Conveyancing and Property Law
What this domain tests
Conveyancing and property law tests the steps and documents needed to transfer or charge interests in land: contract, investigation of title, requisitions, drafting, execution, stamping and registration.
Core rules
- A sale begins with a contract that identifies the parties, property, price and completion terms. The vendor must show a good and marketable title.
- The purchaser's lawyer searches the relevant registry for encumbrances, cautions, charges and caveats, and raises requisitions on title.
- The deed of transfer or charge must be in the required form, properly executed and witnessed. Corporate parties need authority and correct execution clauses.
- Stamp duty and other taxes must be assessed and paid before registration. Registration perfects the interest against third parties.
- Charges and mortgages must be discharged or released on completion. Undertakings to discharge must be clear and time-bound.
- Trusts, co-ownership and matrimonial interests may affect the property and should be checked before completion.
Worked example
A buyer agrees to purchase registered land. A registry search reveals a registered charge in favour of a bank. Completion cannot safely occur until the seller obtains a discharge or provides a binding undertaking to discharge from the sale proceeds. The buyer's lawyer should hold funds and register the transfer and discharge together, or risk buying encumbered land.
Traps
Failing to search is a major error. Do not draft a transfer without matching the title description. Do not ignore stamp duty or execution formalities. Do not accept a mere promise to discharge a charge without security or a solicitor's undertaking.