Summary LPC - Property Law and Practice Revision Notes (Registered Property)
22 views 0 purchase
Course
LPC - Property Law and Practice Revision Notes
Institution
Manchester Metropolitan University (MMU)
This revision document is for the core Property Law and Practice unit featured on the LPC. This revision manual strives to offer notes that are both clear and useful, and they cover the Registered Property element of the course. Given that they summarise important subject areas that are frequently ...
Registered property notes
PIF = Property information form (TA6) – completed by seller.
FCF = Fittings and Contents Form (TA10) – completed by seller
Legal estates;
Seller’s
Solicitor - Conveyancing Flowchart Freehold
Buyer’s
Solicitor
estate
Obtains - Leasehold estate Requisitions
Title appropriate
Details searches
Legal interest;
- Easement
Prepares Draft Checks results of
Contract - Charge by Searches way
of Sends Draft legal
Contract,
PIF, List of FF&C mortgage
Asks client to
complete PIF
- All and other estates, Checks Draft
Title Details to
and list of Buyer’s Solicitors Contract and
Fixtures Fittings (“Deduces” title) documents
& Contents interest received from and
Seller’s
Solicitor.
charges over land will Approves or Amends take Investigates
Draft Contract and Title
affect as equitable documents received. interest.
Raise any necessary
enquiries and/or
Addresses requisitions on title Third
enquiries and/or Pre-contract
requisitions on
party interest; Checks
title raised. Replies to enquiries Reports to Client -
Client signs Client signs Contract
Contract - Registered land
= interests need to be protected by an entry on the
register in Prepares Transfer
Exchange of Deed
order to bind them. Contracts Client executes
Unless they are Deed if required
Sends Transfer Deed to Seller’s
Addresses Solicitors
Requisitions Raises Formal Requisitions on Title Requests Final
on Title And Requests Completion Information Searches
Approves or Reports to Mortgage
amends Lender - Client
Transfer executes Mortgage
Deed Replies to Requisitions
Client Provides Completion
executes Information
Deed Checks Final
Searches
Completion
overriding Buyer’s Solicitor pays balance of purchase
monies to Seller’s Solicitor
Seller’s Solicitor delivers Transfer Deed and Reports to Client
Redeems other documentation to Buyer’s Solicitors Pays SDLT
Mortgage Registers the transfer
of ownership and the
Buyer’s Mortgage at
Confirms Discharge of Mortgage The Land Registry
Accounts to Client
interests, which Checks Registration Correct – Reports to Client and Mortgage Lender will
still be binding even
if they are not entered on the register.
- Unregistered = most legal interests are binding automatically.
,CAPITAL GAINS TAX;
- CGT may arise when there is a disposal of an interest in land.
- Charged on gains made on chargeable assets. These include, freehold and leasehold
property and interest of co-owners in the case of jointly owned property.
- Other transactions due to the sale of land may also give rise to CGT, such as the
release of and easement etc.
- Gifts also fall into the meaning of disposal.
- GAINS = current sale price – purchase price of property.
- The gains will be charged at a rate decided by the government and an annual
exception may apply too. There are also other reliefs available
- The selling or gift a dwelling house only used as a main residence it exempt from
GCT.
- However, if the owner is absent for certain periods of time, they may still be charged
for the gain. They can lose the benefit of this relief. Page 62 manual.
- If the property is let during the period of ownership, it is no longer the individuals
main residence. Therefore CGT may be payable for this time.
- House with large grounds exceeding 0.5 hectares, the excess may be taxable.
However, private residence relief maybe applied, if show it is for the reasonable
enjoyment of the house.
- If the land is sold but the house is retained, GCT will not be payable if it does not
exceed 0.5 hectares. But if the house is sold and the land is to be sold later on, the
land will usually be taxable.
- If part of the dwelling house is used for business purposes, a portion of the relif may
be lost. But if duality of user can be shown, meaning that a person works from home
but does not have a separate room for business, from where other members of the
family are excluded. The full relief may be used.
- If married couples or individuals have a civil partnership, if they have more than one
property, the relief can only be used on one property.
- If a trustee disposes of a property, they will also be entitled to the relief. So long as
the intended person in the terms of the settlement, was in occupation of the
property.
- Tenants in common may be liable for CGT on their respective shares in the equitable
interest in the property.
- An individual who disposes of a dwelling as part of a property letting business (buy to
let) will also be charged with CGT.
, Fixture & fittings
- Fixtures = form part of the land and so the buyer should expect to take over the
ownership of the fixtures upon completion of the sale. Unless seller has stated
otherwise.
- When fixtures are being removed it is usual to have a special condition as the buyer’s
solicitor will usually insist on a clause stating “The Seller will remove ‘X’ from the
Property prior to completion and prior to completion the Seller will make good any
damage caused to the Property to the Buyer’s reasonable satisfaction”.
- They are included in the purchase price. Some attachment to the land is required
usually.
- Fittings (chattel)= do not form part of the land, not included as part of the property
unless stated by the seller.
Distinguishing between fixture & fitting;
- A two part test looking at the degree of attachment of the object to the land.
- Degree of annexation to the land – how far is it physically attached to the property.
So strongly attached that it has become annexed and part of the land.
- The purpose for which it has been annexed – Why was this article bought onto this
property. If it was to enhance the property- FIXTURE.
- If it was convenient to the owner – fitting.
Deducing title;
- Sellers obligations to prove to the buyer his ownership of the property he is wishing
to sell.
- He will have to show sufficient documentary evidence of the title, to prove he has
the right to sell the land. Official copies of the title, no more than 6 months old. (SC
4.2.1 & SCPC 7.2.1)
- Title needs to be deduced before exchange, so buyer enters into contract knowing
all details about the title. Right to raise requisition’s after exchange is limited. (SC
4.2.1 & SCPC 7.2.1)
Linked transactions;
- The seller is selling his house, using these proceeds to buy another property.
- The sale and purchase must be synchronised.
- The solicitor will be acting as the sellers solicitor and the buyer solicitor for the
simultaneous purchase of the new property.
Stamp duty land tax
- Paid on property transactions, needs to be paid within 14 days of completion.
- Dependent on the value of the property the type.
- Not payable on the price of chattels.
Residential freehold property
- The tax is applied at different rates, for different portions of the sale price.
- For non-first time buyers below
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller romishaali. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $18.27. You're not tied to anything after your purchase.
