Chapter 1 Flashcards
What is the Law Society Conveyancing Protocol?
A detailed set of instructions to practitioners, designed to standardise the residential conveyancing process. Firms that want to be part of The Law Society’s Conveyancing Quality Scheme are required to comply with the protocol.
What are the 5 stages to a residential property conveyance?
- Pre-contract stage
- Exchange of contracts
- Pre-completion stage
- Completion
- Post-completion stage
What does the seller’s solicitor do in the pre-contract stage?
• Take instructions
• Investigate title
• Draft the contract
• Send the contract to the buyer
What does the buyer’s solicitor do in the pre-contract stage?
• Take instructions
• Investigate title
• Pre-contract searches and enquiries
• Approve the draft contract
What happens at the exchange of contracts stage?
The parties exchange signed contracts, and the buyer pays the deposit.
What does the seller’s solicitor do in the pre-completion stage?
• Approve the draft transfer deed
• Give an undertaking to discharge the seller’s mortgage (if applicable)
What does the buyer’s solicitor do in the pre-completion stage?
• Draft the transfer deed
• Draft the mortgage deed (if applicable)
• Pre-completion searches and enquiries
What happens at the completion stage?
The buyer pays the remaining balance and receives the keys to the property.
What does the seller’s solicitor do in the post-completion stage?
Comply with the undertaking to pay off the seller’s mortgage (if applicable).
What does the buyer’s solicitor do in the post-completion stage?
• Pay SDLT / LTT
• Register the transfer at the Land Registry
Can a solicitor act for both the buyer and lender?
Yes, but there are conditions. Both parties must give their informed written consent, effective safeguards must be in place, and the solicitor must be satisfied it is reasonable to act for both parties.
Exception to conflict of interest being a ‘substantially common interest’. High risk of conflict where the mortgage is not a standard mortgage (such as in commercial transactions).
Can a solicitor act for joint borrowers?
Yes, but a conflict may arise.
A conflict may arise where one half of a married couple agrees to mortgage the matrimonial home as security for a business loan. Etridge guidelines will need to be followed (in relation to undue influence).
