence purchase and
Proprietorship register: will always identify the current owners
the Epitome of Title. Epitome is an unbroken chain of ownership
and their address. Will also indicate class of title.
from root of title. Includes:
Root of title and any documents referred to in root of title
Includes:
Conveyances
Class of title held
Seller’s current mortgage and any mortgages not yet
Name of current holder of the legal estate
discharged
Any restrictions affecting the title
Also include: name changes, death certificates.
Any indemnity covenants
Any lender restrictions
Buyer not entitled to see pre-root documents.
Any tenants in common restrictions – if there is one,
means property is held as tenants in common not joint
tenants.
Class of title:
1. Absolute title: the most common and best class.
Registered proprietor has vested in them the legal estate
subject only to the entries on the register and overriding
interests.
2. Possessory title: Granted where proprietor is in
possession but has lost title deeds or is claiming through
adverse possession. Means that proprietor is subject to
all adverse interests existing at date of first registration.
3. Qualified title: granted where there is a specific identified
defect which the Registrar feels cannot be overlooked or
‘cured’ by the grant of an absolute title.
Charges register: will identify the incumbrances:
(i) Restrictive covenants – e.g. covenant not to erect or
permit to be erected any additional building or structure
(ii) Positive covenants – e.g. covenant to maintain boundary
wall
(iii) Mortgages affecting the land
(iv) Leasehold estates relating to land
(v) Will show registered date and entry date. Choose earlier
date!
PROCESS OF ANALYSING AN EPITOME OF TITLE AND DEDUCING
OWNERSHIP
Before investigating an unregistered title, check:
Whether title to the property should have already been
registered or is subject of a pending application for first
registration.
A party may have also lodged a caution against first
registration. This means that when application is first lodged,
HM Land Registry will notify the cautioner and give it a limited
period to object; if it does not object, the application
proceeds (ss.15–16 LRA 2002). A caution does not itself
protect the interest. These checks can be done with an Index
Map Search, on Form SIM.
Whether there is a good root of title.
Whether there is an unbroken chain of ownership from the
root to the current seller
Whether the documents have been stamped correctly
Whether the seller has the ability to sell the property, AND
Whether there are any third-party rights in relation to the
land.
4
© 2026 Pass Notes Limited. All rights reserved. For the purchaser’s personal study only – do not copy, share or resell.
