CeMAP Module II 2

Question 1

What is the legal distinction between freehold and leasehold property in England and Wales?

Accepted Answer

Freehold grants indefinite ownership of land and buildings, while leasehold grants possession for a fixed term under a lease from the freeholder

Answer

There is no legal distinction

Answer

Freehold only applies to commercial properties

Answer

Leasehold gives stronger rights than freehold

Question 2

How does the conveyancing process differ for registered and unregistered land?

Accepted Answer

Registered land has title guaranteed by the Land Registry with simplified transfer, while unregistered land requires investigation of title deeds going back at least 15 years

Answer

There is no difference in the process

Answer

Unregistered land cannot have a mortgage

Answer

Only solicitors can deal with registered land

Question 3

What is a mortgage valuation and how does it differ from a full structural survey?

Accepted Answer

A mortgage valuation is a basic assessment of property value for the lender's purposes, while a structural survey is a comprehensive inspection of the property's condition for the buyer

Answer

They are the same thing

Answer

A mortgage valuation is more detailed than a structural survey

Answer

A structural survey is only needed for new-build properties

Question 4

What is the role of a title guarantee in a property transaction?

Accepted Answer

It is the seller's assurance about the quality of the title being transferred, with full title guarantee providing the strongest assurances

Answer

It guarantees the property will increase in value

Answer

It guarantees the mortgage will be approved

Answer

It is only relevant for leasehold properties

Question 5

What is buildings insurance and why do mortgage lenders require it?

Accepted Answer

It insures the physical structure against damage from fire, flood, subsidence and other perils, protecting the lender's security

Answer

It insures the contents of the property against theft

Answer

It is optional for all mortgage borrowers

Answer

It covers the cost of mortgage repayments if the borrower is ill

Question 6

What is the Land Registry and what function does it serve in property transactions?

Accepted Answer

It is a government body that maintains the register of land ownership in England and Wales, providing state-guaranteed title

Answer

It is a private company that sells land

Answer

It is a court that resolves property disputes

Answer

It only records commercial property transactions