SQE1 Property Law

Question 1

What is the main difference between freehold and leasehold ownership of land in England and Wales?

Accepted Answer

Freehold ownership is permanent and absolute; leasehold gives a right to occupy for a fixed term subject to conditions

Answer

Freehold is temporary; leasehold is permanent

Answer

Leasehold is more valuable than freehold in all circumstances

Answer

Freehold cannot be mortgaged; leasehold can

Question 2

Under the Land Registration Act 2002, what is the effect of first registration of a freehold title at HM Land Registry?

Accepted Answer

The title is registered and the proprietor's rights are protected; however, overriding interests still bind without being entered on the register

Answer

The registered proprietor gains an unimpeachable title that cannot be affected by prior interests

Answer

All prior equitable interests are automatically extinguished on registration

Answer

The property is immediately transferred to the Crown if unregistered interests exist

Question 3

What is an 'easement' in land law?

Accepted Answer

A right to use someone else's land for a specific purpose that benefits the dominant tenement

Answer

A right to take something from the land (such as fish or game)

Answer

The obligation to maintain a boundary wall

Answer

A restriction on how land can be used

Question 4

In leasehold law, what is the 'privity of estate' rule?

Accepted Answer

The obligations under a lease bind the persons who hold the respective estates (freehold and leasehold) for the time being, while that relationship exists

Answer

Lease obligations bind only the original landlord and tenant

Answer

All lease covenants are personal and cannot be transferred

Answer

Subleases are automatically void unless registered

Question 5

What is a 'restrictive covenant' in land law and how does it bind successors in title?

Accepted Answer

A negative obligation restricting use of land that runs with the burdened land in equity if certain conditions are met

Answer

A positive obligation to do something on land, binding all subsequent owners automatically

Answer

An agreement between neighbours that is purely personal and does not bind successors

Answer

A planning permission condition imposed by the local authority

Question 6

Under the standard conveyancing process in England and Wales, at what point do the parties become legally bound to buy and sell a property?

Accepted Answer

On exchange of contracts

Answer

When the seller accepts the buyer's offer verbally

Answer

When the buyer's solicitor conducts searches

Answer

On completion