Property Practice
Share
The Property Practice module covers all aspects of real estate law, from handling transactions to managing post-completion procedures. Each of the following topics is crucial for understanding the various elements involved in property law and practice.
1. Introduction
The Property Practice module lays the foundation for understanding how properties are bought, sold, and leased. It focuses on both residential and commercial properties, emphasising the legal processes involved. The introduction covers the basics of land ownership, interests in land, and the importance of due diligence.
2. Land Registry
The Land Registry holds a centralised record of land ownership in England and Wales. It ensures that interests in land are publicly recorded. The Land Registration Act 2002 governs the system, making it compulsory to register certain types of property transactions. Understanding the role of the Land Registry is crucial for ensuring that titles are clear and disputes over ownership are minimised.
3. Code of Conduct
The Solicitors Regulation Authority (SRA) sets out a Code of Conduct that governs how solicitors must act when handling property transactions. Ethical duties, conflict of interest rules, and client care are key aspects of the code, emphasising transparency and integrity in dealings.
4. Property Taxation
Property taxation involves stamp duty, capital gains tax, and inheritance tax. Stamp Duty Land Tax is levied on property purchases, with rates varying depending on the value of the property and the buyer's circumstances (e.g. first-time buyer or second property owner). Knowledge of property taxation is crucial for advising clients on the financial implications of a transaction.
5. Planning Permission
Planning permission is required for building works and changes to property use. The Town and Country Planning Act 1990 sets out the framework for obtaining consent from local authorities. This section also covers the appeals process and the consequences of non-compliance with planning laws.
6. Building Control
Building regulations ensure that properties meet health, safety, and sustainability standards. Building control officers enforce these regulations. This topic discusses the certification process and penalties for non-compliance, which can affect property sales and legal responsibilities.
7. Property Marketing
Property marketing involves advertising a property for sale or rent. It includes listing with estate agents, property portals, and the legal considerations involved in representations made about the property. Misrepresentation in marketing can lead to disputes or claims.
8. Financing
Property transactions often involve financing arrangements such as mortgages or loans. This section explains different financing methods, the role of lenders, and the legal documentation required. The implications of mortgage terms and interest rates on the transaction are also explored.
9. Joint Buyers
When two or more people purchase a property together, legal issues arise in relation to joint tenancy and tenancy in common. This section examines the distinctions between these forms of co-ownership, how interests are divided, and what happens in case of disputes.
10. Fixtures and Fittings
A key issue in property sales is distinguishing between fixtures (permanent parts of the property) and fittings (movable items). This section explains the rules for determining what is included in a sale and how disputes are resolved when there's ambiguity.
11. Surveys
Surveys provide vital information about the condition of a property. Different types of surveys, such as basic valuation, homebuyers report, and structural surveys, are covered. This section emphasises the importance of a survey in avoiding future disputes and identifying potential issues with the property.
12. Action Following Instructions
Once instructions are received from a client, solicitors must ensure they act diligently. This involves opening a file, conducting a conflict check, and clarifying the client's objectives. The responsibilities of solicitors at this stage are explored.
13. Deduction of Title
Deduction of title refers to the seller's obligation to prove that they own the property they are selling. This section covers the legal requirements, title deeds, and documents required to establish ownership.
14. Investigation of Title
The buyer's solicitor investigates the title to ensure there are no defects or legal issues that would affect the buyer's rights. Key issues include restrictive covenants, easements, and charges. This section details how these issues are investigated and remedied.
15. Issues in Title Investigation
Common problems that arise during title investigations include unregistered land, adverse possession claims, and disputes over boundary lines. The solicitor must identify and resolve these issues before the transaction can proceed.
16. Searches and Enquiries
Searches and enquiries are an essential part of due diligence. Local authority searches, environmental searches, and water and drainage searches are standard. The topic explains the types of searches conducted, their significance, and how they impact a transaction.
17. Draft Contract
The draft contract outlines the terms of the sale and includes details about the property, purchase price, and completion date. This section covers the importance of precision in drafting and negotiating contract terms.
18. Conditional Contracts and Options
Conditional contracts and options are used when a transaction is dependent on certain conditions, such as obtaining planning permission. This section covers the structure and drafting of these contracts and the legal consequences if conditions are not met.
19. Mortgage
A mortgage is a legal agreement by which a bank or building society lends money at interest in exchange for taking title of the debtor's property. This section explores the legal framework, the mortgage process, and the solicitor's role in advising both lender and borrower.
20. Deposit
The deposit is a sum paid by the buyer as part of the purchase price, typically on exchange of contracts. This section explains the standard practices surrounding deposits and the legal implications of non-payment.
21. Insurance
Both buyer and seller need to consider insurance, particularly after exchange of contracts. Buildings insurance must be in place to protect against damage. This section discusses different types of insurance and the solicitor's role in advising clients.
22. Exchange of Contracts
Exchange of contracts is the point where the sale becomes legally binding. This section outlines the steps involved, the significance of exchange, and what happens if a party fails to complete the transaction.
23. Consequences of Exchange
Once contracts are exchanged, the parties are legally committed to the sale. This section explores the legal consequences of failure to complete and the remedies available to either party.
24. Transfer Deed
The transfer deed is the document that transfers ownership from the seller to the buyer. It must be correctly executed and registered with the Land Registry. This section details the drafting and registration process.
25. Pre-Completion Searches
Before completion, final searches are conducted to ensure there are no new legal encumbrances or issues with the title. This section covers the importance of these searches and the potential consequences of neglecting them.
26. Preparing for Completion
Preparing for completion involves coordinating with the buyer, seller, lenders, and other parties to ensure that all necessary documentation and finances are in place. This section covers the practical steps solicitors take to ensure a smooth transaction.
27. Completion
Completion is the final step in the transaction where the purchase money is transferred, and the buyer takes possession of the property. This section explains the logistics of completion and the key documents involved.
28. Methods of Completion
There are several methods of completion, including postal and personal attendance. This section examines the advantages and disadvantages of each method and the legal implications involved.
29. After Completion
After completion, the buyer's solicitor is responsible for registering the property with the Land Registry and dealing with any post-completion issues, such as SDLT. This section explores these obligations.
30. Late Completion
Late completion can have serious legal consequences, including interest payments and potential termination of the contract. This section outlines the remedies available to parties when completion is delayed.
31. Remedies
This section covers the legal remedies available for breach of contract, failure to complete, or other disputes in property transactions. Remedies include specific performance, damages, and forfeiture.
32. Leasehold Property
Leasehold properties are governed by complex rules relating to the lease agreement, service charges, and ground rent. This section explains the distinctions between freehold and leasehold, and the legal issues that arise with leasehold properties.
33. Granting of Leases
This section covers the process of granting leases, including drafting the lease agreement, negotiating terms, and registering the lease with the Land Registry.
34. Assignment of Leases
Assignment of leases occurs when a leaseholder transfers their interest in the lease to another party. This section explains the legal process, landlord's consent, and the issues that can arise during assignment.
35. Drafting Leases
Drafting a lease requires precision to ensure that all terms are clear and enforceable. This section covers the key provisions, such as rent, term length, and break clauses, and common pitfalls in drafting.
36. Leasehold Management
Managing leasehold properties involves ensuring compliance with lease terms, managing service charges, and addressing tenant issues. This section discusses the role of managing agents and the legal framework for leasehold management.
37. Commercial Lease Rent Review
Rent review clauses in commercial leases allow landlords to adjust rent during the lease term. This section covers the different methods of review and the legal principles involved.
38. Landlord and Tenant Act 1954
The Landlord and Tenant Act 1954 provides security of tenure for tenants in commercial leases. This section explains the rights of tenants to renew their leases and the circumstances under which landlords can oppose renewal.
39. Sales of Part
Sales of part involve selling a portion of a larger piece of land. This section explores the legal issues in dividing land, such as rights of way, easements, and boundary issues.
40. New Properties
Purchasing new-build properties involves unique legal considerations, including planning conditions, construction warranties, and completion delays. This section discusses the key issues in purchasing new properties.
Property Practice is an essential module for solicitors and conveyancing practitioners. It provides a detailed explanation of the key areas in conveyancing so that you will gain thorough understanding of property law and the property transaction process.
