I85PREP
⌘ K
Licensed Conveyancer study materials
Licensed Conveyancer study resources

Licensed Conveyancer practice questions

One question at a time. Build your Licensed Conveyancer understanding.

First 50 of 200 questions. Each one lists the choices, the correct answer, and an explanation. The checker at the top of this page saves progress in this browser when it is available.

Continue in the practice tool above to load more questions, 50 at a time.

Question 1Conveyancing

In England and Wales, which statutory provision governs the requirement that a contract for the sale of an interest in land must be made in writing?

  1. Section 52 of the Law of Property Act 1925
  2. Section 40 of the Law of Property Act 1925
  3. Section 1 of the Contracts (Rights of Third Parties) Act 1999
  4. Section 2 of the Law of Property (Miscellaneous Provisions) Act 1989 Correct answer.

Explanation

Section 2 of the Law of Property (Miscellaneous Provisions) Act 1989 requires a contract for the sale or other disposition of an interest in land to be made in writing, incorporating all agreed terms in one document or by exchange of documents. It replaced the earlier section 40 of the Law of Property Act 1925 and abolished part performance for such contracts.

Question 2Conveyancing

A buyer pays a deposit to the seller's solicitor on exchange of contracts. In the absence of any contrary special condition, who holds the deposit pending completion?

  1. The seller's solicitor as stakeholder Correct answer.
  2. The estate agent as stakeholder
  3. The seller's solicitor as agent for the seller
  4. The buyer's solicitor as trustee

Explanation

Under the standard conditions of sale, the deposit is held by the seller's solicitor as stakeholder, meaning it is held for both parties and cannot be released to the seller without the buyer's agreement or a court order. This protects the buyer if the seller defaults before completion.

Question 3Conveyancing

Which of the following best describes the effect of registering a unilateral notice against a registered title?

  1. It guarantees the priority of the interest protected over all later dispositions
  2. It gives the registrar's confirmation that the interest is valid
  3. It converts an equitable interest into a legal estate
  4. It protects the priority of an interest but does not establish its validity Correct answer.

Explanation

A notice, whether agreed or unilateral, protects the priority of an interest in registered land but does not validate the interest itself. The registrar does not investigate the merits; a court may later determine whether the protected interest actually exists.

Question 4Conveyancing

Under the Land Registration Act 2002, which of the following is a registrable disposition that must be completed by registration to operate at law?

  1. The grant of a lease for a term of three years
  2. An assent vesting an unregistered estate in a personal representative
  3. A transfer of a registered freehold estate Correct answer.
  4. The grant of a legal easement by deed

Explanation

Section 27 of the Land Registration Act 2002 lists registrable dispositions, including a transfer of a registered estate. Such a disposition must be registered to take effect at law; otherwise it operates only in equity.

Question 5Conveyancing

What is the standard period for which a local authority land charges search (LLC1) remains effective for the purposes of a conveyancing transaction?

  1. The day of the search only Correct answer.
  2. Three months from the date of search
  3. Six months from the date of search
  4. One month from the date of search

Explanation

A local land charges search result is generally treated as effective only for the day it is made, because entries can be registered at any time. Practitioners therefore order a fresh search shortly before completion to avoid taking subject to a newly registered charge.

Question 6Conveyancing

A seller of a registered freehold fails to disclose a right of way enjoyed by a neighbouring property that is not apparent on inspection. What is the buyer's position after completion, assuming no title guarantee was given?

  1. The buyer takes free of the right of way because it was not disclosed
  2. The buyer is bound only if the right of way was registered as a notice
  3. The buyer may rescind the contract at any time after completion
  4. The buyer is bound because the right of way is an overriding interest Correct answer.

Explanation

A legal easement that is not registered but is capable of overriding the registered title binds a buyer on registration under Schedule 3 to the Land Registration Act 2002, provided the conditions in that Schedule are met, including that the easement was not within the actual knowledge of the buyer. Non-disclosure by the seller does not free the buyer from an overriding interest.

Question 7Conveyancing

Which document is used to transfer a registered freehold estate in England and Wales?

  1. An AP1
  2. An RX1
  3. A DS1
  4. A TR1 Correct answer.

Explanation

Form TR1 is the standard Land Registry form for a transfer of the whole of a registered title. It must be executed as a deed by the transferor to transfer the legal estate.

Question 8Conveyancing

In a residential lease, what does a forfeiture clause typically entitle the landlord to do?

  1. Transfer the lease to a third party without consent
  2. Re-enter the property and determine the lease on breach by the tenant Correct answer.
  3. Increase the rent without the tenant's consent
  4. Require the tenant to purchase the freehold

Explanation

A forfeiture clause allows the landlord to re-enter and bring the lease to an end if the tenant breaches a covenant, such as non-payment of rent. The landlord must usually comply with statutory notice requirements and may need a court order where the tenant is in occupation.

Question 9Conveyancing

A buyer's solicitor receives a drainage and water search showing that a public sewer crosses the property. What is the most significant practical consequence for the buyer?

  1. The buyer must pay a connection fee to the water company
  2. The buyer automatically acquires the freehold of the sewer
  3. The sewer is protected and building over it may be restricted Correct answer.
  4. The buyer will be unable to obtain a mortgage

Explanation

Public sewers are protected by the water authority, and building over or near them is generally restricted, often requiring a build-over agreement. This can limit development potential and affect future extensions.

Question 10Conveyancing

Which of the following is the primary purpose of a property information form (TA6) in a residential sale?

  1. To record the seller's replies to standard enquiries about the property Correct answer.
  2. To provide a structural survey report for the lender
  3. To confirm the buyer's mortgage offer to the seller
  4. To set out the completion statement and apportionments

Explanation

The TA6 form is completed by the seller and gives standard information about the property, such as boundaries, disputes, and alterations. It forms part of the pre-contract enquiries and helps the buyer decide whether to proceed.

Question 11Conveyancing

A seller grants a lease to a tenant for a term of seven years at a market rent. Which statement about the need for registration is correct?

  1. The lease takes effect at law without registration but is registrable Correct answer.
  2. The lease is void unless protected by a caution
  3. The lease must be registered to take effect at law
  4. The lease cannot be registered until the tenant occupies

Explanation

A lease for more than three years out of a registered estate is a registrable disposition under section 27 of the Land Registration Act 2002. Until it is registered it takes effect only in equity, but the grant itself is valid between the parties.

Question 12Conveyancing

What is the effect of a restriction entered on the registered title under section 40 of the Land Registration Act 2002?

  1. It gives the beneficiary a legal charge over the property
  2. It requires specified conditions to be met before a disposition can be registered Correct answer.
  3. It prevents any disposition of the registered estate
  4. It extinguishes any interest not noted on the register

Explanation

A restriction regulates the circumstances in which a disposition can be registered, for example requiring a certificate of compliance or the consent of a named person. It does not itself prohibit dealings but controls how they may be entered on the register.

Question 13Conveyancing

In a conveyancing transaction, what does the term 'exchange of contracts' signify?

  1. The point at which the land registry is notified
  2. The point at which the buyer becomes the legal owner
  3. The point at which the mortgage is redeemed
  4. The point at which the parties become contractually bound Correct answer.

Explanation

Exchange of contracts is the moment when the parties become legally bound to complete the transaction on the agreed terms. Completion, which transfers the legal estate, occurs later.

Question 14Conveyancing

A buyer discovers after completion that the seller had no title to a strip of land included in the transfer. Which remedy is most likely available to the buyer?

  1. An action for damages for breach of the covenant against encumbrances
  2. An action for damages for breach of the covenant for quiet enjoyment
  3. An action for damages for breach of the covenant for further assurance
  4. An action for damages for breach of the covenant for right to convey Correct answer.

Explanation

The covenant for right to convey (or right to transfer) is a full-title guarantee that the seller has the right to transfer the property. If the seller had no title to part of the land, the buyer may claim damages for breach of that covenant.

Question 15Conveyancing

Which of the following best describes the role of the 'epitome of title' in an unregistered conveyancing transaction?

  1. A schedule of the seller's mortgage payments
  2. A summary of the seller's title documents delivered to the buyer Correct answer.
  3. A plan showing the boundaries of the property
  4. A certificate confirming the seller's identity

Explanation

In unregistered land, the seller provides the buyer with an epitome of title, being a schedule of the documents that establish the title, together with copies of those documents. It allows the buyer to investigate the seller's root of title.

Question 16Conveyancing

A buyer's lender requires a 'good and marketable title'. Which of the following would most likely cause the lender to refuse to lend?

  1. The property has a small conservatory built without planning permission
  2. The property is affected by a flying freehold over a neighbouring property Correct answer.
  3. The property is subject to a restrictive covenant limiting its use to residential purposes
  4. The property is held under a lease with 60 years unexpired

Explanation

A flying freehold, where part of a building overhangs or underlies another ownership, can create enforcement and structural concerns that many lenders are unwilling to accept. It may require a deed of mutual covenant or indemnity insurance before lending.

Question 17Conveyancing

What is the principal effect of the 'overreaching' provisions in sections 2 and 27 of the Law of Property Act 1925?

  1. They convert equitable interests into legal estates
  2. They transfer beneficial interests to the proceeds of sale where a conveyance is made to a purchaser by two or more trustees Correct answer.
  3. They extinguish all equitable interests in the land
  4. They prevent a purchaser from taking subject to any third-party rights

Explanation

Overreaching operates where a conveyance of a legal estate is made to a purchaser for value by at least two trustees or a trust corporation. The beneficial interests are detached from the land and attach to the capital money instead, leaving the purchaser free of them.

Question 18Conveyancing

Which of the following is a standard method of protecting an interest in unregistered land against a subsequent purchaser for value?

  1. Obtaining an interim injunction
  2. Applying for a restriction at the Land Registry
  3. Registering a land charge under the Land Charges Act 1972 Correct answer.
  4. Entering a notice on the register of title

Explanation

In unregistered land, interests such as estate contracts and restrictive covenants are protected by registration as land charges under the Land Charges Act 1972. Failure to register can make the interest void against a purchaser for money or money's worth.

Question 19Conveyancing

A tenant wishes to assign a lease that contains a qualified covenant against assignment. What must the tenant generally do?

  1. Wait until the lease has less than five years to run
  2. Assign without any consent because the covenant is qualified
  3. Obtain the consent of the local authority
  4. Obtain the landlord's consent, which must not be unreasonably withheld Correct answer.

Explanation

A qualified covenant prohibits assignment without the landlord's consent, and section 19 of the Landlord and Tenant Act 1927 implies a proviso that consent must not be unreasonably withheld. The tenant must therefore seek consent, and the landlord must act reasonably.

Question 20Conveyancing

What is the significance of the 'root of title' in an unregistered title transaction under the standard conditions of sale?

  1. It is a document at least 15 years old from which the title is deduced Correct answer.
  2. It is the document that first creates the estate
  3. It is the mortgage deed held by the lender
  4. It is the most recent conveyance of the property

Explanation

The root of title is a document dealing with the whole legal and equitable interest in the property, at least 15 years old, from which the seller can deduce title. The standard conditions require the seller to provide a title commencing with such a document.

Question 21Conveyancing

A buyer pays a 10% deposit on exchange and the seller later fails to complete. Under the standard conditions of sale, what is the buyer generally entitled to do?

  1. Rescind the contract and recover the deposit plus interest Correct answer.
  2. Forfeit the deposit to the seller
  3. Require the seller to pay a fixed penalty of 25% of the price
  4. Complete the purchase and claim damages

Explanation

If the seller fails to complete, the buyer may rescind the contract and recover the deposit, together with interest where applicable, and may also claim damages for any additional loss. The buyer is not obliged to complete.

Question 22Conveyancing

Which of the following statements about the 'covenant for quiet enjoyment' in a full title guarantee is correct?

  1. It guarantees that the property is free from all defects in physical condition
  2. It guarantees that the seller has paid all previous mortgages
  3. It guarantees that the property has planning permission for its current use
  4. It guarantees that the buyer will not be disturbed in possession by the seller or those claiming under the seller Correct answer.

Explanation

The covenant for quiet enjoyment assures the buyer that they will be able to possess and enjoy the property without lawful interruption by the seller or persons claiming under the seller. It does not cover physical defects or third-party rights generally.

Question 23Conveyancing

A purchaser buys a registered leasehold flat. Which of the following is most likely to be an overriding interest binding the purchaser without any entry on the register?

  1. A legal easement that was not registered and of which the purchaser had no actual knowledge Correct answer.
  2. A registered charge in favour of a bank
  3. An estate contract protected by a notice
  4. A restrictive covenant contained in the lease

Explanation

Schedule 3 to the Land Registration Act 2002 lists interests that override registration, including certain legal easements and profits. A legal easement that is not registered and is not within the purchaser's actual knowledge can bind without any entry on the register.

Question 24Conveyancing

What is the purpose of a 'completion statement' in a conveyancing transaction?

  1. To set out the financial adjustments between the parties and the balance due on completion Correct answer.
  2. To record the agreed price and deposit only
  3. To confirm the buyer's mortgage offer
  4. To list the fixtures and fittings included in the sale

Explanation

The completion statement sets out the purchase price, deposit paid, apportionments of outgoings such as rent and service charges, and any other adjustments, arriving at the balance the buyer must pay on completion. It is prepared shortly before completion.

Question 25Conveyancing

Under the Leasehold Reform, Housing and Urban Development Act 1993, what right does a qualifying leaseholder of a flat generally have?

  1. A right to purchase the freehold of the whole building collectively with other leaseholders
  2. A right to terminate the lease without penalty
  3. A right to extend the lease by 90 years on payment of a premium Correct answer.
  4. A right to acquire the landlord's reversion at nil premium

Explanation

The 1993 Act gives qualifying leaseholders of flats the right to a new lease of 90 years in addition to the unexpired term, on payment of a premium determined by the valuation provisions. Collective enfranchisement is a separate right under the same Act.

Question 26Conveyancing

Which statutory provision implies a covenant for quiet enjoyment into a lease of land?

  1. Section 11 of the Landlord and Tenant Act 1985
  2. Section 19 of the Landlord and Tenant Act 1927
  3. Section 1 of the Law of Property Act 1925
  4. Section 8 of the Landlord and Tenant Act 1985 Correct answer.

Explanation

Section 8 of the Landlord and Tenant Act 1985 implies a covenant by the landlord that the tenant may quietly enjoy the premises free from interruption by the landlord or persons claiming under the landlord. The covenant is limited in scope and does not protect against interruption by strangers to the title.

Question 27Conveyancing

Which of the following best describes a 'chain' in a residential conveyancing transaction?

  1. A set of restrictive covenants affecting neighbouring land
  2. A sequence of searches submitted to different local authorities
  3. A series of linked sales and purchases where each completion depends on another Correct answer.
  4. A schedule of title deeds listed in an epitome of title

Explanation

A chain arises when several buyers and sellers are linked so that a party cannot complete a purchase until their own sale completes. Because completions are interdependent, a failure at any link can delay or collapse the whole series of transactions.

Question 28Conveyancing

Under the Land Registration Act 2002, which of the following interests is capable of overriding a registered disposition without being entered on the register?

  1. A restrictive covenant protected by a notice
  2. An equitable easement created expressly by deed
  3. A charging order registered against the proprietor
  4. A short lease granted for a term not exceeding seven years Correct answer.

Explanation

Schedule 3 to the Land Registration Act 2002 lists interests that override registered dispositions, including a lease for a term not exceeding seven years. Such a lease binds a purchaser even though it does not appear on the register, so the buyer must inspect the property physically.

Question 29Conveyancing

What is the principal function of a local land charges search in a conveyancing transaction?

  1. To reveal planning and highway matters and other local authority charges affecting the property Correct answer.
  2. To confirm the identity of the registered proprietor of the title
  3. To establish whether the seller has paid the mortgage
  4. To verify that the property has a valid energy performance certificate

Explanation

A local land charges search (form LLC1) discloses charges registered by the local authority, such as planning conditions, enforcement notices, tree preservation orders and highway matters. It does not confirm ownership or mortgage status, which are dealt with elsewhere.

Question 30Conveyancing

A seller of a registered title holds the property as sole proprietor but is currently living abroad. Which document is most likely required before the transaction can proceed?

  1. A deed of variation of the lease
  2. A power of attorney in favour of a representative in England and Wales Correct answer.
  3. A statutory declaration of identity
  4. A grant of probate

Explanation

A proprietor who is abroad often appoints an attorney under a power of attorney so that the transaction can be conducted and the transfer executed on their behalf. The power must be valid and, where appropriate, registered or evidenced to the buyer's satisfaction.

Question 31Conveyancing

Which of the following is the standard mechanism for protecting a contract for the sale of land before completion?

  1. Registering the contract as a caution against first registration
  2. Entering a notice or a unilateral notice against the registered title Correct answer.
  3. Noting the contract as a land charge under the Land Charges Act 1972
  4. Obtaining an official copy of the register

Explanation

A buyer who has exchanged contracts can protect the estate contract by entering a notice, often a unilateral notice, against the registered title under the Land Registration Act 2002. This ensures the interest binds a subsequent purchaser of the registered estate.

Question 32Conveyancing

What is the effect of a 'full title guarantee' in a transfer of registered land?

  1. The transferor guarantees that the property is free from all mortgages and charges
  2. The transferor promises to indemnify the buyer against all future defects in title
  3. The transferor covenants that they have the right to dispose of the property and that the buyer will receive it free from incumbrances other than those disclosed Correct answer.
  4. The transferor warrants that the property complies with all planning legislation

Explanation

A full title guarantee under the Law of Property (Miscellaneous Provisions) Act 1994 contains covenants that the transferor has the right to dispose of the land and that the buyer will receive it free from incumbrances other than those disclosed. It is limited by the disclosure of matters in the contract and title documents.

Question 33Conveyancing

Which of the following statements about the standard conditions of sale concerning completion is correct?

  1. Completion must always take place at the buyer's solicitor's office
  2. Completion is deemed to occur when the purchase price is transferred by CHAPS
  3. Completion must take place at the Land Registry
  4. Completion normally takes place at the office of the seller's solicitor unless otherwise agreed Correct answer.

Explanation

Under the standard conditions of sale, completion normally takes place at the seller's solicitor's office unless the parties agree otherwise. The parties may vary this by special condition or agreement, but the default rule favours the seller.

Question 34Conveyancing

A buyer's solicitor receives a search result revealing that the property is affected by a compulsory purchase order. What is the most appropriate immediate step?

  1. Ignore the result because compulsory purchase orders are not disclosable
  2. Ask the lender to increase the mortgage offer
  3. Raise enquiries with the seller and advise the buyer of the risk before exchange Correct answer.
  4. Proceed to exchange because the order does not affect the title

Explanation

A compulsory purchase order is a serious matter that can affect the value and enjoyment of the property. The buyer's solicitor should raise enquiries, obtain further information and advise the client fully before contracts are exchanged.

Question 35Conveyancing

In unregistered conveyancing, which of the following is the standard period for which a seller must provide a good root of title under the standard conditions of sale?

  1. At least 15 years Correct answer.
  2. At least 30 years
  3. At least 20 years
  4. At least 10 years

Explanation

The standard conditions of sale require a good root of title at least fifteen years old, although in practice a longer period is often provided. The root must deal with the whole legal and equitable interest and contain a description of the property.

Question 36Conveyancing

A tenant holds a lease for a term of 99 years with 80 years unexpired and wishes to acquire the freehold of the house. Which statutory right is most likely available?

  1. The right to enfranchise under the Leasehold Reform Act 1967 Correct answer.
  2. The right to a management order under the Landlord and Tenant Act 1987
  3. The right to a new lease under the Leasehold Reform, Housing and Urban Development Act 1993
  4. The right to purchase the freehold under the Housing Act 1985

Explanation

The Leasehold Reform Act 1967 gives qualifying tenants of houses the right to acquire the freehold, provided the lease is a long tenancy at a low rent and the other statutory conditions are met. The 1993 Act deals with flats, not houses.

Question 37Conveyancing

Which of the following best describes the effect of a notice registered against a registered title under the Land Registration Act 2002?

  1. It prevents the proprietor from dealing with the land at all
  2. It transfers the legal estate to the person who registered the notice
  3. It automatically extinguishes all other interests affecting the land
  4. It protects the priority of the interest to which it relates against a later registered disposition Correct answer.

Explanation

A notice protects the priority of an interest affecting a registered estate, so that a later registered disposition takes effect subject to that interest. It does not freeze the title or prevent the proprietor from dealing with the land.

Question 38Conveyancing

A buyer discovers that a property is subject to a restrictive covenant prohibiting its use as anything other than a single private dwelling. Which of the following is the most appropriate way to protect the buyer's position before exchange?

  1. Register a caution against first registration
  2. Ask the seller to grant a new lease
  3. Apply to the Land Registry to remove the covenant
  4. Obtain a restrictive covenant indemnity policy and raise enquiries about the covenant Correct answer.

Explanation

Where a restrictive covenant may be breached, the buyer's solicitor should investigate its scope and consider indemnity insurance to cover the risk of enforcement. Enquiries should establish whether the covenant has been breached and whether any consent exists.

Question 39Conveyancing

What is the principal purpose of the 'report on title' prepared by the buyer's solicitor?

  1. To certify that the property is free from all defects
  2. To record the completion statement between the parties
  3. To provide a valuation of the property for mortgage purposes
  4. To summarise the title investigation and advise the client on matters affecting the property Correct answer.

Explanation

The report on title explains the results of the title investigation and searches and advises the client on issues, conditions and risks. It enables the buyer to make an informed decision before exchange of contracts.

Question 40Conveyancing

A seller has agreed to sell a registered freehold property and the buyer's solicitor discovers that the seller's title includes a right of way over a neighbour's land that is not mentioned in the contract. What is the most appropriate advice to the buyer?

  1. The right of way will pass automatically and no action is needed
  2. The right of way must be extinguished before completion
  3. The benefit of the right of way should be expressly included in the transfer Correct answer.
  4. The buyer should register a caution against first registration

Explanation

Where a right of way benefits the land being sold, the benefit should be expressly included in the transfer to ensure it passes to the buyer. Relying on implication alone may create uncertainty, so the transfer should identify the right clearly.

Question 41Conveyancing

Which of the following statements about the seller's duty to disclose latent defects in title in a residential sale is correct?

  1. The seller must disclose only defects that appear in the local search
  2. The seller must disclose defects only if the buyer asks specific questions
  3. The seller has no duty to disclose defects and may remain silent
  4. The seller must disclose all latent defects in title of which they are aware Correct answer.

Explanation

A seller of land is under a duty to disclose latent defects in title, meaning matters that are not apparent on inspection and that the buyer could not reasonably discover. Failure to disclose can entitle the buyer to rescind or claim, depending on the circumstances.

Question 42Conveyancing

A landlord wishes to oppose a tenant's application for a new lease of a flat under the Leasehold Reform, Housing and Urban Development Act 1993. On which of the following grounds may the landlord rely?

  1. The tenant has occupied the flat for only two years
  2. The landlord intends to demolish and reconstruct the premises Correct answer.
  3. The tenant has sublet the flat to a friend
  4. The landlord wishes to increase the rent to market level

Explanation

The 1993 Act sets out limited grounds on which a landlord may oppose a lease extension, including an intention to demolish or reconstruct the premises. The other grounds relate to matters such as redevelopment, residence by the landlord and breach of covenant.

Question 43Conveyancing

What is the effect of registering a unilateral notice against a registered title?

  1. It conclusively establishes the validity of the interest claimed
  2. It transfers the registered estate to the applicant
  3. It prevents the proprietor from selling the property for five years
  4. It gives notice of a claimed interest and may be challenged by the proprietor Correct answer.

Explanation

A unilateral notice is entered without the proprietor's consent and merely gives notice of a claimed interest; it does not establish validity. The proprietor may apply to cancel it, and the beneficiary may need to substantiate the claim.

Question 44Conveyancing

A buyer of a registered leasehold flat is concerned about a clause in the lease permitting the landlord to enter and carry out works. Which of the following best describes the legal position?

  1. Such a clause is void because it interferes with the tenant's quiet enjoyment
  2. Such a clause is valid if it is properly drafted and subject to any statutory protections Correct answer.
  3. Such a clause automatically terminates the lease on exercise
  4. Such a clause requires the consent of the buyer's mortgage lender

Explanation

Reservation of a right of entry for repairs or works is a common and valid leasehold provision, provided it is properly drafted and exercised in accordance with the lease and any statutory protections. It does not automatically terminate the lease.

Question 45Conveyancing

A purchaser of a registered freehold is told by the seller that the property benefits from a private right of drainage over a neighbour's land. Which of the following is the most reliable evidence of that right?

  1. An oral assurance from the seller at the viewing
  2. A plan attached to the buyer's mortgage offer
  3. A letter from the neighbour confirming the arrangement
  4. A deed granting the easement that is registered against both titles Correct answer.

Explanation

The most reliable evidence of an easement is a deed granting it, supported by registration against both the benefiting and burdened titles. This provides a durable and enforceable right that binds successors in title.

Question 46Conveyancing

Which of the following statements about the standard conditions of sale concerning the deposit is correct?

  1. The deposit is refundable to the buyer if the buyer fails to complete
  2. The deposit is normally 5% and is paid directly to the seller
  3. The deposit is normally 10% of the purchase price and is held by the seller's solicitor as stakeholder Correct answer.
  4. The deposit must always be held by the buyer's lender

Explanation

Under the standard conditions of sale, the deposit is normally 10% of the purchase price and is held by the seller's solicitor as stakeholder pending completion. If the buyer defaults, the deposit may be forfeited subject to the conditions.

Question 47Conveyancing

A buyer's solicitor discovers that a property is affected by a planning enforcement notice that has not been complied with. Which of the following is the most significant consequence for the transaction?

  1. The notice converts the freehold into a leasehold estate
  2. The notice is automatically discharged on completion
  3. The buyer may inherit liability for compliance with the notice Correct answer.
  4. The notice prevents the seller from transferring the title

Explanation

Planning enforcement notices run with the land, so a buyer may become liable for compliance after completion even though the breach occurred before purchase. This is a material matter requiring advice, negotiation or insurance before exchange.

Question 48Conveyancing

A seller of registered land grants an option to purchase to a prospective buyer. Which of the following is required to ensure the option binds a subsequent purchaser of the registered estate?

  1. The option must be granted by deed and no further step is necessary
  2. The option must be disclosed in the local search
  3. The option must be registered as a land charge under the Land Charges Act 1972
  4. The option must be protected by notice on the register Correct answer.

Explanation

An option to purchase creates an interest in land that must be protected by notice on the registered title to bind a subsequent registered proprietor. Without protection, the option may be overreached or lose priority on a registered disposition for value.

Question 49Conveyancing

A buyer purchases a registered freehold property subject to a lease that was granted for a term of ten years. Which of the following statements best describes the position on completion?

  1. The lease is void because it exceeds seven years
  2. The lease binds the buyer only if it is registered or protected as an overriding interest Correct answer.
  3. The lease is automatically binding because all leases bind purchasers
  4. The lease must be surrendered before completion

Explanation

A lease for more than seven years is not an overriding interest under Schedule 3 to the Land Registration Act 2002 and must be registered or protected by notice to bind a purchaser. A ten-year lease therefore requires protection on the register.

Question 50Conveyancing

A buyer of a registered leasehold flat discovers that the landlord has not obtained the tenants' consent to a transfer as required by the lease. Which of the following is the most appropriate consequence?

  1. The transfer automatically assigns the freehold reversion to the buyer
  2. The transfer is void and the buyer acquires no interest
  3. The transfer may be valid between the parties but the landlord may seek forfeiture or refuse to recognise the buyer Correct answer.
  4. The transfer requires the consent of the buyer's mortgage lender to be effective

Explanation

Where a lease requires consent to assignment and consent is not obtained, the assignment may still be effective between the parties but the landlord may treat it as a breach and refuse to recognise the buyer. The lease terms and any statutory qualifications determine the precise remedy.