Conveyancing LPC

This question encompasses three sections. The first covers a contact of sale and a purchase deed for a transaction of land. The second section covers the regarding the mortgage on the property, tax implications, and opinion of the sale price. Finally the third part deals with the question asked by the purchaser about building on the piece of land that they have bought.

Section A

Question 1

Purchase Deed

Sale For Purchase of Land (FREEHOLD)

This agreement incorporates the Standard Conditions of sale (third edition). Where there is a conflict between those conditions and the agreement then the agreement will prevail.

The term used or defined in this agreement have the same meaning when used in the conditions.

The Property is sold subject to the encumbrances on the Property and the Buyer will raise no requisitions on them.

Subject to the terms of the agreement and to the Standard Conditions of Sale, the seller is to transfer the property with the title guarantee. The property is sold with vacant possession, and is not subject to any tenancies or leases.

Agreement date: (date, month and year in writing)

SELLER: Mrs Tamsin Rose Tremens of Coastguard House Rocky Point, Stanford Reach, Dorset , DS1 2EV hereinafter called the SELLER, an individual represented by Chris Smith , Gukdhall and Co. Solicitors of 1 Bank Place, Bridport, Dorset, DS 15 8LP, who acts on the basis of being a solicitors firm with authorisation to do so.

BUYER: Mr Allan Jim Pullman and Mrs Gillian Anne Pullman of 9, Tree lane, Stanford, Dorset, DS7 7QS hereinafter collectively called BUYER are individuals represented by Trevor Watson of Watson and Co, Solicitors of 93 Stanford High Street, who acts on the basis of being a solicitors firm with authorisation to do so.

Hereinafter, the Seller and Buyer, when refereed to collectively will be called the PARTIES.

The PARTIES agree the following,

The Property the SELLER sold and BUYER purchased is the land located at Rocky Point, Stanford reach, Dorset, DS1 2EV. The land is approximately half an acre in size and is in accordance with that shown by the attached document, contained in the attached appendix 1, which is to a scale of 1mm: 250cm. This refers to an area hereinafter called the LAND.

The LAND is Subject to these encumbrances and conditions on the property,

1) The un altering of the existing service conduits so as not to interfere with their use by the BUYER. These are marked on the enclosed Appendix 1 by a dotted line. The SELLER may use these conduits in so far as they can be altered as not to interfere with the use of the BUYER. All connections and costs that arise form the use of the service therein are at the sole expense of the BUYER. The BUYER is responsible for the rectifying of the land and returning to its pervious state, at his own expense, once any alterations have been made.

2) The hatched area shown on Appendix 1 relates to the plans of the SELLER for an access road to the LAND. This is agreed to by the BUYER and is to be at his expense and arrangement. The BUYER reserves all rights consistent with ownership on all remaining land outside the designated area referred to as the LAND that is to be conveyed to the BUYER. The BUYER is not to enter the aforesaid property, or use the aforesaid property without the express consent of the SELLER, including to, but not limited to, the use of the drive that remains for the sole use of the SELLER.

3) The BUYER takes the property on the proviso that no more that 1 house and the usual outbuildings are to be built on the LAND and that it is to be used as private residence only.

In addition the LAND is conveyed in strict accordance with the provisions set out on the Charges Register for the property Rocky Point, Stanford Reach , dorsa, DS1 2EV, and the BUYER is presumed to have notice of these. The BUYER must respect these charges, and hereby agrees to do so by signing this deed.

Title guarantee: the SELLER shall guarantee that the land, which is the object of this agreement, is free of any property rights of third parties, except those stipulated in this deed and the registered ones that have been aforementioned.

Completion date:

Contract Rate/Purchase Price, the Land sales price is £65,000 - Sixty Five Thousand Pounds to be paid by the BUYER to the SELLER.

Deposit the BUYER paid is £ (figures) (in writing) at the agreement signing, this accounting for % of the sales price due for the LAND.

The remaining sum of £ (figures) (in writing) shall be paid in instalments, paid on the date of every month(s) Or lump sum of £ or a combination of both as stated - (Delete as Applicable)

Failure to make the payment of an instalment (if agreed that instalments are to be paid) for loner than (insert time in weeks) shall serve as a ground to terminate, upon the SELLER'S initiative and discretion.
The BUYER shall pay the amount mentioned herein from SELLER'S account -
(Account number, bank data)

This Agreement shall be prepared in three originals. The first original is kept by BUYER, second ­ by SELLER; the third shall be kept at the Land Registry Office

The SELLER commits to ensure transfer of Land into BUYER'S possession immediately upon notarisation of this Agreement.

Signatures

SELLER

BUYER

Dated

Contract of Sale

On this date , the Parties agree to be bound by the purchase deed as signed. Furthermore the BUYER (the individual/individuals as referred to in the purchase deed) commits to the SELLER (the individual /individuals as referred to in the Purchase deed)

a) To register the ownership right to purchased with the Land Registry.

b) To ensure free of charge and free use of common utilities (roads for transport, passenger ways, engineering infrastructure, etc.) which existed upon transfer of the Land into ownership, or which construction was provided and for which land was reserved ineffective normative documents upon closure of this Agreement

c) To ensure the possibility to install boundary monuments and their preservation and access to such;

d) To ensure access on Land to the representatives of public utilities services for these to perform renovations and repairs of commonly used engineering infrastructures.

Final Provisions

This Agreement shall be prepared in three originals. The first original is kept by BUYER, second ­ by SELLER; the third shall be kept at the Land Registry Office.

This Agreement shall serve as a basis to register the ownership right to Land in the Registry

Signatures

SELLER

BUYER

Dated

Question 2

Buyers' Solicitors (or in this case me) will make a local search, before completion. I.e. a series of enquiries of the Local Authority about the property. These reveal whether the roads and sewers are the responsibility of the relevant authorities, any planning permission authorising the building of the property or its alteration, road improvement proposals in the vicinity of the property, and other relevant information. The Local Search does not disclose planning permissions (or applications for them) for any other property.

Upon completion, the buyer's solicitor will carry out further searches which are time critical and which accordingly are not carried out until the completion date is known.

This Search will take place prior to completion -

Form LLC1 Official Number Title number: GY256657

REGISTER OF LOCAL LAND CHARGES
REQUISITION FOR SEARCH AND OFFICIAL CERTIFICATE OF SEARCH

Requisition for Search

An official search is required in part(s) of (1) the register of local land charges kept by the registering
authority adjacent for subsisting registrations against the land defined in the attached plan and described below.

Description of Land - Rocky Pint, Stanford Reach, Dorset, DS 1 2EV Please find enclosed an accurate plan of the property to scale.

Official Certificate of Search
It is hereby certified that the search requested above reveals
no Subsisting registrations (2) Signed

Or the registrations described in the on behalf of DORSET DISTRICT COUNCIL
Schedule hereto up to and including the date of this
Certificate.

Date

Name and address to which certificate is to be sent: 9, Tree lane, Stanford, Dorset, DS7 7QS

Signature of the applicant (or his solicitor)

Date

Telephone number

Reference

Enclose cheque/postal order

Directions and notes
The certificate of the result of an official search of the register refers to any subsisting registrations, recorded against the land defined in the application for search, in the Parts of the register in respect of which the search is requested. The Parts of the register record:
Part 1 General financial charges. Part 2 Specific financial charges. Part 3 Planning charges. Part 4 Miscellaneous charges. Part 5 Fenland ways maintenance charges.
Part 6 Land compensation charges. Part 7 New towns charges. Part 8 Civil aviation charges. Part 9 Opencast coal charges. Part 10 Listed building charges. Part 11 Light obstruction notices. Part 12 Drainage scheme charges.

Section B

Question 3

a) What is the position as regards the mortgage on the land? This depends on whether or not the charge is registered. Here the charge is registered therefore any buyer will take the and subject to it. It does not matter whether or not the buyer and notice of it. He will be held to have constructive notice of it if it is registered. The charge can be cancelled by the use of form D3 which is available from the Land registry. Beyond this you check with your mortgage provider to as regards provisions for splitting the mortgage with the new buyer in relation to the amount of land held.

b) You have to pay Capital Gains Tax if you dispose of an asset, or receive a sum of money in respect of an asset. You only have to pay CGT on disposing of an asset if you have made a chargeable gain. Typically, you make a gain if the asset is worth more than it was when you acquired it. You will only have to pay CGT on a sum of money in respect of an asset if it was a capital sum. A capital sum is one that does not form part of your income for income tax purposes. Certain kinds of asset do not give rise to a chargeable gain when you dispose of them, you will not normally have to pay CGT if you sell your home for example.

The amount of CGT is based on the gains that you make on disposals of assets and
Capital sums that you receive from assets in the tax year. The tax year ends on
5 April. You work out the amount chargeable to CGT as follows - Disposal proceeds less Allowable costs. Then the Chargeable gains after losses Less Taper relief a relief that reduces a chargeable gain after losses according to how long you held the asset. Taper relief is applied separately to each chargeable gain. Tapered chargeable gains are exempt for an amount under £7,700 for the tax year 2002-2003.

Any form of property may be an asset for CGT purposes, including shares in company units in a unit trust land and buildings business assets, such as machinery and goodwill.

c) You have asked if £65,000 is a fair asking price in my opinion. This is certainly beyond my expertise and I would recoonmend the at you seek the advice of a chartered surveyor in order for you to ascertain whether or not this is a fair value for the land. Even if a gave advice here outside by professional opinion as giving the advice I may be judged to be holding myself out as professional simply by virtue of giving advice, therefore,regreatbly, I have to decline to comment on the matter.

Section C

a) My advice to any client must not be limited by any duty to someone other than that client, in such cases we there are potential difficulties.

If asked to act for more than one party in a conveyance, I have to refer to my professional rules. In general, I may not act for both seller and buyer, but there are some specific exemptions. Only if the case falls within one of the exemptions can I act.

Professional Conduct of Solicitors (7th edition, 1996) sates the relevant provisions. Under 15.01 A solicitor or firm of solicitors should not accept instructions to act for two or more clients where there is a conflict or a significant risk of a conflict between the interests of those clients. If under 15.02 if a solicitor or firm of solicitors has acquired confidential information concerning a former client during the course of acting for that client, the solicitor or the firm must not accept the instructions to act against the client.

The normal prohibition against continuing to act and the possibility of an exception from it in exceptional circumstance is set out in the first few paragraphs of the following precedent letter to conflicted clients. The guidance in the Appendix requires the erection of an ethical wall (*) and that the following conditions must be satisfied before continuing to act:

3.1 both clients must have consented (if one does not, that must be an absolute bar to the firm from acting for either); 3.2 it must be in the client's best interests that the new firm continue acting despite the conflict of interest; 3.3 there must be no embarrassment to the solicitors, who must not favour one client to the detriment of the other; and under 3.4 The client must have the risks fully explained.

There are, inevitably, limitations on what I can do when acting for two clients.

If both clients wish us to act for them, I can accept instructions if the potential for conflict appears genuinely remote and both clients explicitly state that they wish us to continue, after recognising and acknowledging these difficulties. I ask from you, as a client in this situation, to make quite sure that you understand the risks and limitations, and to rise with us, any doubts or questions you may have before we start

b) As there has all ready being planning permission granted there's a more chance than not that the application will be successful. It should be stressed that the application is to extinguish the previous application. As the application was not granted to yourselves and not for the exact property that you wish to build you should reapply. In order to apply for planning permission you must apply to the relevant council. They will ordinarily supply you with an information pack on exactly what they require. Therefore what follows is a general guide only. A full planning application would usually include the following documentation: Application form, Certificate of Ownership of Land Site, Location Plan Plans and Elevations, and an
Application Fee.

In the application form you must supply the Name and address of Applicant. You can complete this form yourself or you may wish to employ an agent to do it on your behalf. If you decided to use an agent then supply their name, address, telephone number and e-mail address. All correspondence and negotiations concerning the application will be dealt with through the agent.

You will have to clearly describe the type of development you are proposing in the application. You will usually have to provide details of how you are going to deal with surface water and foul sewage. You must usually provide details of existing and proposed car parking spaces relating to your proposal.

Development can adversely affect retained trees, even trees that are located some distance from a new building. This is of primary importance when building in an orchard of course. If your proposal involves alterations to existing ground levels or excavations within the crown spread of a tree, you will usually have to submit these details with your application. This should include plans showing ground levels across the site and sections through the site.

You are strongly advised to seek advice from a Planning Officer before submitting your application for planning permission. You are strongly advised to speak to your neighbours about your proposal before submitting your application. The Council has a legal duty to notify neighbouring occupiers of land about planning proposals and it often helps speed up the consultation process if you have spoken to your neighbours first. Your proposal may affect neighbours and as such they may wish to make suggestions for improvements. These improvements may well benefit both you and them.

When you have completed the form and you are ready to submit your planning application, you must sign and date the declaration. The Certificate of Ownership of Land must accompany all planning applications submitted.

As regards the Site Location Plan you submit copies of an up-to-date site location plan, a site location plan is a map that shows the location and extent of your land and property and roads (including street names) in relation to the land and properties that surround it.

You should also supply detailed building drawings you should submit copies of both existing and proposed plans and elevations. The plans must show all elevations of the proposed building(s) on and next to the site. The existing and proposed plans should be to the same scale to make them easier to interpret and understand.

Application Fees Planning applications are subject to a planning fee. In a small number of cases a planning fee is not required.

Most new buildings and structures need to be checked for compliance with the Building Regulations. These regulations concern matters such as structural stability, suitability of materials, adequacy of daylight and ventilation, protection against damp, fire and noise and to secure proper drainage. Although it may not be necessary to submit an application for approval for certain small-scale works, you can check what you need to do with Building Control located on the second floor of Exchange Buildings, where you can also obtain the appropriate forms.

Please note: The above essays and dissertations were written by students and then submitted to us to display and help others. Thanks to all the students who have submitted their work to us.

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