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Real Estate FULL Revision Guide and examples
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- University Of Law (ULaw)
Real Estate FULL Revision Guide and examples FULL NOTES FROM COURSE
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REAL ESTATE REVISION,KEY TERMS:
Buyer The term used to refer to the purchaser of a freehold or leasehold property.
The term used to refer to the current owner of a freehold or leasehold property
Seller
who is attempting to sell the title.
Since a “mortgage” refers to the security given over the property (which is said
Mortgagor
to be “mortgaged”), the “mortgagor” will be the owner of the property who
(Borrower)
gives the mortgage to the lender in return for funds.
This will be the person or institution that accepts the mortgage as security in
Mortgagee
return for lending funds. The mortgagee is the lender – usually a bank or a
(Lender)
building society.
Title This is the term for ownership of the land, which can be ‘legal’ or ‘equitable’.
Land / Property /
These terms are used interchangeably.
Estate
Person with the
A landowner whose land benefits from an easement over another’s land.
benefit (PWB)
Since original title registers and deeds are held by the Land Registry, the
‘Official Copies’ are copies of those documents. They can be used in
transactions are admissible in Court as if they were the originals. The Land
Registry guarantees that all information on the Official Copies is accurate at the
time and date stated on them – so anyone who suffers a loss as a result of an
inaccuracy in the Official Copies will be entitled to compensation from the Land
Official Copies Registry. Official Copies will be in a standard format, divided into three sections:
1) The Property Register – which describes the estate and any rights
benefiting it.
2) The Proprietorship Register – which explains the title.
3) The Charges Register - which details charges that affect the estate, such
as restrictive covenants that benefit neighbouring properties and burden
the property in question.
A map, based on the Ordnance Survey maps, held by the Land Registry showing
Index Map every registered property along with applications for first registration. It can be
searched by submitting form SIM to the Land Registry for a fee.
CON29 These are types of Local Authority Searches. They are forms submission to the
CON29O / CON29M local authority to discover information about a property. Generally, one form
CON29DW will be used. Not all searches will be carried out, in the interests of saving costs.
The Local Land Charges Search, which is another method by which solicitors
LLC1
discover information about a property.
Standard conditions
A precedent contract often used to sell residential properties.
of sale (SCS)
Standard commercial
property conditions A precedent contract often used to sell commercial properties.
(SCPC)
Stamp Duty Land Tax Tax paid on the value of the land sold. It will be paid on completion of the sale
(SDLT) to HMRC.
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, The City of London Law Society issues precedent documents such as the CLLS
Certificate of Title. This is the industry standard certificate summarising a
CLLS
property’s title, any search results and any leases. Lenders may require this as a
pre-condition of granting a mortgage, especially in commercial situations.
Land Registry (LR) The body which administers registered freehold and long-leases.
Central Land Charges The body which administers certain charges registered over unregistered land.
(CLC) Registry However, it does not administer the unregistered land itself.
Land the title of which (along with any charges over it) has been registered with
the Land Registry. Registration of all land became compulsory on 1 st December
1990 across England and Wales (although compulsory first registration came
Registered Land
into force at earlier dates in certain regions) Compulsory first registration
means that any previously unregistered land sold on, or after this date should
have been registered with the Land Registry once the sale was completed.
All land was originally unregistered and title was proved through the production
Unregistered Land
of deeds, conveyances and other proof of ownership.
Personal The executor (or if they are not named in the will, the administrator) of the
Representative estate of the deceased.
Trustee-in-
A trustee appointed to administer the affairs and assets of a bankrupt.
bankruptcy
Where land is owned by two or more people, it can be owned by way of a joint
tenancy or a tenancy-in-common. Joint tenants own the land under a joint
tenancy, in which each owner has an undivided interest in the property.
To sell their interest, all the owners must agree to sell the entirely of their
Joint Tenants (JTS)
interest. The right of survivorship operates before the will, which means that as
soon as one owner dies, their interest in the property will pass to the remaining
owner(s). Certain events (such as bankruptcy) can cause the joint tenancy to
sever into a tenancy-in-common.
TiCs own their land under a tenancy-in-common, in which each owner has a
Tenants-in-common divisible, quantifiable interest in the property. A TiCs is free to transfer their
(TiCs) interest to another either during their lifetime or under their will, without
having to seek the consent of the other TiCs.
This is Latin for “let the buyer beware”. This means that any buyer is under a
Caveat emptor duty to look for issues with that property, and may not have any remedy in
respect of obvious defects which they did not bother to inspect.
A person who rents the Landlords property to live in or run a business there, in
Tenant
return for money paid under the terms of a lease.
This means the owner of a freehold who carves leases out of that freehold
Landlord property and rents them to tenants under the terms of a lease in return for
money.
Immediate Landlord This is the Tenant who in turns rents to a Sub-tenant under a sub-lease.
This means a Tenant who assigns their interest in a lease to another. Sub-
Assignor tenants may also be able to assign, and so on (depending on the terms of their
leases).
Someone who receives the Assignor’s interest, and therefore becomes the new
Tenant.
Assignee
Note: You may also see the Assignee referred to as the Second Tenant and the
Assignor referred to as the Tenant or First Tenant.
Sub-tenant A person who rents from the Tenant under a sub-lease, where the Tenant in
turn is renting from the Landlord. The Tenant would be the Sub-tenant’s
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, “immediate Landlord”. It is possible to have “sub-sub-tenants” and so on.
TRANSFER OF FREEHOLD
SELLER BOTH BUYER
Take instructions
Parties agree terms (subject
to contract)
Prepares pre-contract pack
(includes: draft contract, title Investigates title, obtains surveys,
evidence and sometimes results of does (pre-contract) searches and
some pre-contract searches and enquires and approves draft contact
enquiries the seller has done)
Parties exchange contracts
Pays deposit (typically 10%)
(legally binding)
Drafts transfer deed and does pre-
completion searches
Parties complete Pays balance
Pays SDLT and register at Land
Registry
END OF TRANSACTION
PROFESSIONAL CONDUCT QUESTIONS:
When answering a professional conduct question:
1) Outline the issue (conflicts of interest, confidentiality, duty to the court, etc)
2) Reference the Principles
3) Reference the Outcomes
4) Reference the Indicative Behaviours
5) Apply to the facts
6) Advise on how to act
ACTING FOR BOTH THE BUYER AND THE SELLER:
Step 1: You cannot act where there is a client conflict, or a significant risk of one as you owe a
General Rule duty to act in the best interests of each client (Principle 4)
Step 2: Circumstances indicating a client conflict (or significant risk of one) include:
Is there a 1) Do the clients have different interests?
conflict or a 2) Is the client vulnerable?
significant risk 3) Is there an imbalance of bargaining powers?
of one? 4) Is there a need to negotiate terms between clients?
a. You should not act where matters of substance are being negotiated
5) Will the solicitor be able to give independent advice?
Even if there is a conflict of interest, or a significant risk of one, you might be able to act
if one of the two following exceptions apply
1) Where the clients have a ‘substantially common interest’
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