SQE1 FLK2 Practice Paper 1

A solicitor holds £50,000 in their client account on behalf of a client for a property purchase. The solicitor receives a bill for £2,000 plus VAT (£400) for their professional fees. The client has agreed the bill. What is the correct way to transfer the costs? A) Transfer £2,400 from client account to business account B) Transfer £2,000 from client account to business account and invoice the client separately for VAT C) Transfer £2,400 from client account to business account, ensuring a bill has been sent to the client D) Wait for the client to pay the bill separately and leave the client account untouched

A testator executed a valid will in 2020 leaving their entire estate to their spouse. In 2023, the testator and spouse divorced. The testator died in 2024 without making a new will. What happens to the gift to the former spouse? A) The former spouse inherits the entire estate as the will remains valid B) The will is revoked entirely by the divorce C) The gift to the former spouse lapses and the former spouse is treated as having predeceased the testator for the purposes of the will D) The estate passes under the intestacy rules as the will is automatically revoked

A buyer is purchasing a registered freehold property. The official copies of the register reveal a notice in the charges register in respect of a restrictive covenant imposed in 1985 prohibiting commercial use. The buyer intends to use the property for residential purposes only. Which of the following best describes the legal position? A) The restrictive covenant is not binding because it was created before the property was registered B) The restrictive covenant is binding on the buyer as it is protected by a notice on the register C) The restrictive covenant is only binding if the buyer has actual knowledge of it D) The restrictive covenant ceased to be enforceable after 12 years under the Limitation Act 1980

A defendant is charged with theft contrary to s1 Theft Act 1968. The prosecution must prove that the defendant dishonestly appropriated property belonging to another with the intention of permanently depriving the other of it. Which of the following situations would NOT constitute an appropriation? A) The defendant switches price labels on goods in a shop B) The defendant picks up goods in a shop and places them in their bag C) The defendant merely touches goods on a shop shelf while browsing with no intention to take them D) The defendant receives goods as a gift knowing they were stolen

A settlor creates an express trust of £100,000 for the benefit of his three adult children. The trust deed appoints two trustees but does not include any express power of investment. Which statutory power of investment applies? A) The trustees may only invest in government securities B) The trustees have the general power of investment under s3 Trustee Act 2000, allowing them to invest as if they were absolutely entitled to the trust assets C) The trustees have no power of investment unless the trust deed expressly grants one D) The trustees may only invest in authorised unit trusts and deposit accounts

A solicitor acts for a buyer in a residential conveyancing transaction. Exchange of contracts took place on Monday. Completion is due on Friday. On Wednesday, the buyer instructs the solicitor that they no longer wish to proceed. What is the most likely consequence? A) The buyer can withdraw without penalty if they notify the seller before completion B) The buyer will forfeit the deposit paid on exchange and may be liable for further damages C) The contract is automatically rescinded if the buyer gives notice before completion D) The seller must return the deposit and find a new buyer

A personal representative (PR) has obtained a grant of probate. Before distributing the estate, they wish to protect themselves against claims by unknown beneficiaries or creditors. What is the correct procedure? A) Place a notice under s27 Trustee Act 1925 in the London Gazette and a local newspaper, then wait at least two months before distributing B) Place a notice under s27 Trustee Act 1925 in the London Gazette only, then wait at least one month before distributing C) Place a notice under s27 Trustee Act 1925 in the London Gazette and a local newspaper, then wait at least three months before distributing D) Simply wait six months from the grant of probate before distributing

A solicitor maintains a client account and a business account. The solicitor receives a cheque for £10,000 from a client as a payment on account of costs for work not yet done. Into which account should the cheque be paid? A) Business account, because it relates to costs B) Client account, because it is money received from a client C) Client account, because it is a payment on account of costs and the work has not yet been done D) Either account, at the solicitor's discretion

In relation to registered land, which of the following interests will override a registered disposition even though it is not protected by an entry on the register? A) An equitable easement created by implied grant B) A restrictive covenant entered into in 1990 C) An interest belonging to a person in actual occupation of the land at the time of the disposition D) A beneficial interest under a trust where the beneficiary is not in occupation

A defendant is arrested on suspicion of burglary. At the police station, the defendant is interviewed under caution and exercises their right to silence throughout the interview. At trial, the defendant provides an explanation for their presence at the scene. What is the most likely consequence of the defendant's silence at interview? A) The jury must not draw any inference from the silence because it is a fundamental right B) The court may draw an adverse inference from the failure to mention facts later relied on at trial under s34 Criminal Justice and Public Order Act 1994 C) The silence is conclusive evidence of guilt D) The prosecution cannot refer to the defendant's silence at all during the trial

A freehold property is held on trust for A and B as beneficial tenants in common in equal shares. A dies. What happens to A's share? A) A's share passes automatically to B by survivorship B) A's share passes under A's will or intestacy to A's estate C) A's share reverts to the legal owner D) The trust is automatically terminated and B becomes sole legal and beneficial owner

A defendant is charged with actual bodily harm (ABH) under s47 of the Offences Against the Person Act 1861. Which of the following correctly states the mens rea required for this offence? A) Intention or recklessness as to causing actual bodily harm B) Intention or recklessness as to the application of unlawful force (ie the mens rea for common assault) C) Intention to cause grievous bodily harm D) Negligence as to whether harm would be caused

A solicitor acting for the seller in a residential property transaction discovers that the property is affected by Japanese knotweed. The Property Information Form (TA6) asks whether the seller is aware of any environmental issues. What should the solicitor advise the seller? A) The seller has no obligation to disclose environmental problems under caveat emptor B) The seller should disclose the Japanese knotweed in the TA6 form as a known environmental issue C) The solicitor should disclose the issue directly to the buyer's solicitor without consulting the seller D) The seller may choose not to disclose and leave it to the buyer's survey to discover

A trustee wishes to delegate their functions to an agent. Under what circumstances may a trustee delegate under the Trustee Act 2000? A) A trustee may delegate any of their functions to any person they choose without restriction B) A trustee may delegate their dispositive and asset management functions but NOT their distribution functions or any function relating to whether or how trustee fees are paid C) A trustee may only delegate if the trust deed expressly permits delegation D) A trustee may never delegate any functions as this would be a breach of trust

A buyer completes the purchase of a registered freehold property on 1 March. The buyer's solicitor applies for registration at the Land Registry on 15 April. Another party had registered a charge against the property on 20 March. What is the buyer's position? A) The buyer takes free of the charge because completion occurred before the charge was registered B) The buyer takes subject to the charge because registration was not applied for within the priority period C) The buyer takes free of the charge provided the application for registration is made within the priority period of the pre-completion search D) The buyer takes subject to the charge regardless of when the application was made