Solicitors Qualifying Examination (SQE) Practice Exa\

Question: 1 / 400

Under what condition does a commercial lease assignee need to see the freehold title?

When the tenant has no prior experience

It is a contractual obligation under the Standard Conditions of Sale

A commercial lease assignee needs to see the freehold title primarily due to it being a contractual obligation as outlined under the Standard Conditions of Sale. This requirement stems from the necessity for the assignee to understand the rights and responsibilities associated with the property, which can only be clarified by examining the freehold title. By reviewing the freehold title, the assignee can ensure there are no encumbrances or issues that could affect their use or enjoyment of the leased property.

Understanding the freehold title provides clarity regarding the extent of the rights granted by the lease, including the landlord’s obligations, any restrictions, and how they align with the lease terms. This due diligence is crucial in commercial transactions to avoid potential disputes and unforeseen liabilities that might arise from hidden issues related to the freehold estate.

In contrast, the other options do not establish a direct requirement to see the freehold title. A tenant's prior experience does not affect the need for title examination, nor is there an inherent requirement for leases extending beyond 10 years in this context. While multiple tenants might complicate matters, the necessity to view the freehold title remains primarily anchored in the contractual obligations established under the Standard Conditions of Sale.

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If the lease extends beyond 10 years

Only when multiple tenants are involved

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