The contract & deducing title
The contract sets the terms of sale and incorporates the standard conditions, while title is deduced to the buyer before exchange.
What "The contract & deducing title" covers
- A contract for the sale of land must be in writing, contain all the expressly agreed terms and be signed by or on behalf of each party: LP(MP)A 1989 s.2.
- Two identical parts are prepared and each party signs one part ready for exchange.
- The contract identifies the parties, property, price, deposit (usually 10%), completion date, title guarantee and the incumbrances subject to which the property is sold.
- The Standard Conditions of Sale (5th edn) are incorporated unless varied by special conditions.
- Title is deduced before exchange: official copies for registered land, or an epitome for unregistered land.
- The deposit is generally held as stakeholder under the SCS unless the parties agree it is held as agent.
- A full title guarantee implies wider covenants for title than a limited title guarantee: LP(MP)A 1994.
Key cases & statutes
The authorities and provisions most likely to matter for this subtopic:
How it's tested in SQE1
SQE1 uses single best answer questions: a short factual scenario, one precise question, and five options of which only one is the best answer on the law applied to the facts. For the contract & deducing title, expect to be asked what the correct legal position is, what a party may or must do, or which outcome follows — with more than one option looking arguable. Reading the facts carefully and eliminating the near-misses is the skill that earns the mark.
Where candidates lose marks
- A contract that fails the s.2 formalities is void, not merely voidable.
- Forgetting to override an unsuitable standard condition with a special condition.
- Confusing a stakeholder deposit (held pending completion) with an agent deposit (released to the seller).
Learn this subtopic in the course
A video lesson, notes and exam-style practice on the contract & deducing title.
FAQ
Is the contract & deducing title tested on SQE1?
Yes — the contract & deducing title is part of the SQE1 Property Practice syllabus (FLK2) and can appear in single best answer questions.
How is the contract & deducing title examined in SQE1?
SQE1 tests it by application: you're given a realistic scenario and choose the single best answer from five options. The focus is on using the law correctly, not reciting it — knowing the leading authorities (LP(MP)A 1989 s.2, Standard Conditions of Sale (5th edn)) helps.