Chapter 4 Multiple choice questions

You act for the purchaser of a period cottage built in 1879. Your client is buying with the aid of a bank mortgage. Which of the following surveys would you recommend to your client purchaser?

The one suggested by the bank as being appropriate for this type of property.

A valuation report.

A full structural survey.

A homebuyer's valuation and survey report.

You act for a young couple who are recently married and who are buying their first home. They are each contributing £2,000 and a mortgage advance will fund the rest of the purchase price. How will you generally advise them to hold the beneficial ownership in the property?

As equitable and legal co-owners.

As licensees.

As tenants in common.

As joint tenants.

Your firm acts for a client who owns and lives in a large dwellinghouse, which has a garden extending to 1.4 hectares. It has been his family home for the last seven years. He intends to sell off the bottom half of the garden to a building company who will develop a small housing estate on the land. Which of the following will apply for tax purposes?

The sale is not exempt from capital gains tax.

The sale is exempt from capital gains tax.

The sale is subject to corporation tax.

The sale is subject to income tax.

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