Completion Flashcards
What formalities does a transfer need to comply with?
Be a deed.
Pre-completion search of the title - registered land
Registered land - made against the title number from the “search from” date. Form OS1 for sale of whole or OS2 for part. The result is I’ll confer a priority period of 30 working days from the date of the search results. The buyer will take free from any entries made during this period, provided they submit their application for registration by 12 noon on the last day of the priority period. If buyer is financing with a mortgage, application should be made on behalf of the lender.
Pre-completion search of the title - unregistered land
Land charges search on K15 and confers a priority period of 15 days from date of result.
Who provides the undertaking to release the mortgage
Seller’s solicitor.
What would a lender expect to receive before completion?
Certificate of title.
Solvency search against the borrowers
A clear OS1R.
An executed but not completed mortgage deed.
When must SDLT be paid?
Within 14 days.
If buyer is a company and is obtaining a mortgage, when must this be registered at Ch?
Within 21 days of its creation.
When do the conditions specify that completion must take place?
20 working dates after the date of contract. Completion money must be paid before 2pm, otherwise completion is treated as taken place the next working day.1
Time is not of the essence
Until a notice to complete has been served.
Who can receive compensation for delay for completing?
Under the SC - both buyer and seller can be requested to pay compensation
Under the SCPCs - only the buyer can be required to pay
How is contractual compensation calculated?
Purchase price less deposit divided by 365 x number of days in default.
Common law damages
Breach of contract
Put C back in position it would have been had the breach not occurred
C can claim for losses naturally flowing from breach as well as consequential loss.
Notice to complete
Can only be server after the contractual completion time and makes time of the essence. It gives the other party 10 working days to complete. If they fail to do so, the party serving the notice can rescind the contract. If defaulting party is the buyer then seller is able to forfeit the deposit. If the defaulting party is the seller then they must repay the deposit to the buyer.
When else will rescission be allowed?
Where there has been a misrepresentation that results from fraud or recklessness or the buyer would be obliged to accept a property differing substantially.
