Summary Real Estate Law Exam Distinction Notes 78%+
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Course
Real Estate Law (RE)
Institution
The University Of Law
I studied these notes, practiced the workshop questions, and gained a distinction with the University of Law. The documents are straightforward and it clarifies all the crucial elements, legal concepts, and procedures for the exam. Good luck!
Workshop Outcomes
FREEHOLD
Analyse a buyer client’s initial instructions and identify and follow up issues arising at the
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instruction stage.
Identify and resolve issues of professional conduct that may arise when you are instructed on a
Taking new commercial property transaction.
Instructions Þ Mortgage Fraud
Þ Contract Races
Þ Undertakings
2 Conduct an investigation of title on behalf of a buyer client to establish ownership and whether
the property benefits from or is subject to any rights.
Title Identify any issues arising from the title investigation and analyse the issues in light of a buyer
Investigation client’s particular circumstances.
Conclude when further action needs to be taken in respect of an issue, either by raising further
enquiries or by taking steps to protect a buyer client.
3 Conduct an initial interview with a client in order to take instructions on a property transaction and
identify issues arising at the instruction stage.
Taking Investigate title to a freehold registered property on behalf of a buyer client and draft requisitions
Instructions/ Title on title to the seller’s solicitor.
Report to a buyer client and its lender on title matters using a standard form Certificate of Title.
Investigation 2
4 Explain the range and purpose of pre-contract searches and enquiries commonly undertaken
Searches and when acquiring property on behalf of a buyer client.
Enquiries Identify which searches and enquiries are appropriate for different types of property.
Analyse the replies and results of pre-contract searches and enquiries and identify issues that
need further investigation.
Advise on the action to be taken in response to the replies and results of the searches and
enquiries you have undertaken.
5 Carry out independent research on matters affecting a real estate client’s property portfolio.
Searches and Identify the appropriate pre-contract searches and enquiries for a property taking into account its
Enquiries 2 particular characteristics and analyse the results and replies.
Report to a buyer client and its lender on the results of the searches and enquiries using a standard
form Certificate of Title.
6 Identify the outstanding issues following on from investigation of title and completion of
The Contract searches and enquiries.
Review and suggest appropriate amendments to a contract drafted by the seller’s solicitor,
including drafting a special condition.
Carry out the necessary steps to be able to proceed to exchange of contracts.
7 Draft a contract on behalf of a seller and amend and approve it on behalf of the buyer.
The Contract 2 Exchange contracts using the appropriate Law Society formula.
1
, Workshop Outcomes
8 Understand the steps that need to be taken after exchange to lead to a successful completion of a
Completion transaction.
Advise seller and buyer clients on the consequences of breach of the terms of the contract
following exchange.
Identify the steps that need to be taken after completion to ensure that the buyer is registered as
the new registered proprietor of the property.
9 Plan the steps necessary after exchange to achieve a successful completion of a real estate
Completion 2 purchase transaction.
Take the necessary steps after completion to ensure that the buyer is registered as the new
registered proprietor of the property.
10 Analyse the structure and content of a typical commercial lease.
Grant of a Lease Identify the steps that are taken in a transaction involving the grant of a typical commercial lease.
Identify whether a lease enjoys security of tenure under LTA 54.
11 Analyse and advise a client on the meaning and inter-relationship of the repair and insurance
Leasehold provisions in a typical commercial lease.
Covenants Analyse the provisions relating to alterations, use and planning contained in a typical commercial
lease.
Advise a tenant client on the procedural steps that need to be taken to change the use to which
premises are put or to carry out alterations to premises.
12 Analyse and amend leasehold provisions relating to repair, insurance and service charge by
Grant of a Lease negotiating on behalf of a landlord or a tenant client.
and Leasehold Draft an undertaking for a landlord’s legal costs.
Management
13 Analyse the provisions relating to alienation contained in a typical commercial lease and apply
Lease Alienation the relevant statutory provisions.
Understand the purpose and content of a licence to assign.
Explain the procedure for the assignment of a typical commercial lease and how it differs from
the procedure on the sale of a freehold property.
14 Draft the documentation required to give effect to a variation of a commercial lease in the context
Assignment of a of a leasehold assignment transaction.
Lease Draft a transfer deed for the assignment of a commercial lease.
15 Advise a landlord client on the options available to it in the event of default by the tenant under
Landlord’s its obligations under a typical commercial lease.
Remedies and Advise a landlord client on the procedure necessary to terminate a lease under LTA 54.
Lease
2
, Workshop Outcomes
Termination
Workshop 1
Real Estate – Taking Instructions
Outline of a simple transaction
Seller Buyer
EARLY STAGES
Marketing the property
The transaction will begin with the seller putting the property on
the market.
- Will usually engage in an estate agent.
- Will need to have commissioned an Energy Performance
Certificate.
Once a buyer is found, and price agreed, the conveyancing process
can then begin.
- Should be understood that the parties have not entered any
legally binding relationship with each other, and can walk away
from the transaction at any point until exchange of contracts.
Energy Performance Certificate
Must have been commissioned (even though not received) before
the property can be marketed.
- Obligation to use all reasonable efforts to ensure that it is
received within seven days of marketing.
- If not received, further 21 days.
- Once obtained, estate agent must provide a copy of the EPC
with the sale particulars and in the advising.
- Responsibility of seller or landlord to ensure that a valid EPC
free of charge is given to the person who becomes the buyer
or tenant.
- Green Deal – EPC will disclose: Government initiation that
enables property owners and tenants to carry out range of
energy efficiency measures with no upfront cost.
Minimum energy efficiency standard: From April 2018
- Landlords of certain domestic or non-domestic buildings will
not be able to grant new tenancies or renew existing if the
building does not meet EPC rating E.
- A landlord who wishes to rent a sub-standard property will
have to undertake relevant improvements… unless:
obtained an opinion that improvement will have
negative impact on fabric/structure
tenant’s consent has not been forthcoming.
would result in reduction of more than 5% of price
PRE-CONTRACT STAGE Due diligence most time heavy aspect
Take instructions Take instructions
Obtain proof of the client’s identity due to money laundering Obtain proof of the client’s identity due to money laundering
regulations. regulations.
Indirect instructions (e.g. from an estate agent on behalf of the Indirect instructions (e.g. from an estate agent on behalf of the
client) must be confirmed directly by the client). client) must be confirmed directly by the client).
Prepare pre-contract package
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, o The draft contract, showing what land the seller is selling and
on what terms;
o Evidence of the seller’s legal title to the property;
o Sometimes, the results of pre-contract searches which the
seller has made.
Commission survey
Pre-contract searches and enquiries
Application of the caveat emptor principle which makes pre-
contract searches necessary. Let the buyer beware.
Investigate title
Buyer’s solicitor check documents carefully that the seller is entitled
to sell what he is purporting to sell. Any queries raised by
requisitions.
- Contract usually contains clause excluding buyer from
questioning the seller’s title once contracts for sale have been
entered. Thus, essential to be raised and resolved before.
Approve draft contract
Once satisfied, buyer’s solicitor ready to return the draft contract to
the seller’s solicitor, telling him the buyer has approved the terms.
- Then prepared for signing, with two copies printed off.
EXCHANGE OF CONTRACTS Legally binding stage
Contract comes into existence = buyer receives the copy signed by the seller, and vice versa.
Or telephonic exchange: parties agree over the phone that contract has come into existence at that moment
Normally pays deposit
THE PRE-COMPLETION STAGE
Raise requisitions with the seller
Questions usually directed at the resolution of procedural queries to
do with the mechanics of completion – e.g. who holds key, where
should payments be made.
Prepare transfer deed
- Send transfer deed to seller for approval.
- The transfer deed carries out what the parties agreed to do in
the contract.
- NB: sometimes contract states that seller prepares this with
the draft contract.
- If registered land, standard form of a transfer, as prescribed by
Land Registration Rules – if not traditional conveyance.
Approve transfer deed
- Then the transfer deed is ‘engrossed’ – copy is then prepared
containing agreed amendments.
- This is the copy that will be signed by the parties.
Perform pre-completion searches
- Just to check that the info that was checked before exchange
remains valid.
Discharge of mortgage
Often the seller will have a mortgage which must be removed on
completion. Seller’s solicitor must confirm the exact amount.
Prepare for completion Prepare for completion
COMPLETION
Common today for clients to “agree through the post” – method is agreement at requisitions stage.
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