1.8 Freehold Estates - Completion Flashcards
What is completion?
S > Vacant possession, deeds, keys > B
B > Balance of purchase price > S
Registered land
- B registers at Land Registry => Legal estate transfers to B
Unregistered land
- Conveyance/Assignment => Legal estate transfers to B
What is required for completion?
Final date stipulated in agreement
- 2pm on day of completion
- Otherwise overdue > Daily interest payments required
England & Wales (S’s solicitor’s office)
Bank transfer > Payment
If chain of transactions > Must be synchronised (completion on same day)
In person/By agent/By post
Properly execute deed
- Completion date included
- W signatories
- Company execution (Sealed/Unsealed + signed/2 authorised signatories)
What is required for deeds towards unregistered lands?
Part sale
- S retains deeds
- B/Agent inspects deeds, title abstract/epitome, mark up copy deeds to confirm inspection
Leaseholds
- Inspect last receipt for rent
What is required for postal completion?
Recommended
- UNLESS conflict + overrides party rights and obligations
Expressly stated > Non-protocol cases
S’s solicitor > Completion deeds + docs > B’s solicitor
S’s solicitor
- Reply to requisitions (at least 5 working days before completion)
- Confirm appointment and authorisation to receive mortgage monies for redemption
B’s solicitor
- Instruct S’s solicitor as unpaid agent for completion
What is required for discharge of Seller’s mortgage?
Parties agree to discharge S’s mortgages
Sale proceeds > Redemption
- Lender instructs S to handle redemption
Lender NOT yet paid
- Enforcement by undertaking
- Ensure actual redemption at same time as completion
- Ensure S’s solicitor as agent of S’s lender
Electronic discharge
- E-DS1 replaces DS1 (UNLESS discharging part of land)
What happens at completion?
S receives;
- Full monies + apportionments
- NOT cash
Buyer must NOT commit money laundering (if NOT using bank transfer)
