Legal Practice Course (LPC) Property Law and Practice (Conveyancing) Syllabus

List the four main classes of registered title and rank their quality.

Absolute (the best, full guarantee); Good leasehold (lease title guaranteed but not the freehold reversion); Possessory (based on actual possession, subject to pre-registration adverse interests); and Qualified (subject to a specified defect). Possessory/qualified can be upgraded.

What is the difference between the 'property register', 'proprietorship register' and 'charges register'?

Property register: describes the land, estate (freehold/leasehold) and benefiting rights (e.g. easements). Proprietorship register: names the registered proprietor, class of title, price paid and any restrictions. Charges register: records burdens such as mortgages, restrictive covenants and notices.

Name four standard pre-contract searches a buyer's solicitor would typically carry out.

(1) Local land charges search and CON29 enquiries of the local authority; (2) drainage and water search (CON29DW); (3) environmental/contaminated land search; and (4) a chancel repair search. Others depend on location (e.g. coal/mining, commons).

What are 'pre-contract enquiries' and which standard forms are used in residential transactions?

Written questions to the seller about the property (disputes, services, alterations, guarantees, occupiers, etc.) relying on caveat emptor not applying to the seller's voluntary statements. In residential transactions the Law Society Property Information Form (TA6) and, for leaseholds, the Leasehold Information Form (TA7) are used.

What does the principle of caveat emptor mean in conveyancing, and what are its limits?

'Let the buyer beware' — the seller is generally under no duty to disclose physical defects; the buyer must investigate (searches, surveys, enquiries). Limits: the seller must disclose latent defects in title (incumbrances not discoverable on inspection) and must not make misrepresentations.

Compare the three main types of survey a buyer may commission.

(1) Condition Report / valuation (basic, for the lender, limited use to buyer); (2) HomeBuyer Report (mid-level, for conventional properties in reasonable condition); (3) Building (full structural) Survey (most detailed, for older, larger or unusual/altered properties).

When is planning permission required and what is 'development' under the Town and Country Planning Act 1990?

Permission is required for 'development', defined as the carrying out of building, engineering, mining or other operations in/on/over/under land, OR a material change of use. Some development is permitted automatically under the General Permitted Development Order.

What is the difference between planning permission and building regulations approval?

Planning permission controls whether development (in land-use terms) may take place. Building regulations approval ensures construction work meets technical standards for safety, health and energy efficiency. Both may be needed for the same works, and each is enforced separately.

What are the enforcement time limits for breach of planning control under the (pre-2024) TCPA 1990 scheme that students should know?

Operational development and change of use to a single dwellinghouse: 4 years. Other breaches (e.g. other changes of use, breach of conditions): 10 years. After these periods the development generally becomes immune from enforcement. (NB the Levelling-Up Act 2023 moves to a single 10-year period.)

What is a listed building consent and a conservation area, and why do they matter to a buyer?

A listed building consent is required for works that alter, extend or demolish a building of special architectural/historic interest. A conservation area imposes additional controls (e.g. on demolition and tree works). Both restrict alterations and create criminal liability for breach, affecting value and use.

What standard form contract conditions are commonly incorporated in residential and commercial sales?

The Standard Conditions of Sale (SCS), currently the 5th edition, are used for residential transactions; the Standard Commercial Property Conditions (SCPC) are used for commercial transactions. They are incorporated by reference into the contract and can be varied by special conditions.

Under the Standard Conditions of Sale, what deposit is payable and when?

A 10% deposit of the purchase price is payable on exchange of contracts (SCS Condition 2.2). It is held by the seller's solicitor as stakeholder unless otherwise agreed.

What is the contract rate under the SCS and what is it used for?

The contract rate is the interest rate specified in the contract (the SCS default is the Law Society's interest rate, 4% above Barclays Bank base rate). It is used to calculate compensation/interest payable for delayed completion under the compensation provisions.

What does it mean for a deposit to be held as 'stakeholder' versus 'agent for the seller'?

As stakeholder, the seller's solicitor holds the deposit on behalf of both parties and cannot release it to the seller before completion. As agent for the seller, the deposit can be passed to the seller immediately, exposing the buyer to risk if the seller defaults. SCS default is stakeholder.

What is the difference between the contractual completion date and exchange, and what is the SCS default completion date?

Exchange creates the binding contract; completion is when the price is paid, the transfer takes effect and possession passes. Under SCS Condition 6.1.1, the completion date is twenty working days after exchange if no date is specified, with completion required by 2:00 pm.

What are the three methods of exchanging contracts?

(1) In person (parties physically swap signed parts — now rare); (2) by post; and (3) by telephone using the Law Society Formulae A, B or C. Telephone exchange is the most common in practice.

Explain when Law Society Formula A is used on a telephone exchange.

Formula A is used where one solicitor (usually the seller's) holds both signed parts of the contract. On exchange that solicitor confirms they hold their own client's part and the other party's part, undertakes to hold them to the other's order and to send their part that day; the completion date and deposit arrangements are agreed.

Explain Law Society Formula B and when it is used.

Formula B is used where each solicitor holds their own client's signed part. Each undertakes to hold their part to the other's order, to send it that day, and the seller's solicitor undertakes to send the seller's part; exchange occurs at the agreed time with the completion date and deposit confirmed.

What is Law Society Formula C and in what situation is it used?

Formula C is used in a chain of transactions where exchange on a sale and a related purchase must be synchronised. It operates in two parts: each solicitor first activates and gives undertakings, then a second call effects exchange, allowing a solicitor to exchange on a purchase only once assured of exchange on the dependent sale.

What are the key legal consequences of exchange of contracts?

A binding contract is created; the buyer acquires an equitable interest in the property (estate contract) and bears the risk; the seller becomes a trustee of the property for the buyer (with a duty of reasonable care) and retains a lien for the unpaid price; neither party can withdraw without breach.

Who bears the risk of damage to the property between exchange and completion under the SCS, and what is the practical consequence?

Risk passes to the buyer on exchange (SCS Condition 5.1.1), even though legal title has not transferred. The buyer must therefore insure the property from exchange, and the seller is not obliged to maintain insurance (though prudent sellers do).

What is a 'special condition' in a contract and give an example of its use to deal with a title defect.

A special condition varies or adds to the standard conditions for the particular transaction. Examples: requiring the buyer to take subject to a specified incumbrance the buyer cannot avoid; excluding a standard condition; or providing for a defective title indemnity policy where a defect (e.g. a breach of restrictive covenant) cannot be cured.

What is a defective title (or title indemnity) insurance policy and when is it used?

An insurance policy protecting the buyer/lender against loss arising from a specific title defect that cannot be remedied (e.g. a missing easement, restrictive covenant breach, or lack of building regulations consent). It is a one-off premium policy, often required by a lender, used instead of attempting a cure.

What is form TR1 and what are its essential components?

TR1 is the Land Registry standard form of transfer of registered land. Key elements: title number, property description, transferor and transferee details, consideration, a statement of any declaration of trust/co-ownership (panel 10/11), execution as a deed by the seller (and buyer where giving covenants), and any new covenants/easements.

What title guarantee can a seller give in the transfer, and what is the difference?

Full title guarantee or limited title guarantee (Law of Property (Miscellaneous Provisions) Act 1994). Full guarantee implies the seller has the right to dispose, will do all it reasonably can to give the title, and that the property is free from incumbrances other than those it does not and could not reasonably know about. Limited guarantee additionally only covers incumbrances created by the seller (not predecessors).

What pre-completion searches are carried out for registered land and what protection does the main one give?

An OS1 (whole) or OS2 (part) search at the Land Registry, which gives a priority period of 30 working days during which the buyer can register the transfer free from any intervening entries. A bankruptcy search (K16) against an individual buyer is also done for the lender, plus a Companies House search where the seller is a company.

What is the priority period given by an official search of the registered title, and why does it matter?

30 working days. Provided the buyer lodges its application to register within this period, the transfer takes priority over any other application made after the search date, protecting the buyer/lender against last-minute entries (e.g. a new charge) on the register.

What is a certificate of title and what does it confirm to the lender?

A certificate (in the standard form approved by UK Finance and the Law Society) given by the buyer's/lender's solicitor confirming that the title is good and marketable, that all the lender's requirements are met, and requesting the mortgage advance. It triggers release of the mortgage funds for completion.

What happens at completion in a registered freehold purchase?

The balance of the purchase price is transferred to the seller's solicitor; the seller's solicitor releases the executed TR1 and title documents and undertakes to discharge the seller's mortgage; keys/possession are released; and any requisitions on title (e.g. arrangements for completion via the Law Society Code) are dealt with. Completion must be by the contractual time (SCS 2 pm).

What is a completion statement and what does it typically show?

A statement prepared by the seller's solicitor setting out the exact sum due on completion: the purchase price, plus or minus apportionments (e.g. service charge, ground rent), less the deposit already paid, plus any chattels price, giving the net balance the buyer must send to complete.

What are 'requisitions on title' and the modern approach to them?

Formal queries raised by the buyer about the title and completion arrangements. Modern practice uses the Law Society's standard Completion Information and Requisitions on Title (TA13) form, dealing mainly with practical completion arrangements (where to send money, undertakings to discharge the mortgage, handing over keys) since most title issues are resolved pre-contract.

When is Stamp Duty Land Tax payable and within what time must the SDLT return be filed?

SDLT is payable on land transactions in England (and Northern Ireland) where the chargeable consideration exceeds the relevant threshold. The buyer must file an SDLT return (SDLT1) and pay any tax within 14 days of the effective date (usually completion). Registration cannot proceed without the SDLT certificate (SDLT5) for notifiable transactions.

How is residential SDLT calculated and what is the 'slice' system?

SDLT is charged on a progressive 'slice' (banded) basis: each portion of the price within a band is taxed at that band's rate, not the whole price at one rate. For example, at standard residential rates only the portion above each threshold is taxed at the higher rate, so the total is the sum of tax on each slice.

What additional SDLT charge applies to second homes/buy-to-let purchases by individuals?

A higher-rate surcharge (an additional percentage on top of the standard residential rates) applies where an individual buys an additional residential property and is not replacing their only/main residence. There is also a separate surcharge for non-UK resident buyers.

What must be done within the priority period after completion to perfect the buyer's title?

The buyer's solicitor must apply to the Land Registry to register the transfer (and any new mortgage) within the 30-working-day priority period given by the OS1 search. Until registration the buyer holds only the equitable interest; legal title passes only on registration (s.27 LRA 2002 — registrable dispositions operate at law only when registered).

How is the seller's existing mortgage discharged and how is discharge evidenced on the register?

The seller's solicitor uses the sale proceeds to redeem the mortgage and gives the buyer an undertaking to do so on completion. Discharge of a registered charge is evidenced electronically by form ED/DS1 (electronic discharge or DS1) lodged at the Land Registry, which removes the charge entry from the charges register.

What is a notice to complete and what does the SCS require before and after serving it?

Where a party fails to complete on the contractual date (which is not 'of the essence' under the SCS), the innocent party may serve a notice to complete (SCS Condition 6.8), making time of the essence. The defaulting party then has ten working days (excluding the date of service) to complete. Failure entitles the innocent party to terminate and pursue remedies.

What remedies are available for delayed completion under the SCS before termination?

Compensation for the period of delay calculated at the contract rate on the purchase price (less deposit, for a defaulting buyer) under SCS Condition 7.2, payable by the party at fault for the delay. Either party may also serve a notice to complete to escalate the position.

What is the difference between an 'agreement for lease' and the 'grant of a lease'?

An agreement for lease is a contract obliging the parties to enter into a lease at a future date (an estate contract giving the tenant an equitable interest, registrable as a notice/land charge). The grant is the actual creation of the lease by deed. An agreement is used where works/conditions must be completed before the lease is granted.

What formalities are required to create a legal lease, and what is the exception for short leases?

A legal lease must be created by deed (s.52 LPA 1925) and, if granted for more than 7 years, must be substantively registered with its own title (s.27 LRA 2002). Exception: a lease for 3 years or less taking effect in possession at the best rent without a fine can be created orally or in writing (s.54(2) LPA 1925).

What is the difference between privity of contract and privity of estate in enforcing leasehold covenants?

Privity of contract exists between the original parties to the lease (the original landlord and tenant) and binds them throughout the term. Privity of estate exists between the current landlord and current tenant by virtue of holding the reversion/lease, allowing enforcement of covenants that 'touch and concern' the land between successors.

How does the Landlord and Tenant (Covenants) Act 1995 change the enforceability of covenants for leases granted on or after 1 January 1996?

For 'new' tenancies (granted on/after 1.1.1996), all landlord and tenant covenants (unless expressed to be personal) pass automatically on assignment, and the outgoing tenant is generally released from liability on a lawful assignment (s.5). This replaced the old 'touch and concern' test and abolished original-tenant continuing liability for new leases.

What is an Authorised Guarantee Agreement (AGA) and when can a landlord require one?

Under the LT(C)A 1995, an outgoing tenant of a new lease can be required to guarantee the performance of the immediate assignee (only) by entering an AGA. The landlord can require an AGA where the lease lawfully so provides, or where consent to assign is subject to such a condition that is reasonable.

What is a rent review clause and what is the most common type in commercial leases?

A clause allowing the rent to be revised periodically during the term. The most common is an 'upward-only open market rent review', under which the rent is reviewed (typically every 5 years) to the open market rental value but can never fall below the existing rent, with disputes referred to an independent surveyor/arbitrator.

What is a service charge in a commercial/residential lease and what protections exist for residential tenants?

A sum payable by the tenant towards the landlord's costs of maintaining, repairing and insuring the building/common parts. For residential long leases, the Landlord and Tenant Act 1985 (ss.18-30) requires service charges to be reasonable and reasonably incurred, requires consultation for major works, and gives tenants rights to challenge charges at the tribunal.

Distinguish assignment, underletting (subletting) and the requirement for a licence to assign.

Assignment transfers the whole of the tenant's remaining interest to a new tenant (assignee), who takes the landlord's reversion-facing obligations. Underletting creates a new, shorter sub-lease out of the tenant's interest, keeping the head-tenant in place. Most leases require the landlord's prior written consent (a licence to assign/underlet) for either.

What statutory control applies where a lease requires the landlord's consent to assign and is silent on reasonableness?

A qualified covenant (consent not to be unreasonably withheld) is implied to be subject to s.19(1) Landlord and Tenant Act 1927 (consent not to be unreasonably withheld). The Landlord and Tenant Act 1988 imposes a duty on the landlord to give consent within a reasonable time, except where reasonable not to, and to give written reasons for refusal.

What is security of tenure under Part II of the Landlord and Tenant Act 1954 and which tenancies qualify?

It gives business tenants the right to remain in occupation after the contractual term ends and to apply for a new tenancy. It applies where the tenant occupies premises for the purposes of a business (s.23). The tenancy continues until terminated in the statutory manner, and the tenant can request a renewal.

On what grounds can a landlord oppose the grant of a new business tenancy under s.30(1) LTA 1954, and which give compensation?

Seven grounds (a)-(g): (a) tenant's failure to repair; (b) persistent delay in paying rent; (c) other substantial breaches; (d) suitable alternative accommodation offered; (e) sub-tenancy of part — uneconomic subdivision; (f) landlord's intention to demolish/reconstruct; (g) landlord's intention to occupy. Grounds (e), (f) and (g) (the 'no-fault' grounds) entitle the tenant to statutory compensation.

How can the parties exclude a business tenancy from the security of tenure provisions of the LTA 1954?

By a 'contracting-out' procedure under s.38A: before the tenant is bound, the landlord serves a prescribed warning notice and the tenant makes a declaration (a simple declaration if 14+ days' notice is given, or a statutory declaration if less than 14 days). The agreement to exclude ss.24-28 is then valid.

What is forfeiture of a lease and what must a lease contain for the landlord to exercise it?

Forfeiture is the landlord's right to terminate the lease early for the tenant's breach and re-enter the premises. The lease must contain an express forfeiture (re-entry) clause; the right arises on the specified breach (e.g. non-payment of rent or breach of covenant).

What is the procedure for forfeiture for breaches other than non-payment of rent?

The landlord must first serve a s.146 Law of Property Act 1925 notice specifying the breach, requiring it to be remedied (if capable of remedy) and requiring compensation. The tenant must be given a reasonable time to comply. Only if the tenant fails to remedy can the landlord forfeit by peaceable re-entry (commercial) or court proceedings.

What is relief from forfeiture and who may apply for it?

An equitable remedy by which the court restores the lease despite a forfeiture, typically on the tenant paying arrears/remedying the breach and costs. The tenant (and, in some cases, sub-tenants and mortgagees) may apply. For rent arrears, relief is usually granted on payment of all arrears and costs; for other breaches, the court has discretion.