SQE1 - Solicitors Qualifying Examination Part 1 Property Law and Practice Questions and Answers — Questions and Answers
Question 1: A buyer and seller exchange contracts for the sale of a freehold house. The contract incorporates the Standard Conditions of Sale (Fifth Edition - 2018 Revision) without amendment. Between exchange and completion, a storm causes significant damage to the roof of the property. Which of the following statements most accurately describes the legal position?
- The seller bears the risk and must repair the damage before completion, or the buyer can rescind the contract.
- The buyer bears the risk and must proceed with completion at the full purchase price, but may be able to claim on the seller's insurance policy. (Correct answer)
- The risk is shared equally between the buyer and the seller, and the purchase price must be renegotiated.
- The contract is automatically frustrated, and both parties are discharged from their obligations.
Correct answer: The buyer bears the risk and must proceed with completion at the full purchase price, but may be able to claim on the seller's insurance policy.
Under the Standard Conditions of Sale (Fifth Edition - 2018 Revision), condition 5.1.1 states that the property is at the buyer's risk from the date of the contract (exchange). Therefore, the buyer must still complete the purchase. However, condition 5.1.3 requires the seller, if they are obliged to insure (which they often are under a separate mortgage or as a prudent measure), to hold any policy monies received in trust for the buyer or assign the right to claim. Thus, the buyer's primary recourse is often through the seller's insurance.
Question 2: Which of the following interests is most likely to be an 'overriding interest' under Schedule 3 of the Land Registration Act 2002, binding a purchaser for valuable consideration even though it is not protected by an entry on the register?
- An equitable mortgage created by the deposit of title deeds.
- A restrictive covenant entered into by the seller last year.
- A legal lease for a term of five years, granted two months ago, under which the tenant is in possession. (Correct answer)
- An estate contract to grant a lease for a term of ten years.
Correct answer: A legal lease for a term of five years, granted two months ago, under which the tenant is in possession.
Schedule 3, Paragraph 1 of the Land Registration Act 2002 provides that a legal leasehold estate granted for a term not exceeding seven years will be an overriding interest. A five-year legal lease falls into this category. The other options are interests that would require protection by a notice on the register to be binding on a purchaser.
Question 3: Two sisters own a house as beneficial joint tenants. One sister decides she wants to sever the joint tenancy. She posts a written notice of severance by first-class post to the house, where they both live. The letter is delivered through the letterbox. However, before the other sister reads it, the sender has a change of heart, retrieves the letter from the doormat and destroys it. What is the legal status of the co-ownership?
- The joint tenancy remains unsevered as the notice was not read by the other joint tenant.
- The joint tenancy was severed in equity when the letter was delivered. (Correct answer)
- The severance was ineffective because the sender revoked her intention by destroying the letter.
- The severance is only effective if the sender registers the notice with the Land Registry.
Correct answer: The joint tenancy was severed in equity when the letter was delivered.
Under section 36(2) of the Law of Property Act 1925, a joint tenancy can be severed by written notice. Service of the notice is governed by section 196 of the same Act, which deems notice to be served when it is left at the last known place of abode. The case of Kinch v Bullard [1998] established that severance is effective upon delivery of the notice, not when it is read. The sender's subsequent change of mind and destruction of the letter is irrelevant once service has been effected.
Question 4: A commercial tenant has a 10-year lease of a whole building. The lease contains no express covenants regarding repair by either the landlord or the tenant. The roof begins to leak, causing damage to the tenant's stock. In this situation, who is responsible for repairing the roof?
- The landlord, under an implied common law duty to repair the structure and exterior. (Correct answer)
- The tenant, as the lease is of the whole building.
- The landlord, under section 11 of the Landlord and Tenant Act 1985.
- Neither party has an obligation, but the tenant can terminate the lease due to the disrepair.
Correct answer: The landlord, under an implied common law duty to repair the structure and exterior.
In the absence of express terms in a commercial lease, the courts are generally reluctant to imply repairing obligations. There is no general common law duty on a landlord to repair commercial premises. Section 11 of the Landlord and Tenant Act 1985 implies repairing obligations on a landlord, but it applies only to dwelling-houses, not to commercial leases of this nature. Therefore, without an express covenant, neither party is obliged to carry out the repair, although it is in both their interests to resolve the issue.
Question 5: For over 25 years, a farmer has openly driven his tractor along a track across his neighbour's field to access a main road. This has been done without the neighbour's permission, without using force, and without secrecy. The neighbour has recently blocked the track with a fence. On what grounds is the farmer most likely to succeed in claiming a legal right of way?
- Implied easement of necessity.
- Express grant in the title deeds.
- Proprietary estoppel.
- Prescription under the Prescription Act 1832. (Correct answer)
Correct answer: Prescription under the Prescription Act 1832.
The farmer's long and continuous use (over 20 years) that is 'as of right' (without force, secrecy, or permission) meets the criteria for acquiring an easement by prescription. Specifically, section 2 of the Prescription Act 1832 establishes a right of way after 20 years of uninterrupted use. An easement of necessity would not apply unless the farmer's land was entirely landlocked, there is no evidence of an express grant, and proprietary estoppel would require a representation or assurance from the neighbour which is not mentioned.
Question 6: A homeowner wants to build a single-storey rear extension on their property. They believe they may not need to submit a full planning application. Which of the following pieces of legislation is most likely to grant 'deemed' planning permission for such a project, provided certain conditions and limitations are met?
- The Building Act 1984.
- The Housing and Planning Act 2016.
- The Town and Country Planning (General Permitted Development) (England) Order 2015. (Correct answer)
- The Localism Act 2011.
Correct answer: The Town and Country Planning (General Permitted Development) (England) Order 2015.
The Town and Country Planning (General Permitted Development) (England) Order 2015 sets out classes of development that are granted planning permission without the need for a formal application, known as 'permitted development rights'. Class A of Part 1 of Schedule 2 to the Order specifically deals with the enlargement, improvement, or other alteration of a dwellinghouse, including single-storey rear extensions, subject to various size limitations and conditions.
