Acting for a lender Flashcards
What does the UK finance mortgage lenders’ handbook provide?
Key information to the requirements of conveyancers in securing lending for most high street lenders
How must a mortgage be created?
Must be made by deed
Who typically provides the deed for completion and execution by the buyer/borrower?
The lender
When is the deed dated?
On completion
What must any adult occupier (other than the borrower) sign?
A waiver of their rights to the property - they should be separately advised on this.
Why should adult occupiers be separately advised?
To avoid any suggestion of duress or undue influence
In residential transactions, who usually has the same solicitor?
Buyer and lender
Why is it less likely that the buyer and lender will have different solicitors in a commerical transaction?
Greater potential for conflict - the ledner’s solicitor will ask the buyer’s solicitor to send copies of all searches and replies to enquiries and draft the certificate of title.
What is a Mortgage Offer?
Formal offer by the lender to lend
Residential
What is the commercial equivalent of a mortgage offer?
Facility Letter
What is a Certificate of Title?
Document in which a solicitor certifies that the title of the property is satisfactory for lending purposes - essentially the report on title but for a lender
What does the Certificate of Title confirm?
Charge will be registered and that the buyer’s title will be good and marketable
What should be reported to the lender before completion?
Any issues that need to be reported
What is a Legal Charge (or Mortgage Deed)?
Deed that creates security interest and is registered at the land registry
How does a Certificate of Title differ from a report on title?
It is prescriptive
What is the industry standard for a Certificate of Title?
City of London Law Society (CLLS)
What does a Certificate of Title consist of?
Series of statements that would be given if the property was in perfect order
