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FE-1 Law of Property study materials
FE-1 Law of Property study resources

FE-1 Law of Property practice questions

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Question 1Conveyancing

A buyer and seller exchange contracts for the sale of a registered freehold estate. Under the standard framework for a contract for sale of land, at what point does the buyer acquire a beneficial interest in the property?

  1. Only when the deposit is paid in full to the seller's solicitor
  2. Only when the buyer takes physical possession of the property
  3. Only on completion, because legal title does not pass until the transfer is registered
  4. On exchange of contracts, because equity treats as done that which ought to be done Correct answer.

Explanation

On exchange of contracts the buyer obtains an equitable interest under the doctrine that equity regards as done that which ought to be done. Legal title still passes later, on registration of the transfer, but the equitable interest arises at exchange. This is why the buyer can protect the contract by notice or registration pending completion.

Question 2Conveyancing

A seller of a registered freehold property is asked to prove title. Which document set will the buyer's conveyancer primarily rely on?

  1. An official copy of the registered title from the land registry Correct answer.
  2. The local authority search result and the drainage search
  3. The seller's mortgage offer and redemption statement
  4. The bundle of pre-registration deeds going back at least fifteen years

Explanation

For registered land, title is proved by an official copy of the register entries together with the title plan; the register is conclusive evidence of title. Pre-registration deeds are largely superseded, and searches address encumbrances and physical matters rather than title itself. Mortgage documents are irrelevant to proof of ownership.

Question 3Conveyancing

A buyer's conveyancer is reviewing a contract where the seller's title is registered and unencumbered. Which standard condition, if incorporated, entitles the buyer to object to matters disclosed by the official title?

  1. The condition requiring the deposit to be held as stakeholder
  2. The condition allowing the seller to rescind if the buyer raises requisitions
  3. The condition permitting the buyer to raise objections and requisitions within a stated period after receiving title documents Correct answer.
  4. The condition fixing completion at twenty working days after exchange

Explanation

Standard conditions of sale typically allow the buyer a period after delivery of title documents in which to raise objections and requisitions. If the buyer fails to object within that time, the buyer is generally deemed to accept the title as disclosed. The other listed conditions concern rescission, timing, and the deposit, not title objection.

Question 4Conveyancing

A seller agrees to sell part of a registered freehold title. The buyer's conveyancer wants assurance that the retained land will not be used in a way that interferes with the sold land. Which mechanism is most appropriate?

  1. A rentcharge payable by the buyer to the seller
  2. An easement of drainage granted to the seller over the sold land
  3. A restrictive covenant taken from the seller for the benefit of the retained land Correct answer.
  4. A positive covenant requiring the seller to maintain a boundary fence

Explanation

Where land is sold in parts, the seller can impose restrictive covenants over the retained land for the benefit of the land sold, or vice versa, to control future use. Restrictive covenants run with the burdened land in equity and can be protected by notice. Positive covenants and rentcharges do not achieve the same control over use.

Question 5Conveyancing

A buyer's solicitor discovers that a neighbouring owner has used a track across the property for many years. The seller's title shows no express grant. Which doctrine might the neighbour rely on to claim a legal easement?

  1. The doctrine of part performance
  2. The doctrine of prescription Correct answer.
  3. The rule in Rylands v Fletcher
  4. The doctrine of proprietary estoppel

Explanation

Prescription allows an easement to arise from long, continuous use without force, secrecy, or permission, typically over twenty years at common law. Part performance concerns oral contracts, Rylands v Fletcher concerns escape of dangerous things, and estoppel requires a representation or assurance relied upon. Long use without permission points to prescription.

Question 6Conveyancing

A property is sold with vacant possession, but the buyer later finds a tenant in occupation under an unregistered lease of five years granted two years ago. The buyer had no notice of the lease. What is the buyer's position?

  1. The lease binds only if the tenant can prove the buyer inspected the property before completion
  2. The lease is void because it was not registered, so the buyer can evict the tenant immediately
  3. The lease is converted into an equitable interest that is automatically void against the buyer
  4. The lease binds the buyer because a legal lease of seven years or less is an overriding interest Correct answer.

Explanation

A legal lease granted for a term of seven years or less from the date of grant, at a rent and with the tenant in possession, is an overriding interest binding a purchaser whether or not registered. The buyer therefore takes subject to the lease even without notice. Registration is not required for it to bind.

Question 7Conveyancing

In a conveyancing transaction, which search is primarily used to reveal whether the property is affected by a compulsory purchase order, a road scheme, or a local land charge?

  1. The local authority search Correct answer.
  2. The drainage and water search
  3. The chancel repair search
  4. The environmental search

Explanation

The local authority search (usually in the LLC1 and CON29 forms) discloses local land charges such as compulsory purchase orders, road proposals, and enforcement notices. Environmental searches address contamination and flooding, drainage searches address water infrastructure, and chancel repair searches address parish liability. Only the local authority search covers the listed public-law matters.

Question 8Conveyancing

A buyer pays a ten per cent deposit on exchange. The contract provides that the deposit is held by the seller's solicitor as stakeholder. If the buyer subsequently fails to complete and the seller rescinds, what happens to the deposit?

  1. The solicitor must return the deposit to the buyer because rescission unwinds the contract
  2. The solicitor must split the deposit equally between buyer and seller
  3. The solicitor must hold the deposit until a court orders otherwise
  4. The solicitor must pay the deposit to the seller, who may keep it as forfeited Correct answer.

Explanation

Where the deposit is held as stakeholder and the buyer defaults, the seller may rescind and the stakeholder releases the deposit to the seller, who is generally entitled to forfeit it subject to the court's discretion to relieve against forfeiture. A stakeholder holds for both parties until the outcome is determined. Returning or splitting the deposit would contradict the default rule.

Question 9Conveyancing

A seller's registered title includes a right of way over a neighbour's driveway. The seller wants to sell the property and ensure the buyer can enforce the right. What should the seller's conveyancer confirm about the right of way?

  1. That the right is mentioned in the seller's mortgage offer
  2. That it has been used continuously for at least five years by the seller
  3. That it is registered as a notice against the neighbour's title or otherwise appears in the register Correct answer.
  4. That the neighbour has signed a fresh deed granting the right to the buyer

Explanation

A right of way over registered land should be protected on the servient title, typically by a notice in the charges register or by registration of the benefit on the dominant title. If it is not protected, a purchaser of the servient land for value may take free of it. Continuous use and fresh deeds are not the standard protection mechanism.

Question 10Conveyancing

A buyer is purchasing a leasehold flat. The lease requires the landlord's consent to assignment, and the landlord may not unreasonably withhold consent. The landlord refuses consent solely because the buyer intends to let the flat on an assured shorthold tenancy. What is the likely legal position?

  1. The refusal is valid only if the lease expressly permits subletting
  2. The refusal is valid because landlords may always control subletting
  3. The refusal is automatically void because consent clauses are unenforceable
  4. The refusal is likely unreasonable because a blanket objection to subletting is generally impermissible Correct answer.

Explanation

Where a lease provides that consent is not to be unreasonably withheld, a landlord cannot impose a blanket ban on subletting or refuse on grounds unrelated to the assignment. A refusal based solely on the buyer's intention to sublet is likely to be unreasonable. Consent clauses are enforceable, and their scope depends on the lease terms.

Question 11Conveyancing

A buyer's conveyancer receives a contract where the seller's title includes a restrictive covenant not to use the property for trade or business. The buyer intends to run a small consultancy from home. What should the buyer be advised?

  1. The covenant is irrelevant because it is not registered against the title
  2. The covenant may be enforceable by the benefited land and could prevent the intended use Correct answer.
  3. The covenant can be ignored because it was imposed before the seller bought the property
  4. The covenant is automatically unenforceable after twenty years

Explanation

Restrictive covenants can run with the burdened land in equity and be enforced by owners of the benefited land, even against later purchasers. A covenant against trade use may restrict a home consultancy, depending on its wording. Age, registration status, and the date of the seller's purchase do not automatically defeat it.

Question 12Conveyancing

During a conveyancing transaction, the seller's solicitor gives a written undertaking to the buyer's solicitor to redeem the existing mortgage on completion and to send the discharge. What is the nature of this undertaking?

  1. A contractual term of the sale that requires the buyer to sue the seller only
  2. A representation that creates an easement over the property
  3. A non-binding statement of intention that may be withdrawn at any time
  4. A personal promise that is enforceable by the court and binding on the solicitor's firm Correct answer.

Explanation

A solicitor's undertaking is a professional promise that is binding on the solicitor and the firm and is enforceable by the court, often through the regulator's disciplinary process. It is not a mere statement of intention and can be relied upon by the recipient. It operates independently of the sale contract.

Question 13Conveyancing

A buyer is purchasing a property that is subject to a mortgage that the seller will repay on completion. The buyer's solicitor needs to ensure the mortgage is removed from the register. Which mechanism is normally used?

  1. A notice of assignment of the mortgage to the buyer
  2. A deed of variation reducing the mortgage term
  3. An indemnity covenant given by the buyer to the lender
  4. A discharge of charge in the land registry's prescribed form, often filed electronically Correct answer.

Explanation

To clear a registered charge, the lender provides a discharge, commonly in the land registry's electronic form, which is used to remove the entry from the register. An indemnity covenant or assignment does not extinguish the charge. A deed of variation would not remove the lender's security.

Question 14Conveyancing

A buyer's conveyancer is checking the seller's replies to standard pre-contract enquiries. The seller states that a rear extension was built eight years ago and that building regulations approval was obtained, but no completion certificate is available. How should the buyer's conveyancer treat this?

  1. Ignore the issue because building regulations are a matter between the seller and the builder
  2. Accept the reply without further enquiry because eight years have passed
  3. Ask for evidence of approval and consider indemnity insurance or further investigation Correct answer.
  4. Require the seller to demolish the extension before exchange

Explanation

A missing completion certificate is a title and compliance risk that should be investigated, for example by obtaining copies of approvals or a regularisation certificate. Indemnity insurance may be appropriate where evidence cannot be produced. The passage of time does not by itself cure the absence of evidence.

Question 15Conveyancing

A buyer and seller exchange contracts on a property. Before completion, the property is damaged by fire. The contract contains no special provision. Under the standard conditions of sale, what is the general position?

  1. The seller must repair the property before completion at the seller's expense
  2. The contract is automatically rescinded and the deposit returned
  3. The risk passes to the buyer on exchange, but the buyer may be entitled to the insurance proceeds Correct answer.
  4. The buyer may refuse to complete without any liability

Explanation

Under the standard conditions, risk generally passes to the buyer on exchange, so the buyer bears loss or damage. However, the buyer is usually entitled to any insurance money received by the seller, and the seller must not prejudice the insurance. The contract is not automatically rescinded merely because of damage.

Question 16Conveyancing

A buyer is purchasing a freehold property from a seller who is not the registered proprietor; the registered proprietor died and the seller is the executor. What document should the buyer's conveyancer expect to see to establish the seller's authority?

  1. A certificate of incorporation of the seller's company
  2. A statutory declaration of adverse possession
  3. A grant of probate or letters of administration Correct answer.
  4. A power of attorney granted by the deceased

Explanation

An executor or administrator proves authority to sell the deceased's land by producing the grant of probate or letters of administration. A power of attorney from the deceased ends on death and cannot assist. Adverse possession and company incorporation are irrelevant to a personal representative's authority.

Question 17Conveyancing

A buyer's conveyancer is reviewing the official copy of the register and sees an entry in the charges register for a unilateral notice in favour of a third party. What is the effect of this entry?

  1. It guarantees that the third party's claim is valid and enforceable
  2. It gives the third party priority over all later interests regardless of validity
  3. It protects the third party's claimed interest by giving notice, but does not establish the claim's validity Correct answer.
  4. It automatically transfers the registered title to the third party

Explanation

A unilateral notice is entered by or on behalf of a person claiming an interest; it protects priority but does not validate the claim. The registered proprietor can apply to cancel it, and the underlying dispute must be resolved separately. It does not transfer title or conclusively establish the interest.

Question 18Conveyancing

A seller grants the buyer a right of way over a driveway retained by the seller. The buyer wants the right to be enforceable against any future owner of the seller's land. What must be done for the right to be a legal easement?

  1. It must be granted for a term exceeding twenty-one years
  2. It must be granted by deed and, if over registered land, registered against the servient title Correct answer.
  3. It must be granted orally and supported by consideration
  4. It must be recorded in the buyer's mortgage deed only

Explanation

A legal easement over registered land must be created by deed and protected by registration on the servient title to bind later purchasers. An oral grant may create an equitable interest at most. Recording the right in the buyer's mortgage deed or requiring a long term does not satisfy the formalities.

Question 19Conveyancing

A buyer is purchasing a property that benefits from a covenant restricting building on neighbouring land. The buyer wants to enforce the covenant against a future owner of the neighbouring land. What must generally be shown?

  1. That the neighbouring owner has personally signed a fresh covenant
  2. That the covenant is positive in nature and requires expenditure
  3. That the covenant was registered as a notice against the neighbouring title and touches and concerns the benefited land Correct answer.
  4. That the covenant was granted for valuable consideration to the original buyer only

Explanation

To enforce a restrictive covenant against successors in title, the burden must have been intended to run, the covenant must touch and concern the benefited land, and it must be protected by registration. The benefit must also be shown to have passed to the buyer. Positive covenants do not generally run with the burden at common law or in equity.

Question 20Conveyancing

A buyer's solicitor is preparing for completion. Which document is normally executed by the seller to transfer the legal estate to the buyer?

  1. A contract of sale
  2. A leasehold covenant
  3. A mortgage deed
  4. A transfer deed in the land registry's prescribed form Correct answer.

Explanation

The legal estate is transferred by a deed of transfer, commonly in the land registry's prescribed form, executed by the seller and delivered on completion. The contract creates the obligation to transfer but does not itself convey the legal estate. A mortgage deed grants security, and a leasehold covenant regulates lease obligations.

Question 21Conveyancing

A buyer is purchasing a property where the seller has agreed to retain a strip of land. The buyer's conveyancer is concerned about the location of the boundary. Which document is most useful for establishing the boundary on a registered title?

  1. The official title plan Correct answer.
  2. The seller's buildings insurance schedule
  3. The mortgage redemption statement
  4. The local authority search result

Explanation

The official title plan shows the general position of the boundaries of the registered title, although it is not usually definitive as to exact boundaries. Insurance schedules, local searches, and mortgage statements do not define the registered extent. Where exact boundaries matter, a plan prepared by a surveyor may be needed.

Question 22Conveyancing

A buyer's conveyancer receives a contract that incorporates the standard conditions and provides for completion on a specified date. The buyer fails to complete on time, and the seller serves a notice to complete. What is the usual consequence of the notice?

  1. It transfers the legal estate to the seller automatically
  2. It removes the buyer's obligation to pay interest on the purchase price
  3. It gives the buyer a further period, commonly ten working days, to complete, after which the seller may rescind Correct answer.
  4. It immediately rescinds the contract and releases the deposit

Explanation

A notice to complete sets a final deadline, typically ten working days under the standard conditions, and states that time is of the essence. If the buyer still fails to complete, the seller may rescind and forfeit the deposit. The notice does not automatically rescind the contract or transfer title.

Question 23Conveyancing

A buyer is purchasing a property from a company. The buyer's conveyancer wants to verify that the persons signing the transfer have authority to bind the company. Which document is most directly relevant?

  1. The seller's personal tax return
  2. The buyer's mortgage offer
  3. The company's board minutes or a certificate of authority Correct answer.
  4. The company's latest advertising brochure

Explanation

A company acts through its officers or authorised signatories, and the buyer's conveyancer should obtain evidence of the board's resolution or a certificate confirming the signatory's authority. Brochures, personal tax returns, and the buyer's mortgage offer do not establish corporate authority. This protects the buyer against a transfer signed without authority.

Question 24Conveyancing

A buyer's conveyancer is reviewing a lease with forty years unexpired. The buyer intends to use the flat as security for a mortgage. Which feature of the lease is most likely to concern the lender?

  1. A provision requiring the tenant to keep the interior decorated
  2. A provision requiring the landlord's consent to assignment, subject to reasonableness
  3. A short unexpired term relative to the mortgage term Correct answer.
  4. A provision allowing the landlord to forfeit for non-payment of rent

Explanation

Lenders are concerned about the unexpired term because the lease must outlast the mortgage by a reasonable margin to provide adequate security. Consent clauses, forfeiture provisions, and decorating obligations are common and can be managed. A short remaining term is the feature most likely to affect mortgageability.

Question 25Conveyancing

A buyer is purchasing a property that is affected by a public footpath crossing the garden. The seller's replies disclose the footpath, but the buyer's conveyancer wants to know its precise route. Which source is most authoritative?

  1. The seller's verbal description of the route
  2. The property's energy performance certificate
  3. The buyer's own inspection notes
  4. The local authority's definitive map and statement Correct answer.

Explanation

The definitive map and statement maintained by the local authority record public rights of way and their routes. Verbal descriptions, inspection notes, and energy certificates are not authoritative records of public paths. The buyer should also check the local authority search for any proposals affecting the path.

Question 26Conveyancing

A buyer's conveyancer is instructed on a purchase of a registered freehold. Which document must the seller normally provide to prove the title that will be transferred?

  1. A planning permission decision notice
  2. A statutory declaration of the seller's occupation
  3. An indemnity covenant in favour of the seller
  4. An official copy of the registered title from HM Land Registry Correct answer.

Explanation

For registered land, title is proved by an official copy of the register and title plan issued by HM Land Registry, which the seller supplies with the contract pack. The buyer's conveyancer checks it against the contract and investigates the entries. The other documents serve different purposes and do not prove title.

Question 27Conveyancing

A buyer is purchasing a registered freehold property and wants the legal estate transferred on completion. Which form is normally used to transfer a registered title where the whole of the land in a title is being sold?

  1. Form TR1 Correct answer.
  2. Form DS1
  3. Form AP1
  4. Form RX1

Explanation

Form TR1 is the standard Land Registry form of transfer for registered land where the whole of a registered title is being transferred. It contains the transferor's and transferee's details and the execution provisions. The other forms perform different functions in the registration system.

Question 28Conveyancing

A seller's conveyancer is asked about the effect of exchanging contracts on a residential sale. Which statement correctly describes the position after exchange?

  1. Both parties become contractually bound and neither can withdraw without breaching the contract Correct answer.
  2. The buyer becomes the legal owner immediately on exchange
  3. Either party may withdraw at any time before completion without liability
  4. The seller may continue to market the property until completion

Explanation

Exchange of contracts creates a binding contract between seller and buyer, and thereafter neither can walk away without liability for breach. Legal ownership does not pass until completion, when the transfer is executed and the purchase price paid. Marketing after exchange would be inconsistent with the binding contract.

Question 29Conveyancing

A buyer's conveyancer is investigating a leasehold flat and wants to know the length of the term granted. Which source will state the term and the date from which it runs?

  1. The seller's replies to the standard property enquiries
  2. The official copy of the freehold register only
  3. The Energy Performance Certificate
  4. The lease itself Correct answer.

Explanation

The lease is the document that grants the term, and it states the length of the term and its commencement date. The register may note the lease but the precise term is found in the lease itself. The other documents do not grant or define the term.

Question 30Conveyancing

A buyer's conveyancer is checking whether a property is in an area where the local authority may require a contribution towards road and drainage works. Which search addresses this?

  1. A local land charges search Correct answer.
  2. An environmental search
  3. A water and drainage search
  4. A chancel repair search

Explanation

The local land charges search (LLC1) reveals charges registered by the local authority, including financial charges such as those for road and drainage works under adoption agreements. The other searches address different risks and do not reveal local land charges.

Question 31Conveyancing

A buyer pays a deposit on exchange and the contract provides that it is held by the seller's solicitor as stakeholder. If the buyer later fails to complete and the seller rescinds, what happens to the deposit?

  1. It is paid to the seller, who may also claim damages subject to the contract Correct answer.
  2. It is paid to HM Land Registry pending resolution
  3. It is retained by the seller's solicitor as stakeholder for the buyer
  4. It is returned to the buyer because the buyer did not complete

Explanation

Where the deposit is held as stakeholder, on the buyer's default and the seller's rescission the stakeholder pays the deposit to the seller. The seller may in addition claim damages, subject to the terms of the contract and the standard conditions. The stakeholder holds the money neutrally until the outcome is determined.

Question 32Conveyancing

A buyer's conveyancer is reviewing the official copy of the register and sees an entry in the proprietorship register stating that the land is subject to a restriction. What is the practical effect of the restriction?

  1. It gives the person named the right to occupy the property
  2. It prevents any future transfer of the land absolutely
  3. It limits the circumstances in which a disposition of the registered estate can be registered without further consent or evidence Correct answer.
  4. It extinguishes all existing covenants affecting the land

Explanation

A restriction controls the circumstances in which a disposition can be registered, for example by requiring a certificate or consent before registration. It does not prohibit dealings outright but ensures the protection of an interest. HM Land Registry will not register a disposition that does not comply with the restriction.

Question 33Conveyancing

A buyer's conveyancer is investigating a property and wants to confirm whether the seller has the right to use a shared private access road. Which register entry would most directly show a legal easement benefiting the property?

  1. A unilateral notice against the seller personally
  2. An entry in the bankruptcy search results
  3. A notice of the easement in the charges register of the burdened title Correct answer.
  4. A restriction in the proprietorship register of the buyer's title

Explanation

An easement over another registered title is protected by registration against that burdened title, typically by a notice in its charges register. The benefit is then apparent from the entry and the dominant land is identified. Entries in the buyer's own proprietorship register or personal searches do not establish the easement.

Question 34Conveyancing

A buyer's conveyancer is preparing completion statements. Which item is normally shown as a credit to the buyer on the completion statement?

  1. The stamp duty land tax payable by the buyer
  2. The seller's legal fees
  3. The seller's estate agent commission
  4. The deposit already paid on exchange Correct answer.

Explanation

The completion statement balances the purchase price against sums already paid, and the deposit paid on exchange is credited to the buyer. The buyer then pays the balance on completion. The seller's own costs and the buyer's tax liability are not credits to the buyer.

Question 35Conveyancing

A buyer's conveyancer receives draft contract papers that include a copy of a lease granted fifty years ago for a term of ninety-nine years. Which statement about the leasehold title is correct?

  1. The buyer acquires the freehold reversion on completion
  2. The lease is automatically converted into a freehold on registration
  3. The lease cannot be registered because it is over seven years old
  4. The unexpired term is relevant to the buyer's lender and must be checked against lending criteria Correct answer.

Explanation

The unexpired residue of a lease matters to the buyer and any mortgage lender, and many lenders apply minimum remaining-term criteria. The conveyancer must therefore establish the term and its start date from the lease. Registration does not convert a lease into a freehold, and the buyer does not acquire the reversion.

Question 36Conveyancing

A seller's conveyancer is asked to give an undertaking to the buyer's solicitor to discharge an existing mortgage on completion. What is the legal nature of a solicitor's undertaking in this context?

  1. An entry on the register that binds successors in title
  2. A mere statement of intention with no legal consequence
  3. A binding personal promise enforceable by the court, separate from the contract of sale Correct answer.
  4. A guarantee given by the lender

Explanation

A solicitor's undertaking is a personal and professional promise that the court will enforce, and it is relied upon in conveyancing to secure redemption of charges. It is distinct from the contract of sale and from the lender's own obligations. Breach may be enforced summarily by the court and may also lead to professional disciplinary consequences.

Question 37Conveyancing

A buyer's conveyancer discovers that the property is subject to a mortgage that will be redeemed on completion. What is the usual practical step taken to ensure the charge is removed from the register?

  1. The seller's solicitor provides an undertaking to redeem the charge and applies for its discharge on completion Correct answer.
  2. The charge is left on the register and binds the buyer
  3. The buyer pays the mortgage debt directly to the lender before exchange
  4. The buyer registers a caution against the seller's title

Explanation

The usual practice is for the seller's solicitor to undertake to redeem the charge out of the completion monies and to apply for discharge, supported by the appropriate Land Registry form. This ensures the buyer takes title free of the charge. The buyer does not normally pay the seller's lender before exchange.

Question 38Conveyancing

A buyer's solicitor is preparing to send the purchase monies on completion. Which method best protects the buyer against the risk of the seller failing to complete after receiving the money?

  1. Handing cash to the seller at the property on the completion date
  2. Posting a cheque to the seller's home address a week before completion
  3. Paying the money to the estate agent at exchange
  4. Sending the funds by same-day bank transfer on the day of completion in accordance with the contract Correct answer.

Explanation

Completion monies are sent by same-day electronic transfer on the completion date, timed to coincide with the seller's solicitor confirming completion and releasing the keys. This reduces the period during which the buyer's money is at risk. Sending funds early or to a third party increases the risk.

Question 39Conveyancing

A buyer's conveyancer is reviewing replies to the standard property information form. The seller states that a conservatory was built more than twenty years ago and that no building regulations approval can be found. What is the most appropriate response?

  1. Ignore the matter because more than twenty years have passed
  2. Consider whether the works are likely to have required approval and advise the buyer of the risk, possibly seeking an indemnity policy Correct answer.
  3. Report the seller to the local authority for breach of building regulations
  4. Require the seller to demolish the conservatory before completion

Explanation

The conveyancer should assess whether the works required building regulations approval and advise on the risk, which may be addressed by an indemnity policy where appropriate. The passage of time does not necessarily remove the risk of enforcement. Demolition or reporting the seller is not a proportionate response to an old, minor structure.

Question 40Conveyancing

A buyer's conveyancer is checking the contract and sees that it incorporates the standard conditions of sale. The contract states that completion will take place on a specified date. What is the effect of the standard conditions on the parties' obligations?

  1. They override any special condition drafted for the transaction
  2. They replace the need for a written contract altogether
  3. They fill gaps in the contract, for example on risk, notices and default, unless expressly varied Correct answer.
  4. They apply only to leasehold transactions

Explanation

The standard conditions supply terms on matters such as risk, notices and default where the contract is silent, and they apply unless varied or excluded. Special conditions can be added to address the particular transaction and take precedence where they conflict. A written contract is still required.

Question 41Conveyancing

A buyer is purchasing a property from a company. The buyer's conveyancer wants to verify that the persons signing the transfer are authorised to do so. Which step is most appropriate?

  1. Ask the estate agent to confirm the signatories' authority
  2. Accept the signature as sufficient without further enquiry
  3. Obtain board minutes or a power of attorney confirming the signatories' authority Correct answer.
  4. Rely on the company's website listing the directors

Explanation

Where a company is the seller, the conveyancer should obtain evidence of the signatories' authority, such as board minutes or a power of attorney. This protects the buyer against a transfer executed without authority. Reliance on informal sources such as a website or the estate agent is insufficient.

Question 42Conveyancing

A buyer's conveyancer is investigating a property that benefits from a covenant restricting development on neighbouring land. The buyer wants the benefit to pass with the property on a future sale. Which factor is most important?

  1. Whether the burdened land is unregistered
  2. Whether the seller personally signed the covenant
  3. Whether the covenant was registered against the burdened land
  4. Whether the benefit of the covenant was annexed to the land or otherwise validly transmitted Correct answer.

Explanation

For the benefit of a covenant to pass with the dominant land, it must have been annexed to that land or transmitted by assignment or a scheme of development. Registration protects the burden, not the transmission of the benefit. The seller's personal signature and the registration status of the burdened land are not the key issues.

Question 43Conveyancing

A buyer's conveyancer is reviewing a lease and notes that the landlord's consent is required for assignment but that consent cannot be unreasonably withheld. What does this mean in practice for the buyer?

  1. The buyer can assign without ever seeking consent
  2. The requirement for consent is void and unenforceable
  3. The landlord must consider a consent application on its merits and cannot refuse arbitrarily Correct answer.
  4. The landlord may refuse consent for any reason without explanation

Explanation

Where a lease provides that consent is not to be unreasonably withheld, the landlord must consider the application on its merits and may only refuse on reasonable grounds. The buyer must still apply for consent and comply with the lease procedure. The qualification does not remove the need for consent.

Question 44Conveyancing

A buyer's conveyancer is checking whether a property is at risk of flooding from a nearby river. Which search is most directly relevant?

  1. An environmental search Correct answer.
  2. A company search
  3. A bankruptcy search
  4. A local land charges search

Explanation

An environmental search reports on matters such as flood risk, contamination and subsidence based on the property's location. The local land charges search deals with local authority charges. Company and bankruptcy searches relate to the parties' status, not to physical risk to the land.

Question 45Conveyancing

A seller's conveyancer is asked whether the seller must disclose a latent defect in the property that the seller knows about but that is not visible on inspection. Which statement reflects the position in a standard residential sale?

  1. The seller has no obligation to disclose anything and may remain silent on all matters
  2. The seller is generally expected to disclose known matters in the property information form and replies to enquiries, subject to caveat emptor Correct answer.
  3. The seller must commission a full structural survey for the buyer
  4. The seller must reduce the price automatically for any defect

Explanation

The principle of caveat emptor applies, but the seller is expected to answer the property information form and enquiries honestly and to disclose known matters. Silence on material matters can amount to misrepresentation. The seller is not required to survey the property for the buyer or to reduce the price automatically.

Question 46Conveyancing

A buyer's conveyancer is reviewing a transfer of part of a registered title. The seller is retaining adjoining land. Which point is most important when drafting the transfer?

  1. Obtaining planning permission for the retained land
  2. Defining the retained land and granting or reserving any necessary rights between the two parts Correct answer.
  3. Registering the transfer before exchange of contracts
  4. Ensuring the buyer pays the seller's legal costs

Explanation

When part of a title is sold, the transfer must define the land being transferred and the land retained, and must grant or reserve easements and impose covenants as needed. Without this, the two parts may be left without adequate access or services. Registration follows completion, not exchange.

Question 47Conveyancing

A buyer's conveyancer is investigating a property where the seller's title is possessory, based on long occupation, and the land is unregistered. What is the main additional risk for the buyer?

  1. The buyer will be unable to obtain a mortgage under any circumstances
  2. The seller automatically obtains a freehold title after twelve years of occupation
  3. The land becomes subject to a statutory trust after ten years
  4. The seller must prove a sufficiently long and continuous period of adverse possession to establish a good title Correct answer.

Explanation

For unregistered land, a seller relying on long occupation must establish the required period of adverse possession and the appropriate basis for the claim. Occupation alone does not automatically confer a freehold title. The buyer's conveyancer must scrutinise the evidence and consider the risk of a challenge by the paper owner.

Question 48Conveyancing

A buyer's conveyancer is checking a lease of a flat and finds that the lease contains a restriction on subletting the whole of the flat without the landlord's consent. The buyer intends to let the flat out. What is the most accurate advice?

  1. The buyer should check the precise scope of the restriction and obtain consent before subletting, as breach may lead to forfeiture Correct answer.
  2. The restriction is unenforceable unless registered against the freehold title
  3. The buyer may sublet freely because subletting is a right of every leaseholder
  4. The buyer should sublet first and seek consent afterwards

Explanation

A covenant against subletting without consent binds the leaseholder, and breach may entitle the landlord to seek forfeiture or other remedies. The buyer should examine the exact wording and obtain any required consent before letting. Registration against the freehold is not the test for enforceability between landlord and tenant.

Question 49Conveyancing

A buyer's conveyancer is reviewing a contract where the seller has agreed to retain a strip of land between the property and the road. What is the most significant risk to address in the transfer?

  1. Ensuring the seller pays the buyer's stamp duty land tax
  2. Ensuring the buyer obtains planning permission for the retained strip
  3. Ensuring the buyer has an adequate right of access over the retained strip and that services remain protected Correct answer.
  4. Ensuring the retained strip is registered before completion

Explanation

Where the seller retains land between the property and the road, the buyer may be landlocked or lack service rights unless appropriate easements are granted in the transfer. The conveyancer should ensure rights of access and for services are expressly granted and protected. The other matters are not the principal risk arising from the retained strip.

Question 50Conveyancing

A buyer's conveyancer is considering whether a right of way has been acquired by prescription over a neighbour's land. Which factor is most relevant to establishing a prescriptive easement?

  1. Payment of an annual fee to the neighbour
  2. A single use of the route by the buyer's predecessor
  3. Registration of the route as a public highway
  4. Continuous use without force, secrecy or permission for the requisite period Correct answer.

Explanation

A prescriptive easement requires use that is continuous and exercised without force, secrecy or permission for the requisite period, often twenty years at common law. A single use or use by permission does not establish the right. Registration as a public highway concerns a different legal regime.