BUYER & SELLER - COMPLETION Flashcards
WHAT STAGE OF THE LSCP IS USED IN THIS STAGE OF THE TRANSACTION?
Stage D (exchange of contracts) & Stage E (completion)
WHAT MATTERS ARE DEALT WITH BY FORM TA13?
- Vacant possession
- Deeds and documents
- Where completion will take place
- The method of completion
- The amounts payable on completion
- Bank account details
- The arrangements for discharging existing mortgages
WHAT ARE THE THREE DIFFERENT TYPES OF FORM THAT CAN BE USED WHEN THE BUYER’S SOLICITOR DRAFTS THE PURCHASE/TRANSFER DEED?
- Form TR1 - used where there is a transfer of the whole of the land.
- Form TP1 - used to transfer part of the land.
- Form TR2 - used where a lender is transferring land under its power of sale.
WHAT ARE THE EIGHT REMAINING STEPS FOR THE BUYER’S SOLICITOR PRIOR TO COMPLETION?
- The buyer’s solicitor engrosses the transfer deed
- The buyer may need to sign the engrossed transfer deed
- The buyer’s solicitor sends the transfer deed to the seller’s solicitor
- Steps to be taken for the lender
- The buyer’s solicitor asks the client to sign to approve the Land Transaction Return
- The buyer’s solicitor makes pre-completion searches
- The buyer’s solicitor ensures that there will be sufficient funds to complete
- The buyer’s solicitor makes completion arrangements
WHAT IS INVOLVED IN ‘STEPS TO BE TAKEN FOR THE LENDER’?
Where the buyer is having a new mortgage, the solicitor must check that the title is sound, request the mortgage funds, complete the mortgage documentation, and complete pre-completion searches on behalf of the lender
WHAT IS INVOLVED IN THE ‘PRE-COMPLETION SEARCHES’ AND WHAT ARE THE THREE SEARCHES?
Pre-completion searches are made between exchange and completion and are traditionally about 10 days before the agreed completion date.
- Land registry search
- Bankruptcy search
- Company search
WHAT IS INVOLVED IN THE LAND REGISTRY SEARCH?
This is the main pre-completion search which asks whether there have been any new register entries since the date the official copies were issued.
Form OS1 - used where the buyer is purchasing the whole of the land
Form OS2 - used where the buyer is purchasing part of the land
The result of the search is forwarded to the buyer’s solicitor in the form of an official search certificate
WHAT IS INVOLVED IN THE BANKRUPTCY SEARCH?
If the buyer is having a new mortgage, the buyer’s solicitor must carry out a bankruptcy search against the full name of the buyer using form K16.
The result of this search will be given in the form of a certificate.
WHAT IS INVOLVED IN THE COMPANY SEARCH?
If the seller is a company, the buyer’s solicitor will carry out a company search. It is important for the buyer’s solicitor to check that the company is still in existence.
WHAT DOES THE SELLER’S SOLICITOR DO WITH FORM TA13?
The seller’s solicitor will insert the answers on form TA13 and return one copy to the buyer’s solicitor.
The answers will be completed in accordance with the details of the specific transaction.
WHAT DOES THE SELLER’S SOLICITOR DO WITH THE DRAFT PURCHASE/TRANSFER DEED?
Return a copy of the executed transfer to the buyer’s solicitor, with form TA13.
WHAT ARE THE FOUR REMAINING STEPS FOR THE SELLER’S SOLICITOR PRIOR TO COMPLETION?
- Executing the purchase deed
- Additional steps where the seller’s mortgage must be paid off
- Completion preparations
- Sending the client a financial (completion) statement and itemised bill
WHAT ARE THE THREE METHODS OF COMPLETION?
- Completion in person
- Completion by agent
- Completion by post
WHAT IS INVOLVED IN ‘COMPLETION IN PERSON’?
Completion is carried out between the solicitors in person. The buyer’s solicitor attends the office of the seller’s solicitors, hands over the money and collects the documentation.
This method is uncommon.
WHAT IS INVOLVED IN ‘COMPLETION IBY AGENT’?
This method is the same as completion in person, but the buyer’s solicitor instructs a representative from another firm to attend on their behalf.
This method is uncommon.
