PROPERTY LAW AND PRACTICE

Cover......Page 1 978 1 907624 00 1 Property Law and Practice......Page 2 Preface......Page 6 Acknowledgements......Page 7 Part I ESSENTIAL BACKGROUND: OUTLINE OF A CONVEYANCING TRANSACTION, UNDERLYING LAW, PROFESSIONAL CONDUCT AND TAXATION 1......Page 8 Part II THE CONVEYANCING TRANSACTION: INITIAL STAGES 79......Page 9 Part III THE CONVEYANCING TRANSACTION: PROCEDURE LEADING TO EXCHANGE 115......Page 10 Part IV THE CONVEYANCING TRANSACTION: AFTER EXCHANGE 237......Page 12 Part VI DELAY AND REMEDIES 289......Page 13 Part VII LEASEHOLDS 307......Page 14 Appendices 417......Page 15 G......Page 18 S......Page 19 W......Page 20 Table of Statutes......Page 22 Table of Statutory Instruments, Codes, Rules, Conditions and Guidance......Page 26 Glossary of Terms......Page 30 Table of Abbreviations......Page 38 Part I ESSENTIAL BACKGROUND: OUTLINE OF A CONVEYANCING TRANSACTION, UNDERLYING LAW, PROFESSIONAL CONDUCT AND TAXATION......Page 40 Approach taken by this book......Page 42 Registered and unregistered land......Page 43 The systems exist in parallel......Page 44 E-conveyancing......Page 45 The Carbon Reduction Commitment Energy Efficiency Scheme......Page 46 Stop press – Home Information Packs......Page 47 Marketing the property......Page 48 Title......Page 49 Exchange of contracts......Page 50 The buyer’s lender......Page 51 Final checks......Page 52 The seller’s solicitor......Page 53 The National Protocol......Page 54 Equitable interests......Page 56 Protecting third-party interests......Page 57 Implied grant or reservation......Page 58 Covenants affecting freehold land......Page 59 Indirect enforcement of covenants......Page 60 Trusts of land......Page 61 Tenancy in common......Page 62 Joint tenants......Page 63 ‘Home rights’ for ‘non-owning’ spouses or civil partners......Page 64 General......Page 65 Undue influence......Page 66 Adverse possession......Page 67 Further reading......Page 68 Interests governed by the Land Charges Act 1972......Page 70 What title may be registered......Page 71 Conveyancing implications......Page 72 Classes of title......Page 73 Good leasehold title......Page 74 The property register......Page 75 Third-party rights in registered land......Page 76 Unregistered interests which will override a registered disposition......Page 77 Ensuring that unregistered interests are registered......Page 78 Notices......Page 79 Further reading......Page 80 Example of a registered title......Page 81 Exception in r 3.08 where the transaction is not at arm’s length......Page 84 Practical problems......Page 85 Residential transactions......Page 86 Acting for joint borrowers – undue influence......Page 87 Confidentiality......Page 88 Disclosure of race to buyers......Page 89 Bridging finance for the deposit......Page 90 Giving an estimate......Page 91 Dealing with non-solicitors......Page 92 Money laundering......Page 93 Mortgage fraud......Page 94 Qualifying conditions......Page 96 Part business user......Page 97 Introduction......Page 98 VAT and commercial property......Page 99 Seller and buyer......Page 100 Residential freehold property......Page 101 Leasehold property and SDLT......Page 102 Legislation......Page 104 Matters which do not constitute ‘development’......Page 105 Matters which do not require express planning permission......Page 106 Full or outline?......Page 107 Planning obligations......Page 108 Listed buildings and conservation areas......Page 109 Non-compliance......Page 110 Acting for the seller......Page 111 The Contaminated Land Regime under the EPA 1990......Page 112 Searches and enquiries and other investigations......Page 113 Part II THE CONVEYANCING TRANSACTION: INITIAL STAGES......Page 118 The contents of the HIP......Page 120 Authorised HIP documents......Page 121 Energy Performance Certificates......Page 122 Indirect instructions......Page 123 Using checklists......Page 124 Tenure......Page 125 The present use of the property......Page 126 Outstanding mortgages......Page 127 Use of the property......Page 128 Survey......Page 129 Specimen instructions......Page 130 Financial Services and Markets Act 2000......Page 134 The client’s employer......Page 135 Amount of the loan......Page 136 The interest rate (residential mortgages)......Page 137 Further reading......Page 138 Sole ownership......Page 140 Tenancy in common......Page 141 Need for certainty in contract......Page 142 Fittings and contents form......Page 143 Valuation......Page 144 Surveys in special cases......Page 145 Surveyor’s liability......Page 146 ‘Subject to contract’......Page 148 Obtain title deeds and documents......Page 149 Investigation of title......Page 150 Preparation of the pre-contract package......Page 151 Home Information Pack (HIP)......Page 152 Part III THE CONVEYANCING TRANSACTION: PROCEDURE LEADING TO EXCHANGE......Page 154 Format......Page 156 The dangers of accepting a ‘short root’......Page 157 Production of original documents......Page 158 Leaseholds......Page 159 Seller’s investigation of title......Page 160 Investigating title in registered land......Page 161 Overriding interests......Page 162 Method of investigation of an unregistered title......Page 163 Stamp duties......Page 164 Incumbrances......Page 165 Searches......Page 166 Unregistered land......Page 168 Registered land......Page 169 Naming the beneficiary......Page 170 Joint tenants......Page 171 Existence of the power of sale......Page 172 Other mortgages......Page 173 Registered land......Page 174 Enduring and lasting powers......Page 175 Transactions at an undervalue......Page 176 Registered land......Page 177 Execution of deeds by an individual......Page 178 Execution by a company......Page 179 Verification of title......Page 180 Worked example of investigation of a registered title – 10 Bladen Road, Overton, Cornshire......Page 181 The official copies......Page 182 Commentary......Page 184 The epitome of title......Page 185 Commentary on investigation of title......Page 191 Specific points on the worked example......Page 192 Who should make the searches and enquiries?......Page 194 All transactions......Page 195 What the search reveals......Page 196 What the searches reveal......Page 197 Home Information Packs......Page 199 Commercial property......Page 200 Liability......Page 201 Unregistered land......Page 202 Index Map search......Page 203 Chancel repair searches......Page 204 Commons registration search......Page 205 Results of searches......Page 206 Occupiers......Page 207 Conclusion......Page 208 Introduction and context......Page 210 Personal representatives......Page 211 Persons suffering from mental disability......Page 212 Commercial transactions......Page 213 Referring to the contract plan......Page 214 The conditions of sale – standard and special conditions......Page 215 Entries made before the date of the contract in any public register except Land Registry or Land Charges Registry or kept at Companies House......Page 216 Dealing with disclosure in the contract......Page 217 Proving title by adverse possession......Page 218 Details of the implied covenants......Page 219 Which title guarantee?......Page 220 Date and time for completion......Page 221 Deposit......Page 222 Improperly stamped documents......Page 223 Unfair contract terms......Page 224 Contract drafting: worked examples......Page 225 Standard Conditions of Sale: front page......Page 226 Standard Conditions of Sale: rear page......Page 227 Standard Commercial Property Conditions: front page......Page 228 Standard Commercial Property Conditions: rear page......Page 229 Worked example of the contract......Page 230 Price......Page 232 Worked example of a word-processed contract......Page 233 Certainty......Page 238 Drafting......Page 239 Formalities......Page 240 Protection of the option......Page 241 How to amend the contract......Page 242 Restrictive covenants......Page 243 Obtaining the consent of the person with the benefit of the covenant......Page 244 Suggested form of wording for release of rights......Page 245 Terms of offer......Page 246 Instructions to act......Page 247 Reporting to the lender......Page 248 The mortgage documentation......Page 249 Protecting the security......Page 251 Amount of deposit......Page 252 Bridging finance......Page 253 Capacity implied by law......Page 254 Methods of payment of deposit......Page 255 The Solicitors’ Accounts Rules 1998......Page 256 Buyer’s lien......Page 257 Property at seller’s risk......Page 258 Maintenance of seller’s policy......Page 259 Other types of insurance......Page 260 Deposit......Page 262 Signature by the client......Page 263 Client’s authority......Page 264 Methods of exchange......Page 266 Formula A......Page 267 Formula C......Page 268 Fax......Page 269 Insurance......Page 270 Part IV THE CONVEYANCING TRANSACTION: AFTER EXCHANGE......Page 276 The buyer......Page 278 Death of one co-seller......Page 279 Appointment of liquidator......Page 280 Standard Conditions of Sale......Page 281 The interval between exchange and completion......Page 282 Standard form requisitions......Page 284 Further queries......Page 285 Registered land......Page 286 Execution......Page 287 Explaining the document to the client......Page 288 Date......Page 289 Additional provisions......Page 290 Conveyance......Page 291 Specimen modern form: conveyance......Page 292 Land Registry search......Page 296 Form of the register......Page 297 Description of the land......Page 298 Bankruptcy search......Page 299 Enduring and lasting powers of attorney......Page 300 Results of searches......Page 301 Unregistered land......Page 302 Comparison of Land Registry and Land Charges Department searches......Page 303 Seller’s checklist......Page 304 The seller......Page 305 Completion statement......Page 306 Money......Page 307 Completion checklist......Page 308 Part V THE CONVEYANCING TRANSACTION: COMPLETION AND POST-COMPLETION......Page 310 Effect of completion......Page 312 Time of completion......Page 313 Method of payment......Page 314 Method of completion......Page 315 Title documents......Page 316 Discharge of seller’s mortgage......Page 317 The Law Society’s Code for Completion by Post......Page 318 Lender’s requirements......Page 319 Deal with the proceeds of sale......Page 320 Acting for the buyer......Page 321 Register company charges......Page 322 The lender’s solicitor......Page 323 Registration of dealings......Page 324 Transfer of whole......Page 325 Identity requirements......Page 326 Part VI DELAY AND REMEDIES......Page 328 Related transactions......Page 330 Calculating compensation......Page 331 Service of a notice to complete......Page 332 Standard Commercial Property Conditions......Page 333 Limitation periods......Page 334 Quantum......Page 335 Rescission......Page 336 Claims under the Misrepresentation Act 1967......Page 337 Imputed knowledge......Page 338 General bars to the award......Page 339 Enforcement of the covenants......Page 340 Part VII LEASEHOLDS......Page 346 Advantages......Page 348 Short-term residential lettings......Page 349 The commercial property market......Page 350 Key terminology – grant, assignment and sub-letting......Page 351 Types of leases......Page 352 Equitable leases......Page 353 Liability of tenants......Page 354 Default notices – liability of former tenants......Page 355 Notice to quit......Page 356 For breach of other covenants......Page 357 Damages......Page 358 Commonhold......Page 359 Taking instructions from the landlord......Page 360 Leases......Page 361 Home Information Packs......Page 362 The draft contract and draft lease......Page 363 Engrossment and execution of the lease......Page 364 Registrable leases......Page 365 The landlord......Page 366 Introduction......Page 368 Home Information Packs......Page 369 General......Page 370 Types of covenant – qualified covenants......Page 371 Standard Conditions of Sale......Page 372 Unregistered lease......Page 373 Indemnity......Page 374 Documents to be handed over by the seller......Page 375 Unregistered lease......Page 376 Example Notice of Assignment......Page 377 Why are precedent leases so long?......Page 378 Land Registry prescribed clauses leases......Page 379 Commencement......Page 382 Certainty......Page 383 Use of toilets, etc......Page 384 Rent and rent review – commercial leases......Page 385 Index-linked clauses......Page 386 Open market revaluations......Page 387 The hypothetical letting......Page 388 The market......Page 389 The consideration......Page 390 Possession......Page 391 The terms......Page 392 Covenants performed......Page 394 Occupation......Page 395 The mechanics of the commercial rent review......Page 396 The interrelation of the review clause with other clauses in the lease......Page 397 Trigger notices......Page 398 The late review......Page 399 Alterations and improvements......Page 400 General......Page 401 Application of policy monies......Page 402 Commercial leases......Page 403 A qualified prohibition......Page 404 Sub-lettings......Page 405 The tenant’s concerns......Page 406 Operative words......Page 407 For the tenant......Page 408 Concurrent lease......Page 409 General principle......Page 410 Methods of apportioning the cost......Page 411 Purpose and effect......Page 412 Who is to prepare the certificate?......Page 413 Why the need?......Page 414 Forfeiture clause......Page 415 Unfair Terms in Consumer Contracts Regulations 1999......Page 416 There must be a ‘tenancy’......Page 418 Fixed-term tenancies not exceeding six months......Page 419 Termination under the Act......Page 420 The prescribed form......Page 421 The section 26 request......Page 422 The landlord’s grounds for opposition under section 30......Page 423 Other terms......Page 424 Contracting out......Page 425 Why is the law so complicated?......Page 426 Is it a long lease?......Page 427 Enfranchisement, the right to buy the freehold......Page 428 Management audit......Page 429 Rent control......Page 430 Rent control......Page 431 Landlord and Tenant Act 1985 – repairs......Page 432 Part VIII SALES OF PART AND NEW PROPERTIES......Page 438 Grants and reservations of easements......Page 440 Imposition of new covenants......Page 442 Description of land to be sold......Page 443 Registered land......Page 444 Building regulations consent......Page 446 Residential properties......Page 447 Estate roads......Page 448 Description of the property......Page 449 Contract......Page 450 Home Information Packs, Energy Performance Certificates and Sustainability Certificates (residential properties)......Page 451 Completion date......Page 452 Appendices......Page 456 Preparing the package: assembling the information......Page 458 Preparing the package: the draft documents......Page 459 Buyer’s offer accepted......Page 460 The first step......Page 461 Prior to exchange of contracts......Page 462 Exchange of contracts......Page 463 Between exchange and the day of completion......Page 464 Completion: the day of payment and removals......Page 465 Standard Conditions of Sale (Fourth Edition)......Page 468 Standard Commercial Property Conditions (Second Edition)......Page 480 Law Society telephone/telex exchange – formula A (1986)......Page 496 Law Society telephone/fax/telex exchange – formula C (1989)......Page 497 Procedure......Page 500 Form of Undertaking to Discharge Building Society Mortgages Approved by The Law Society in Conveyancing Matters......Page 504 Contents......Page 506 Index......Page 530