notes by serenalky @ stuvia // https://www.stuvia.com/user/serenalky
PLP – KEY INFORMATION DOCUMENT
Additional chattels
Must use existing special condition at Use Certificate of Title approved by Law
clause 3 + change purchase price on front Society and the CML (not CLLS Certificate)
of contract but NOT on TR1 (if to send to lender.
apportionment being used) for SLDT saving
(3% v. 4%). After exchange
- Memorandum of exchange;
Additional considerations new build - Honour undertaking - contract + deposit
completion takes place 10 days after cheque.
developed serves notice;
SCS 2.2.6 - buyer's deposit as stakeholder, Alienation
will want to change this --> need to vary s.19(1) LTA --> qual to full qual.
2.2.6 on buyer-developer contract and Ashworth Frazer --> anticipated breach is
2.2.5 on buyer's sale contract reasonable
must ensure developer provides s.38 s.1 LTA 1988 - reasonable time + Dong
agreement (specific agreement with local Bang Minerva is 28 days.
authority) + ensure structural guarantee On assignment, s.5 LT(C)A 1995 automatic
(NHBC Buildmark) or else very hard to release from liability.
ensure
Always searches
Additional considerations on sale of part CON29R - key inquiries from local authority
must refer to plan (scale at leas 1:1250) LLC1 - local authority charges, gives detail
seller not buyer drafts TP1 re planning permission, building regs,
easements/covenants appended to conservation area, listed building, smoke
contract control order, tree-preservation order etc.
OS2 + DS3 Commercial Water and Drainage Search
special condition to exclude implied Company Search (check insolvency)
easements + specifically include those Desktop Environmental Search
implied easements Chancel Repair Search
covenants - restrictions on nuisance,
buildings erected, indemnity covenant to CON29R not conclusive re planning.
perform all existing covenants Reveals adoption (pro: once adopted, will
be maintained at public expense; con:
Additional considerations re residential consider expense for frontagers to bring up
property to standard for adoption)
property information form: TA6 +
leasehold information form TA7 + fittings & AP1 Panel 4
consent form: TA10 instead of commercial Discharge, transfer, charge
standard enquiries: CPSEs.
Approach if Power of Attorney
Formula C for exchange (chain of Check validly granted by deed, within
transactions using undertaking to ambit, not revoked, CC of deed +
exchange at given time) presumption of validity if 12 months under
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s.5(4) PAA. More than 12 months need - No notice of bankruptcy --> carry out K16
statutory declaration by proferens. search.
Assignment (new comm. lease = lease Drafting - demise
granted on or after 1 January 1996) Must be very clear
s.19(1A) LTA 1927 --> agreement of
conditions where automatically Drafting - mortgages
reasonable + conditions --> including AGA Do not allow mortgage as specified
(s.16 LT(C)A). incumbrance --> would take subject to it.
does not apply to sub-letting
During exchange
Completion Agree completion date
(1) Check funds available; seller should Verify same contract
check redemption figure obtained + say exchange words:
engrossed TR1 signed (=drafter by buyer's -- undertake to send deposit monies +
solicitor + approved by seller); contract to seller's solicitor that day.
(2) First phone-call --> buyer undertakes to
send money + seller to discharge mortgage Effects of conservation area
and send DS1 Permitted development highly restricted +
(3) Meantime, send purchase monies to will need conservation area consent for
account; any development
(4) Once received, second phone-call,
completion agreed by dating TR1 + new Effects of listed building
mortgage if necessary + funds released. Permitted development highly restricted +
will need listed building consents. LB
Considerations re working for lender and consent removes need for CA consent also,
buyer unless trees being felled.
Risk of Client Conflict O(3.5)
IB(3.7) exception Enforcement periods
Potentially SCI O(3.6) exception. 4 years - change of use to dwelling house,
Will not apply if commercial. works
10 years - breach of PP condition, change
Contract rate? of using other than dwelling house
Should be 3-5%. forever - building regs (get that building
regularisation certificate), LB consent, CA
Co-Ownership - Reg and Unregistered Land consent
Reg land: restriction on charges register
indicates TiC. Need to ensure both sign + Example: indemnity covenant
execute contract. If dead, ensure Death The Transferee covenants to observe and
Certificate + appointment of new trustee + perform the covenants contained or
Grant of Representation. referred to at entry no. 1 in the Charges
Unregistered land: Death Certificate and Register of title number XXX and to
can assume JT if LP(JT)A 1964 factors: indemnify the Transferor against any
- Seller states in conveyance he is solely liability for any future breach or non-
entitled; observance of the covenants.
- No memo of severance
Fair assumptions
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let with vacant possession s.24C --> where landlord not opposed -->
T has complied with obligations market level
term of lease is the same s.24D --> where landlord opposed -->
yearly tenancy so c.10-15% lower.
Fair disregards
T's occupation Leasehold - assignment of registered
goodwill of T Always register
any rental value attributable to
improvements by tenants (otherwise than Transfer + discharge+charge
in pursuance of statutory obligations may Priority period of OS1
be fair) Form AP1 --> consent of freehold lender
and/or evidence of discharge from existing
Freehold unregistered leasehold lender;
- 21 days MR01; SDLT1; TR1
- first registration, charge with form FR1 mortgage
and DL within 2 months of completion (cf.
complete within protection period of CLC Leasehold - assignment of unregistered
search) + TR1 (or conveyance) + Epitome Only if more than 7 years remaining:
- First reg of lease + charge
Further considerations - Within 2 months of assignment with FR1
Aubergine re 'consent in principle; and DL if L's freehold unregistered,
otherwise form AP1 if registered within
Insurance priority period of OS1/OS2
- L's covenant to insure --> LR free
- T's covenant to pay fair proportion --> consent of freehold lender
- L's covenant to reinstate premises and - -> TR1 or deed of assignment
make up any shortfall; --> Mortgage docs
- Clear definition of risks
- Reputable insurer + copy provided prior; Leasehold grant where title is registered
- No payment for determining Over 7 years only:
reinstatement or for making claim; - Firs registration of lease (+charge)
- Rent abatement if Insured Damage occurs - Priority period OS1 or OS2 (if part)
(so policy should cover three years lost - Use AP1 --> SDLT5, consent of lender, T's
rent); new mortgage, lease
- If reinstatement impossible, T wants to
split proceeds of policy + right to Leasehold grant where title unregistered
determine lease. - Within 2 months of grant (complete
within protection period of CLC search);
Insurance - PCR - FR1 and DL with SDLT5, consent of LL's
FSMA --> arranging/advising on insurance lender, lease
is regulated activity
LL's provisos:
Interim rent - specific transaction;
s.24A LTA - not a release of liability;
s.24B LTA --> payable from earliest possible - voidable if not granted within specific
STD in whichever notice served; time
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LL's remedies for nonfulfillment of repair therefore CDD --> requires original
- In any case where non-payment of rent passport or other form of identification).
being used as grounds for forfeiture, must
serve s.146 notice under s.146 LPA. Physical alteration - summarise
- Additionally: limited exceptions to absolute prohibition;
Where at least 7 year-lease with 3-years qualified gets upgraded: s.19(2) LTA
left to run, provided improvements from perspective
s.1 LPRA 1938 requires s.146 notice to also of tenant (Lambert v FW Woolworth).
specify right to serve counter-notice within
28 days at which point LL will need leave of Post-completion procedure: freehold sale
court to continue. - within 21 days register charge at
- Limits on LL's action for damages: s.18 companies house with form MR01 or void;
LTA 1927, therefore use Jervis v Harris - pay relevant SDLT tax using form SDLT1
clause (turns damages into debts) within 30 days;
- Specific performance: theoretically - change register at Land Registry within
available but hard practically: Rainbow v priority period offered by OS1, using form
Tokenhold. AP1 + file with it:
(nothing recoverable if plan to demolish) - Copy mortgage registration certificate +
letter from bank saying new mortgage has
LL's remedies for non-payment of rent been registered at CH and that letter
forfeiture (=re-enter and prematurely end relates to charge;
lease) if there is an express forfeiture - TR1
clause. no notice required. - SDLT5
debt action (previous 6 years only) + - DS1 (discharge; transfer; charge)
Commercial Rent Arrears Recovery (CRAR) - Land Registry fee
Maybe searches Post-completion procedure: freehold sale
Coal mining searches of part
CON29O (e.g. for rights of common) - 21 days MR01; SDLT1;
SIM (index map search) --> shows any - change register with form AP1 in OS2
third-party rights registered against priority period:
property + ascertain who neighbours are; - TP1
Coal Mining Search (CON29M) - DS3
Waterways Search - Mortgage docs
Utility Searches
Phase I and Phase II Environmental Pre-completion steps
Searches - OS1 search + ensure registration within
Highways Authority Search --> ransom period, OS2 search for sale of part. For
strip unreg land ensure completion takes place
within 15-day protection period afforded
Mortgagee's right of sale by CLC search.
See ss.101-3 LPA. LPA must merely check - Redo companies house search;
exists and has arisen: s.104(2). - Requisitions on title;
- Buyer Draft TR1;
New client - Finances --> receive completion
Client care + conflicts check + money statement + send financial statement to
laundering (MLR applies to real estate buyer.
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