Module II Flashcards
6 cards from real CEMAP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Module II flashcards as text
What is Stamp Duty Land Tax (SDLT) and how does it affect property buyers?
Answer: It is a tax on property purchases in England and Northern Ireland, calculated on a tiered basis with higher rates for additional properties
SDLT is a tax payable on property purchases above certain thresholds, with rates increasing in tiers and a 3% surcharge for additional properties.
What is the significance of the Energy Performance Certificate (EPC) in property transactions?
Answer: It is a legal requirement for properties being sold or let, rating energy efficiency from A to G and providing improvement recommendations
An EPC is legally required when a property is sold, let, or constructed. It rates the property's energy efficiency from A (most efficient) to G (least efficient) and is valid for 10 years.
What is a restrictive covenant and how can it affect a mortgaged property?
Answer: A restriction on how the property can be used, imposed by a previous owner and binding on future owners, which can affect property value and use
Restrictive covenants are obligations attached to the land that restrict how the property can be used, and they bind successive owners.
What is the process and purpose of a local authority search in conveyancing?
Answer: It reveals information held by the local council about planning, roads, building control, and other matters affecting the property and surrounding area
A local authority search reveals crucial information from the council about planning permissions, road proposals, conservation areas, and other factors affecting the property.
What is the role of the surveyor in the mortgage process?
Answer: The surveyor assesses the property's value, condition, and suitability as security for the mortgage lender
The surveyor inspects the property to assess its market value, identify significant defects, and confirm it provides suitable security for the lender.
What is commonhold tenure and how does it differ from traditional leasehold?
Answer: Commonhold allows owners to hold freehold title to individual units in multi-unit buildings with shared common parts managed by a commonhold association
Commonhold (introduced by the Commonhold and Leasehold Reform Act 2002) allows freehold ownership of individual units within a multi-unit development, with common areas managed by a commonhold association of unit holders.