4. Completion

Question 1

What are the requirements for a deed?

Answer 1

Clear that it is a deed
Signed by the parties + witnessed
Be delivered (assumed to happen on execution)

Question 2

What additional requirements are there for a deed executed by a private individual?

Answer 2

Signature must be witnesses by an independent witness

Question 3

How can a company execute a deed?

Answer 3

1. Using company seal
2. Having it signed by a director and the secretary, or by two directors of the company
3. Having it signed by a single director in the presence of a witness who then attests that signature

Question 4

Does a buyer always execute the transfer deed?

Answer 4

No - only if they are entering into an obligation, e.g. indemnity covenant

Question 5

What is the transfer deed used to transfer whole of registered freehold title?

Answer 5

TR1

Question 6

When is the TR1 dated?

Answer 6

Upon completion

Question 7

What form is used for the pre-completion search for registered land?

Answer 7

OS1

Question 8

How long is the priority period afforded by the OS1R for registered land?

Answer 8

30 working days

Ends 12pm on last day

Question 9

What form is used for pre-completion searches for unregistered land?

Answer 9

K15

Question 10

How long is the priority period for unregistered land?

Answer 10

15 working days

Question 11

What is the results form from the K15 form?

Answer 11

K18

Question 12

What is the results for from the OS1 form?

Answer 12

OSR1

Question 13

How do you check for an individual buyer’s solvency on behalf of a lender for registered land?

Answer 13

Apply for a land charges search against name of the buyer - K16 form

Question 14

How do you check for an individual buyer’s solvency on behalf of a lender for unregistered land?

Answer 14

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

Question 15

When should a company search be carried out?

Answer 15

For lender - against buyer if buyer is a company

For buyer - against seller if seller is a company

Question 16

Is there any priority period associated with a company search?

Answer 16

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

Question 17

What is the form used for arranging practical information regarding completion?

Answer 17

TA13 Completion information and undertakings

Question 18

What does the lender need to receive before releasing the mortgage?

Answer 18

Certificate of title
Solvency searches
OS1R
Executed but not completed mortgage deed

Question 19

When does legal title in registered land pass?

Answer 19

Once buyer is registered at the Land Registry

Question 20

When does legal title pass in unregistered land?

Answer 20

Upon completion

Question 21

What form does a lender complete once they have received amount required to redeem the mortgage?

Answer 21

DS1

Question 22

What is the timeframe in which SDLT/ LTT needs to be paid?

Answer 22

Within 14 days of completion

Question 23

What form is completed for payment of SDLT? And what is given in receipt of payment?

Answer 23

SDLT1
SDLT5

Question 24

What form is completed for payment of LTT? And what is given in receipt of payment?

Answer 24

WRA
WRA certificate

Question 25

What are the rates for SDLT?

Answer 25

£250,000 - 0%
£250,000-925,000 - 5%
£925,000-1,500,000 - 10%
Remainder - 12%

Question 26

Is there LTT exemption for first time buyers?

Answer 26

No

Question 27

Is a buyer is a company and has bought with the aid of a mortgage, what are the registration requirements?

Answer 27

Register at Companies House within 21 days; register at Land Registry within priority period conferred by OS1 search result

Question 28

What form does a solicitor need to complete to register buyer as proprietor in registered land?

Answer 28

AP1

Question 29

Copies of what documents should accompany an AP1 form?

Answer 29

DS1
TR1
Legal charge between buyer and bank
SDLT5 / WRA certificate
Any relevant death certificates/ deed of appointment of second trustee

Question 30

What form does a solicitor need to complete to register buyer as proprietor in unregistered land?

Answer 30

FR1

Question 31

Copies of what documents should accompany an FR1 form?

Answer 31

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)

Question 32

What is the measure under Hadley v Baxendale for breach of contract?

Answer 32

Putting the claimant back in the position they would have been in had the contract been correctly performed

Question 33

What is the calculation for contractual compensation for any delays in completion under SC 7.2?

Answer 33

At contract rate in contract - balance of purchase price MINUS any deposit paid DIVIDED by 365 MULTIPLIED by number of days delayed

Question 34

How do contractual compensation and contractual damages interact in relation to delays to completion?

Answer 34

Contractual compensation innocent party receives will be deducted from the contractual damages

Question 35

When can a notice to complete be served?

Answer 35

After contractual completion date

Question 36

How long does a notice to complete give the other party to complete?

Answer 36

10 working days

Question 37

What can the innocent party do if the other party fail to complete within 10 working days following notice to complete?

Answer 37

Recind the contract (and retain the deposit if they are the seller)