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Property Practice — SQE1 practice questions

Freehold and leasehold conveyancing from instructions to post-completion: title, searches, exchange and completion, mortgages, lease terms, consents, security of tenure and planning basics.

Practise 25 Property questions free

3 free questions with answers

Investigation of title

Your firm acts for Nadia, who is buying Larch Cottage, a freehold house with unregistered title, from Owen. The seller's solicitor has sent an epitome of title containing: a 1984 conveyance on sale from Quentin to Rhys; a 2001 conveyance on sale from Rhys to Sian, which describes the property by reference to a plan and contains nothing casting doubt on the title; and a 2015 conveyance on sale from Sian to Owen. There is no voluntary disposition in the chain. Nadia's purchase is taking place this year.

Which document should Nadia's solicitor accept as a good root of title?

  1. AThe 2015 conveyance on sale, because the most recent conveyance on sale is always the root of title.
  2. BThe 2001 conveyance on sale, because it is at least 15 years old, deals with the whole legal and equitable interest and casts no doubt on the title.
  3. CThe 1984 conveyance on sale, because a root of title must be at least 30 years old.
  4. DNo root is needed, because the buyer is entitled only to the seller's own conveyance and an official search of the index map.
  5. EThe title must be traced back to the original Crown grant, because unregistered titles have no statutory root period.
Show answer and reasoning
B is the best answer. Under the Law of Property Act 1969, s 23, a buyer of unregistered land is entitled to call for title commencing with a good root at least 15 years old. A good root deals with the whole legal and equitable interest, describes the property adequately and casts no doubt on the title; a conveyance on sale is the best kind. The 2001 conveyance is the most recent document meeting those requirements.

Rule: A buyer of unregistered land is entitled to title starting from a good root of title at least 15 years old, ideally a conveyance on sale.

  • A The 2015 conveyance is less than 15 years old, so it cannot satisfy the statutory minimum period for a root. (wrong rule)
  • C Thirty years was the pre-1970 period; the Law of Property Act 1969 reduced the minimum to 15 years. (wrong rule)
  • D On a sale of unregistered land the buyer is entitled to a chain of title starting with a good root at least 15 years old, not merely the seller's own deed. (wrong rule)
  • E Statute fixes a 15-year minimum for the root; there is no requirement to trace title to a Crown grant. (wrong rule)

Source: Law of Property Act 1925, s 44(1), as amended by Law of Property Act 1969, s 23

Investigation of title

Alan and Beth were registered as joint proprietors of a freehold house. The proprietorship register contains a Form A restriction stating that no disposition by a sole proprietor under which capital money arises is to be registered unless authorised by court order. Beth died last year and Alan is now selling the house to your client, Cerys, for £320,000. Alan's solicitor proposes that Cerys simply pays the purchase price to Alan against a transfer signed by him alone and a copy of Beth's death certificate.

What should Cerys's solicitor require before completion?

  1. AA copy of Beth's death certificate is sufficient, because the survivor of joint proprietors can always give a good receipt alone.
  2. BNothing further, because a registered purchaser for value takes free of any interest that is not protected by a notice.
  3. CPayment of the purchase money to Alan with the written consent of Beth's personal representatives.
  4. DAlan should appoint a second trustee to join in the transfer, so that the purchase money is paid to two trustees and Beth's beneficial interest is overreached.
  5. EPayment of one half of the price to Alan and the other half to Beth's personal representatives.
Show answer and reasoning
D is the best answer. A Form A restriction signals that the proprietors held the beneficial interest as tenants in common, so on the death of one the survivor cannot give a valid receipt for capital money. Overreaching under the Law of Property Act 1925, ss 2 and 27(2), requires payment to at least two trustees (or a trust corporation). Alan should therefore appoint a co-trustee to join in the transfer and receive the purchase money, so the transfer can be registered and Cerys takes free of the beneficial interests.

Rule: Where a Form A restriction is on the register, capital money must be paid to at least two trustees so that beneficial interests are overreached and the restriction is complied with.

  • A The restriction shows they held as tenants in common in equity, so a sole survivor cannot give a valid receipt for capital money; a death certificate alone suffices only where there is no such restriction. (right rule, wrong facts)
  • B The Form A restriction is on the register and the Land Registry will not register the transfer unless it is complied with. (wrong rule)
  • C The personal representatives' consent does not satisfy the restriction; overreaching requires payment to at least two trustees or a trust corporation. (wrong rule)
  • E Splitting the price between the survivor and the estate does not achieve overreaching and does not comply with the restriction. (wrong rule)

Source: Law of Property Act 1925, ss 2(1)(ii), 27(2); Land Registration Act 2002, s 40; Land Registration Rules 2003, Sch 4 (Form A)

Investigation of title

Your firm acts for Dev, who wants to buy a freehold warehouse from Elm Holdings Ltd. Official copies show that Elm Holdings is registered with possessory title, which was registered six years ago following a first registration based on a statutory declaration of long use. Dev's lender has asked for a report on the class of title. Dev asks you what the class of title means for him.

Which of the following best explains the effect of the possessory title?

  1. AThe title is guaranteed only from the date of first registration, so Dev would take subject to any adverse rights that existed at that date, and he should consider title indemnity insurance.
  2. BThe title is as good as absolute title, because all registered freehold titles carry the same state guarantee.
  3. CThe title is qualified, so a specific defect excepted from the register is the only risk.
  4. DElm Holdings can apply now to upgrade the title to absolute as of right, because six years have passed.
  5. EDev's lender cannot lawfully lend on a possessory title, so the purchase cannot proceed with mortgage finance.
Show answer and reasoning
A is the best answer. Registration with possessory title has the same effect as absolute title except that it does not affect the enforcement of any estate, right or interest adverse to the proprietor's title which subsisted at, or was capable of arising at, first registration (LRA 2002, s 11(7)). The state guarantee therefore runs only from first registration. A freehold possessory title can be upgraded to absolute only after 12 years as possessory (s 62(4)), so indemnity insurance is the usual protection meanwhile.

Rule: A possessory title takes effect subject to any adverse interests subsisting at first registration and can be upgraded to absolute after 12 years' registration where the proprietor is in possession.

  • B A possessory title does not protect against adverse interests subsisting at first registration, unlike an absolute title. (wrong rule)
  • C A qualified title excepts a specified defect; possessory title leaves open all adverse interests existing at first registration. (wrong rule)
  • D A freehold possessory title may be upgraded once it has been registered for at least 12 years and the proprietor is in possession, so six years is not enough. (right rule, wrong facts)
  • E There is no rule prohibiting lending on a possessory title; it is a risk for the lender to assess, often with indemnity insurance. (wrong rule)

Source: Land Registration Act 2002, ss 11(7), 62(4)

Next 20 questions on Property →

Subtopics

Commercial leases and the L&T Act 19545 questions
Exchange of contracts4 questions
Investigation of title4 questions
Post-completion3 questions
Pre-completion and completion3 questions
Remedies for delayed completion3 questions
Searches and enquiries3 questions

More FLK2 topics

Wills and the Administration of Estates
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Land Law
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