5): Completion and Post-Completion Steps Relevant To Freehold And/Or Leasehold Property Transaction Including Remedies For a Delayed Completion Flashcards
What happens during completion in person?
Parties meet (usually at seller’s solicitor’s office).
Buyer’s solicitor:
Sends completion funds (electronic/banker’s draft).
Rechecks title (if unregistered).
Seller’s solicitor:
Holds deeds, DS1, keys.
Releases them on receipt of funds.
What happens under completion by post using the Law Society Code?
Must be expressly agreed by parties.
Buyer’s solicitor:
Sends funds and documents day before or on completion.
Seller’s solicitor:
Completes transaction on receipt of funds.
Discharges mortgage, sends documents, confirms completion.
When does legal title pass to the buyer?
Registered land:
when buyer is registered at HMLR (within 30-day priority).
Unregistered land: legal title passes on completion.
What are the tax deadlines post-completion?
England: Pay SDLT within 14 days, receive SDLT5.
Wales: Pay LTT within 30 days, receive WRA certificate.
What are post-completion steps for registered land?
Within 30 days, submit Form AP1 to HMLR to:
Register buyer.
Register new mortgage.
Remove seller’s mortgage (if DS1 submitted).
What must accompany Form AP1 at HMLR?
TR1 (certified copy).
SDLT5/WRA cert.
HMLR fee.
Form DS1.
Form DL (lists overriding interests).
What are post-completion steps for unregistered land?
Complete Form FR1 within 2 months (first registration).
Include:
Evidence of title.
Mortgage documents.
Overriding interests (to be registered).
What if the buyer is a company?
Mortgage must be registered at Companies House within 21 days.
When can damages be claimed for delayed completion at common law?
Failure to complete on time = breach, giving right to damages.
Party can’t terminate unless time made of the essence.
Damages assessed under Hadley v Baxendale.
Credit given for contractual compensation already paid.
When is contractual compensation payable under SCS/SCPC?
If completion is delayed beyond the agreed date.
SCS: either party may be liable.
SCPC: only buyer liable.
Based on contract rate (%).
How is contractual compensation calculated?
Purchase Price
Minus Deposit Paid
Multiply by Contract Rate (%) = Annual rate
Divide by 365 = Daily rate
Multiply by days late = Compensation Payable
What is the effect of serving a notice to complete?
Makes time of the essence.
Gives 10 working days to complete.
Failure to comply leads to rescission.
What happens if a party fails to comply with the notice?
Buyer in default:
Seller may rescind and keep deposit.
Seller in default:
Must return deposit (+ damages).
When can a party rescind under SCS/SCPC?
Misrepresentation.
Failure to obtain leasehold licence.
Failure to comply with notice to complete.
What are the effects of rescission?
Return of deposit + interest.
Return of all documents.
Cancellation of any contract registration.
