Revision / Exam Notes for Property Law and Practice - LPC

PLP Revision Doc

Stages to conveyance

1. Pre-contract to exchange

Seller
- Obtains official copies of title from LR
- Drafts contract for sale
- Deals with pre-contract enquiries
- Supplies energy performance certificate
- Obtains instruction on exchange and completion dates
- Receives deposit, exchanges contracts

Buyer
- Does pre-contract searches and enquiries
- Checks title to property
- Ensures adequate funding in place
- Reports to buyer on title, result of searches, terms of finance
- Approves draft contract for sale
- Sends deposit and exchanges contract

2. Pre-completion

- After exchange, parties contractually bound to complete
- Completion is the actual purchase, through the transfer deed (TR1 form)

Seller
- Finds out from lender amount required to discharge mortgage
- Approves transfer (TR1 drafted by buyer), arranges execution of deed
- Replies to Completion Info and Undertakings Form – the further enquiries re
completion practicalities (e.g. mortgage discharge)
- On completion day, receives balance, dates TR1

Buyer
- Drafts TR1, sends to seller’s solicitors
- Sends Completion Info and Undertakings Form
- Requests mortgage funds from buyer’s lender
- Requests from buyer the balance of purchase price + costs (solicitor costs, search
fees, SDLT, LR fees)
- Does pre-completion searches (CH to see seller still solvent)
- Arranges execution of TR1
- Dates mortgage deed
- On completion day, sends balance

3. Post-completion


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,Seller
- Sends TR1 to buyer’s solicitors, with relevant deeds + docs (e.g. planning
permissions)
- Sends money to discharge mortgage + form of discharge (DS1) to lender for
execution
- Sends balance of sale price to buyer’s solicitor
- Sends executed DS1

Buyer
- Pays SDLT to HMRC
- Registers mortgage at CH (if acting for company)
- Applies to LR to (a) cancel existing mortgage, (b) register buyer as proprietor, (c)
register new mortgage
o After registration, legal title transfers
- Report completion to buyer
- Receives signed and dated TR1




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,FREEHOLD



Title investigation for registered land – Part of the huge freehold issues question

- Spot issue
- Explain why it’s an issue to client (per their facts)
- How can they resolve issue

- Official copies used to investigate

Property Register
- Describes property and rights benefitting it
- Has date first registered
- Check:
o Extent of property (title plan)
o Right of way (AMAR)
o Other rights (e.g. pipes underground)
o Exclusions from land (e.g. mines/minerals)

Proprietorship register
- Indicates class of title, owner’s name/address
- Has entries affecting owner’s right to dispose of property
- Check:
o Class of title (must be absolute)
o Registered proprietor
 Does name still match?
 Is company still colvent?
 JTs or TiCs?
 TIC restriction?
o Indemnity covenant
o Mortgage restriction? (relevant only for leasehold)

Charges register
- Indicates charges burdening property
- Check:
o Mortgages
o Covenants
 RC/PCs
 Against info for past/present/future breaches
o Easements/leases benefitting 3Ps
o Registered leases

Unregistered overriding interests


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, - Easements
- Leases
- Persons in actual occupation

Potential issues

From Property Register:

1. Extent of property

- Check to see if anything is excluded from the property
- E.g. mines and minerals – rights to these excepted
- Inform client, ensure these didn’t affect their plans for the property
- Also – no rights not always an issue but check title plan to ensure property abuts
highway to ascertain if right of way/right to lay pipes are required.

2. Rights benefitting property – Right of Way/easement (CPSEs 3)

- Right of Way most common easement
- AMAR
o Adequacy, Maintenance, Adoption, Registration
- If property abuts public highway, no need for RoW
o Carry out Highways search to identify exact boundary between property and
public/adopted highway

- If property is set back from public highway – need RoW
o First, check whether they abut a public highway – i.e. whether there should
be a RoW if there isn’t one
o Then if there isn’t, say they’ll have to try and arrange one with owner of
land

- Adequacy
o Is the RoW wide enough/strong enough
o Is it in good enough condition
o Does it allow the client to use it for their needs
 Timing/vehicle limitations? – ask seller what reasonable times means
 CPSEs and Property Register indicate this
o If inadequate, must negotiate deed of variation with owner of burdened
land
 Likely to need to pay them
 No guarantee they’ll agree
 Secure this before exchange
 Make it special condition of contract that seller gets deed of variation

- Maintenance
o Buyer obliged to pay fair proportion of the repair/maintenance costs of
private RoW

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