SQE1 FLK2 Practice Paper 6

A solicitor holds client money of £50,000 in a client account. The solicitor needs to pay £2,000 for a Land Registry search fee on behalf of the client. Which account should the solicitor use to make this payment? A) Transfer £2,000 from the client account to the business account, then pay from the business account B) Pay directly from the client account C) Pay from the solicitor's personal account and reimburse later D) Pay from the business account and transfer from client account later

A testator executes a will leaving his entire estate to his wife. The will is witnessed by the wife's brother and an independent solicitor. The testator subsequently dies. What is the effect on the wife's gift? A) The gift to the wife is void because a relative of the beneficiary witnessed the will B) The gift to the wife is valid because the witness restriction only applies to the beneficiary themselves C) The gift to the wife is valid because there are two witnesses and only one is related D) The entire will is invalid

A buyer purchases registered freehold land. The contract provides for vacant possession on completion. On the day of completion, the buyer discovers that a person is living in a caravan on the land and claims to have been there for 15 years. What is the buyer's best course of action? A) Refuse to complete and treat the seller as being in breach of contract B) Complete and then bring proceedings against the squatter C) Apply to the Land Registry to have the squatter's interest removed D) Complete and accept the position as the squatter has no rights against registered land

A trustee of a trust holds shares in a private company. Without authority in the trust deed, the trustee uses trust funds to purchase additional shares in the same company, believing it to be a good investment. The shares subsequently double in value. What is the position? A) The trustee has acted properly because the investment was profitable B) The trustee is in breach of trust but the beneficiaries must accept the profit C) The beneficiaries can elect to adopt the purchase or claim compensation for the breach D) The purchase is automatically void and must be reversed

A defendant is charged with theft contrary to s.1 of the Theft Act 1968. The prosecution alleges that the defendant took a bicycle from outside a shop, intending to use it to cycle home and then return it the next day. Which element of the offence is most likely to be contested? A) Appropriation B) Property C) Belonging to another D) Intention to permanently deprive

A solicitor acting for a buyer in a residential conveyancing transaction receives the draft contract from the seller's solicitor. The property is leasehold with 68 years remaining on the lease. Which of the following is the most important advice to give the client? A) The lease term is adequate and no action is needed B) A lease extension should be sought before exchange as most mortgage lenders require at least 70-80 years remaining C) The buyer should wait until after completion to seek a lease extension as they will have statutory rights D) The short lease will not affect the property's value

A personal representative is administering an estate. The deceased died intestate, survived by a spouse and two adult children. The net estate is valued at £400,000. How should the estate be distributed? A) The spouse receives the entire estate B) The spouse receives £322,000 statutory legacy plus half the remainder; the children share the other half equally C) The spouse receives half the estate; the children share the other half equally D) The spouse receives a life interest in half the estate; the children receive the remainder

A solicitor holds £10,000 on client account for Client A and £5,000 for Client B. The solicitor discovers that due to an administrative error, £3,000 of Client A's money was mistakenly transferred to Client B's ledger. What should the solicitor do first? A) Transfer £3,000 from Client B's ledger back to Client A's ledger immediately B) Wait for Client B's instructions before making any transfer C) Report the matter to the SRA immediately D) Obtain Client A's authority before transferring the money back

A registered proprietor of land grants a 10-year lease to a tenant. The lease is not registered at the Land Registry. The proprietor subsequently sells the freehold to a buyer. Is the buyer bound by the lease? A) No, because the lease was not registered and therefore does not bind the buyer B) Yes, because a lease of 7 years or more is a registrable disposition and failure to register does not destroy the lease C) Yes, because the lease is an overriding interest as it does not exceed 7 years D) Yes, because the tenant is in actual occupation and the lease is an overriding interest under Schedule 3, paragraph 2

A settlor creates an express trust of £100,000 for "my children who attain the age of 25". The settlor has three children aged 5, 10 and 15. Which of the following best describes the trustees' powers regarding the trust fund before any child reaches 25? A) The trustees must accumulate all income until a child reaches 25 B) The trustees have power to apply income for the maintenance of any child under s.31 Trustee Act 1925 C) The trustees can advance the entire capital to any child under s.32 Trustee Act 1925 D) The trustees have no power to use the fund until a child satisfies the contingency

A police officer suspects a person of possessing a controlled drug. Under what power can the officer stop and search the person in a public place? A) Section 1 of the Police and Criminal Evidence Act 1984 B) Section 23 of the Misuse of Drugs Act 1971 C) Section 60 of the Criminal Justice and Public Order Act 1994 D) Common law power of search

In a property transaction, the buyer's solicitor carries out a local authority search which reveals that a tree preservation order (TPO) applies to a large oak tree in the garden. The buyer wants to build an extension in the area where the tree stands. What is the correct advice? A) The buyer can remove the tree without consent as they will be the owner B) The buyer must apply to the local authority for consent to carry out works to the tree C) The TPO automatically lapses when the property changes hands D) The buyer can proceed with the extension and deal with the tree issue afterwards

A testator makes a will leaving a specific legacy of "my gold Rolex watch" to his nephew. Before the testator dies, the watch is stolen and the testator receives £5,000 insurance proceeds which he places in a separate savings account labelled "watch insurance money". The testator dies without amending his will. What happens to the £5,000? A) The nephew receives the £5,000 as it represents the watch B) The legacy is adeemed and the £5,000 falls into residue C) The nephew can elect to take either a replacement watch or the £5,000 D) The executor has discretion to give the £5,000 to the nephew

A solicitor completes a property purchase for a client on 1 March. The solicitor pays the stamp duty land tax (SDLT) on 20 March. Which of the following is correct regarding the SDLT filing deadline? A) The SDLT return must be filed within 30 days of completion B) The SDLT return must be filed within 14 days of completion C) The SDLT return must be filed within 28 days of exchange of contracts D) There is no time limit for filing SDLT returns

A trustee holds property on trust for a life tenant and a remainderman. The trust property includes a residential flat which requires a new roof costing £15,000. Who is responsible for paying for the new roof? A) The life tenant from income B) The remainderman from capital C) The cost should be shared equally between the life tenant and remainderman D) The trustee should pay from trust capital