SQE1 Property Practice

Property Law and Practice · Contract: risk between exchange and completion

Ben Okoye has exchanged contracts to buy a detached house in Leeds for £340,000. The contract incorporates the Standard Conditions of Sale without amendment, and completion is set for four weeks after exchange. Ten days after exchange, a storm drops a tree on the roof and the house cannot be lived in. The seller's buildings insurance had lapsed. Ben has not arranged any insurance of his own. Which of the following best describes Ben's position?

1. The seller keeps the risk until completion, so Ben may rescind the contract because the house is now unusable for its purpose.
2. The contract is frustrated by the damage, so it ends automatically and neither party has any claim against the other.
3. Ben must complete, but at a price reduced by the cost of repair, because the seller let its insurance lapse.
4. Ben must complete, but he may claim the cost of repair from the seller, who had a duty to keep the house insured.
5. Ben carries the risk from exchange, so he must complete at the full price and bear the loss himself.

Show answer and explanation

Answer: A. Under an open contract the risk passes to the buyer on exchange (Paine v Meller). The Standard Conditions of Sale reverse this: the seller must transfer the property in the same physical state as at the date of the contract, apart from fair wear and tear, so the seller keeps the risk until completion. If, before completion, the physical state of the property makes it unusable for its purpose at the date of the contract, the buyer may rescind. A house that cannot be lived in is unusable for its purpose, so Ben may rescind and recover his deposit. The lapse of the seller's insurance does not change Ben's rights; it is the seller's problem. The tempting wrong answer applies the open contract rule, which the Standard Conditions displace. Contrast the Standard Commercial Property Conditions, under which the buyer bears the risk from exchange.

Standard Conditions of Sale (5th edition, 2018 revision), condition 7.1 (risk and responsibility for the property); Paine v Meller (1801) 6 Ves 349

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Property Law and Practice · Investigating title: registered charge

Priya Nair is buying a flat in Reading for £285,000 with the help of a mortgage. The copies of the register show Mr Doyle as registered proprietor with absolute title. The charges register contains a registered charge in favour of a bank. Mr Doyle's solicitor says that the mortgage will be repaid from the sale proceeds. Priya's solicitor must decide how to deal with the charge. What is the best course of action?

1. Accept the seller's solicitor's undertaking to redeem the charge on completion and to supply evidence of its discharge for registration.
2. Insist that the charge is removed from the register before exchange, because Priya cannot otherwise be bound to complete.
3. Take no action, because on registration of her transfer for value Priya takes free of every earlier registered charge.
4. Ask the bank to approve the sale in writing, because a registered chargee must always consent to a transfer by the proprietor.
5. Complete without any undertaking and keep part of the price until the Land Registry has removed the charge from the register.

Show answer and explanation

Answer: A. A registered charge is an interest entered on the register, so a buyer for value takes subject to it (Land Registration Act 2002, s 29(2)(a)(i)). The usual and safe practice is to complete with the seller's solicitor undertaking to redeem the loan from the proceeds, and to send evidence of discharge so that the buyer's solicitor can have the charge removed. The charge does not need to be cleared before exchange, and the sale can be contracted subject to its removal on completion. The tempting view that the buyer takes free of the charge is wrong because section 29 protects registered charges rather than extinguishing them. A lender has no right of veto unless a restriction is on the register.

Land Registration Act 2002, s 29(2)(a)(i); Law Society Code for Completion by Post (2019)

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Property Law and Practice · Investigating title: unregistered land

Mr Hughes is selling an unregistered freehold field in Shropshire to a developer. The contract is an open contract. Mr Hughes has these documents: a conveyance on sale dated 1971; a conveyance on sale dated 1994 to his late father; and an assent in his own favour dated 2018. The land has never been registered. The developer's solicitor wants to know which document will serve as the root of title. Which of the following is correct?

1. The 2018 assent, because it is the most recent document and it vests the legal estate in the seller.
2. The 1971 conveyance, because the seller must prove title for at least 40 years before the contract.
3. The 1994 conveyance, but only if the developer first agrees that title may start with a document under 30 years old.
4. No root of title is needed, because the land will be registered at the Land Registry on completion.
5. The 1994 conveyance on sale, because it is the most recent suitable document that is at least 15 years old.

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Answer: E. Under the Law of Property Act 1925, s 44(1), as amended by the Law of Property Act 1969, s 23, an open contract requires the seller to show a good root of title at least 15 years old. A conveyance on sale that deals with the whole legal and equitable interest, describes the land and casts no doubt on title is a good root. The 1994 conveyance meets this and is the most recent document that is old enough. The 2018 assent is under 15 years old. The 1971 conveyance would also be valid, but the old 40 year rule no longer applies, and the seller need not go back that far. First registration after completion does not remove the need to show title.

Law of Property Act 1925, s 44(1); Law of Property Act 1969, s 23

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Property Law and Practice · First registration: failure to register

Anita Joshi bought unregistered freehold land in Kent by a conveyance on sale and completed on 3 March. Her solicitor was told to register the title but did nothing. On 20 June, Anita's new solicitor discovers that no application has been made. The land is in an area of compulsory registration. What is the legal effect of the delay?

1. The conveyance is void, so Anita can recover her purchase money from the seller as money paid for a failed consideration.
2. The legal estate stays with Anita, and the Registrar must accept a late application without any further steps.
3. Anita keeps the legal estate but loses priority to any person who later registers an interest in the land.
4. The title is registered automatically from the date of completion, but the Registrar may fine Anita for the delay.
5. The legal estate reverts to the seller, who holds it on a bare trust for Anita, and Anita holds only an equitable interest.

Show answer and explanation

Answer: E. On a conveyance on sale of unregistered freehold land, the buyer must apply for first registration within two months of the date of the disposition (Land Registration Act 2002, ss 4 and 6(4)). If no application is made in time, the transfer becomes void as regards the transfer of the legal estate (s 7(1)). Under s 7(2)(a), title to the legal estate reverts to the seller, who holds it on a bare trust for the buyer. Anita therefore holds only an equitable interest. The sale itself is not undone, so she cannot recover the price. The usual cure is to apply to the registrar to extend the period under s 6(5), giving a good reason for the delay, or else to obtain a fresh conveyance from the seller at Anita's expense (s 8).

Land Registration Act 2002, ss 4, 6, 7 and 8

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Property Law and Practice · Stamp Duty Land Tax: first-time buyers' relief

Karim and Laila are first-time buyers purchasing their first home in Manchester for £450,000 in England. Assume these rates. Standard residential SDLT: nil up to £125,000; 2% on the part from £125,001 to £250,000; 5% on the part from £250,001 to £925,000. First-time buyers' relief: nil on the first £300,000 and 5% on the part from £300,001 to £500,000, with no relief at all if the price exceeds £500,000. How much SDLT is payable?

1. £2,500
2. £7,500
3. £10,000
4. £12,500
5. £22,500

Show answer and explanation

Answer: B. First-time buyers' relief is available because the price does not exceed £500,000 and both buyers are first-time buyers (Finance Act 2003, Sch 6ZA). Using the rates given, the first £300,000 is taxed at nil. The remaining £150,000 (from £300,001 to £450,000) is taxed at 5%, which is £7,500. The figure of £12,500 is what the buyers would pay without the relief: £2,500 on the 2% band plus £10,000 on the 5% band from £250,001 to £450,000. £22,500 would result from applying 5% to the whole price, which is not how SDLT works. SDLT is a slice tax, charged band by band.

Finance Act 2003, s 55 and Sch 6ZA

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Property Law and Practice · Conflict of interest: acting for buyer and lender

Rosa Delgado acts for Dev Kapoor on the purchase of a flat for £260,000 and for his lender under the lender's standard instructions. The contract states the price as £260,000. Dev tells Rosa that the seller will give him £20,000 in cash after completion as a private deal. He asks Rosa not to mention it to the lender. Which of the following is the correct course for Rosa?

1. Keep Dev's confidence under her duty of confidentiality and continue to act for both him and the lender.
2. Explain that she must tell the lender, and if Dev will not agree, stop acting for both of them.
3. Tell the lender at once without speaking to Dev, because her duty to the lender overrides everything else.
4. Stop acting for the lender but carry on for Dev, because the lender can simply instruct another firm.
5. Continue for both, but ask Dev to sign a note confirming that he takes responsibility for the omission.

Show answer and explanation

Answer: B. A lender client is entitled to know material facts affecting the loan, and a cash-back of this kind is material. The solicitor must make clients aware of all information material to the matter (SRA Code of Conduct for Solicitors, para 6.4). Confidentiality (para 6.3) does not allow her to hide it from a client for whom she acts. If Dev will not allow disclosure, Rosa has a conflict between two clients with no common interest (para 6.2) and must stop acting for both, and she must not mislead anyone (para 1.4). She should first explain the position to Dev. Dropping only the lender would help Dev to conceal the cash-back from the lender and could assist mortgage fraud.

SRA Code of Conduct for Solicitors, paras 6.2, 6.3, 6.4 and 1.4; SRA Principles 2019, Principle 5

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Property Law and Practice · Pre-contract enquiries: misrepresentation

Zoe Whitaker bought a house in Bath after her solicitor sent the seller the standard property information form. The seller, Mr Lang, answered 'No' to the question whether there were any disputes with neighbours. In fact, Mr Lang had been in a long-running dispute with the next-door owner about the boundary, which he knew about. After completion the neighbour sues Zoe over the boundary. Zoe wants to know what remedy she has against Mr Lang. Which of the following is the best answer?

1. None, because the principle of caveat emptor applies and the buyer must find out any defects for herself.
2. None, because the contract merged into the transfer on completion, which ended her rights under the contract.
3. She may claim only if the form is a term of the contract, which it is not unless expressly incorporated.
4. She may only rescind the contract, but rescission is no longer possible because completion has taken place.
5. She may claim damages for misrepresentation, because the false reply was a statement of fact that induced the contract.

Show answer and explanation

Answer: E. Caveat emptor applies to physical defects, but a seller who gives an untrue reply to a pre-contract enquiry is liable for misrepresentation. A false statement of fact that induces the buyer to enter the contract gives the buyer a claim for damages under the Misrepresentation Act 1967, s 2(1), unless the seller proves that he had reasonable grounds to believe, and did believe, that the statement was true. Mr Lang knew the answer was false, so he cannot show this, and he is also liable in deceit. A misrepresentation claim does not depend on the contract, so the merger of the contract into the transfer on completion does not end it. Section 1(b) of the Act also provides that completion does not by itself bar rescission. The tempting view that the buyer has no remedy ignores that an untrue answer is more than silence.

Misrepresentation Act 1967, ss 1(b) and 2(1)

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Property Law and Practice · Searches: mining

Carol Evans is buying a terraced house in a former coalfield town in South Yorkshire. Her surveyor says that the area has many old mine shafts and workings, and Carol is worried about subsidence. Her solicitor has already ordered a local authority search and enquiries, a drainage and water search and an environmental search. Which additional search is most likely to give information on past or planned underground coal mining affecting the house?

1. A Land Charges Department search against the seller's name, as the seller owns the land.
2. A Coal Authority mining report, which covers past, present and proposed coal mining below the property.
3. A chancel repair search against the parish, as the church holds records of old mine works.
4. A search of the local land charges register by itself, which records every mining hazard in the district.
5. A bankruptcy-only search against Carol, as insolvency searches reveal claims for ground movement.

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Answer: B. A Coal Authority mining report (CON29M) gives information on past, present and future underground coal mining, subsidence claims and related matters for the property, and is standard in coalfield areas. The local authority search and enquiries do not cover coal mining records. The environmental and drainage searches deal with other risks. A land charges search against the seller finds charges registered against a name, which is irrelevant to subsidence, and the same applies to bankruptcy searches. A chancel repair search addresses a different risk. The local land charges register records charges and restrictions imposed by public authorities, not the risks created by old workings.

Coal Mining Subsidence Act 1991; Law Society practice note: Coal mining and brine subsidence claim searches

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Property Law and Practice · Priority searches

Samir Qureshi is buying a registered freehold shop. On Monday, his solicitor makes a priority search at HM Land Registry using form OS1 against the title. The certificate shows no entries other than those already known. Completion takes place four days later. On the day after completion, the seller's creditor applies to register a notice against the title. The buyer's solicitor sends the application to register the transfer within the priority period. What is the effect of the priority search?

1. It stops the seller from dealing with the title for a period of 30 days, so the creditor's application is rejected.
2. It protects Samir only for 30 calendar days, so he should apply to register within that time or lose his priority.
3. It protects Samir from all interests whether or not they are entered in the register, such as those of occupiers.
4. It gives Samir priority for 30 business days, so an application made in that time ranks ahead of the creditor's later notice.
5. It gives Samir priority only until completion takes place, after which the register shows the true position.

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Answer: D. A priority search under the Land Registration Act 2002, s 72, protects a buyer for the priority period, which is 30 business days beginning with the day after the search is made. An application to register the transfer made within that period is dealt with as if it had been made at the time of the search, so entries made in between do not take priority over it. Here the creditor's notice came after the search, and the buyer's application was in time, so the transfer ranks first. The search does not block applications by others, which can still be lodged, but they rank behind the buyer's. It does not affect overriding interests such as those of occupiers.

Land Registration Act 2002, s 72; Land Registration Rules 2003, r 131

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Property Law and Practice · Contract formalities and gazumping

Elaine Moore agreed to sell her house to Tom Barr for £375,000. They shook hands on the price, and the estate agent confirmed it by email. Tom paid £450 for a survey and £300 for a mortgage valuation. Before any contract was drafted, another buyer offered Elaine £395,000. She accepted it and told Tom she would not sell to him. Tom wants to force the sale. Which of the following is correct?

1. Tom can obtain specific performance, because the agent's email is enough written evidence of the agreement.
2. Tom can enforce the agreement because he spent money on a survey and valuation in reliance on it.
3. Tom can enforce the agreement if he can show part performance, which is shown by his payment of the survey fees.
4. There is no enforceable contract, because a contract for the sale of land must be made in a signed written document.
5. Tom can claim a share in the property, because the agreement created a beneficial interest in his favour.

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Answer: D. A contract for the sale or other disposition of an interest in land can be made only in writing, incorporating all the agreed terms, signed by or on behalf of each party (Law of Property (Miscellaneous Provisions) Act 1989, s 2). Usually this means exchange of signed contracts. A handshake and an agent's email do not satisfy section 2, so Elaine remains free to accept a higher offer. Part performance no longer rescues an informal contract. Section 2(5) preserves the resulting, implied and constructive trusts, and a claim based on estoppel needs more than expenditure made at the buyer's own risk. Survey and valuation fees are the usual risk of buying and do not create an interest.

Law of Property (Miscellaneous Provisions) Act 1989, s 2

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Property Law and Practice · SDLT: higher rates for additional dwellings

Hannah Brooks owns her home in Bristol. She buys a second home in England for £300,000 as an investment and does not replace her main residence. Assume these rates. Standard SDLT: nil up to £125,000; 2% on the part from £125,001 to £250,000; 5% on the part from £250,001 to £925,000. Higher rates for additional dwellings add 5 percentage points to each band where the price is £40,000 or more. How much SDLT is payable on the second home?

1. £5,000
2. £10,000
3. £15,000
4. £20,000
5. £30,000

Show answer and explanation

Answer: D. The higher rates for additional dwellings apply because Hannah will own two dwellings after the purchase and the second is not replacing her main residence (Finance Act 2003, Sch 4ZA). The surcharge adds 5 percentage points to each band. The first £125,000 is taxed at 5%, which is £6,250. The next £125,000 is taxed at 7%, which is £8,750. The last £50,000 is taxed at 10%, which is £5,000. The total is £20,000. The figure of £5,000 is the standard charge without the surcharge. The figure of £15,000 is the surcharge alone, at 5% of £300,000. The figure of £30,000 wrongly applies 10% to the whole price.

Finance Act 2003, Sch 4ZA

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Property Law and Practice · Land Transaction Tax (Wales)

Ceri and Dafydd Pryce buy their only home, a house in Swansea, for £300,000. The house is in Wales, and Land Transaction Tax applies. Assume these main residential rates: nil up to £225,000; 6% on the part from £225,001 to £400,000; 7.5% on the part from £400,001 to £750,000. The buyers have no other property. How much LTT is payable?

1. £4,500
2. £9,000
3. £13,500
4. £18,000
5. £22,500

Show answer and explanation

Answer: A. Land Transaction Tax, not SDLT, applies to land in Wales, and it is administered by the Welsh Revenue Authority. Like SDLT, LTT is charged band by band on the part of the price that falls within each band. The first £225,000 is charged at nil. The remaining £75,000 (from £225,001 to £300,000) is charged at 6%, giving £4,500. The figure of £18,000 applies 6% to the whole price. The figure of £13,500 applies 6% to £225,000, which is the nil rate band. The rates given in the question are the only rates to apply. The buyers have no other property, so no higher rate for additional dwellings arises.

Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017; Land Transaction Tax (Tax Bands and Tax Rates) (Wales) Regulations 2017

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Property Law and Practice · Contract: notice to complete

Under a contract incorporating the Standard Conditions of Sale, completion was due on 1 June. The buyer, Mr Osei, did not have his funds ready, and the seller, Mrs Dunn, who is ready, able and willing to complete, served notice to complete on 2 June. She wants to know what effect the notice has on Mr Osei's obligations and on her rights if he fails to comply. Which of the following is correct?

1. He must complete within 20 working days of the notice, and time is not of the essence until that period has passed.
2. He must complete within 10 working days of the notice, and time is of the essence, so failure entitles her to rescind.
3. He must complete within a reasonable time, and she may rescind only after applying to court for an order.
4. He must complete within 10 working days, but failure gives her only a claim for interest at the contract rate.
5. He must complete within 14 calendar days, after which the contract is automatically at an end.

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Answer: B. Under the Standard Conditions of Sale (5th edition), condition 6.8, a party who is ready, able and willing to complete may serve a notice to complete on or after the completion date. The parties must then complete within 10 working days, excluding the day on which the notice is given, and time is of the essence for that period. If the buyer fails, the seller may rescind, forfeit and keep the deposit and resell the property (condition 7.4). The tempting view that the seller has only a claim for interest is wrong because interest is the remedy for ordinary late completion, but a failure to comply with a notice to complete gives the seller the stronger remedy of rescission. No court order is needed.

Standard Conditions of Sale (5th edition, 2018 revision), conditions 6.8 and 7.4

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Property Law and Practice · Money laundering: suspicion and reporting

Jade Morris, an associate at a firm in Birmingham, acts for Mr Ivanov in buying a £1.2 million office building. He will use an offshore company, which he will not explain, and refuses to name its owners. The £1.2 million will come from a third-party account in another country. He wants exchange and completion within a week. Jade's questions about the money have not been answered and she now suspects money laundering. What should she do?

1. Tell Mr Ivanov that she suspects money laundering, so that he can explain, and continue if he does.
2. Report her suspicion to the firm's nominated officer and take no prohibited step, such as exchange, until advised.
3. Complete the transaction and make a report to the National Crime Agency afterwards, because the matter is urgent.
4. Return any funds to the third-party account and stop acting, without reporting, because that ends the risk.
5. Report the matter directly to the police and tell Mr Ivanov that she has done so, to be open with him.

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Answer: B. Jade has suspicion, so she must make an internal report to the firm's nominated officer (the MLRO) as soon as practicable (Proceeds of Crime Act 2002, s 330). Taking steps such as exchange or completion without consent could be a prohibited act, such as an arrangement offence under s 328. A defence is available only if an authorised disclosure is made and appropriate consent is obtained (ss 335 and 338). Telling Mr Ivanov could be tipping off (s 333A). Returning funds without reporting does not meet the reporting duty and might itself be an offence. Reporting after completion is too late, because the offence of entering an arrangement has been committed by then.

Proceeds of Crime Act 2002, ss 328, 330, 333A, 335 and 338

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Property Law and Practice · Leases: assignment and AGA

In 2019, Kestrel Ltd took a ten-year lease of a unit on an industrial estate. In 2024 it assigned the lease to Fox Ltd with the landlord's consent, and gave an AGA (the authorised form of outgoing-tenant liability agreement under the 1995 Act) as a condition of that consent. In 2026 Fox Ltd stops paying rent. The lease is a new tenancy for the purposes of the Landlord and Tenant (Covenants) Act 1995. The landlord asks whether it can claim the unpaid rent from Kestrel Ltd. Which of the following is correct?

1. Yes, Kestrel Ltd remains liable as original tenant for the whole term, as the 1995 Act did not alter privity of contract.
2. No, because on assignment Kestrel Ltd was automatically released from all liability and the AGA is unenforceable.
3. No, because an AGA covers only breaches that occur in the period before the assignment took place.
4. Yes, because Kestrel Ltd was released from the tenant covenants on assignment, but the AGA makes it liable for Fox Ltd's default.
5. Yes, but only if the landlord first obtains a court order against Fox Ltd and the court finds Fox Ltd to be insolvent.

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Answer: D. For a new tenancy (granted on or after 1 January 1996), a tenant is released from the tenant covenants on a lawful assignment (Landlord and Tenant (Covenants) Act 1995, s 5). However, a landlord may require the outgoing tenant to give an AGA as a condition of consent (s 16). Under an AGA the outgoing tenant stands behind the performance of the tenant covenants by its immediate assignee. Fox Ltd's default therefore makes Kestrel Ltd liable. The idea that the original tenant stays liable for the whole term describes old tenancies, where the original tenant stayed liable for the whole term. An AGA does not have to await a court order, though the landlord must serve a timely notice under s 17 for arrears.

Landlord and Tenant (Covenants) Act 1995, ss 5, 16 and 17

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Property Law and Practice · Leases: section 17 notice for arrears

Under a 2018 lease, Orchard Ltd is the tenant. Orchard assigned the lease in 2022 to Delta Ltd, giving an AGA under the 1995 Act. Delta did not pay the quarter's rent of £8,000, which was due on 25 March 2026. The landlord first wrote to Orchard about the arrears on 12 October 2026. It had not served any earlier notice. The landlord asks whether it can recover the £8,000 from Orchard. Which of the following is correct?

1. Yes, because the landlord may claim from a former tenant at any time within the six-year limitation period.
2. Yes, because the landlord serves notice for arrears only when it claims interest, and this claim is only for rent.
3. No, because Orchard was released on assignment and cannot be liable in any circumstances.
4. No, because the landlord served its notice more than six months after the rent fell due, so the claim against Orchard is lost.
5. No, because only a court may give the notice required to bring a claim against a former tenant.

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Answer: D. Where a landlord wants to recover a fixed charge, such as rent, from a former tenant or guarantor, it must serve a notice under the Landlord and Tenant (Covenants) Act 1995, s 17, within six months of the date the sum became due. The notice must state the amount and that the landlord intends to recover it. Here the rent fell due on 25 March 2026 and the first notice was sent on 12 October 2026, which is more than six months later. The landlord has lost the right to recover that rent from Orchard under the AGA, though it may still claim from Delta, the current tenant. The limitation period is the wrong test for this claim.

Landlord and Tenant (Covenants) Act 1995, s 17

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Property Law and Practice · Landlord and Tenant Act 1954 Part II: renewal application

Greenleaf Ltd rents a shop under a five year lease that ends on 30 June 2027. The lease is protected by Part II of the Landlord and Tenant Act 1954. On 1 November 2026, the landlord served a valid section 25 notice stating that it would not oppose a new tenancy and that the current tenancy would end on 30 June 2027. Greenleaf wants a new lease but the parties cannot agree terms. No agreement extending time has been signed. Greenleaf applies to court for a new tenancy on 15 July 2027. What is the effect?

1. The application is valid, because a tenant has six months after the end of the contractual term in which to apply.
2. The application is in time, because the landlord's notice does not set a deadline for the tenant.
3. The application is out of time, but the court may extend time because the landlord has suffered no prejudice.
4. The application is valid, because the tenancy continues until the landlord applies to end it.
5. The application is out of time, so the court cannot hear it and Greenleaf loses its right to a new tenancy.

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Answer: E. Where a section 25 notice has been served, the tenant must apply to court for a new tenancy within the statutory period, which ends on the termination date stated in the notice (Landlord and Tenant Act 1954, s 29A). The court has no power to hear a late application. The parties can agree to extend the period, but only by a written agreement made before the period ends (s 29B), and none was signed. The tenancy ended on 30 June 2027 and Greenleaf's application was lodged two weeks later, so Greenleaf has lost its statutory right to renew. The tempting idea that the court can extend time is wrong because the court has no discretion to extend the time.

Landlord and Tenant Act 1954, ss 25, 29A and 29B

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Property Law and Practice · Landlord and Tenant Act 1954 Part II: opposing renewal

Marlowe Properties bought the freehold of a parade of shops three years ago. One shop is let to Ahmed on a lease protected by Part II of the Landlord and Tenant Act 1954. The lease ends in ten months. Marlowe serves a section 25 notice giving that date and opposing a new tenancy under ground (g), that it intends to occupy the shop for its own business. Marlowe is genuinely planning to run a letting office from the shop. Ahmed has paid his rent on time and has complied with all covenants. Can Marlowe succeed?

1. Yes, because a genuine intention to occupy for its own business is enough, whatever the length of its ownership.
2. No, because ground (g) is available only where the tenant has breached the lease, and Ahmed has not.
3. Yes, but only if Marlowe offers Ahmed alternative premises on suitable terms.
4. No, because Marlowe will have owned its interest for less than five years at the termination date.
5. No, because a landlord can use ground (g) only where it is a company that is part of a group.

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Answer: D. Ground (g) in section 30(1) lets a landlord oppose renewal if it intends to occupy the premises for its own business. However, section 30(2) says that the ground is not available if the landlord's interest was purchased or created within five years before the termination date. Marlowe bought three years ago and the termination date is ten months away, so it will have owned the interest for less than four years. The shop has been let on a protected tenancy throughout, so the bar applies. It cannot rely on ground (g). Genuine intention is necessary but not sufficient. Ground (g) is not based on tenant breach, which is the basis of grounds (a) to (c), and alternative accommodation is ground (d).

Landlord and Tenant Act 1954, s 30(1)(g) and s 30(2)

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Property Law and Practice · Planning: time limits for enforcement

Wendy Clarke is buying a house in Norwich. Her solicitor finds that the seller built a rear extension without planning permission, which was required. The works were substantially completed in May 2019, openly and without any concealment. There has been no enforcement action and no planning enforcement order. The buyer's solicitor asks the seller's solicitor about the planning position. What is the best advice on planning law?

1. The extension is immune from enforcement, because it was substantially completed before 25 April 2024 and four years passed without action.
2. The council may enforce for another four years, because the period runs from the date of the sale to Wendy.
3. The extension is not yet immune, because all planning breaches in England now have a ten-year enforcement period.
4. The council may take enforcement action at any time, because there was no planning permission.
5. Building regulations approval will be the only issue, because planning enforcement is possible for just one year.

Show answer and explanation

Answer: A. The Levelling-up and Regeneration Act 2023, s 115, amended the Town and Country Planning Act 1990, s 171B, so that in England the time limit for enforcement against operational development is ten years from substantial completion. Transitional provisions keep the old four-year limit where the works were substantially completed before 25 April 2024. This extension was completed in May 2019, so the four-year limit applies, and it expired in May 2023 without any enforcement action. The extension is therefore immune from planning enforcement. A buyer's solicitor commonly advises obtaining a certificate of lawfulness under section 191 to confirm this. A separate building regulations issue may remain under the Building Act 1984, and indemnity cover can be considered.

Town and Country Planning Act 1990, ss 171B and 191; Levelling-up and Regeneration Act 2023, s 115

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Property Law and Practice · Planning: use classes

Naomi Stewart is buying a freehold unit that has been used for years as a shop selling clothes and is in Use Class E. She wants to open a gym there, and she tells her solicitor she will not buy if the use needs a new planning permission. The buyer's solicitor is working in England and reviews the Town and Country Planning (Use Classes) Order 1987, as amended. The unit is not in a listed building and has no restrictive planning condition. Which of the following is the best advice?

1. Planning permission is not needed, because both uses fall in Class E and a change within a class is not development.
2. Planning permission is needed, because a gym falls into the sui generis category, which is outside the Use Classes Order.
3. Planning permission is needed, because a gym is a different use from a shop and any change of use is development.
4. Planning permission is not needed, because a change of use never needs permission if building works are not planned.
5. Planning permission is needed from the local authority, but only if the gym will be open to the public.

Show answer and explanation

Answer: A. A material change of use is development needing permission (Town and Country Planning Act 1990, s 55(1)). However, under s 55(2)(f), a change of use within the same use class is not development. Since 1 September 2020, Class E (commercial, business and service) covers shops, restaurants and cafes, offices and indoor sport or recreation such as a gym, among other uses. A change from a shop to a gym is therefore a change within Class E. The tempting view that any change of use needs permission states the general rule and misses the exception. Uses such as hot food takeaways, pubs and nightclubs sit outside Class E and do need permission. A condition on the permission could restrict the use, but the question says none exists.

Town and Country Planning Act 1990, s 55(1) and s 55(2)(f); Town and Country Planning (Use Classes) Order 1987, Class E

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