Property Practice SQE Lecture Notes

Flashcards covering the essential concepts of property practice in England and Wales for SQE preparation, including residential sales, commercial leases, and statutory regulations.

What is the key principle of residential property sales regarding the buyer's responsibility for investigations?

Caveat emptor (Buyer beware), meaning the buyer is responsible for conducting all necessary searches and surveys.

Under what conditions is a full structural survey typically required for a residential property?

If the property is $\ge 150$ years old or has undergone extensive renovations.

In the context of rights of way, what does the acronym "RAMA" stand for?

Registration of burden, Adequacy (legal and physical), Maintenance (fair proportion of costs), and Adoption (public status).

What is the deadline for submitting a Stamp Duty Land Tax (SDLT) return and payment following completion?

Within $14\text{ days}$ of completion.

What is the priority period provided by a Land Registry Official Search with priority (Form OS1)?

$30\text{ working days}$ from the date of the search.

What is the time limit for registering a first registration of unregistered land at the Land Registry?

$2\text{ months}$ from completion; otherwise, the transaction is void and the title reverts to the seller.

What is the requirement for a deed to be considered a "good root of title" in unregistered land?

It must be at least $15\text{ years}$ old, contain an adequate description of the property, and deal with both legal and equitable title.

Under Land Charges search class C(IV), what specific interest is protected?

An estate contract.

What are the planning enforcement time limits for building works completed before $25\text{ Apr 2024}$?

$4\text{ years}$ for building works and change of use to a single dwelling house; $10\text{ years}$ for other changes of use or breach of planning conditions.

What is the VAT treatment for newly constructed commercial property (less than $3\text{ years}$ old)?

Standard-rated (taxable at $20\%\text{ VAT}$).

According to the Standard Conditions of Sale (SCS) and Standard Commercial Property Conditions (SCPS), what is the default time for completion?

$2\text{ pm}$.

What is the formula for calculating contractual daily interest for delayed completion?

$$\text{Daily Interest} = (\text{purchase price} - \text{deposit}) \times \text{interest}\% \times \frac{1}{365}$$

Under the Law Society Formula B, what are the primary methods of sending signed contracts between solicitors on the day of exchange?

First class post, DX, or hand delivery.

What is the maximum area of a property for it to fully qualify for Capital Gains Tax (CGT) Private Residence Relief?

$$5,000\,m^2$$

In a commercial FRI lease, who is responsible for insuring the building?

The landlord is responsible for insurance, but the cost (insurance rent) is recovered from the tenant.

What is the difference between a "traditional" quarter and a "modern" quarter in lease rent payments?

Traditional: $25\text{ Dec}$, $25\text{ Mar}$, $24\text{ Jun}$, $29\text{ Sep}$; Modern: $1\text{ Jan}$, $1\text{ Apr}$, $1\text{ Jul}$, $1\text{ Oct}$.

Under s.19 of the Landlord and Tenant Act 1927, what does a qualified covenant for improvements automatically convert to?

A fully qualified covenant, meaning the landlord's consent cannot be unreasonably withheld.

What is an Authorized Guarantee Agreement (AGA) in the context of a new lease (post-1996)?

An agreement where the assignor (T1) guarantees the obligations of the immediate assignee (T2) until T2 further assigns the lease.

What are the three criteria for a tenancy to have security of tenure under the Landlord and Tenant Act 1954?

(i) A tenancy (ii) occupied by the tenant (iii) for business purposes.

What is the required notice period for a landlord to serve a Section 25 (s.25) notice?

No less than $6\text{ months}$ and no more than $12\text{ months}$ before the specified termination date.

Under LTA 1954, what is statutory ground (f) for a landlord to oppose a lease renewal?

The landlord intends to demolish, reconstruct, or carry out substantial construction work on the premises.

To oppose a renewal under statutory ground (g) of LTA 1954, how long must the landlord have owned the reversionary interest?

At least $5\text{ years}$ before the date of termination specified in the s.25 notice.

What is the minimum amount of principal rent arrears required for a landlord to use Commercial Rent Arrears Recovery (CRAR)?

A minimum of $7\text{ days}$' principal rent.

What are the service requirements for a landlord initiating CRAR on a commercial tenant?

$7\text{ clear days}$' notice of intention to enter and a further $7\text{ clear days}$' notice of intention to sell seized goods.

What are the statutory requirements under s.146 of the Law of Property Act 1925 for a landlord to forfeit for non-rent breaches?

Serving a s.146 notice that specifies the breach, requires it to be remedied (if possible), and seeks compensation.

Under the Leasehold Property (Repairs) Act 1938, when does a tenant have the right to serve a counter-notice against a s.146 notice for repairs?

When the lease was granted for a term of $\ge 7\text{ years}$ and there are at least $3\text{ years}$ left to run.

What is a "Jervis v Harris" clause?

A self-help clause allowing the landlord to enter the property, perform repairs the tenant failed to do, and recover the cost as a debt rather than damages.