THE CHARTERED INSTITUTE OF LEGAL EXECUTIVES UNIT 17 CONVEYANCING * CASE STUDY MATERIALS

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1 June 2014 Level 6 CONVEYANCING Subject Code L6-17 THE CHARTERED INSTITUTE OF LEGAL EXECUTIVES UNIT 17 CONVEYANCING * CASE STUDY MATERIALS Information for Candidates on Using the Case Study Materials This document contains the case study materials for your examination. In the examination, you will be presented with a set of questions which will relate to the case study materials. You will be required to answer all the questions on the examination paper. You should familiarise yourself with the case study materials prior to the examination, taking time to consider the themes raised in the materials. You should take the opportunity to discuss the materials with your tutor/s either face to face or electronically. It is recommended that you consider the way in which your knowledge and understanding relates to the case study materials. Instructions to Candidates Before the Examination You will be provided with a clean copy of the case study materials in the examination. You are NOT permitted to take your own copy of the case study materials or any other materials including notes or text books into the examination. In the examination, candidates must comply with the CILEx Examination Regulations. Turn over * This unit is a component of the following CILEx qualifications: LEVEL 6 CERTIFICATE IN LAW, LEVEL 6 PROFESSIONAL HIGHER DIPLOMA IN LAW AND PRACTICE and the LEVEL 6 DIPLOMA IN LEGAL PRACTICE Page 1 of 16

2 ADVANCE INSTRUCTIONS TO CANDIDATES You are a trainee lawyer in the firm of Kempstons of The Manor House, Bedford, MK42 7AB. You have just started work in the Property Department and your supervising partner is Susan Shah. Susan Shah acts for Mr Ikram Uddin and Mrs Jasmin Uddin in their purchase of Flat 1, 99 Tarn Avenue, Clayton le Moors, Lancashire, BB5 5XU (the Property). Susan has asked you to take over the day-to-day conduct of this file and has sent you the following documents: Document 1 Document 2 Document 3 Document 4 Memorandum from Susan Shah Official Copy of the Register with Filed Plan for Flat 1, 99 Tarn Avenue, Clayton le Moors, Lancashire, BB5 5XU A copy of the Registered Lease relating to Flat 1, 99 Tarn Avenue, Clayton le Moors, Lancashire, BB5 5XU. Epitome of Title relating to the freehold title Document 5 Document 1 of the Epitome of Title Conveyance dated 25 November 1978 between Emily Drew and Robert Drew (1) Michael Stuart and Kathryn Stuart (2) Document 6 Document 2 of the Epitome of Title Conveyance dated 27 March 1984 between Michael Stuart and Kathryn Stuart (1) Leach Homes (Northern West) Limited (2) Document 7 Document 8 Extracts from the replies to the Fittings and Contents Form (TA10) Standard Conditions of Sale (5 th Edition) Page 2 of 16

3 DOCUMENT 1 MEMORANDUM To: From: Subject: Trainee lawyer Susan Shah Ikram and Jasmin Uddin Purchase of Flat 1, 99 Tarn Avenue, Clayton le Moors, Lancashire, BB5 5XU (the Property) I act for Ikram and Jasmin Uddin on their purchase of the Property. The clients have had their offer of 128,000 accepted on the Property. In relation to the Property, the sellers solicitor has ed me the following: an Official Copy of the Register with Filed Plan (Document 2); a copy of the Registered Lease (Document 3); an Epitome of Title relating to the freehold title (Document 4); the documents listed in the Epitome (Documents 5 6 inclusive); and extracts from the sellers replies to the Fittings and Contents Form (TA10) (Document 7). The clients are borrowing 75,000 from Birmingham Midshires and are contributing 55,000 from their savings. I am in receipt of the mortgage offer and we are instructed to act for the lender. They intend to hold the property in the following shares: 70% for Ikram, 30% for Jasmin. I have received communication from the sellers solicitors stating that the sellers do not have a related purchase. The Property is a flat in a block that contains a total of ten flats. Susan Page 3 of 16 Turn over

4 Document 2 Land Registry Official copy of register of title Title number LA Edition date This official copy shows the entries subsisting on the register on 21 April 2014 at 15:35:41. This date must be quoted as the search from date in any official search application based on this copy. The date at the beginning of an entry is the date on which the entry was made in the register. Issued on 21 April Under s.67 of the Land Registration Act 2002 this copy is admissible in evidence to the same extent as the original. For information about the register of title see Land Registry website or Land Registry Public Guide1 A guide to the information we keep and how you can obtain it. This title is dealt with by Land Registry, Fylde Office. A: Property Register This register describes the land and estate comprised in the title. Except as mentioned below, the title includes any legal easements granted by the registered lease but is subject to any rights that it reserves, so far as those easements and rights exist and benefit or affect the registered land. LANCASHIRE : HYNDBURN 1. ( ) The Leasehold land shown and edged with red on the plan of the above Title filed at the Registry and being Flat 1, 99 Tarn Avenue, Clayton le Moors and car parking space (BB5 5XU). NOTE: As to the part tinted blue on the filed plan only the ground floor flat is included in the title. 2. The mines and minerals together with ancillary powers of working are excepted. 3. ( ) Short particulars of the lease(s) (or underlease(s)) under which the land is held: Date: 1 October 1986 Term: 99 years from 1 October 1986 Rent: 25 and maintenance rent Parties: (1) Leach Homes (Northern West) Limited (2) Adrian Rankin and Sandra Rankin Page 4 of 16

5 4. There are excepted from the effect of registration all estates, rights, interests and powers and remedies arising upon, or by reason of, any dealing made in breach of the prohibition or restriction against dealings therewith inter vivos contained in the lease. 5. Unless otherwise mentioned the title includes any legal easements granted by the registered lease(s) but is subject to any rights that it reserves, so far as those easements and rights exist and benefit or affect the registered land. B: Proprietorship Register This register specifies the class of title and identifies the owner. It contains any entries that affect the right of disposal. Title Good Leasehold 1. ( ) PROPRIETOR: ADRIAN RANKIN and SANDRA RANKIN both of Flat 1, 99 Tarn Avenue, Clayton le Moors, BB5 5XU. 2. ( ) RESTRICTION: No disposition of the registered estate by the proprietor of the registered estate, or by the proprietor of any future registered charge, is to be registered without a written consent signed by the proprietor of the time being of the Charge dated 1 October 1986 in favour of Halifax Building Society referred to in the Charges Register. 3. ( ) RESTRICTION: No disposition by a sole proprietor of the registered estate (except a trust corporation) under which capital money arises is to be registered unless authorised by an order of the court. C: Charges Register This register contains any charges and other matters that affect the land 1. ( ) REGISTERED CHARGE dated 1 October 1986 to secure the monies including the further advances therein mentioned. 2. ( ) PROPRIETOR: HALIFAX BUILDING SOCIETY of Trinity Place, Halifax, West Yorkshire, HX1 2QR. End of Register Page 5 of 16 Turn over

6 ORDNANCE SURVEY PLAN REFERENCE TITLE NUMBER LA COUNTY SHEET NATIONAL GRID SECTION LANCASHIRE 4 SD 7431 M Scale: 1/1250 Crown copyright 2014 R U S H Y F I E L D TARN AVENUE N Note to Candidates: 1. The red line referred to in the Property Register denoting the boundary of the property is shown with a thick black line on the above plan and the part tinted blue is shown by the area shaded grey on the above plan. This official copy issued on 21 April 2014 shows the state of this title plan on 21 April 2014 at 15:35:41. Admissible in evidence to the same extent as the original (s67 Land Registration Act 2002). This title plan shows the general position, not the exact line, of the boundaries. It may be subject to distortions in scale. Measurements scaled from this plan may not catch measurements between the same points on the ground. See Land Registry Public Guide 7 Title Plans This title is dealt with by Land Registry Fylde Office. Page 6 of 16

7 DOCUMENT 3 3 Pounds Duty Paid THIS LEASE is made on the 1 st day of October 1986 between Leach Homes (Northern West) Limited whose registered office is at 64 Swinton Avenue, Clayton, BB5 9FG (Company Registration Number ) (hereinafter called the Lessor and which expression shall include the Lessor s successor or successors in title) of the one part and Adrian Rankin and Sandra Rankin both of Flat 1, 99 Tarn Avenue, Clayton le Moors, BB5 5XU (hereinafter together called the Lessees ) of the other part. WITNESSETH as follows: 1 INTERPRETATION In this Lease unless the context requires otherwise: 1.1 The following words and expressions mean: The Site - means the Land edged green on the Plan with the Block and the 10 car parking spaces on part thereof and all common parts. The Block- means the block of 10 flats erected upon the Site shown edged blue on the Plan. Rent - means twenty five pounds per annum ( 25.00). Demised Premises - means all that flat on the ground floor of the Block and the car parking space marked number 8 on the Plan the positions of which flat and car parking space (the Car Parking Space) are shaded red on the Plan and which are known or are intended to be known as Flat 1, 99 Tarn Avenue. First Maintenance Charge means one hundred Pounds ( ). Fraction means one tenth part (1 / 10). Term means 99 years from the and including the 1 October Plan means the plan annexed to this lease. 2. IN CONSIDERATION of the sum of twenty five thousand pounds ( 25,000.00) (the receipt of which is hereby acknowledged) and the rent and the covenants and conditions hereinafter reserved and contained and on the part of the Lessees to be performed and observed the Lessor hereby demises unto the Lessees ALL THAT the Demised Premises TOGETHER WITH the easements rights and privileges specified in the First Schedule hereto EXCEPT NEVERTHELESS AND RESERVING unto the Lessor out of this demise the easements rights and privileges specified in the Second Schedule hereto TO HOLD the same UNTO the Lessees for the Term YIELDING and PAYING therefore first the Rent the first payment to be made in arrear on the First day of June next and subsequent payments to be made on the First day of June each subsequent year and secondly a yearly sum (hereafter called the Maintenance Charge ) to meet (a) the sums costs and expenses to be paid or incurred by the Lessor in under clause 5 of this Lease (b) the costs and expenses of any agents of the Lessor employed for the management of the Site and the Block (c) the sums paid by the Lessor in respect of any insurance which may be affected by the Lessor in respect of the Site and Block (d) the sums paid by the Lessor in respect of electricity supplied to the television amplifier and external lighting of the Block such payment to be made on the first day of March in each year. Page 7 of 16 Turn over

8 3. The Lessees hereby jointly and severally covenant with the Lessor as follows: (1) To pay the Rent hereinbefore reserved on the due date without any deduction or setoff (2) To pay the Maintenance Charge on the due date without any deduction or setoff. The first Maintenance Charge payment shall be the sum stated in the Interpretation section hereto being such an amount as the Lessor considers necessary to meet reasonably anticipated expenses in respect of the period from the date hereof up to the First day of March next following which sum shall be paid on the signing hereof and thereafter throughout the residue of the Term such an annual amount as the Lessor may consider reasonably necessary to meet anticipated expenses in the following twelve months and which the Lessor shall notify to the Lessees on or about the first day of March in every year following upon the date hereof which sum when so notified shall become due and payable on the First day of March next following the date of the notice so given (if given before the First day of March) or immediately upon the expiry of fourteen days from the giving of the notice (if the notice is given on or after the First day of March) and in calculating the amount of the Maintenance Charge from time to time the Lessor shall take into account any past deficiency and any future expenditure (whether annual or recurring or not) which may be likely to be incurred by the Lessor under any of the heads aforesaid so as to enable the Lessor to meet such expenditure out of funds in the hands of the Lessor representing Maintenance Charges paid by the Lessees of the flats in the Block and the said Car Parking Spaces if and when such expenditure shall be incurred and shall also take into account and give due allowance for any surplus arising out of such Maintenance Charges previously collected but not in the event wholly expended (3) To pay all rates and outgoings whatsoever (4) To keep the whole of the Demised Premises in good and substantial repair and condition (5) To permit the Lessor to enter to view the Demised Premises at all reasonable times and upon giving reasonable prior notice (6) Not to sublet the whole or part of the Demised Premises (7) Not to deal with or part with possession of part only of the Demised Premises (8) Not to assign the whole of the Demised Premises without the prior written consent of the Lessor (9) To give written notice to the Lessor of any assignment or mortgage of the Demised Premises within 28 days of the date thereof and to pay a registration fee of 35 with each such notice (10) Not to use the Demised Premises or any part thereof other than as a private residential dwellinghouse and a Car Parking Space together with any other purpose strictly ancillary thereto (11) Not to permit or suffer to be done on the Demised Premises or any part thereof anything which may constitute a nuisance or annoyance to the Lessor or occupiers of the adjoining premises (12) Not to permit or suffer to be done on the Demised Premises or any part thereof anything which may vitiate the insurance thereon or the insurance of Page 8 of 16

9 other flats in the Block or of those part of the Block or Site for which the Lessor is responsible for and not to use the same for any illegal or immoral purpose (13) Not to make any alteration or addition to the Demised Premises without the prior written consent of the Lessor (14) Upon any assignment of this lease to procure from the assignee a covenant entered into by the assignee with the Lessor to observe and perform the covenants by the Lessees herein contained (15) To keep the Car Parking Space hereby demised in a clean and tidy condition 4. The Lessor hereby covenants with the Lessees that subject to the Lessees paying the Rent, Maintenance Charge and all other sums due under this lease and performing and observing the several tenant covenants conditions and agreements herein contained within this lease the Lessees shall peaceably hold and enjoy the Demised Premises during the Term granted by this lease without any interruption by the Lessor or any person rightfully claiming under or in trust for him. 5. The Lessor herby further covenants with the Lessees as follows subject to the Lessees paying the Maintenance Charge and all other sums due under this lease and performing and observing the several tenant covenants conditions and agreements herein contained within this Lease to: 5.1 Maintain the following in good repair and when necessary from time to time to replace or renew: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) The boundary walls and fences of the Site Such of the roads paths and forecourts on the Site that are not and shall not at any time become the responsibility of the Highway Authority The foundations main walls structure and roof of the Block and the entrance doors to the Block from outside The passage ways stairways bin storage areas and other parts of the Block the use of which is shared by more than one Lessees The water pipes drains and electric wires serving (but not situate in) the Demised Premises The communal television aerial in the Block The main door answering system The gutters and downcomers of the Block. 5.2 In every third year of the Term or as often as shall be reasonably necessary to paint such part of the outside of the Block and the said entrance door as is usually painted. 5.3 To keep the common entrance way passages stairways and bin store areas of the Block lighted cleaned and decorated. 5.4 To keep regularly cut during the growing season and in a tidy condition the grassed areas that form part of the Site. 5.5 To maintain a policy of insurance on the Block to provide contingent cover in respect of fire, flood and subsidence and such other perils as the Lessor from time to time deems necessary for the full reinstatement value of the said Block, Car Parking Spaces, Site and common parts. Turn over Page 9 of 16

10 6. PROVIDED ALWAYS and it is hereby agreed that if the said Rent, Maintenance Charge or any other sums due under this Lease owed by the Lessees to the Lessor or any part thereof shall be unpaid for 14 days after becoming due (whether or not the same shall have been formally demanded) or if the Lessees shall fail to perform his covenants or obligations hereunder then in any of the said cases it shall be lawful for the Lessor or any person duly authorised by the Lessor in that behalf to re-enter the Demised Premises or any part thereof in the name of the whole and thereupon this demise shall absolutely determine but without prejudice to any right of action of the Lessor in respect of any breach of the Lessees s covenants herein contained. 7. As between the Lessees it is hereby agreed that they shall hold the Demised Premises upon trust for themselves beneficially as joint tenants both at law and in equity. 8. IT IS HEREBY CERTIFIED that the transaction hereby effected does not form part of a larger transaction or series of transactions for which the amount or value or the aggregate amount or value of the consideration exceeds twenty five thousand pounds ( 25,000.00). FIRST SCHEDULE EASEMENTS RIGHTS AND PRIVILEGES GRANTED TO THE LESSEES NOTE TO CANDIDATES: You may assume that the First Schedule contains all necessary easements for the Lessees. SECOND SCHEDULE EXCEPTIONS AND RESERVATIONS NOTE TO CANDIDATES: You may assume that the Second Schedule reserves reciprocal easements and rights to the Lessor and none of the reservations are unduly onerous. IN WITNESS whereof the parties hereto have set their hands and seals the day and year first before written. The Common Seal of } Leach Homes (Northern West) Limited } was hereunto affixed in } the presence of } Director Director / Secretary Justin King Philippe Gere Signed Sealed and Delivered } by the said Adrian Rankin } in the presence of } Howard Dent Adrian Rankin Signed Sealed and Delivered } by the said Sandra Rankin } in the presence of } Howard Dent Sandra Rankin Page 10 of 16

11 DOCUMENT 4 Epitome of Title of MICHAEL AND KATHRYN STUART MOORVALE FARM, CLAYTON LE MOORS, BB5 5XU Doc. No. Date Description Parties Evidence now Supplied Conveyance Emily Drew and Robert Drew (1) Michael Stuart and Kathryn Stuart (2) Copy Original to be handed over on completion? No Conveyance Michael Stuart and Kathryn Stuart (1) Leach Homes (Northern West) Limited (2) Copy No Turn over Page 11 of 16

12 DOCUMENT 5 (Document 1 of the Epitome) PD Stamp 265 Duty THIS CONVEYANCE is made the 25 th day of November 1978 between EMILY DREW and ROBERT DREW both of Moorvale Farm, Clayton Le Moors, BB5 5XU (hereinafter called the Vendors ) and MICHAEL STUART and KATHRYN STUART both of 52 Vicarage Road, Clayton, Manchester (hereinafter called the Purchasers ) of the other part. WHEREAS: (1) The Vendors are seised of the Property hereinafter described for an estate in fee simple in possession free from encumbrances as trustees for themselves as beneficial joint tenants (2) The Vendors have agreed to sell the Property to the Purchasers for the sum of Seventy-Five Thousand Five Hundred Pounds ( 75,500.00) NOW THIS DEED WITNESSES: In consideration of the sum of Seventy-Five Thousand Five Hundred Pounds ( 75,500) paid by the Purchasers to the Vendors (receipt of which is hereby acknowledged) the Vendors as beneficial owners hereby convey to the Purchasers ALL THAT property known as Moorvale Farm, Clayton Le Moors, BB5 5XU (hereinafter called the Property ) which is more particularly delineated and edged red on a plan annexed to a conveyance dated 15 January 1954 and made between Keith Forge (1) and the Vendors (2) (the Conveyance) TO HOLD the same unto the Purchasers in fee simple as beneficial joint tenants. IN WITNESS whereof the Vendors and the Purchasers have executed this deed the day and year first before written. SIGNED SEALED and DELIVERED } by ROBERT DREW } Robert Drew in the presence of } Neil Gent Solicitor SIGNED SEALED and DELIVERED } by EMILY DREW } Emily Drew in the presence of } Neil Gent Solicitor SIGNED SEALED and DELIVERED } By MICHAEL STUART } Michael Stuart in the presence of } Jack Green Solicitor SIGNED SEALED and DELIVERED } By KATHRYN STUART } Kathryn Stuart in the presence of } Jack Green Solicitor Page 12 of 16

13 DOCUMENT 6 (Document 2 of the Epitome) THIS CONVEYANCE is made the 27 March 1984 between MICHAEL STUART and KATHRYN STUART both of Moorvale Farm, Clayton Le Moors, BB5 5XU (hereinafter called the Vendor ) and LEACH HOMES (NORTHERN WEST) Limited whose registered office is situate at 64 Swinton Avenue Clayton, BB5 9FG (Company Registration Number ) (hereinafter called the Purchaser ) of the other part. WHEREAS: (1) The Vendors are seised of the Property hereinafter described for an estate in fee simple in possession free from encumbrances (2) The Vendors have agreed to sell the Property to the Purchaser for the sum of One Hundred and Fifty Thousand Pounds ( 150,000.00) NOW THIS DEED WITNESSES: In consideration of the sum of One Hundred and Fifty Thousand Pounds ( 150,000.00) paid by the Purchaser to the Vendor (receipt of which is hereby acknowledged) the Vendor as beneficial owner hereby conveys to the Purchaser ALL THAT property known as Moorvale Farm, Clayton Le Moors, BB5 5XU (hereinafter called the Property ) which is more particularly delineated and edged red on a plan annexed to a conveyance dated 15 January 1954 and made between KEITH FORGE (1) and EMILY DREW and ROBERT DREW (2) (the Conveyance) TO HOLD the same unto the Purchaser in fee simple. IN WITNESS whereof the Vendor and the Purchaser have executed this deed the day and year first before written. SIGNED SEALED and DELIVERED } By KATHRYN STUART } Kathryn Stuart in the presence of } Jack Green Solicitor SIGNED SEALED and DELIVERED } By MICHAEL STUART } Michael Stuart in the presence of } Jack Green Solicitor The Common Seal of } Leach Homes (Northern West) Limited } was hereunto affixed in } the presence of } Director Director / Secretary Page 13 of 16 Justin King Philippe Gere Turn over

14 DOCUMENT 7 Extracts from the replies to the Fittings and Contents Form TA10 Curtains (Including Net Curtains): INCLUDE IN THE SALE EXCLUDED FROM THE SALE NONE AT THE PROPERTY Lounge Dinning Room Kitchen Bathroom Bedroom 1 Bedroom 2 Bedroom 3 Carpets and other Floor Covering: Lounge Dinning Room Kitchen Hall, Stairs and Landing Bedroom 1 Bedroom 2 Bedroom The Chartered Institute of Legal Executives Page 14 of 16

15 DOCUMENT 8 Page 15 of 16 Turn over

16 End of Case Study Materials Page 16 of 16