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1 Stages in a residential conveyancing transaction from the seller s point of view1

1.1 Introduction1

1.2 Your client2

1.3 Gathering information2

1.4 Preparing the package4

1.5 Drafting the agreement for sale5

1.6 Exchanging the two parts of the agreement6

Preface7

Table of Cases8

1.7 The deposit8

1.8 Insurance8

1.9 Proving title10

1.10 Dealing with the purchaser s requisitions on title10

1.12 Completion statement11

1.11 Checking the draft conveyance or transfer11

1.13 Completion12

1.14 After completion12

Table of Statutes12

2.2 Gathering information13

2.1 Introduction13

2.3 You need to know your client s financial position13

2 Stages in a conveyancing transaction:the purchaser s point of view13

2.5 Consideration of the draft agreement15

2.6 The deposit15

2.4 The pre-contract searches and enquiries15

2.7 Exchange of the two parts of the agreement16

2.8 Insurance16

2.9 Investigation of title16

Table of Statutory Instruments17

2.10 Report on title to the building society17

2.11 Drafting the conveyance or transfer17

2.12 Drafting the mortgage18

2.13 Obtaining the balance of the purchase money20

2.14 The pre-completion search20

2.15 Completion20

2.16 After completion21

2.17 A note on the stamping of documents by the purchaser after completion22

2.18 Acting for both parties23

3 Registered title25

3.1 Introduction25

3.2 How does a title come to be registered?26

3.3 Voluntary registration29

3.4 What titles can be registered?29

3.5 The effect of first registration of a title29

3.6 Classes of title30

3.7 Upgrading of title33

3.8 The form of the register33

3.9 The land certificate34

3.10 The charge certificate35

3.11 Dealings with a registered title35

3.12 Third-party rights in registered title36

3.14 Methods of protecting minor interests37

3.13 The need to protect a minor interest37

3.15 Overriding interests40

3.16 Section 70(1)(g)of the Land Registration Act 1925-dangerous occupiers42

3.17 The meaning of actual occupation42

3.18 When must the occupier be in occupation?43

3.19 The undisclosed trust of land44

Case notes44

Workshop46

4 Unregistered title:third-party rights47

4.1 Is the third party s interest legal or equitable?47

4.2 Is it overreachable?47

4.4 Notice48

4.3 Does the Land Charges Act 1972 apply?48

4.5 The Land Charges Act 1972(Formerly 1925)50

Workshop55

5 Drafting the agreement for sale56

5.1 Introduction56

5.2 Drafting an agreement to sell a registered title56

5.3 The implied promise as to title64

5.4 When do we need to alter the implied promise as to title?67

5.5 The effect of standard condition 3.168

5.6 Barring requisitions69

5.7 Drafting a contract for the sale of an unregistered title70

5.8 Other conditions that might be necessary to add to an agreement for sale74

5.10 Formalities for the creation of a contract for the sale of land77

5.9 Conditional contracts77

Workshop78

6 Pre-contract searches and enquiries80

6.1 Introduction80

6.2 The usual searches and enquiries80

6.3 The unusual searches87

6.4 The survey88

6.5 Town and country planning88

Case notes93

Workshop94

7.1 Deduction of title96

7.2 Section 110(1)of the Land Registration Act 192596

7 Deducing and investigating a freehold registered title96

7.3 Section 110(2)of the Land Registration Act 192597

7.4 Investigation of title97

7.5 The pre-completion search:form 94101

7.6 Other pre-completion searches102

Workshop103

8 Deduction of unregistered title105

8.1 Form of evidence105

8.2 What deeds and other documents should be abstracted?105

8.3 Which are not abstracted?105

8.4 Verification of the abstract107

8.5 Retention by the seller of the deeds at completion108

Workshop108

9.2 The first document of title110

9.1 Introduction110

9 Investigation of unregistered title110

9.3 The second document of title113

9.4 Execution of a deed by a company114

9.5 Execution of a deed by an attorney115

9.6 Clearing a mortgage off the title119

9.7 Establishing a title by adverse possession120

9.8 Minors121

9.9 A voluntary conveyance121

9.10 Bankruptcy of the seller122

9.11 Bankruptcy of the purchaser123

9.12 The purchaser s pre-completion search-the last stage in the investigation of title124

Workshop127

Case note127

10 Personal representative:the passing of a legal estate on death129

10.1 The death of a sole beneficial owner129

10.2 Buying from the personal representative129

10.3 The use of an assent132

10.4 The death of a personal representative135

Workshop136

11 A sale by trustees of land138

11.1 Introduction138

11.2 How do you know that the sellers are trustees of land?139

11.3 Who are the current trustees?140

11.4 Changes of trustees140

11.5 How many trustees are there?142

11.7 Investigating the equitable interests143

11.6 Consents143

11.8 Co-ownership of the equitable interest144

11.9 A conveyance or transfer by the sole surviving co-owner145

11.10 The wolf in sheep s clothing,or the problem of the disguised trustee149

11.11 The dangerous occupier150

11.12 The dangerous spouse154

11.13 Undue influence156

Case notes157

Workshop160

12 Easements and restrictive covenants162

12.1 Sale of land that already has the benefit of an easement over a neighbour s land162

12.2 Sale of land that is already burdened with an easement162

12.3 Sale of land when the seller will continue to own land nearby162

12.4 Particular points about easements and the Land Registration Act 1925166

12.5 Covenants167

12.6 The contract168

12.7 The conveyance or transfer168

12.8 Protecting the covenant169

12.9 Indemnity covenants169

13.5 Value added tax170

12.10 Particular points about covenants and registered title171

Workshop172

13 Sales of commercial properties174

13.1 Procedure174

13.2 Planning175

13.3 Restrictive covenants176

13.4 Environmental law177

Workshop181

13.6 Insurance181

14 Drafting a transfer of registered title188

14.1 A transfer of whole188

14.2 A transfer of part of the land in the title200

Workshop201

15 Drafting a conveyance of unregistered title204

15.1 A traditional conveyance204

15.2 A conveyance of unregistered title drafted using form TR1207

15.3 A conveyance of part of the land in the title208

15.4 A rule 72 transfer208

16.2 Title to be shown210

16 Buying a leasehold210

16.1 Introduction210

16.3 Consent to assignment213

16.4 Breach of covenants215

16.5 Changes in procedure215

Workshop221

17 The grant of a lease222

17.1 Procedure222

17.2 Title224

17.3 Stamping a new lease227

17.4 Registration227

17.5 The contents of the lease228

18.1 Drafting the contract231

18 Chain transactions231

18.2 Synchronisation of exchange of contracts232

18.3 The transfer of funds234

18.4 The client s finances generally235

Workshop236

19 Remedies for breach of contract239

19.1 Introduction239

19.2 Assessment of damages239

19.3 The seller breaking his promise as to title240

19.4 Misdescription241

19.5 Delayed completion242

Workshop247

20.1 Remedies for breach of contract248

20 Remedies available to the parties after completion248

20.2 Remedies for breach of promises as to title implied into the conveyance249

20.3 Under s.25 of the Law of Property Act 1969254

20.4 For misrepresentation255

Workshop256

Appendices:standard forms257

A Agreement257

B Standard conditions of sale259

C Seller s property information form264

D Land registry form TR1274

E Land registry form TP1276

Specimen solutions to workshop problems280

Index307