SQE Property Practice

The SQE Property Practice assessment evaluates a your ability to apply core legal principles and rules to practical and ethical problems that may arise in property transactions. It tests the knowledge and skills required at the level of a newly qualified solicitor handling property transactions, including both freehold and leasehold, for residential or commercial properties.

You must understand the essential elements of both freehold and leasehold transactions, whether residential or commercial. This includes advising clients on the structure of the transaction, the rights and obligations involved, and ensuring compliance with relevant legal requirements. Knowledge of how to handle either type of transaction is crucial for solicitors dealing with property law.

The assessment includes investigating both registered and unregistered titles. You must demonstrate their ability to examine the legal ownership of the property, identifying any issues that may affect the transaction. For registered titles, this involves checking the Land Registry entries, while for unregistered titles, you must understand how to examine historical title deeds.

Before entering into a property contract, you must show proficiency in conducting pre-contract searches and raising enquiries to ensure that any potential issues with the property are identified and addressed. This could involve local authority searches, environmental reports, or enquiries about the seller's title.

You must understand the procedural steps required to progress a property transaction from initial agreement to the exchange of contracts. This includes drafting contracts, negotiating terms, and ensuring that all necessary conditions are met before contracts are exchanged.

The assessment covers the key steps leading up to the completion of a property transaction. You must ensure that all pre-completion requirements are satisfied, including mortgage arrangements and final searches. After completion, post-completion steps such as registering the transaction at the Land Registry or paying Stamp Duty Land Tax (SDLT) must be handled correctly. Delays in completion and the remedies available are also covered.

You must demonstrate your understanding of commercial leases, including the grant and assignment of leases and underleases. This includes an understanding of the key lease covenants, such as rent obligations, repair, and subletting restrictions, as well as advising on the legal implications of breaching these covenants.

A significant area of commercial property law involves advising on the Landlord and Tenant Act 1954, Part II, which provides security of tenure for business tenants. You must know when tenants are entitled to renew their lease and how to navigate the process of lease renewal or termination.

The assessment requires knowledge of the taxation of property transactions, including Stamp Duty Land Tax (SDLT) for property in England, Land Transaction Tax (LTT) for property in Wales, as well as Value Added Tax (VAT) and Capital Gains Tax (CGT). You must be able to advise clients on the tax implications of their transactions and ensure compliance with tax obligations.

Throughout the assessment, you must demonstrate your ability to act with honesty and integrity, in line with the Statement of Solicitor Competence, the SRA Principles, and the Code of Conduct. Ethical decision-making, particularly in managing client funds and handling sensitive property issues, is key.

This assessment draws on a broad range of property law areas, requiring you to apply your knowledge in complex, integrated scenarios typical of property transactions encountered in practice.