SQE 1 Property Practice notes. Crafted by a recent graduate, these notes are tailored to the SRA syllabus, ensuring they cover the crucial Property Practice concepts you need to master. These notes are perfectly structured to make a closed book exam that much easier. The notes feature case studies ...
Freehold Property Transactions:
Caveat emptor = buyer beware → the seller is not obliged to disclose information about the
property, other than about limited matters of title (so not liable for any defects in property)
Stages of a Transaction:
Pre-Contract Stage:
Seller’s Solicitor:
● Must take instructions from the seller client
● Must investigate title and produce evidence of title to the buyer
● Must reply to the buyer’s pre-contract enquiries
- Any incorrect information provided by the seller can give rise to misrepresentation
● Must draft the contract
Both Solicitors:
● Check for conflicts of interest
● Obtain client signature to the contract
Buyer’s Solicitor:
● Take instructions from the buyer client
● Investigate title
● Raise pre-contract searches and enquiries
, - May also want to carry out additional enquiries about things such as boundaries, access,
disputes, outgoings and previous work carried out at the property
- Will also carry out pre-contract searches of statutory, public and private bodies to obtain
more information about the property
● Approve draft contract
● Prepare pre-exchange report to client
Exchange of Contracts:
● Exchange of contracts = not compulsory, but it fixes the completion date and gives the buyer
time between exchange and completion to make their final preparations
● The contracts record the agreed terms → parties are not bound to the transaction until contracts
are exchanged
● Exchange of contracts and completion can take place simultaneously
● Buyer will usually pay a deposit (typically 10% of the purchase price)
The pre-completion stage:
● The time in between exchange and completion
● Time to make sure that all the correct documentation and completion money is available
● Transfer deed will need to be prepared and executed
Seller’s solicitors:
● Approve the draft transfer deed
● Reply to the buyer’s pre-completion enquiries, including giving an undertaking to discharge
seller’s mortgage
Buyer’s solicitors:
● Draft the transfer deed and mortgage deed (if acting for the lender)
● Raise pre-completion searches and enquiries (e.g. checking buyer’s solvency)
● Submit report on title / certificate of title to lender and request mortgage advance
, Completion:
● Completion = the stage when the bulk of the purchase money is paid to the seller and the transfer
deed is completed to transfer the property to the buyer
Post-Completion:
Both sides must finalise the administrative matters
Seller’s solicitor:
● Seller’s solicitor must ensure that any mortgage the seller had is paid off and removed from the
title
Buyer’s solicitor:
● Buyer’s solicitor must ensure that Stamp Duty Land Tax is paid on the transfer
● Buyer’s solicitor must register their client as the new owner of the property and register any new
mortgage over the land
Professional Conduct:
Acting for seller and buyer:
Acting for buyer and seller is governed by paragraph 6.2 in The Code of Conduct →
● Subject to certain exceptions, a solicitor cannot act for both parties if there is (or there is a
significant risk) of a conflict of interest
● There is a high risk where the land is being transferred for value
○ Exception = where the parties have a substantially common interest in relation to the
matter (a common interest does not apply to a property purchase)
○ Exception = competing for the same objective → so could act for two buyers who are
competing against each other to buy a property (but not for a seller & buyer)
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 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 lawconversionlifeline. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £15.49. You're not tied to anything after your purchase.
