SQE1 FLK2 Practice Paper 10

A solicitor acts for both the buyer and the lender in a residential conveyancing transaction. The buyer asks the solicitor not to disclose to the lender that a second charge will be placed on the property immediately after completion. What should the solicitor do? A) Comply with the buyer's request as the duty of confidentiality takes priority B) Disclose the information to the lender without informing the buyer C) Inform the buyer that the information must be disclosed to the lender, and if the buyer refuses, cease acting for both parties D) Continue acting but make a file note of the buyer's request

A person creates a secret trust by telling a legatee, before executing the will, that the legacy of £50,000 is to be held on trust for a named third party. The legatee agrees. After the testator's death, the legatee claims the £50,000 absolutely. What is the position? A) The legatee takes the £50,000 absolutely because the trust is not declared in the will B) The secret trust is enforceable and the legatee holds on trust for the third party C) The secret trust fails because it does not comply with s.9 of the Wills Act 1837 D) The £50,000 falls into the residuary estate

A defendant is charged with possession of an offensive weapon in a public place contrary to s.1 of the Prevention of Crime Act 1953. The defendant was found carrying a kitchen knife in their rucksack while walking through a park. The defendant states they were moving house and had packed the knife with other kitchen items. Which of the following best represents the legal position? A) The defendant is guilty because a kitchen knife is an offensive weapon per se B) The defendant has a defence if they can prove on the balance of probabilities that they had lawful authority or reasonable excuse C) The prosecution must prove the defendant intended to use the knife to cause injury D) The defendant is automatically acquitted because a kitchen knife is not an offensive weapon

A buyer purchases a registered leasehold property. The lease contains a forfeiture clause. After completion, the buyer discovers that the previous tenant had breached a covenant in the lease and the landlord had served a s.146 notice before completion but had not yet commenced forfeiture proceedings. Can the landlord forfeit the lease against the buyer? A) No, because the buyer is a new tenant and has not committed any breach B) No, because the s.146 notice was served on the previous tenant and is not binding on the buyer C) Yes, because the right of forfeiture relates to the lease and binds successors in title D) Yes, but only if the buyer had actual knowledge of the breach at the time of purchase

A solicitor holds £100,000 in the client account for a client. The client instructs the solicitor to transfer £80,000 to a third party's bank account as a loan. The solicitor suspects the transaction may involve money laundering. What should the solicitor do? A) Carry out the client's instructions as the solicitor must follow client instructions B) Refuse to act and return the money to the client immediately C) Make a suspicious activity report (SAR) to the National Crime Agency and await consent before proceeding D) Report the matter to the SRA and proceed with the transaction

A resulting trust arises in which of the following situations? A) Where a person transfers property to another for no consideration and there is no evidence of an intention to make a gift B) Where a person declares themselves trustee of property for another C) Where a court imposes a trust to prevent unjust enrichment D) Where a person creates a trust by will

A personal representative administers an estate where the deceased made a lifetime gift of £200,000 to their daughter three years before death. The deceased's estate is valued at £500,000. For inheritance tax purposes, what is the cumulative total that must be considered? A) £500,000 only, as lifetime gifts are not relevant B) £700,000, as potentially exempt transfers within 7 years must be added to the death estate C) £500,000 plus taper relief on the £200,000 D) £300,000 after deducting the lifetime gift from the estate

A defendant is tried at the Crown Court for robbery. At the close of the prosecution case, the defence submits that there is no case to answer. What test does the judge apply? A) Whether the prosecution has proved its case beyond reasonable doubt B) Whether, taking the prosecution's evidence at its highest, a properly directed jury could convict C) Whether the prosecution evidence is credible D) Whether the defence evidence is likely to raise a reasonable doubt

A buyer's solicitor discovers from pre-contract enquiries that the seller granted an option to purchase the property to a neighbour two years ago. The option was protected by a notice on the register. The seller claims the option has expired. What should the buyer's solicitor do? A) Accept the seller's word that the option has expired and proceed B) Require the seller to procure the removal of the notice from the register before exchange C) Advise the client that the option is binding regardless of whether it has expired D) Ignore the option as it only binds the original parties

A trustee of a fixed trust for four named beneficiaries in equal shares wishes to exercise the power of advancement under s.32 of the Trustee Act 1925 (as amended). What is the maximum amount that can be advanced to any one beneficiary? A) One quarter of the trust fund B) The whole of the beneficiary's presumptive share C) Half of the beneficiary's presumptive share D) Any amount the trustee considers appropriate

A defendant pleads guilty to an offence of causing death by dangerous driving. The offence carries a maximum sentence of life imprisonment. The sentencing guidelines indicate a starting point of 8 years' custody. The defendant has no previous convictions and showed genuine remorse. What is the maximum credit the defendant can receive for their guilty plea? A) One third reduction if the plea was entered at the first reasonable opportunity B) One quarter reduction regardless of when the plea was entered C) One half reduction for exceptional circumstances D) No credit because the offence is too serious

An executor discovers that the deceased made a codicil to their will six months before death. The codicil was properly executed and witnessed, but one of the witnesses to the codicil is also a beneficiary under the original will (not under the codicil). What is the effect? A) The codicil is invalid because the witness is a beneficiary under the will B) The codicil is valid and the witness's gift under the original will is also valid C) The codicil is valid but the witness's gift under the original will is void D) Both the will and the codicil are invalid

A commercial tenant holds a lease protected by Part II of the Landlord and Tenant Act 1954. The landlord serves a s.25 notice opposing the grant of a new tenancy on the ground that the landlord intends to demolish or reconstruct the premises. What must the landlord prove to successfully oppose the tenant's application for a new tenancy? A) That the landlord has planning permission for the proposed works B) That the landlord has a genuine firm and settled intention to carry out the works, and could not reasonably do so without obtaining possession C) That the proposed works would be more beneficial to the community than the tenant's continued occupation D) That the landlord has already entered into a binding building contract

A constructive trust arises by operation of law. In which of the following scenarios would a constructive trust most likely be imposed? A) Where a person makes a voluntary transfer of property to another B) Where a person makes an oral agreement to share the beneficial interest in a property and the other party relies on this to their detriment C) Where a person declares themselves trustee of specific property D) Where a charity cannot fulfil its original purpose

A solicitor is completing a purchase and the mortgage lender's conditions of lending require the solicitor to certify that the property will be used as the borrower's main residence. The solicitor is aware that the borrower intends to let the property as a buy-to-let investment from day one. What should the solicitor do? A) Provide the certificate as requested because the borrower may change their mind B) Refuse to provide the certificate and inform the lender of the discrepancy C) Provide the certificate but make a note on the file about the borrower's true intention D) Ask the borrower to sign a declaration confirming residential use and then provide the certificate