SQE2 Property Law Practice 1 — Questions and Answers
Question 1: In a residential conveyancing transaction, exchange of contracts makes the agreement:
- Voidable at either party's option
- Binding and enforceable on both parties (Correct answer)
- Conditional on mortgage approval
- Subject to survey findings
Correct answer: Binding and enforceable on both parties
Once contracts are exchanged both parties are legally bound; withdrawal after exchange without a contractual right to do so constitutes a repudiatory breach entitling the other party to damages.
Question 2: A freehold title in England & Wales must be registered at HM Land Registry:
- Only on sale
- On any qualifying trigger including first sale, mortgage, gift or assent (Correct answer)
- Every 10 years
- Only when the property is sold for more than £125,000
Correct answer: On any qualifying trigger including first sale, mortgage, gift or assent
First registration is triggered by any of several events including first sale, first legal mortgage, gift, or assent; once registered, title is maintained on the register.
Question 3: The concept of 'vacant possession' in a property sale means:
- The property has no mortgage
- The property will be free of occupants and their belongings on completion (Correct answer)
- The seller has good and marketable title
- No planning restrictions affect the property
Correct answer: The property will be free of occupants and their belongings on completion
Vacant possession requires the seller to deliver the property free from any occupiers and their possessions at completion, unless special conditions in the contract provide otherwise.
Question 4: A restrictive covenant running with the land can be enforced against a successor in title if:
- The covenant was given for valuable consideration only
- Both the benefit and burden have passed to the respective successors in title (Correct answer)
- The original covenantor is still alive
- The property is unregistered
Correct answer: Both the benefit and burden have passed to the respective successors in title
For a restrictive covenant to bind successors (Tulk v Moxhay), the burden must be negative, it must be intended to run with the land, and successors must have notice; benefit and burden must pass.
Question 5: In leasehold property, a 'ground rent review' that could result in rent doubling every 10 years would now be affected by:
- The Leasehold Reform Act 1967
- The Leasehold Reform (Ground Rent) Act 2022 (Correct answer)
- The Housing Act 1988
- The Commonhold and Leasehold Reform Act 2002
Correct answer: The Leasehold Reform (Ground Rent) Act 2022
The Leasehold Reform (Ground Rent) Act 2022 banned ground rents above a 'peppercorn' (nominal) in new regulated residential leases, significantly affecting doubling rent clauses in new grants.
Question 6: The priority of legal mortgages over unregistered equitable interests in registered land is governed by:
- Date of creation
- Date of registration at HM Land Registry (Correct answer)
- Priority notice lodged at Land Registry
- Actual occupation under Schedule 3 LRA 2002
Correct answer: Date of registration at HM Land Registry
Under the Land Registration Act 2002, legal interests take effect only upon registration; priority between competing interests in registered land is generally determined by date of registration.
SQE2 Property Law Practice 1
In a residential conveyancing transaction, exchange of contracts makes the agreement: