You are a trainee solicitor in the Real Estate Department of Gibson & Weldon LLP ("G&W"). Your supervising solicitor, Teresa McKillop, acts for Carnegie Estates Limited ("Carnegie") which is a developer that has purchased a retail shop to convert into offices.

Carnegie has agreed to buy 12 Dolton Hill, Solihull, B26 4PF ("12 Dolton Hill") from the current owner, Vine Holdings Limited ("the Seller"). 12 Dolton Hill has been vacant for a number of years and is in a poor state. The Seller has had it on the market for a while and has had no interest from anyone other than Carnegie, which is why your client has been able to agree a good price for it. The purchase price is 380,000 and the Seller has agreed that it will not be charging VAT in addition to the agreed purchase price under any circumstances.

QUESTION 1 (26 marks)

a) You have now investigated title to 12 Dolton Hill using the official copies and title plan which are the Documents at the back of this Examination Paper.

Explain any title issues that arise and any action to be taken as a result of your investigation of title.

Note to Candidates: confine yourself to matters of title in this question as you have an opportunity to discuss matters relevant to searches and enquiries in part b).

16 marks

b) Teresa McKillop tells you that she is planning to raise the pre-contract searches in respect of 12 Dolton Hill and the client has just informed her that the property next door is a metals factory and also that the client has heard locally that there was recently some ground water flooding of properties in that street.

Explain what pre-contract searches and enquiries or other investigations you would make to reveal the detail on these two issues and give reasons for your choice.

10 marks

QUESTION 2 (14 marks)

a) Assume that it is now February 2023 and that Carnegie successfully acquired 12 Dolton Hill in 2021 as planned.

Carnegie has now completed its planned works to renovate 12 Dolton Hill and has decided to sell the freehold in order to raise capital for other projects. It has found a buyer, Primrose Insurance plc.

Carnegie's managing director, Adelle Green contacts Teresa and tells her that Primrose Insurance do not have a solicitor appointed. She asks whether Teresa can act for Primrose as well as Carnegie on this sale to speed things up.

Advise Carnegie if you can act for them as well as for Primrose

5 marks

b) Primrose decides to instruct their own solicitor. Carnegie wants to ensure that they recoup as much of the cost of the renovation works as possible, including any VAT paid. It is aware that this may have a knock on effect on the sale to Primrose Insurance plc.

Advise Carnegie as to the VAT status of 12 Dolton Hill, Carnegie's option in the light of the sale to Primrose Insurance and how the option affects Carnegie's ability to recover VAT on the renovation works and any potential repercussions for the sale transaction.

9 marks

DOCUMENT

Official copy of register of title Title number WM235789 Edition date 12.09.2017 - This official copy shows the entries subsisting on the register on xxxxx 202x at 11:16:36. - This date must be quoted as the "search from date" in any official search application based on this copy. - The date at the beginning of an entry is the date on which the entry was made in the register. - Issued on xxxxx 202x. - Under s.67 of the Land Registration Act 2002 this copy is admissible in evidence to the same extent as the original. - For information about the register of title see Land Registry website www.landregistry.gov.uk or Land Registry Public Guide 1- A guide to the information we keep and how you can obtain it. - This title is dealt with by Land Registry Coventry

A: Property Register

This register describes the land and the estate comprised in the Title

WEST MIDLANDS : SOLIHULL

1. (14 August 1995) The freehold land shown and edged with a thick black line on the plan of the above title filed at the Registry and being 12 Dolton Hill, Solihull, B26 4PF.

2. (14 August 1995) The Conveyance dated 1 July 1995 referred to in the Charges Register contains the following provision:

"IT is hereby agreed and declared that the Purchaser shall not be or become entitled to any easement or any right of light or air or other easements or rights which would restrict or interfere with the free use of the Vendor's retained property for building or any other purpose."

B: Proprietorship Register

This register specifies the class of title and identifies the owner. It contains any entries that affect the right of disposal.

Title Absolute

1. (17 March 2004) PROPRIETOR: VINE HOLDINGS LIMITED whose registered office is at 11 St Phillip's Square, Birmingham, B11 2SD.

2. (17 March 2004) The price stated to have been paid on 28 February 2004 was 200,000.

C: Charges Register

This register contains any charges and other matters that affect the land

1. (14 August 1995) A Conveyance of the land in this title dated 1 July 1995 made between (1) Barron Bros Limited (the Vendor) and (2) Samuel Grocers Limited (the Purchaser) contains the following covenants:

"THE Purchaser with the intent and so as to bind (as far as practicable) the Property into whosoever hands the same may come and to benefit and protect the adjoining and neighbouring property of the Vendor or any part thereof HEREBY COVENANTS with the Vendor that he the Purchaser and his successors in title will at all times:

(i) only use the Property as a retail shop

(ii) maintain the fence at the eastern boundary of the property

2. (17 March 2004) REGISTERED CHARGE dated 28 February 2004 to secure the moneys including the further advances therein mentioned.

3. (17 March 2004) Proprietor: Barclays Bank PLC of 54 Lombard Street, London EC3P 3AH.

4. (12 September 2017) UNILATERAL NOTICE in respect of an agreement dated 28 August 2017 made between (1) Vine Holdings Limited and (2) Solihull Metropolitan Borough Council.

5. (12 September 2017) Beneficiary: Solihull Metropolitan Borough Council, Council House, Manor Square, Solihull, B91 3QB.

END OF REGISTER

Could you just do Question 2 for me please as I already got the answer for Question 1