1.7 Freehold Estates - Pre-Completion Flashcards
What is required for a transfer deed?
Drafting
- Governed by contract terms
- B’s solicitors draft after exchange > Send 2 copies to S’s solicitor who approves + keeps copy for reference
Time limits (Law Society Standard Form of Contract)
1) Submit draft deed 12 working days before completion date
2) S’s solicitor must approve within 4 working days
3) B’s solicitor to send out engrossment 5 working days before completion
Registered land > Prescribed form
- AP1 (app to change register)
- TR1 (whole transfer)
- TP1 (part transfer - implied easements > Seller should include special condition to negate implied easements in B’s favour over S’s retained land, full description, plan (accurate, metric measurements, tightly bound into engrossed deed, conflicts w verbal description of property > resolve by reference to endorsement on plan))
Unregistered land > NO prescribed form
What is required for execution of a transfer deed?
Seller executes
- Transfer legal estate
Buyer executes
- Declaration as to co-ownership
- Enter new obligations
- Send to escrow => Send to Seller
Form
- Expressly stated on its face as deed
- Signed (NOT sealed) by parties (NOT dated)
- W presence
- Delivery to parties (takes effect)
What is required for searches of registered land?
Check official copies
- Only accurate as at date and time stamp => More recent search needed
- Search priority period (entry postponed in favour of app to register on behalf of person making search) (if lenders involved > search in lender’s name, buyer takes benefit of lenders’ priority protection period)
OS1 (whole title)
- Land Registry
- Check charges since official copies produced
- Freeze register for 30 business days + confer priority
OS2 (part title)
OS3 (non-priority search)
HR3 (mortgagee search)
What is required for searches of unregistered land?
K15 (Central Land Charges Register Search)
- Class C(i) (Registration of puisne mortgage)
- Class C(iv) (Estate contract)
- Class D(ii) (Restrictive covenants after 1925)
- Class F (spousal right of occupation)
Search
- Seller
- All estate owners disclosed in abstract/epitome of title (including country where property located)
What additional searches are required?
Acting for Lender
- Lender searches are same as Buyer’s search (OS1, OS2, K15, company searches)
- Bankrutpcy-only search vs all proposed borrowers (K16)
- Bankruptcy search (K19) > Against Seller to ensure he has title; Against Buyer for Lender’s benefit
Buying from company
- Additional searches
- NO company charge registration > Void, acts as mere contract giving valuable consideration to create mortgage
Physical inspection
- TP occupation > Overriding interest binds Buyer
- Ensure items in sale contract are present
- Check snags to be addressed by Developer
Completion statements
- S’s solicitor prepare statement for Seller (show leftover after completion)
- B’s solicitor prepares statement for Buyer (show amount to be paid/completed after completion)
What pre-completion steps must Seller’s solicitor take?
Check mortgages
- Obtain redemption figures
Reply to standard pre-completion requisitions
Approve + have Client execute purchase deed
Completion statements => Buyer’ solicitor + Client
Completion preparation
- Obtain redemption figures + daily interest rates
- Advise real estate agents re taking instructions from Client
- Prepare Form DS1 (discharge mortgages)
What pre-completion steps must Buyer’s solicitor take?
Check insurance reqs
Issue standard pre-completion requisitions to Seller
Draft purchase deed > S’s approval + execution
Engross + execute mortgage as needed > Request advance
Collect balance from Client
Final searches
Completion preparation
- Requisitions (formal written qs requiring formal written answers)
- Standard form (completion + undertakings)
- Used in residential deals
- May be used in commercial deals
- Warn solicitors > Some answers will constitute undertakings
