4 - Completion, Remedies & Drafting the TR1

Question 1

effect of exchange of contracts?

Answer 1

parties are legally bound to continue and complete transaction

Question 2

effect of completion?

Answer 2

ownership is transferred

Question 3

what is a TR1?

Answer 3

Deed to transfer the WHOLE of a registered title

Question 4

Buyer’s solicitor submits an OS1 search and receives OSR1. 30 working day priority period begins - what must be done during this time? Why?

Answer 4

Buyer’s solicitor must apply to register the transfer at the Land Registry.

Third party may lodge an interest in the property and buyer will be subject it.

Question 5

Can I act for the lender and borrower?

Answer 5

Very rare in commercial property transactions - client conflicts

Question 6

What is a redemption statement?

Answer 6

Seller’s solicitor gets a mortgage redemption statement from the seller’s lender (bank) - checks there are sufficient funds to redeem thee mortgage

Question 7

What is the latest time for completion?

Answer 7

2pm (unless contract says otherwise)

Question 8

What remedies are available to the seller if completion is delayed?

What combinations are available?

Answer 8

(1) Contractual compensation
(2) Common law damages - can claim with (1) if compensation not sufficient
(3) Notice to complete and recission - can also claim (2) but not (1)