Real Estate (Knowledge) : Workshop 1 Guide Taking Instructions

REAL ESTATE (KNOWLEDGE)
Workshop 1
Guide
Taking Instructions
Context
This Workshop addresses one of the key tasks that a solicitor will perform in
transferring a freehold registered property from a seller to a buyer.
In this Workshop you will be taking instructions and identifying some key issues
about the client and the property, some of which (such as those relating to
professional conduct) may need to be addressed at the outset and some of which will
need to be followed up in later stages of the transaction.
A property lawyer needs to ask the right questions in the early stages of the
transaction because if important issues are missed, the client may end up with a
property that has a defective title, or cannot be used for the purposes the client
intended, or is not worth what the client paid for it.
Outcomes
By the end of this Workshop you should be able to:
1. Analyse a buyer client’s initial instructions and identify and follow up issues
arising at the instruction stage.
2. Identify and resolve issues of professional conduct that may arise when you are
instructed on a new commercial property transaction.
Workshop Tasks
In this Workshop you will complete tasks on:
1. Analysing initial instructions.
2. Acting for seller and buyer.
3. Acting for borrower and lender.
4. Mortgage Fraud.
5. Contract races and undertakings.
495432659.doc 1 © The University of Law Limited

Preparation
To prepare for this Workshop you should:
1. View the Real Estate Recorded Lecture “Introduction to Real Estate”.
2. Read chapters 1, 2, 5, 6.2.1 to 6.2.5 (inclusive) and 8 and 9 of the Property Law
and Practice textbook.
3. Optional reading: If you want a fuller understanding of how VAT is charged,

read Chapter 1 of the Legal Foundations textbook.
4. Under your Workshop 1 materials on Elite, find and read the Law Society’s
practice note: Mortgage fraud.
Make notes on:
 The nature of a mortgage fraud.
 The various ways in which a mortgage fraud may be committed.
 The warning signs to look out for when carrying out a property transaction.
 The steps a firm can take to minimise the risk of becoming involved in a
mortgage fraud
5. Complete Test & Feedback – Workshop 1 (Preparation).
6. Complete the Workshop Preparatory Task
Materials required for the Workshop
Please bring with you to the Workshop:
1. Your notes on your reading and the Workshop Preparatory Task.
2. The Property Law and Practice textbook.
3. The Legal Foundations textbook.
4. This Guide.
Consolidation after Workshop
It is important that you consolidate your learning after the Workshop.
In particular you should:
1. Revise your answers to the Workshop Tasks in the light of the feedback you
received in the Workshop.
2. Complete Test & Feedback – Workshop 1 (Consolidation).
© The University of Law Limited 2 495432659.doc

PREPARATORY TASK
You are a trainee in the firm of Gibson & Weldon LLP (“G&W”). You are currently
sitting in the Real Estate Department and your supervising solicitor is Teresa
McKillop.
Teresa has received instructions to act for Arcadian Investments Limited

(“Arcadian”), an existing client of the firm. Arcadian is a property company with a
portfolio of commercial properties all over the country. Arcadian specialises in the
acquisition of underperforming investment properties, which it then refurbishes and
lets to new tenants, mainly in the office sector.
Arcadian wants G&W to act on its behalf in the purchase of Kenulf House in
Peterborough. On the following pages you will find a plan of the property, the
Memorandum of Sale from the agents marketing the property for the seller and a
photograph of the property.
Bearing in mind the nature of the client’s business, consider the plan, the
Memorandum of Sale and the photograph.
Identify and make a list of:
1. any issues arising out of these documents which you will need to follow
up; and
2. any further instructions you will need about the client, the property and/or
the transaction.

Victoria House
Blake’s Alley
Kenulf House
32 34-38 40
FLETTON STREET

Johnston & Palmer Associates Limited
45 Peterlee Street, Peterborough PE1 6FJ
Tel: 01733 5114027
Memorandum of Sale
Property Kenulf House, 34-38 Fletton Street, Peterborough PE1 3LR.
Seller Winter Estates Limited

Winter House, 2 High Court Lane, London W1D 6FJ.
Contact: Edward Latimer
Tel: 020 3206 5930
E: [email protected]
Buyer Arcadian Investments Limited

356 Little Britain Street, London EC2 7DL
Contact: Richard Tilling
Tel: 07546383982
Seller’s Agent Johnston & Palmer Associates Limited

Contact: Ayesha Ray
Tel: 01733 311022
Seller’s Solicitors To follow
Buyer’s Solicitors Gibson & Weldon LLP

72 Chalfont Row, Birmingham B1 7ZX.
Contact: Teresa McKillop
Tel: 0121 650 5368
Tenure Freehold
Price £1,175,000
Deposit 10% of the Price, payable on exchange of contracts to be held as

stakeholder

WORKSHOP TASK 1
Arcadian Investments Limited (“Arcadian”) and Winter Estates Limited (“Winter”) are
both existing clients of the firm. Teresa has acted for Arcadian on several purchases
of commercial property in the past and another solicitor in the department, Stephanie
Patterson, acts for Winter in the management of its leasehold properties, issuing
landlord’s licences to Winter’s tenants who want to assign their leases or carry out
alterations.
Both clients have asked whether Gibson & Weldon LLP (“G&W”) can act for them in
this transaction. Both clients are happy for the firm to act for the other.
1. Explain why both clients might want G&W to act for both parties in this
transaction.
2. Which SRA principles, and paragraphs in the SRA Codes of Conduct

2019 are relevant to this situation? With reference to these, explain
whether you think G&W can act for both Arcadian and Winter in this
transaction.
3. If the firm decides not to act for both parties, which client should be told
to find legal representation elsewhere and why?

WORKSHOP TASK 2
Assume that Gibson & Weldon LLP (“G&W”) will be acting for Arcadian Investments
Limited (“Arcadian”) and that the seller, Winter Estates Limited, will be separately
represented.
Arcadian has now requested that G&W also represent the lender, HRC Private Bank
Limited (“HRC”), in this transaction. The loan is for 75% of the value of the property.
1. With reference to the relevant SRA principles and paragraphs in the SRA
Codes of Conduct 2019, explain whether you think that G&W can act for
both Arcadian and HRC in this transaction.
2. Arcadian is an existing client of the firm. If it had been a new client,

explain what steps the firm should have taken at the beginning of the
transaction to minimise the risk of becoming involved in a mortgage
fraud.
WORKSHOP TASK 3
Several days later Arcadian contacts Teresa and instructs her that it understands
Winter is continuing to market the property as it is keen to sell quickly. The client is
very concerned that it will go through the effort and expense of preparing to
exchange contracts only to lose out to another buyer, they were unaware of, at the
last moment.
1. Would you be able to reassure Arcadian that would not happen?
Your client is very concerned about the property being marketed and asks you to
seek a promise from Winter’s solicitors that their client will cease to market the
property immediately.
2. Explain why Winter’s solicitors are unlikely to give this promise.

Real Estate (Knowledge) : Workshop 1 Guide Taking Instructions

Uploaded by

Copyright:

Available Formats

Real Estate (Knowledge) : Workshop 1 Guide Taking Instructions

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Real Estate (Knowledge) : Workshop 1 Guide Taking Instructions

Uploaded by

Copyright:

Available Formats

REAL ESTATE (KNOWLEDGE)

By the end of this Workshop you should be able to:

In this Workshop you will complete tasks on:

1. Analysing initial instructions.

2. Acting for seller and buyer.

3. Acting for borrower and lender.

5. Contract races and undertakings.

495432659.doc 1 © The University of Law Limited

To prepare for this Workshop you should:

1. View the Real Estate Recorded Lecture “Introduction to Real Estate”.

3. Optional reading: If you want a fuller understanding of how VAT is charged,

5. Complete Test & Feedback – Workshop 1 (Preparation).

6. Complete the Workshop Preparatory Task

Materials required for the Workshop

Please bring with you to the Workshop:

1. Your notes on your reading and the Workshop Preparatory Task.

2. The Property Law and Practice textbook.

3. The Legal Foundations textbook.

Consolidation after Workshop

It is important that you consolidate your learning after the Workshop.

In particular you should:

2. Complete Test & Feedback – Workshop 1 (Consolidation).

© The University of Law Limited 2 495432659.doc

Teresa has received instructions to act for Arcadian Investments Limited

Identify and make a list of:

495432659.doc 1 © The University of Law Limited

© The University of Law Limited 2 495432659.doc

Property Kenulf House, 34-38 Fletton Street, Peterborough PE1 3LR.

Seller Winter Estates Limited

Buyer Arcadian Investments Limited

Seller’s Agent Johnston & Palmer Associates Limited

Seller’s Solicitors To follow

Buyer’s Solicitors Gibson & Weldon LLP

Deposit 10% of the Price, payable on exchange of contracts to be held as

495432659.doc 1 © The University of Law Limited

2. Which SRA principles, and paragraphs in the SRA Codes of Conduct

495432659.doc 1 © The University of Law Limited

2. Arcadian is an existing client of the firm. If it had been a new client,

1. Would you be able to reassure Arcadian that would not happen?

2. Explain why Winter’s solicitors are unlikely to give this promise.

© The University of Law Limited 2 495432659.doc

You might also like