LPC: ADVANCED COMMERCIAL PROPERTY SGS 1 ACTIVITY PACK
ADVANCED COMMERCIAL PROPERTY SGS 1:
DEVELOPMENT ISSUES
Legal Practice Course
Activity 2
Your supervisor decides that it is really important to go on a site visit to the Moreton
Road site as she has heard from the client’s surveyor that there may be a few issues.
She asks you to come along with her. When you visit the site you spot a number of
potential issues and create a sketch plan to remind you of these for when you get back
to the office. Please review the sketch plan on the reverse of this activity.
Having reviewed the sketch plan, explain what the potential issues are and how you
would deal with these on behalf of your client.
In addition you should calculate the SDLT the client will have to pay when they
purchase the Moreton Road site. The seller may have opted to tax in relation to the site
- will this make any difference to the SDLT calculation?
The current SDLT rates for non-residential property are set out below.
LAW SCHOOL 14/02/20 09:32/HF/JF Page 1 of 3
,LPC: ADVANCED COMMERCIAL PROPERTY SGS 1 SOLUTIONS PACK
ADVANCED COMMERCIAL PROPERTY SGS 1:
DEVELOPMENT ISSUES
Legal Practice Course
Activity 1 Solution
Extract from a draft interim report on 123 Moreton Road
Title issues
1. The property is 123 Moreton Road, Dartley (the ‘Property’) registered under title
number DL2345 with title absolute, which is the best class of title allocated by the
Land Registry. The Property is shown edged red on the plan annexed at Appendix
1 to this report [note to students: not reproduced for teaching purposes].
2. The current registered owner is York Baring Friendly Society Limited, company
number 407638 (the ‘Seller’).
3. The mines and minerals are excepted from the registration of the title to the
Property and are owned by a third party. If you damage, remove or interfere with
mines or minerals in third party ownership – through, for example, digging
foundations or the piling process – this could amount to a trespass and lead to a
liability for damages or an injunction to stop work. You should carry out a survey
to establish the scope and extent of any mines or minerals below ground and see
if your proposals would interfere with these.
We have asked the Seller’s solicitors to confirm whether it knows the identity
of the party owning the mines and minerals and whether anyone has sought
to extract mines and minerals in the past. We will carry out a search of the
Index Map to see if we can establish ownership. We are looking into the
possibility of obtaining restrictive covenant indemnity insurance in relation
to this.
Restrictive covenants affecting the Property
1. There is a conveyance dated 7 February 1926 which contains the following
restrictive covenants:
not to do anything or allow anyone to do anything on the Property, including
the excavating of mines and minerals which may interfere with railway traffic
on the railway or which may in the railway company’s view be a nuisance or
annoyance or cause damage;
not to put up advertisements or any other erections so as to overlook the
railway company’s property;
LAW SCHOOL 14/02/20 09:34/ Page 1 of 10
, LPC: ADVANCED COMMERCIAL PROPERTY SGS 1 TEST
ADVANCED COMMERCIAL PROPERTY SGS 1:
DEVELOPMENT ISSUES
Legal Practice Course
SGS 1 Test
1. What legal right exists over a person’s land meaning a crane oversail licence
might be needed?
2. How does a Light Obstruction Notice work to extinguish an existing right to light?
Why do you think this procedure was created?
3. Set out the two elements a person in adverse possession has to show to prove
adverse possession of land (whether registered or unregistered).
4. What is the difference between an option agreement and a right of pre-emption?
5. What two statutory procedures could be used to apply to stop up a public
highway?
PLEASE LAW SCHOOL 14/02/20 09:32/ARI Page 1 of 1
RECYCLE
, SGS 1 SOLUTIONS PACK LPC: ADVANCED COMMERCIAL PROPERTY
not to erect any building on the Property unless the railway company’s chief
engineer has previously approved the specification; and
not to construct any road on the Property which would make the railway
company liable as frontagers, for example in relation to adoption costs.
We have asked the Seller’s solicitors to confirm where the “railway
company’s land” is in relation to the Property (as it has the benefit of these
covenants) and whether the Seller has ever had any issues with these
restrictive covenants, in particular when the current buildings on the
Property were built and whether the relevant approval was received. We are
looking into the possibility of obtaining restrictive covenant indemnity
insurance in relation to these restrictive covenants.
Positive covenants affecting the Property:
1. In the conveyance dated 7 February 1926 the owner of the Property in 1926 was
obliged to erect and maintain a fence or wall of a design and materials previously
approved by the chief engineer. We have asked the Seller’s solicitors to
confirm the location of such a wall/fence and whether it has been built.
Positive covenants do not automatically bind any successive owners of property.
However, there is a note of an indemnity covenant in the official copies of the
Property which notifies successive owners of the positive covenant. On completion
of the purchase the Seller will expect you to enter into a similar indemnity covenant,
which means you will have a continuing obligation to maintain this wall/fence.
Rights granted over the Property for the benefit of third parties:
1. Pursuant to a transfer dated 6 February 1974 the Seller (as owner of the adjoining
land comprised in title number DL6789) has a right of way at all times and for all
purposes with or without vehicles and with or without animals over the land shown
hatched on the title plan. As the Seller has the benefit of this right we will
request that the Seller enters into a deed of release in respect of these rights.
The Seller may need temporary rights of access during the works and/or
need to be re-granted new rights over the new roads once completed.
2. Pursuant to a deed of grant dated 3 October 1952 a third party has a right of free
passage and running of water, soil, gas, electricity, oil and other services through
the pipes and conduits at the Property. This right is subject to the benefiting
landowner paying a proportion of the cost of maintenance and repair of the
conduits. The benefiting landowner may also enter onto the Property on written
notice to construct media for the supply of services, provided that it makes good
any damage caused to the Property and provided such construction is not under
parts of the land that have buildings on them at the time of construction.
We understand that the adjoining landowner (no. 121 Moreton Road) may
have the benefit of these rights and have asked the Seller’s solicitors to
confirm this. We have also asked for confirmation of whether such rights
have been exercised whilst the Seller has owned the Property. On the basis
that the benefiting landowner is not permitted to construct new pipes under
buildings this will not affect buildings on the land but may affect car parking
areas. If these rights continue to be exercised and you think they will cause
Page 2 of 10 14/02/20 09:34/ LAW SCHOOL
ADVANCED COMMERCIAL PROPERTY SGS 1:
DEVELOPMENT ISSUES
Legal Practice Course
Activity 2
Your supervisor decides that it is really important to go on a site visit to the Moreton
Road site as she has heard from the client’s surveyor that there may be a few issues.
She asks you to come along with her. When you visit the site you spot a number of
potential issues and create a sketch plan to remind you of these for when you get back
to the office. Please review the sketch plan on the reverse of this activity.
Having reviewed the sketch plan, explain what the potential issues are and how you
would deal with these on behalf of your client.
In addition you should calculate the SDLT the client will have to pay when they
purchase the Moreton Road site. The seller may have opted to tax in relation to the site
- will this make any difference to the SDLT calculation?
The current SDLT rates for non-residential property are set out below.
LAW SCHOOL 14/02/20 09:32/HF/JF Page 1 of 3
,LPC: ADVANCED COMMERCIAL PROPERTY SGS 1 SOLUTIONS PACK
ADVANCED COMMERCIAL PROPERTY SGS 1:
DEVELOPMENT ISSUES
Legal Practice Course
Activity 1 Solution
Extract from a draft interim report on 123 Moreton Road
Title issues
1. The property is 123 Moreton Road, Dartley (the ‘Property’) registered under title
number DL2345 with title absolute, which is the best class of title allocated by the
Land Registry. The Property is shown edged red on the plan annexed at Appendix
1 to this report [note to students: not reproduced for teaching purposes].
2. The current registered owner is York Baring Friendly Society Limited, company
number 407638 (the ‘Seller’).
3. The mines and minerals are excepted from the registration of the title to the
Property and are owned by a third party. If you damage, remove or interfere with
mines or minerals in third party ownership – through, for example, digging
foundations or the piling process – this could amount to a trespass and lead to a
liability for damages or an injunction to stop work. You should carry out a survey
to establish the scope and extent of any mines or minerals below ground and see
if your proposals would interfere with these.
We have asked the Seller’s solicitors to confirm whether it knows the identity
of the party owning the mines and minerals and whether anyone has sought
to extract mines and minerals in the past. We will carry out a search of the
Index Map to see if we can establish ownership. We are looking into the
possibility of obtaining restrictive covenant indemnity insurance in relation
to this.
Restrictive covenants affecting the Property
1. There is a conveyance dated 7 February 1926 which contains the following
restrictive covenants:
not to do anything or allow anyone to do anything on the Property, including
the excavating of mines and minerals which may interfere with railway traffic
on the railway or which may in the railway company’s view be a nuisance or
annoyance or cause damage;
not to put up advertisements or any other erections so as to overlook the
railway company’s property;
LAW SCHOOL 14/02/20 09:34/ Page 1 of 10
, LPC: ADVANCED COMMERCIAL PROPERTY SGS 1 TEST
ADVANCED COMMERCIAL PROPERTY SGS 1:
DEVELOPMENT ISSUES
Legal Practice Course
SGS 1 Test
1. What legal right exists over a person’s land meaning a crane oversail licence
might be needed?
2. How does a Light Obstruction Notice work to extinguish an existing right to light?
Why do you think this procedure was created?
3. Set out the two elements a person in adverse possession has to show to prove
adverse possession of land (whether registered or unregistered).
4. What is the difference between an option agreement and a right of pre-emption?
5. What two statutory procedures could be used to apply to stop up a public
highway?
PLEASE LAW SCHOOL 14/02/20 09:32/ARI Page 1 of 1
RECYCLE
, SGS 1 SOLUTIONS PACK LPC: ADVANCED COMMERCIAL PROPERTY
not to erect any building on the Property unless the railway company’s chief
engineer has previously approved the specification; and
not to construct any road on the Property which would make the railway
company liable as frontagers, for example in relation to adoption costs.
We have asked the Seller’s solicitors to confirm where the “railway
company’s land” is in relation to the Property (as it has the benefit of these
covenants) and whether the Seller has ever had any issues with these
restrictive covenants, in particular when the current buildings on the
Property were built and whether the relevant approval was received. We are
looking into the possibility of obtaining restrictive covenant indemnity
insurance in relation to these restrictive covenants.
Positive covenants affecting the Property:
1. In the conveyance dated 7 February 1926 the owner of the Property in 1926 was
obliged to erect and maintain a fence or wall of a design and materials previously
approved by the chief engineer. We have asked the Seller’s solicitors to
confirm the location of such a wall/fence and whether it has been built.
Positive covenants do not automatically bind any successive owners of property.
However, there is a note of an indemnity covenant in the official copies of the
Property which notifies successive owners of the positive covenant. On completion
of the purchase the Seller will expect you to enter into a similar indemnity covenant,
which means you will have a continuing obligation to maintain this wall/fence.
Rights granted over the Property for the benefit of third parties:
1. Pursuant to a transfer dated 6 February 1974 the Seller (as owner of the adjoining
land comprised in title number DL6789) has a right of way at all times and for all
purposes with or without vehicles and with or without animals over the land shown
hatched on the title plan. As the Seller has the benefit of this right we will
request that the Seller enters into a deed of release in respect of these rights.
The Seller may need temporary rights of access during the works and/or
need to be re-granted new rights over the new roads once completed.
2. Pursuant to a deed of grant dated 3 October 1952 a third party has a right of free
passage and running of water, soil, gas, electricity, oil and other services through
the pipes and conduits at the Property. This right is subject to the benefiting
landowner paying a proportion of the cost of maintenance and repair of the
conduits. The benefiting landowner may also enter onto the Property on written
notice to construct media for the supply of services, provided that it makes good
any damage caused to the Property and provided such construction is not under
parts of the land that have buildings on them at the time of construction.
We understand that the adjoining landowner (no. 121 Moreton Road) may
have the benefit of these rights and have asked the Seller’s solicitors to
confirm this. We have also asked for confirmation of whether such rights
have been exercised whilst the Seller has owned the Property. On the basis
that the benefiting landowner is not permitted to construct new pipes under
buildings this will not affect buildings on the land but may affect car parking
areas. If these rights continue to be exercised and you think they will cause
Page 2 of 10 14/02/20 09:34/ LAW SCHOOL
