SQE1 FLK2 Practice Paper 2

A solicitor holds £25,000 in client account for Client A. The solicitor mistakenly uses £5,000 of Client A's money to pay a disbursement on behalf of Client B. The solicitor discovers the error the following day. What must the solicitor do? A) Replace the money from the business account immediately and report the breach to the SRA B) Transfer £5,000 from Client B's ledger to Client A's ledger and take no further action C) Replace the shortage immediately from the solicitor's own funds or business account D) Wait until Client B provides funds and then transfer the money back to Client A's ledger

A testator makes a will leaving their house to their daughter. After executing the will, the testator sells the house and purchases a different property. The testator dies without amending the will. What happens to the gift of the house? A) The daughter receives the replacement property under the doctrine of conversion B) The gift is adeemed and the daughter receives nothing in respect of the house C) The daughter receives the cash proceeds from the sale of the original house D) The executor must purchase a similar property for the daughter from the estate funds

A couple purchase a house together. The legal title is registered in both names as joint tenants. They contribute to the purchase price in unequal shares (70/30). There is no express declaration of trust. How is the beneficial interest held? A) As joint tenants in equity because the legal title is held as joint tenants B) As tenants in common in equity in shares of 70/30 reflecting their contributions C) As joint tenants in equity, as there is a presumption that equity follows the law in joint names cases, but this presumption can be rebutted D) As tenants in common in equal shares regardless of contributions

A police officer arrests a suspect for robbery. At the police station, the custody officer must decide whether to authorise detention. Under PACE 1984, what is the maximum period of detention without charge for a standard indictable offence before a review must take place? A) 6 hours from the time of arrival at the police station B) 12 hours from the relevant time C) 24 hours from the relevant time D) 36 hours from the relevant time

A settlor creates a trust and appoints X and Y as trustees. The trust fund consists of £200,000 and a portfolio of shares. X alone, without consulting Y, sells some of the shares at a significant undervalue. Which of the following best describes the liability position? A) X alone is liable for breach of trust as Y did not participate in the decision B) Both X and Y are jointly and severally liable for the breach of trust C) Y is liable only if they knew about the sale at the time it occurred D) Neither is liable because trustees have discretion in investment decisions

A buyer is purchasing a leasehold property with 70 years remaining on the lease. The mortgage lender has agreed to lend. During the conveyancing process, the buyer's solicitor discovers that the lease contains no ground rent review clause and the current ground rent is £250 per annum. Under the Leasehold Reform (Ground Rent) Act 2022, what is the position regarding ground rent for NEW leases? A) Ground rent for new qualifying leases is capped at £250 per annum B) Ground rent for new qualifying leases is restricted to a peppercorn (effectively zero) C) Ground rent may be set at any amount agreed between the parties D) Ground rent is abolished entirely for all leases past and future

A person dies intestate leaving a surviving spouse and two adult children. The net estate is valued at £400,000. Under the intestacy rules, how is the estate distributed? A) The surviving spouse receives the entire estate B) The surviving spouse receives the statutory legacy of £322,000, personal chattels, and half of the remainder; the children share the other half equally C) The estate is divided equally between the spouse and two children (one-third each) D) The surviving spouse receives £322,000 and the children share the remaining £78,000 equally

A solicitor receives £15,000 from a client. £10,000 is for the solicitor's agreed fees (bill already delivered) and £5,000 is a payment on account of a search fee disbursement. How should the solicitor deal with this receipt? A) Pay the entire £15,000 into client account B) Pay the entire £15,000 into business account C) Pay £10,000 into business account and £5,000 into client account D) Pay £5,000 into business account and £10,000 into client account

A purchaser buys a property and the transfer deed contains a covenant by the buyer not to use the property for any trade or business. This covenant was entered into with the seller who retains adjoining land. For the burden of this restrictive covenant to run with the land, which of the following conditions must be satisfied? A) The covenant must touch and concern the land, the original parties must have intended it to run, and it must be registered B) The covenant must be negative in nature, it must accommodate dominant land retained by the covenantee, and it must be protected by registration C) The covenant must have been made by deed, the covenantee must have retained land, and the covenantor must have been the freeholder D) The covenant must benefit the public at large and must be registered at the Land Registry

A defendant is charged with murder. The prosecution alleges that the defendant stabbed the victim during an argument. The defendant claims they acted in self-defence. Which of the following correctly states the burden of proof regarding self-defence? A) The defendant bears the legal burden of proving self-defence on the balance of probabilities B) The defendant bears the evidential burden of raising the issue, and the prosecution must then disprove self-defence beyond reasonable doubt C) The prosecution bears both the evidential and legal burden of disproving self-defence from the outset D) Self-defence must be proved beyond reasonable doubt by the defendant

An executor of an estate is considering which debts and expenses should be paid first from the estate. The deceased died leaving an insolvent estate. Which of the following represents the correct order of priority for payment? A) Funeral expenses, testamentary expenses, preferential debts, unsecured debts, secured debts B) Secured debts, funeral and testamentary expenses, preferential debts, ordinary unsecured debts C) Funeral and testamentary expenses, secured debts, preferential debts, ordinary unsecured debts D) All debts rank equally and are paid pari passu

A trustee of a family trust uses £20,000 of trust money to purchase a painting for their own home. The painting has since increased in value to £35,000. The beneficiaries discover the breach. What remedies are available to the beneficiaries? A) The beneficiaries can only recover the original £20,000 plus interest B) The beneficiaries can elect to either recover £20,000 plus interest or claim the painting (now worth £35,000) as trust property C) The beneficiaries can only claim damages for breach of fiduciary duty D) The beneficiaries have no remedy because the trustee used their own judgment

A buyer's solicitor is acting in a residential purchase. Completion takes place and the purchase monies are sent to the seller's solicitor. After completion, the buyer's solicitor must carry out certain post-completion steps. Which of the following is the correct order of priority for post-completion steps? A) Pay Stamp Duty Land Tax (SDLT), then send the application for registration to the Land Registry B) Apply for registration at the Land Registry, then pay SDLT C) Notify the landlord (if leasehold), then pay SDLT, then register D) The order does not matter provided all steps are completed within 12 months

A person creates a trust by transferring shares to trustees, declaring that they hold the shares on trust for the person's nephew absolutely. The person later changes their mind and wants the shares back. Can the settlor revoke the trust? A) Yes, because a settlor always retains the right to revoke a trust B) No, because once a trust is completely constituted it is irrevocable unless the trust deed contains an express power of revocation C) Yes, provided the settlor gives the trustees reasonable notice D) No, because only the beneficiary can agree to end the trust

A defendant is charged with assault occasioning actual bodily harm. The victim suffered a broken nose. The defendant claims they were acting in self-defence and used reasonable force. Under s76 of the Criminal Justice and Immigration Act 2008, what test applies to determine whether the force was reasonable? A) An entirely objective test: would a reasonable person have used that degree of force? B) A subjective test based on the circumstances as the defendant genuinely believed them to be, and then an objective assessment of whether the force was reasonable in those circumstances C) A purely subjective test: did the defendant honestly believe the force was reasonable? D) The test is whether the force used was proportionate to the harm threatened, assessed entirely objectively