Offer and negotiations purchaser and seller agree on purchase price Seller’s solicitors prepare sale pack for the purchaser which includes: evidence of seller’s legal title to sell the property (Official Copy Entries from the Land Registry) draft contract of sale – usually Standard Conditions of Sale Buyers’ solicitors carry out investigation of title inspect the office copy entries to ensure that the property and ownership information is valid and up to date inspect the title register for classification of title; any restrictions on title
inspect the charges register to see what rights and interests benefit and burden the land Buyers’ solicitors carry out local authority searches, eg: planning permissions water and drainage search; environmental search etc Buyer obtains mortgage offer Exchange of contracts both parties sign the contract of sale the signed contracts are exchanged (in person, by post and/or by telephone) – seller is now legally obliged to sell and buyer to purchase the property buyer pays deposit to be held by her/his solicitor until completion Pre-completion steps buyer’s solicitor drafts transfer deed (in standard form TR1) & seller’s solicitor
approves it buyer’s solicitor carries out pre-completion searches buyer ensures that balance of purchase monies are available for seller’s solicitors Completion full purchase monies paid to seller seller vacates the property keys to the property released to the buyer Registration Buyer’s solicitor applies for registration of title in buyer’s name (form AP1) including executed transfer deed (TR1) and other documents, eg, mortgage deed Alpha wants to buy 6 Plough Lane, Uxbridge, a 3-bedroomed house with a separate
flat in the basement. Title to the freehold of the whole property is registered in Barney’s sole name. Talia, Barney’s partner, owns a beneficial interest in 6 Plough Lane. A year ago, Barney and Talia fell out with each other. Since then, Talia has been dividing her time between living with her mother and living in the separate basement flat. In the back garden of 6 Plough Lane is a cobbled path. At one end of the path there is a gate opening into the garden of the neighbouring house, 8 Plough Lane, owned by Habib. The other end of the path leads to the high street. Habib has a right of way (easement) over the path. a. Advise Alpha in relation to Talia’s beneficial interest in 6 Plough Lane and the consequences this may have on her purchase of the property. (50%) b. Advise Alpha whether she is bound by Habib’s right of way (easement) over the path in the back garden of 6 Plough Lane. (20%) c. Critically evaluate whether the law has improved since 13 October 2003 in relation to the interests discussed in (a) and (b) above. (30%)
