SQE2 Property Law Practice 2 — Questions and Answers
Question 1: Which search is essential in all residential conveyancing transactions and checks planning history and road adoption?
- Chancel repair search
- Local authority search (LLC1 and Con29) (Correct answer)
- Environmental search
- Land charges search
Correct answer: Local authority search (LLC1 and Con29)
The local authority search (LLC1 for local land charges and Con29 for additional enquiries) reveals planning permissions, enforcement notices, road adoption status and other matters affecting the property.
Question 2: SDLT (Stamp Duty Land Tax) is payable on a residential property purchase by:
- The seller
- The buyer, within 14 days of completion (Correct answer)
- The mortgage lender
- Both parties equally
Correct answer: The buyer, within 14 days of completion
SDLT is the buyer's liability in England; it must be paid and a return filed with HMRC within 14 days of completion of the land transaction.
Question 3: An overriding interest under Schedule 3 LRA 2002 that protects an occupier's interest arises when:
- The occupier is registered as owner
- The occupier is in actual occupation and their interest would not have been obvious on a reasonable inspection (Correct answer)
- The occupier has lived at the property for 12 years
- The occupier has a written licence
Correct answer: The occupier is in actual occupation and their interest would not have been obvious on a reasonable inspection
Schedule 3 para 2 LRA 2002 protects the interest of a person in actual occupation provided the interest was not obvious on a reasonable careful inspection and the occupier was not asked about it.
Question 4: In a long residential lease, the 'covenant for quiet enjoyment' means:
- The landlord promises no noise nuisance from neighbours
- The landlord covenants not to disturb the tenant's lawful possession of the property (Correct answer)
- The lease cannot be altered without the tenant's consent
- The tenant must not cause a nuisance
Correct answer: The landlord covenants not to disturb the tenant's lawful possession of the property
The covenant for quiet enjoyment is the landlord's implied (and often express) promise not to interfere with the tenant's possession and enjoyment of the property during the term.
Question 5: A transfer of registered freehold land takes effect legally when:
- The TR1 is signed by the seller
- The disposition is completed by registration at HM Land Registry (Correct answer)
- The keys are handed over on completion
- The purchase price is received by the seller
Correct answer: The disposition is completed by registration at HM Land Registry
Under s.27 LRA 2002, a registered disposition of a freehold (or grant of a lease for more than 7 years) does not operate at law until completed by registration.
Question 6: The protocol for dealing with contaminated land discovered during a property transaction requires the solicitor to:
- Ignore it unless the buyer raises it specifically
- Advise the client of the risk, obtain an environmental search and consider specialist reports (Correct answer)
- Guarantee the land is clean before exchange
- Refer the matter to the Environment Agency only
Correct answer: Advise the client of the risk, obtain an environmental search and consider specialist reports
On discovering potential contamination a solicitor must advise the client of the legal and financial risks (including Part IIA EPA 1990 liability), obtain appropriate searches and consider specialist environmental investigation.
SQE2 Property Law Practice 2
Which search is essential in all residential conveyancing transactions and checks planning history and road adoption?