CILEx L6 Property Law and Conveyancing

Question 1

Under the Land Registration Act 2002, what is the effect of an interest that qualifies as an overriding interest under Schedule 3?

Accepted Answer

It binds a registered disponee even though it does not appear on the register, overriding the normal principle that the register is conclusive

Answer

It must be registered to bind a purchaser

Answer

It is void against everyone unless protected by a notice

Answer

It only binds the original parties to the transaction

Question 2

What are the requirements for the creation of a valid legal easement over registered land?

Accepted Answer

The easement must be created by deed (s.52 LPA 1925), satisfy the requirements in Re Ellenborough Park [1956] (dominant and servient tenements, the right must accommodate the dominant tenement, and be capable of forming the subject matter of a grant), and be completed by registration

Answer

A verbal agreement between the landowners is sufficient

Answer

An easement can be created by any written document

Answer

Legal easements arise automatically when land is sold

Question 3

In conveyancing, what is the significance of the distinction between exchange of contracts and completion?

Accepted Answer

Exchange creates a binding contract and an equitable interest in the buyer; completion transfers the legal estate through execution and delivery of the transfer deed and payment of the purchase price

Answer

Exchange and completion occur simultaneously and have no separate significance

Answer

Exchange transfers the legal title; completion is merely administrative

Answer

Exchange is optional; only completion is required for a valid transfer

Question 4

What is the effect of a restrictive covenant on freehold land and how does the burden pass to successors in title?

Accepted Answer

At common law, the burden does not run with the land; in equity, the burden passes to successors in title provided the covenant is negative in substance, touches and concerns the dominant land, the original parties intended it to bind successors, and the successor had notice (or in registered land, the covenant is protected by a notice on the register)

Answer

The burden of a restrictive covenant automatically passes at common law to all subsequent owners

Answer

Restrictive covenants only bind the original parties and can never affect successors

Answer

The burden passes only if the covenant is registered as a legal charge

Question 5

Under the Law of Property Act 1925, what formalities are required for the valid creation of a legal mortgage over registered land?

Accepted Answer

The mortgage must be created by deed (a legal charge), comply with the requirements of s.52 LPA 1925 and s.1 LP(MP)A 1989, and be completed by registration at HM Land Registry, which enters a charge on the charges register and issues the lender with notification

Answer

An oral agreement is sufficient to create a legal mortgage

Answer

A legal mortgage can be created by deposit of title deeds only

Answer

Only a written agreement signed by the borrower is required

Question 6

What remedies are available to a buyer of residential property who discovers a defect in title after completion?

Accepted Answer

The buyer may claim under the title guarantee covenants implied by s.76 LPA 1925 and the Law of Property (Miscellaneous Provisions) Act 1994, claim against the seller for misrepresentation or breach of contract, or seek indemnity from HM Land Registry under Schedule 8 LRA 2002 if the register was inaccurate

Answer

The buyer has no remedies once completion has occurred

Answer

The buyer can only seek to rescind the contract

Answer

The buyer must accept the defect and cannot claim compensation