THE CHARTERED INSTITUTE OF LEGAL EXECUTIVES UNIT 10 CONVEYANCING *

Transcription

1 14 January 2016 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 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 In relation to the sale of 8 Station Terrace Reference: Question relates to Documents 1, 2 and 3 of the case study materials. (a) List the additional documents which you would need from your clients to enable you to deduce their title to 8 Station Terrace to the buyer s lawyers and explain the purpose of each of those documents. (6 marks) (b) In relation to the Energy Performance Certificate for 8 Station Terrace, explain: (i) what information would be given in that Certificate; (4 marks) (c) (ii) what is the latest stage by which that Certificate would need to be provided to the buyer. Explain: (1 mark) (i) who would draft the contract for the sale of 8 Station Terrace and which contract form would normally be used for this purpose; (2 marks) (ii) the meaning and effect of the phrase subject to contract as used in the sale particulars for the sale of 8 Station Terrace. (3 marks) (d) Explain how you would deal with the matter of the carpets and curtains which are also being sold to the buyer of 8 Station Terrace for an additional sum of 1,750. (4 marks) (Total: 20 marks) Page 2 of 8

3 Question 2 In relation to the purchase of Haddon Cottage Reference: Question relates to Documents 1, 4 and 5 of the case study materials. (a) In relation to the road giving access to the property, list three documents which you should check before exchanging contracts on your clients purchase, and explain what information each of those documents would provide. (6 marks) (b) Explain why it is important for you to obtain formal written mortgage instructions from Pan Euro Bank Plc and at what stage in the transaction these need to be received. (3 marks) (c) State which Law Society formula would be used to exchange contracts with the sellers lawyers in relation to your clients purchase of Haddon Cottage and explain why that particular formula would be used in this case. (3 marks) (d) Explain what advice you would give your clients about: (i) Their future co-ownership of Haddon Cottage; (4 marks) (ii) The additional document they should complete in relation to their coownership and what details it should contain. (4 marks) (Total: 20 marks) Turn over Page 3 of 8

4 Question 3 In relation to post exchange of contracts, completion and post completion matters Reference: Question relates to Documents 1, 3, and 5 of the case study materials. Attachment: Document A Mortgage Deed and Form of Consent (a) Complete boxes 1 to 5 of the Mortgage Deed and Form of Consent attached as Document A in relation to your clients purchase of Haddon Cottage. Important: Write your candidate number on Document A and attach it securely to the inside of your answer booklet. (5 marks) (b) Identify the steps you would need to take in respect of the existing mortgage on 8 Station Terrace following completion, in order to fulfil the terms of the undertaking given by you to the buyer s lawyers in your replies to the Completion Information and Undertakings form (TA13). (6 marks) (c) Explain, in relation to the stamp duty land tax payable on your clients purchase of Haddon Cottage: (i) what you would need to send to HM Revenue & Customs; (ii) when you would need to send this; (iii) what HM Revenue & Customs would then issue to you. (2 marks) (1 mark) (1 mark) (d) List the documents which you would need to send to the Land Registry to enable your clients to be registered as proprietors of Haddon Cottage following completion of their purchase. (5 marks) (Total: 20 marks) 2016 The Chartered Institute of Legal Executives Page 4 of 8

5 Candidate number: DOCUMENT A Mortgage Deed to be used with Question 3(a) MORTGAGE DEED Date: We (us) are: [Box 1] You, the Borrower are: [Box 2] The Mortgage Conditions are: PEB Mortgage Conditions 2014 The Property is: [Box 3] Title No: [Box 4] 1. The Mortgage Conditions form part of this Mortgage. You confirm receipt of a copy of the Mortgage Conditions. 2. You charge the Property by way of legal mortgage with payment of all the money payable to us under the Mortgage Conditions. This Mortgage is made with Full Title Guarantee. 3. We are obliged to make further advances and application is made to the Registrar for a note to be entered on the Register to that effect. 4. We and you agree that this document may be destroyed at anytime after it has been electronically scanned and registered at HM Land Registry. An Official Copy issued by HM Land Registry will then be accepted as evidence for all purposes as if it were the original. Signed as a Deed by: Signature(s) of the Borrower(s).. (Signature, name and address of each witness) In the presence of: (Signature, name and address of each witness).. In the presence of: Form of Charge filed at HM Land Registry under reference MD886D Turn over Page 5 of 8

6 Occupier(s) Consent to Mortgage I/We [Box 5] Will be in occupation of the Property at the time the mortgage is made. I/We agree with Pan Euro Bank Plc that any rights of occupation or share or interest in the Property which I/we may have now or later are postponed and subject to the rights of Pan Euro Bank Plc as first mortgagee. Signed and delivered as a deed by the Occupier(s) Witness Signature. Name. Address.. Witness Signature.. Name.. Address. Signed on behalf of Pan Euro Bank Plc.. This deed will be sent to HM Land Registry for registration of the charge between Pan Euro Bank Plc and the Borrowers. No information relating to any Occupier or Guarantor will be registered by HM Land Registry. End of Examination Paper Page 6 of 8

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