1 Stages in a residential conveyancing transaction from the seller s point of view 1
1.1 Introduction 1
1.2 Your client 2
1.3 Gathering information 2
1.4 Preparing the package 4
1.5 Drafting the agreement for sale 5
1.6 Exchanging the two parts of the agreement 6
Preface 7
Table of Cases 8
1.7 The deposit 8
1.8 Insurance 8
1.9 Proving title 10
1.10 Dealing with the purchaser s requisitions on title 10
1.12 Completion statement 11
1.11 Checking the draft conveyance or transfer 11
1.13 Completion 12
1.14 After completion 12
Table of Statutes 12
2.2 Gathering information 13
2.1 Introduction 13
2.3 You need to know your client s financial position 13
2 Stages in a conveyancing transaction:the purchaser s point of view 13
2.5 Consideration of the draft agreement 15
2.6 The deposit 15
2.4 The pre-contract searches and enquiries 15
2.7 Exchange of the two parts of the agreement 16
2.8 Insurance 16
2.9 Investigation of title 16
Table of Statutory Instruments 17
2.10 Report on title to the building society 17
2.11 Drafting the conveyance or transfer 17
2.12 Drafting the mortgage 18
2.13 Obtaining the balance of the purchase money 20
2.14 The pre-completion search 20
2.15 Completion 20
2.16 After completion 21
2.17 A note on the stamping of documents by the purchaser after completion 22
2.18 Acting for both parties 23
3 Registered title 25
3.1 Introduction 25
3.2 How does a title come to be registered? 26
3.3 Voluntary registration 29
3.4 What titles can be registered? 29
3.5 The effect of first registration of a title 29
3.6 Classes of title 30
3.7 Upgrading of title 33
3.8 The form of the register 33
3.9 The land certificate 34
3.10 The charge certificate 35
3.11 Dealings with a registered title 35
3.12 Third-party rights in registered title 36
3.14 Methods of protecting minor interests 37
3.13 The need to protect a minor interest 37
3.15 Overriding interests 40
3.16 Section 70(1)(g)of the Land Registration Act 1925-dangerous occupiers 42
3.17 The meaning of actual occupation 42
3.18 When must the occupier be in occupation? 43
3.19 The undisclosed trust of land 44
Case notes 44
Workshop 46
4 Unregistered title:third-party rights 47
4.1 Is the third party s interest legal or equitable? 47
4.2 Is it overreachable? 47
4.4 Notice 48
4.3 Does the Land Charges Act 1972 apply? 48
4.5 The Land Charges Act 1972(Formerly 1925) 50
Workshop 55
5 Drafting the agreement for sale 56
5.1 Introduction 56
5.2 Drafting an agreement to sell a registered title 56
5.3 The implied promise as to title 64
5.4 When do we need to alter the implied promise as to title? 67
5.5 The effect of standard condition 3.1 68
5.6 Barring requisitions 69
5.7 Drafting a contract for the sale of an unregistered title 70
5.8 Other conditions that might be necessary to add to an agreement for sale 74
5.10 Formalities for the creation of a contract for the sale of land 77
5.9 Conditional contracts 77
Workshop 78
6 Pre-contract searches and enquiries 80
6.1 Introduction 80
6.2 The usual searches and enquiries 80
6.3 The unusual searches 87
6.4 The survey 88
6.5 Town and country planning 88
Case notes 93
Workshop 94
7.1 Deduction of title 96
7.2 Section 110(1)of the Land Registration Act 1925 96
7 Deducing and investigating a freehold registered title 96
7.3 Section 110(2)of the Land Registration Act 1925 97
7.4 Investigation of title 97
7.5 The pre-completion search:form 94 101
7.6 Other pre-completion searches 102
Workshop 103
8 Deduction of unregistered title 105
8.1 Form of evidence 105
8.2 What deeds and other documents should be abstracted? 105
8.3 Which are not abstracted? 105
8.4 Verification of the abstract 107
8.5 Retention by the seller of the deeds at completion 108
Workshop 108
9.2 The first document of title 110
9.1 Introduction 110
9 Investigation of unregistered title 110
9.3 The second document of title 113
9.4 Execution of a deed by a company 114
9.5 Execution of a deed by an attorney 115
9.6 Clearing a mortgage off the title 119
9.7 Establishing a title by adverse possession 120
9.8 Minors 121
9.9 A voluntary conveyance 121
9.10 Bankruptcy of the seller 122
9.11 Bankruptcy of the purchaser 123
9.12 The purchaser s pre-completion search-the last stage in the investigation of title 124
Workshop 127
Case note 127
10 Personal representative:the passing of a legal estate on death 129
10.1 The death of a sole beneficial owner 129
10.2 Buying from the personal representative 129
10.3 The use of an assent 132
10.4 The death of a personal representative 135
Workshop 136
11 A sale by trustees of land 138
11.1 Introduction 138
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 trustees 140
11.5 How many trustees are there? 142
11.7 Investigating the equitable interests 143
11.6 Consents 143
11.8 Co-ownership of the equitable interest 144
11.9 A conveyance or transfer by the sole surviving co-owner 145
11.10 The wolf in sheep s clothing,or the problem of the disguised trustee 149
11.11 The dangerous occupier 150
11.12 The dangerous spouse 154
11.13 Undue influence 156
Case notes 157
Workshop 160
12 Easements and restrictive covenants 162
12.1 Sale of land that already has the benefit of an easement over a neighbour s land 162
12.2 Sale of land that is already burdened with an easement 162
12.3 Sale of land when the seller will continue to own land nearby 162
12.4 Particular points about easements and the Land Registration Act 1925 166
12.5 Covenants 167
12.6 The contract 168
12.7 The conveyance or transfer 168
12.8 Protecting the covenant 169
12.9 Indemnity covenants 169
13.5 Value added tax 170
12.10 Particular points about covenants and registered title 171
Workshop 172
13 Sales of commercial properties 174
13.1 Procedure 174
13.2 Planning 175
13.3 Restrictive covenants 176
13.4 Environmental law 177
Workshop 181
13.6 Insurance 181
14 Drafting a transfer of registered title 188
14.1 A transfer of whole 188
14.2 A transfer of part of the land in the title 200
Workshop 201
15 Drafting a conveyance of unregistered title 204
15.1 A traditional conveyance 204
15.2 A conveyance of unregistered title drafted using form TR1 207
15.3 A conveyance of part of the land in the title 208
15.4 A rule 72 transfer 208
16.2 Title to be shown 210
16 Buying a leasehold 210
16.1 Introduction 210
16.3 Consent to assignment 213
16.4 Breach of covenants 215
16.5 Changes in procedure 215
Workshop 221
17 The grant of a lease 222
17.1 Procedure 222
17.2 Title 224
17.3 Stamping a new lease 227
17.4 Registration 227
17.5 The contents of the lease 228
18.1 Drafting the contract 231
18 Chain transactions 231
18.2 Synchronisation of exchange of contracts 232
18.3 The transfer of funds 234
18.4 The client s finances generally 235
Workshop 236
19 Remedies for breach of contract 239
19.1 Introduction 239
19.2 Assessment of damages 239
19.3 The seller breaking his promise as to title 240
19.4 Misdescription 241
19.5 Delayed completion 242
Workshop 247
20.1 Remedies for breach of contract 248
20 Remedies available to the parties after completion 248
20.2 Remedies for breach of promises as to title implied into the conveyance 249
20.3 Under s.25 of the Law of Property Act 1969 254
20.4 For misrepresentation 255
Workshop 256
Appendices:standard forms 257
A Agreement 257
B Standard conditions of sale 259
C Seller s property information form 264
D Land registry form TR1 274
E Land registry form TP1 276
Specimen solutions to workshop problems 280
Index 307