4. Completion Flashcards
What are the requirements for a deed?
Clear that it is a deed
Signed by the parties + witnessed
Be delivered (assumed to happen on execution)
What additional requirements are there for a deed executed by a private individual?
Signature must be witnesses by an independent witness
How can a company execute a deed?
- Using company seal
- Having it signed by a director and the secretary, or by two directors of the company
- Having it signed by a single director in the presence of a witness who then attests that signature
Does a buyer always execute the transfer deed?
No - only if they are entering into an obligation, e.g. indemnity covenant
What is the transfer deed used to transfer whole of registered freehold title?
TR1
When is the TR1 dated?
Upon completion
What form is used for the pre-completion search for registered land?
OS1
How long is the priority period afforded by the OS1R for registered land?
30 working days
Ends 12pm on last day
What form is used for pre-completion searches for unregistered land?
K15
How long is the priority period for unregistered land?
15 working days
What is the results form from the K15 form?
K18
What is the results for from the OS1 form?
OSR1
How do you check for an individual buyer’s solvency on behalf of a lender for registered land?
Apply for a land charges search against name of the buyer - K16 form
How do you check for an individual buyer’s solvency on behalf of a lender for unregistered land?
Solicitor will already be making a land charges search against the seller, so name of buyer will be added to name(s) searched against on form K15
When should a company search be carried out?
For lender - against buyer if buyer is a company
For buyer - against seller if seller is a company
Is there any priority period associated with a company search?
No, so should be submitted as close as possible to the completion date
Call can be made on day of completion if transaction is particularly high value or where there is reason to be concerned about solvency of a party
What is the form used for arranging practical information regarding completion?
TA13 Completion information and undertakings
What does the lender need to receive before releasing the mortgage?
Certificate of title
Solvency searches
OS1R
Executed but not completed mortgage deed
When does legal title in registered land pass?
Once buyer is registered at the Land Registry
When does legal title pass in unregistered land?
Upon completion
What form does a lender complete once they have received amount required to redeem the mortgage?
DS1
What is the timeframe in which SDLT/ LTT needs to be paid?
Within 14 days of completion
What form is completed for payment of SDLT? And what is given in receipt of payment?
SDLT1
SDLT5
What form is completed for payment of LTT? And what is given in receipt of payment?
WRA
WRA certificate
What are the rates for SDLT?
£250,000 - 0%
£250,000-925,000 - 5%
£925,000-1,500,000 - 10%
Remainder - 12%
Is there LTT exemption for first time buyers?
No
Is a buyer is a company and has bought with the aid of a mortgage, what are the registration requirements?
Register at Companies House within 21 days; register at Land Registry within priority period conferred by OS1 search result
What form does a solicitor need to complete to register buyer as proprietor in registered land?
AP1
Copies of what documents should accompany an AP1 form?
DS1
TR1
Legal charge between buyer and bank
SDLT5 / WRA certificate
Any relevant death certificates/ deed of appointment of second trustee
What form does a solicitor need to complete to register buyer as proprietor in unregistered land?
FR1
Copies of what documents should accompany an FR1 form?
TR1
Evidence of title documents
Pre-contract searches
Contract
Requisition on title with replies
Pre-completion search certificates
Seller’s mortgage
SDLT/LTT certificate
Form DI (sets out any overriding interests that burden the title)
Form DL (list of all deeds and documents)
What is the measure under Hadley v Baxendale for breach of contract?
Putting the claimant back in the position they would have been in had the contract been correctly performed
What is the calculation for contractual compensation for any delays in completion under SC 7.2?
At contract rate in contract - balance of purchase price MINUS any deposit paid DIVIDED by 365 MULTIPLIED by number of days delayed
How do contractual compensation and contractual damages interact in relation to delays to completion?
Contractual compensation innocent party receives will be deducted from the contractual damages
When can a notice to complete be served?
After contractual completion date
How long does a notice to complete give the other party to complete?
10 working days
What can the innocent party do if the other party fail to complete within 10 working days following notice to complete?
Recind the contract (and retain the deposit if they are the seller)
