Document is a summary of SQE 1 legal knowledge through the lens of the SQE 2 exam. It includes Tax, Property, Probate, Civil Disputes (incl. Tort and Contract), Criminal Law, Business Law. NOTE: I forgot to change references to the Queen's Bench Division to the Kings Bench Division
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Property
Assessments: Client Interview (In-Person) 2 of the following written questions: Legal Research; Legal
Writing; Case and Matter Analysis and/or Legal Drafting.
General Property Knowledge
Below is a revision of the knowledge from SQE 1 that you will need to know to answer the questions in
SQE 2. This revision is given through the lens of the SQE 2 assessment with consideration given to the
possible questions you may be asked.
Transaction Stages
1) Pre-Market Seller gets EPC and markets with an estate agent
Buyer will get a surveyor out to look at the property
Seller’s solicitor advises the seller on Capital Gains Tax
Seller’s solicitor will investigate the seller’s title* and remedy any defects, deals with
any mortgages and confirm the title map is correct
2) Pre- Seller’s Solicitor prepares and sends the contract package
Contract Buyer’s Solicitor carries out searches**, investigates title and checks finances
If required, planning permission will be obtained
3) Exchange The transaction becomes legally binding.
Both solicitors will exchange draft contracts using the appropriate law society
formulae***
4) Pre- Seller’s solicitor prepares a completion statement
Completion Seller’s solicitor completes the Completion Information and Undertaking Form
Seller’s solicitor executes the transfer documents or lease
Buyer’s solicitor carries out pre-completion searches ****
Buyer completes a completion statement showing the sum they owe
5) Completion Buyer’s solicitor sends balance purchase money to Seller’s solicitor
Seller’s solicitor sends the transfer to the Buyer’s solicitor
6) Post- Buyer’s solicitor pays any SDLT within 14 days and applies to register at HMLR
Completion Seller’s solicitor will redeem the mortgage from the funds and pay the estate agent
* Investigating Title
Registered Land
- Check for a title plan and ensure it is accurate to what the parties believe.
- Check if the seller has title absolute and if not, what is the best title they can get.
- Ensure all registered proprietors have signed the register of title and if not, appoint a second
trustee to overreach any interests of third parties.
- Check for any covenants or easements relating to the land.
Unregistered Land
, - Need to show a good root of title dating back 15 years and an unbroken line of ownership.
- Check if there were any previous triggers for first registration such as conveyance or mortgage.
- Check that all documents are correctly stamped and legally valid.
**Buyer’s Solicitor’s Pre-Contract Searches
1. Local Search
o Shows any local land charges owed to a local authority;
o any planning permissions and tree preservation orders;
o if the property is listed in any way;
o If there are any public rights of way or building regulation consents etc.
2. Drainage and Water Search
3. Environmental Search
(Optional Searches based on facts)
- If unregistered, search of the index map to check for partial registration.
- If Seller is a company, a company search
- If the buyer is getting a mortgage, a bankruptcy search
- If the property is commercial, a copy of the commercial property standard enquiries should be
sent to the seller to answer
- If there is a coal mine nearby, a mining search.
*** Law Society Formulae for Exchange of Contracts
A. Any one solicitor holds both signed parts of the contract. The Buyer’s solicitor will have already
sent the deposit. The Seller’s solicitor confirms the contracts match and inserts the completion
date in both.
B. Both solicitor’s hold their client’s signed contracts, confirm they match over the phone and send
the signed parts to one another.
C. Chain of transactions will use this formula. Deposits are sent up the chain and calls are made to
confirm exchange and then complete exchange.
**** Buyer’s Solicitor’s Pre-Completion Searches
1. Official Search with priority (registered land) (OS1 form)
a. Reveals any changes made to the register since the first search
b. Gives the buyer 30 working days to register the transfer
2. Full land charges search (unregistered land)
a. Gives the buyer 15 working days to complete the transaction
3. Another bankruptcy search against the buyer or Company search if appropriate
Check that all names, addresses, title numbers, pricings, dates, deposits etc are correct. Is VAT dealt
with? Will the client need to insure the property after exchange?
Land Law Revision
- Fittings that will be passed to the buyer need to be recorded in the PIF.
- Legal Interests need to be created in deed and will bind buyers regardless of notice.
, - Equitable interests and charges must be registered on the Land Charges Register to become
legal interests (Remember if the buyer has notice of an equitable interest, they will be bound).
- Certain events will override first registration (the right can be enforced even after registration
with HMLR)
- Certain events will trigger a need to register unregistered land at HMLR within 2 months.
- The seller is duty bound to disclose latent (non-obvious) defects and burdens.
- Positive covenants can only be enforced through a chain of indemnity. Check the condition of
anything covered under the covenant and if acting for the seller, consider asking the buyer to
sign an indemnity to continue the covenant.
Example Issues for Client Advice
Planning Permissions:
Check charges register for planning permission or any rights of way that may be affected
Carry out a local search to see if the property is listed
Check Town & Country Planning to see if planning permission is required:
o The Town and Country Planning Act 1990 requires planning permission is sought for any
structural changes to buildings or land, any changes to material use or for mining operations
o Deemed permission applies to small home extensions but the local authority can disapply
deemed permission at any time.
Apply for planning permission if required
o Outline permission is needed first. If there are reserved matters, a full application must be
made in 3 years and work must start within 2 years.
o Detailed permission is needed if there are specific conditions. Work must begin within 3
years.
Check compliance with building regulations
Check for any restrictive covenants, these will bind successive purchasers of land but they must
touch and concern the land.
Security of Tenure
- This is only relevant to commercial leases for a duration longer than 6 months.
- The parties may contract out of security of tenure if the Landlord serves a written health
warning 14 days before completion and the tenant signs a declaration.
Get a copy of the lease and read any provisions around grounds to terminate
Collect evidence of any grounds being met
Check if the section 25/26 notice is served 6-12 months prior to end of current tenancy.
o Section 25 grounds: Tenant breached an obligation; whole property is needed; there is
suitable alternative accommodation; the whole building is to be demolished or the Landlord
wants to occupy.
o Section 26 notice gives the Landlord 2 months to decide if they will oppose the request and
if so, must list one of the section 25 grounds for doing so.
- If a commercial tenant fails to pay rent, the landlord has a statutory right to seize and sell the
tenant’s goods.
- If the Landlord wishes to seize the whole building, the Tenant will be entitled to compensation.
- Forfeiture is only a remedy for rent non-payment if it is expressly included in the lease.
, Assigning a Lease
- Assignment is only where the entire interest in the lease is handed over, if only some of the
interest is signed, it is an underlease.
- Assignment must be done via deed.
- Encourage the Landlord and Tenant to sign a license to assign. This will mean the Landlord can
hold the Tenant liable for abuses of the lease by their assignee.
- Assigning leases made after 1995 will allow tenants to be automatically released of their
covenants. You can advise an authorized guarantee agreement to be signed so the original
tenant will act as a guarantor for the sub-tenant.
Easements
Check where the easement covers, does it go over the land or under it?
Check who can use the easement and why.
Any changes needing to be made will be done through a deed of variation.
Is there a price for use of the land? Is the land in good condition or are repairs needed?
Register the easement with HMLR as a notice on the property or charges register.
Easements can be created through prescription, which will require continuous use for 20 years
without challenge or payment to the owner.
Easements can be created through express or implied grant. Implied being where an easement
is necessary to access the land.
Adverse Possession
Requires actual, physical and exclusive use of the land for 12 (unregistered land) or 10 (registered land)
years.
- Is an easement required to get access to a road? Evidence will be on the title plan.
- Are there any reasons why adverse possession may not be possible e.g. was permission sought
to use the land? Was any money exchanged? Does anyone else use it?
- If all criteria are met, an application can be made at HMLR.
Delayed Completion
- Serving notice to complete gives 10 working days for completion. If this is not done, and the
defaulting party is the:
o Buyer: the seller can rescind the contract, retain the deposit, resell the property and
claim damages
o Seller: the buyer can rescind the contract, reclaim their deposit with interest, claim
damages or apply for specific performance.
- Any delay in completion entitles the innocent party to interest.
- There is no right to rescission unless the contract states that time is of the essence. If time is not
of the essence, either party may serve notice to complete giving the other 10 days to complete.
Purchasing a Property
- You cannot act for the buyer and seller due to a conflict of interest.
- You cannot give specific mortgage advice. Offer to put them in touch with a mortgage advisor.
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