THE CHARTERED INSTITUTE OF LEGAL EXECUTIVES UNIT 19 RESIDENTIAL AND COMMERCIAL LEASEHOLD CONVEYANCING *

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1 16 January 2018 Level 3 RESIDENTIAL AND COMMERCIAL LEASEHOLD CONVEYANCING Subject Code L3-19 THE CHARTERED INSTITUTE OF LEGAL EXECUTIVES UNIT 19 RESIDENTIAL AND COMMERCIAL LEASEHOLD CONVEYANCING * Time allowed: 1 hour and 30 minutes plus 15 minutes reading time Instructions to Candidates You have been provided with a clean copy of the case study materials for you to use in this examination. You have FIFTEEN minutes to read through this question paper and the case study materials before the start of the examination. It is strongly recommended that you use the reading time to read this question paper fully. However, you may make notes on this question paper or in your answer booklet during this time, if you wish. All questions are compulsory. You must answer ALL the questions. Write in full sentences a yes or no answer will earn no marks. Candidates must comply with the CILEx Examination Regulations. Full reasoning must be shown in answers. Statutory authorities, decided cases and examples should be used where appropriate. Information for Candidates The mark allocation for each question and part-question is given and you are advised to take this into account in planning your work. Write in blue or black ink or ballpoint pen. Attention should be paid to clear, neat handwriting and tidy alterations. Complete all rough work in your answer booklet. Cross through any work you do not want marked. Do not turn over this page until instructed by the Invigilator. * This unit is a component of the CILEx LEVEL 3 PROFESSIONAL QUALIFICATIONS and LEVEL 3 LEGAL SERVICES KNOWLEDGE QUALIFICATIONS Page 1 of 8

2 Question 1 Reference: Question relates to Document 1 of the case study materials. In relation to Flat 3c, Lime Grove, Longbury Prior to the purchase of 18 Sefton Drive, Longbury, Simon has been living at Flat 3c, Lime Grove. With the purchase due to complete shortly, Simon is looking to vacate the flat. When you ask him about the status of his agreement he replies that it can t be a proper lease as there was never anything in writing. Explain whether Simon s lease of the flat could be a legal lease. (6 marks) Question 2 Reference: Question 2 relates to Documents 1, 2 and 3 of the case study materials. In relation to the purchase of 18 Sefton Drive, Longbury Kempstons charging policy is to provide clients with estimates for their work rather than fixed-fee quotes. (a) Briefly describe how a fixed-fee quote differs from an estimate. (2 marks) Robert and Simon have contacted you as they are concerned about the physical condition of 18 Sefton Drive. They are worried about the condition of the roof and the seals on the windows. (b) Explain why you would advise your clients to have a survey of 18 Sefton Drive. Would you advise them to rely on their lender s valuation or would you advise them to have another type of survey? (6 marks) (c) Consider Robert and Simon s proposal for the extension referred to in the File Note (Document 1). (i) Explain the title implication of entry number 1 in the charges register of the title (Document 2), and any steps you may need to take or consider to deal with this issue. (4 marks) (ii) In relation to the same proposal, explain the implication of the local land charge entry (Document 3), and any steps you may need to take or consider to deal with this issue. (4 marks) Page 2 of 8

3 Your investigation of title also revealed that the title to 18 Sefton Drive has been registered with a good leasehold title. (d) Explain the concerns that you should have as a result of this discovery. (3 marks) Contracts have been exchanged and you are now preparing for completion of your clients purchase. A student on work experience has completed Form OS1 [Document A] and you have been asked by Alan Waring to check the document. Important: Do not complete the OS1 Form attached as Document A. Answer this question in your answer booklet. (e) Consider boxes 7, 8 and 9 of Form OS1. Identify any errors and explain how you would correct those errors. (6 marks) (f) Following completion, you have been dealing with the post completion steps. (i) (ii) Identify the document that the Land Registry will issue following completion of the registration of title. (1 mark) To allow you to close the file what check should you make to address the lender s requirements with regard to the title documents? (1 mark) (Total: 27 marks) Turn over Page 3 of 8

4 Question 3 Reference: Question 3 relates to Document 4 of the case study materials. In relation to the purchase of Flat 14, Melwood Apartments, Marsden Street, Dayton (a) Explain why you will ask Sada, when she provides initial instructions, to bring her passport and a recent utility bill into the office for her first meeting with Alan. (4 marks) Sada has arranged a mortgage with Nateast Bank on standard terms. She has asked you if you will be able to represent both the bank and herself. (b) Explain why it is likely to be acceptable for you to act for both Nateast Bank and Sada in relation to this transaction. (9 marks) Alan Waring has confirmed that Kempstons will act for both Nateast Bank and for Sada. (c) Sada s seller will have to obtain the title documents to Flat 14. Identify the form that will be used by the seller s solicitor to obtain a paper copy of the register entries and title plan, and explain why the seller s solicitor will check the register entries at this stage of the transaction. (2 marks) (d) List the three methods of completion that the solicitors could adopt in this transaction. (3 marks) (Total: 18 marks) Page 4 of 8

5 Question 4 Reference: Question relates to Documents 1 and 5 of the case study materials. In relation to Unit 6, Hardmans Yard, Longbury Simon has contacted your firm again. He is concerned that the roof of Unit 6 has been damaged during recent storms and that it will be expensive to repair. The tenant of the unit, Nexis Blink Limited ( Nexis ), is refusing to pay towards the repair costs. (a) Consider the lease extracts (Document 5) and explain whether the tenant is obliged to repair the roof under the lease provisions. (5 marks) The repair of the roof has finally been resolved, but Nexis has not paid its last rental payment on time. Simon is increasingly frustrated with Nexis as a tenant and would consider the possibility of replacing it with a new tenant. (b) List the remedies available to Simon for a breach of the rent covenant and explain the suitability of each of them in this situation. (6 marks) Given the problems that Simon has been having with Nexis, he has come to see you to seek your advice as to whether the lease of Unit 6 will have any security of tenure. (c) Explain the conditions that would have to be satisfied in order for a tenant to gain the protection of Part II Landlord and Tenant Act (8 marks) (Total: 19 marks) Turn over Page 5 of 8

DOCUMENT A LAND REGISTRY SEARCH FORM OS1 Use one form per title. Any parts of the form that are not typed should be completed in black ink and in block capitals.

HM Land Registry is unable to give legal advice, but you can find guidance on HM Land Registry applications (including our practice guides for conveyancers) at www.gov.uk/land-registry.

6 DOCUMENT A LAND REGISTRY SEARCH FORM OS1 Use one form per title. Any parts of the form that are not typed should be completed in black ink and in block capitals. If you need more room than is provided for in a panel, and your software allows, you can expand any panel in the form. Alternatively use continuation sheet CS and attach it to this form. HM Land Registry is unable to give legal advice, but you can find guidance on HM Land Registry applications (including our practice guides for conveyancers) at HM LAND REGISTRY USE ONLY Record of fees paid Particulars of under/over payments Reference number Fees debited Conveyancer is a term used in this form. It is defined in rule 217A, Land Registration Rules 2003 and includes persons authorised under the Legal Services Act 2007 to provide reserved legal services relating to land registration and includes solicitors and licensed conveyancers. Where there is more than one local authority serving an area, enter the one to which council tax or business rates are normally paid. Enter the title number of the registered estate or that allotted to the pending first registration. Insert address including postcode (if any) or other description of the property, for example land adjoining 2 Acacia Avenue. 1 Local authority serving the property: Trelford DC 2 Title number of the property: BT Property: 18 Sefton Drive, Longbury, Hartshire, AT27 3UM Enter the full names. If there are more than two persons, enter the first two only. To find out more about our fees visit Place 'X' in the appropriate box. The fee will be charged to the account specified in panel 6. 4 Registered proprietor/applicant for first registration SURNAME/COMPANY NAME: Hassan FORENAME(S): Ahmed SURNAME/COMPANY NAME: FORENAME(S): 5 Application and fee Application Fee paid ( ) Official search of whole with priority Fee payment method X 7.00 cheque made payable to 'Land Registry' direct debit, under an agreement with Land Registry Page 6 of 8

7 This panel must always be completed. If you are paying by direct debit, this will be the account charged. 6 This application is sent to Land Registry by Key number (if applicable): XXXXXXX Name: Kempstons Solicitors Address or UK DX box number: DX Bedford Place 'X' in one box only. For a search of a registered title enter a date falling within the definition of search from date in rule 131 of the Land Registration Rules If the date entered is not such a date the application may be rejected. Provide the full name(s) of each purchaser or lessee or chargee. address: alanwaring@kempstonssolicitors.co.uk Reference: AW/MI Phone no: Application and search from date X Fax no: I apply for a search of the individual register of a registered title to ascertain whether any adverse entry has been made in the register or day list since I apply for a search in relation to a pending application for first registration to ascertain whether any adverse entry has been made in the day list since the date of the pending first registration application. 8 The applicant: 15 July 2015 Robert Wilson and Simon McGarry 9 Reason for application Place 'X' in the appropriate box. I certify that the applicant intends to X Purchase take a Lease take a registered Charge If a conveyancer is acting for the applicant, that conveyancer must sign. If no conveyancer is acting, the applicant (if more than one person then each) must sign. 10 Signature of applicant or their conveyancer: Date: WARNING If you dishonestly enter information or make a statement that you know is, or might be, untrue or misleading, and intend by doing so to make a gain for yourself or another person, or to cause loss or the risk of loss to another person, you may commit the offence of fraud under section 1 of the Fraud Act 2006, the maximum penalty for which is 10 years imprisonment or an unlimited fine, or both. Failure to complete this form with proper care may result in a loss of protection under the Land Registration Act 2002 if, as a result, a mistake is made in the register. Under section 66 of the Land Registration Act 2002 most documents (including this form) kept by the registrar relating to an application to the registrar or referred to in the register are open to public inspection and copying. If you believe a document contains prejudicial information, you may apply for that part of the document to be made exempt using Form EX1, under rule 136 of the Land Registration Rules Crown copyright (ref: LR/HO) 04/17 End of Examination Paper 2018 The Chartered Institute of Legal Executives Page 7 of 8

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THE CHARTERED INSTITUTE OF LEGAL EXECUTIVES UNIT 10 CONVEYANCING *

19 January 2017 Level 3 CONVEYANCING Subject Code L3-10 THE CHARTERED INSTITUTE OF LEGAL EXECUTIVES UNIT 10 CONVEYANCING * Time allowed: 1 hour and 30 minutes plus 15 minutes reading time Instructions