This is a compilation of all of the practice questions from all SGS (classes) preparation activities and other practice materials.
This is perfect for an OPEN BOOK exam as you will have examples of how to run through each question at your finger tips. Just label this up according to question typ...
SGS 1 TITLE INVESTIGATION, SEARCHES + STANDARD ENQUIRIES
SGS 1 ACTIVITY 1
1. It is an easement benefiting the land and makes this property accessible.
1.2 You won’t find a right of way in the property register for most properties because they will usually abut a public
highway. Meaning a right of way across another property is not needed for access.
1.3 Phoenix Road = public highway
Beaufort Lane = private road
The buyers should be aware that public roads may be adopted by the local authority. Meaning, it will be turned into a
public highway at the owner’s expense.
1.4 RPL should confirm that the private road will be available at the hours it needs it, how it will be accessed (by foot,
by car, bus, etc), whether it will be physically adequate for RPL’s expected usage and whether there are any other
restrictions in place. There are no restrictions on the use of the private road listed on the Property Register, therefore
the lane should satisfy RPL’s needs.
1.5 The current owner reports that it has never been called upon to make a maintenance contribution but is unsure of
the official status, RPL should investigate further into whether it may be liable for maintenance of the right of way.
1.6 What is revealed by the Index Map Search (SIM) and the copies of the title for the neighbouring land is that
RPL is responsible for the paying a ‘fair’ proportion of the cost of maintenance of the right of way: “A right of
way to pass and repass day or night with or without vehicles over the land coloured brown* subject to the Purchaser
paying a fair proportion of the cost of repair and maintenance of the said land”. As such, it may be appropriate for RPL
to ask the seller to follow this up with the owner of Beaufort Lane and ask how (if at all) ‘a fair proportion’ was
calculated prior to the seller’s ownership, how it would now be calculated, whether any maintenance works are
planned in the future and the likely cost of any such works. In terms of the proportions, because the seller has stated
in reply to CPSE 3.2(c) (Doc 51) that no one uses the right of way apart from the seller and the owner of the road, it is
very likely that RPL will be liable for most (if not all) of the maintenance costs.
2.1 Positive covenants (found on charges register)
a) The Purchaser shall within 3 months from the date of its purchase erect (if not already erected) and afterwards
maintain in good condition a good and sufficient fence or hedge on the sides of the plot marked ‘T’ on the plan.
2.2 Has the seller breached any of the covenants?
CPSE 4.2(f) ...In addition, the 1935 covenant requiring the erection and maintenance of a fence has been breached as
the fence on the eastern boundary of the Property is currently in disrepair. RPL should require the seller to repair the
fence before the sale.
3.1 Are there any restrictive covenants in the Charges Register? Will it/they be enforceable against RPL?
Yes, they will pass to the Buyer/RPL as they touch and concern the registered land. (S79 Law of Property Act 1925)
& TULK V MOXHAY
3.2 The seller has admitted to breaching the restrictive covenants in the past. RPL has three options:
- Purchase insurance (which should not be too expensive considering the age of the covenants - 1935)
- Obtain release from the Person With Benefit (or their heirs)
- Apply to the Upper Tribunal (Lands Chamber) for release (but this is the most expensive and slowest option).
3.3 For any future breaches, RPL should:
- Purchase insurance (which should not be too expensive considering the age of the covenants - 1935)
- Obtain release from the Person With Benefit (or their heirs)
- Apply to the Upper Tribunal (Lands Chamber) for release (but this is the most expensive and slowest option).
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,4.1 What other third party rights on the Charges Register (Doc 40 – page 60) need to be dealt with before RPL
buys Elton Hall?
A mortgage:
2. (14 June 2003) REGISTERED CHARGE dated 2/06/03 to secure the monies including the mentioned advances.
3. (14 June 2003) Proprietor: CITY & COUNTY BANK PUBLIC LIMITED COMPANY of 1 Hinton Street.
4.2 Does the seller’s mortgagee need to consent to the sale to RPL?
No, as RPL is buying the whole property, it does not require consent. It would require consent if it was buying part of
the property because the mortgage would not be fully discharged.
5.1 Who is selling the property? What checks will you need to make in relation to the seller?
ELTON COUNTRY HOLDINGS LIMITED is selling the property. Because it is a company,
- Confirm that the name and number at the Companies House matches the info on the contract.
- Do a Companies Search in order to confirm that the company is solvent and authorised to sell.
- A K16 Bankruptcy search?
INCLUDE COVENANTS GUIDE + PG 6-8 OF SGS DESCRIPTION IN STUDY GUIDE
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,SGS 2 LOCAL AUTHORITY CONSENTS, PRE-CONTRACT SEARCHES, STANDARD ENQUIRIES
SGS 2 PRE SGS QUESTIONS 2. General Searches
Compile a list of compulsory searches required in all transactions + optional searches you would suggest +
Explain briefly why each of these searches is necessary.
Compulsory searches
Search What Why How
Local Land Made in all transactions – reveals If there has been a breach of planning legislation LLC1 via NLIS
Charges Search mainly planning-related which is not rectified by the seller before completion or by sending
(‘LLC1’) information, e.g. planning then this will become the buyer’s problem once they direct to Local
permissions granted, Conservation own the land. Authority.
Area and Listed Building status etc - the search reveals whether the necessary
planning permissions were obtained for the
change of use and the building works.
Enquiries of the Made in all transactions – reveals To ensure the buyer knows about the planning CON 29 via
Local Authority whether private or public services, history of the property, as well as general NLIS or by
(‘CON 29’) if metered etc information about the surrounding area. sending direct
In the specific circumstances of Elton Hall, the to Local
search is needed to establish whether Phoenix Authority.
Road and Beaufort Lane are public roads. The
search will also reveal whether any required
building regulations approvals for the 2013 and
2014 building works were obtained.
Commercial Made in all transactions – reveals The buyer needs to know whether the land is Commercial
Drainage and whether private or public services, connected to mains water and drainage. If not, it will water and
Water Search if metered etc. have to make further enquiries to find out who looks drainage
CON 29DW is a residential version after the water supply and drainage for the property. search form +
of this search which is sometimes sent to relevant
used in very basic commercial drainage /
transactions. water company.
Desktop Made in all transactions – reveals The potential liability for contaminated land can be Via NLIS or
Environmental any contamination from former very expensive and the buyer could be liable for the other search
Search industrial use, flooding risk etc. clean-up even if they did not cause the provider (e.g.
(Determines whether further contamination. If there is a contamination risk, Searchflow,
contamination searches are additional searches can be carried out. Sitecheck or
required.) Landmark
Information
Group).
Pre-contract Made in all transactions – reveals There may be things about the property that the Using
Enquiries of extra information known only to buyer/agents do not know about which would have Precontract
seller (‘CPSEs’) seller. an impact on the buyer’s plans for the property. It’s Enquiries of
CPSEs are dealt with at the same important to do a thorough investigation by asking seller CPSEs.
time as the searches and read in questions of the seller to make sure that there is
conjunction with the search results nothing happening that would affect the buyer’s
and title documents. future use. Also allows the buyer to check that no
covenants have been breached, etc
Index Map Made in all commercial Allows the buyer to be clear about the boundaries of Form SIM via
Search (‘SIM’) transactions + unregistered land the land if the land is registered. Allows them to NLIS or by
transactions. Reveals any other check who owns neighbouring land (so they can sending direct
title numbers registered against make sure that any rights are properly recorded if to Land
the property (e.g. if a lease was relevant on any surrounding registered titles). Registry.
registered against the property). If a neighbouring property owner has the benefit of
Permits confirmation of the restrictive covenants over the property establishing
boundaries of a particular title as the identity of the Person with the Benefit (PWB) of
the SIM result takes the format of these covenants would be useful.
a list of title numbers registered
against the property searched
3
, against accompanied by a plan.
This info can be used to obtain
Office Copy Entries and Title Plans
of the title numbers revealed by
the SIM result, allowing
confirmation of the boundaries of
the titles. Neighbouring land can
also be searched to find out
whether it is registered (official
copies can then reveal the owner).
Highways Made in all transactions – reveals The buyer would need to be able to access the Raised by the
Search the boundary line between private highway to be able to use the property properly. If buyer’s solicitor
land and public highway. The there is a gap between the highway and the in a letter to the
buyer’s solicitor carries out this boundary of the property, the buyer’s solicitor needs relevant local
search to ensure that either: to ensure that there is a right of way which abuts the authority.
1. the land the buyer intends to highway, and that the buyer will have the benefit of
purchase abuts the highway; or that right.
2. any land over which the buyer
has a right of way abuts the
highway.
Chancel Repair Made in all transactions – reveals If there is a liability to pay towards a chancel of a Via search
Search liability to contribute to church the liability could be very expensive and not provider
maintenance of a C of E church. knowing about the liability is no defence. Therefore (Chancel
a prudent buyer would carry out this search. Check) or by
personal search
of Ntl Archives.
Optional Searches
Search What Why How
Optional Only if needed - to raise relevant To ensure that the buyer is fully aware of all the Form CON 29O
Enquiries of the optional enquiries, particularly in public land in the area, as well as any issues with via NLIS or by
Local Authority respect of common land and town land use in the area. There may be public land in sending direct
(‘CON 29O’) or village greens. the area, which would have an impact on the to Local
buyer’s intended use of the land. Authority.
Phase I or Only if needed, e.g. if the Desktop If the known history of the property or the Desktop Via
Phase II Environmental Search results Environmental Search raise concerns then either environmental
Environmental raise concerns. one or both of these searches would be carried out search provider
Survey Phase I would require that a to assess the level of contamination so the buyer
surveyor inspect the land and a and seller can decide how to apportion liability for
Phase II would go further and the cleanup. The contamination may be so bad the
require soil samples to be taken. buyer walks away from the deal.
Company Only carried out where the seller is Enables the buyer to check that the company selling Apply to
Search a company – to check the is actually authorised to sell the property so that Companies
company name and number, to there can be no difficulties later in registering the House
check that the company is not transfer of ownership of the property. It also enables
insolvent and is able to sell. It also the buyer to check that the seller is not subject to
reveals fixed/floating charges etc. any insolvency proceedings.
Coal Mining and Only if necessary. Search reveals Subsidence could cause problems at the property Search Coal
Brine Search if coal mining has taken/is taking which are expensive to deal with for the buyer later, Authority’s
(‘CON 29M’) place and if subsidence risks are so by doing the search the buyer can check what online search
present due to mining. potential risks there are beforehand. service. If it’s in
such an area,
use Form CON
29M via NLIS
or by sending
direct to Coal
Authority.
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