LPC PROPERTY LAW SUMMARY
EXAM TIPS/STRATEGY
1. Identify the issue/problem
2. Explain why it is a problem – using relevant authorities
3. State what you are going to do next (i.e. apply answer to the scenario)
• For lease questions, cite the correct clause and sub clause and identify the effect of the clause
• Know the Case study 3 lease inside and out
• Know when VAT is payable
• Use diagrams to help with lease questions
KEY POINTS
• Contract of sale of land or other interest in land must be in writing and must incorporate the express
terms the parties have agreed to – s.2(1) LP(MP)A 1925
• The BURDEN of a POSITIVE COVENANT will NOT pass
o Solution is to use a chain of indemnity/ get indemnity insurance
o E.g. Covenant ‘not to let house fall into disrepair’ is a POSITIVE covenant
• The BURDEN of a RESTRICTIVE COVENANT will PASS ONLY IF the buyer knows about it
• Burden of a covenant is on the buyer
• Standard Conditions of Sale (SCS) apply to any type of land transaction – usually residential
• Deed (aka a transfer) is required to transfer legal estate from seller to buyer – s.52 LPA 1925
o Must state that it is a deed AND be validly executed – s.1 LP(MP)A 1089
o Usually drafted by the seller’s solicitors
o Comes into force when it is delivered
• Seller sells the property FREE from incumbrances other than those:
• specified in the contract;
• discoverable by inspection of the property BEFORE the date of the contract;
• the seller does NOT and could NOT reasonably know about;
• matter, other than mortgages, disclosed or which would have been disclosed by searches and
enquiries which a prudent buyer would have made before entering into the contract;
• public requirements
Auth: SCPC 4.1.2/SCS 3.1.2
• 2 types of title guarantee:
1. Full title guarantee – seller guarantees that there are no financial charges/encumbrances or 3rd
party rights which affect the problem other than those they have already revealed – this is the best
kind
2. Limited title guarantee – usually given when the landlord doesn’t know much about the property
(e.g. banks give this when they sell a property they have repossessed)
• Completion date is 20 WORKING DAYS AFTER the date of the contract
• Time is NOT of the essence of the contract UNLESS a notice to complete has been served – SCS
6.1.1/SCPC9.1.1
• Common Land Charges in an unregistered system
o Class D(ii) – restrictive covenants created 1925
o Class C(iv) – estate contracts (i.e. agreement for sale or and unexercised option)
o Class C(i) – 2nd and other subsequent legal mortgages; and
o Class F – home rights
• Overreaching only applies to equitable interest and tenancies in common
1
, • 2 types of notice:
o Unilateral notice – entered on the register without the consent of the registered proprietor
o Agreed notice – enter with consent of registered proprietor
• Legal estate remains with the seller until the transaction is completed
• Epitome of title – list of all deeds + documents relating to the title and photocopies of them are
attached
METHODS OF EXCHANGE:
1. In Person – least common
2. Postal exchange/document exchange
3. Telephone Exchange (Law society has 3 formulae) – most common
• Relies on each solicitor giving an undertaking
• Telephone exchange occurs at the point in conversation where solicitors agree that exchange has
occurred – date, time and formula of exchange is entered into contract
a. Formula A – used when 1 solicitor holds both parts of the signed contract (relies on post)
o Solicitor undertakes to forward other party their contract that day by 1 st class post/doc
exchange
b. Formula B – used when each solicitor holds their own part of the contract (exchanges occurs
instantaneously)
c. Formula C – used for when there is a chain of transactions
o cannot be held over until the next day
PROCEDURE FOR DISCHARGING OF A MORTGAGE
1. Get seller’s solicitor to give undertaking to discharge mortgage on or before completion; and
2. give evidence of discharge on completion – Form DS1/Electronic Discharge/E-DS1
REMEDIES
• Time of the essence – means that any delay on completing the contract can lead to the contract being
terminated
• Generally, time is NOT of the essence unless a notice to complete has been served – SCS 6.1.1/SCPC
9.1.1.
• Parties must complete contract within 10 WORKING DAYS (excluding the day the notice is given) of
receiving a notice to complete otherwise time becomes of the essence and a party can rescind the
contract – SCS 6.8.1/ SCPC 9.8.2
• CAN’T serve a notice to complete until ‘on or after completion’
• Consequences of failing to comply with a notice to complete:
o Innocent party can:
treat the contract as discharged,
sue for damages; and
keep the buyers deposit
• SCS 7.1 & 7.2 outline the remedies for errors, omission and late completion
• Answers to preliminary enquiries of the seller are a common course for misrepresentation
• Seller cannot avoid liability for misrepresentation by using a disclaimer or responding by saying ‘not so
far as aware’
• William Sindall plc v Cambridgeshire County Council 1994 – held that the answer ‘not so far as the
vendor is aware’ means the vendor and its solicitor had not actual knowledge of a defect AND they
made reasonable investigations
• Walker v Boyle [1982] - Disclaimers on replies to preliminary enquiries are NOT effective to prevent
the answers from being representations of fact
2
EXAM TIPS/STRATEGY
1. Identify the issue/problem
2. Explain why it is a problem – using relevant authorities
3. State what you are going to do next (i.e. apply answer to the scenario)
• For lease questions, cite the correct clause and sub clause and identify the effect of the clause
• Know the Case study 3 lease inside and out
• Know when VAT is payable
• Use diagrams to help with lease questions
KEY POINTS
• Contract of sale of land or other interest in land must be in writing and must incorporate the express
terms the parties have agreed to – s.2(1) LP(MP)A 1925
• The BURDEN of a POSITIVE COVENANT will NOT pass
o Solution is to use a chain of indemnity/ get indemnity insurance
o E.g. Covenant ‘not to let house fall into disrepair’ is a POSITIVE covenant
• The BURDEN of a RESTRICTIVE COVENANT will PASS ONLY IF the buyer knows about it
• Burden of a covenant is on the buyer
• Standard Conditions of Sale (SCS) apply to any type of land transaction – usually residential
• Deed (aka a transfer) is required to transfer legal estate from seller to buyer – s.52 LPA 1925
o Must state that it is a deed AND be validly executed – s.1 LP(MP)A 1089
o Usually drafted by the seller’s solicitors
o Comes into force when it is delivered
• Seller sells the property FREE from incumbrances other than those:
• specified in the contract;
• discoverable by inspection of the property BEFORE the date of the contract;
• the seller does NOT and could NOT reasonably know about;
• matter, other than mortgages, disclosed or which would have been disclosed by searches and
enquiries which a prudent buyer would have made before entering into the contract;
• public requirements
Auth: SCPC 4.1.2/SCS 3.1.2
• 2 types of title guarantee:
1. Full title guarantee – seller guarantees that there are no financial charges/encumbrances or 3rd
party rights which affect the problem other than those they have already revealed – this is the best
kind
2. Limited title guarantee – usually given when the landlord doesn’t know much about the property
(e.g. banks give this when they sell a property they have repossessed)
• Completion date is 20 WORKING DAYS AFTER the date of the contract
• Time is NOT of the essence of the contract UNLESS a notice to complete has been served – SCS
6.1.1/SCPC9.1.1
• Common Land Charges in an unregistered system
o Class D(ii) – restrictive covenants created 1925
o Class C(iv) – estate contracts (i.e. agreement for sale or and unexercised option)
o Class C(i) – 2nd and other subsequent legal mortgages; and
o Class F – home rights
• Overreaching only applies to equitable interest and tenancies in common
1
, • 2 types of notice:
o Unilateral notice – entered on the register without the consent of the registered proprietor
o Agreed notice – enter with consent of registered proprietor
• Legal estate remains with the seller until the transaction is completed
• Epitome of title – list of all deeds + documents relating to the title and photocopies of them are
attached
METHODS OF EXCHANGE:
1. In Person – least common
2. Postal exchange/document exchange
3. Telephone Exchange (Law society has 3 formulae) – most common
• Relies on each solicitor giving an undertaking
• Telephone exchange occurs at the point in conversation where solicitors agree that exchange has
occurred – date, time and formula of exchange is entered into contract
a. Formula A – used when 1 solicitor holds both parts of the signed contract (relies on post)
o Solicitor undertakes to forward other party their contract that day by 1 st class post/doc
exchange
b. Formula B – used when each solicitor holds their own part of the contract (exchanges occurs
instantaneously)
c. Formula C – used for when there is a chain of transactions
o cannot be held over until the next day
PROCEDURE FOR DISCHARGING OF A MORTGAGE
1. Get seller’s solicitor to give undertaking to discharge mortgage on or before completion; and
2. give evidence of discharge on completion – Form DS1/Electronic Discharge/E-DS1
REMEDIES
• Time of the essence – means that any delay on completing the contract can lead to the contract being
terminated
• Generally, time is NOT of the essence unless a notice to complete has been served – SCS 6.1.1/SCPC
9.1.1.
• Parties must complete contract within 10 WORKING DAYS (excluding the day the notice is given) of
receiving a notice to complete otherwise time becomes of the essence and a party can rescind the
contract – SCS 6.8.1/ SCPC 9.8.2
• CAN’T serve a notice to complete until ‘on or after completion’
• Consequences of failing to comply with a notice to complete:
o Innocent party can:
treat the contract as discharged,
sue for damages; and
keep the buyers deposit
• SCS 7.1 & 7.2 outline the remedies for errors, omission and late completion
• Answers to preliminary enquiries of the seller are a common course for misrepresentation
• Seller cannot avoid liability for misrepresentation by using a disclaimer or responding by saying ‘not so
far as aware’
• William Sindall plc v Cambridgeshire County Council 1994 – held that the answer ‘not so far as the
vendor is aware’ means the vendor and its solicitor had not actual knowledge of a defect AND they
made reasonable investigations
• Walker v Boyle [1982] - Disclaimers on replies to preliminary enquiries are NOT effective to prevent
the answers from being representations of fact
2
