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Property Practice > Completion > Flashcards

Completion Flashcards

1
Q

What is the buyer’s checklist before completion?

A
  • draft transfer deed
  • buyer to sign if indemnity covenants
  • send requisitions on title
  • pre-completion searches
  • certificate of title to lender
  • request loan advance
  • statement of money to buyer
  • SDLT form approved by client
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2
Q

What is the seller’s checklist before completion?

A
  • approve transfer deed
  • transfer executed by seller
  • reply to requisitions
  • redemption statement from lender
  • seller/agent final meter readings
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3
Q

What is the transfer form?

A

TR1

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4
Q

What is a TP1 used for?

A

transfer of part

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5
Q

What is a TR5 used for?

A

transfer of portfolio of registered titles

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6
Q

Is a TR1 required for unregistered land?

A

may still be transferred in the form of a conveyance

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7
Q

On the TR1, what should be provided if the registered proprietor’s name is different?

A

Marriage certificate

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8
Q

Who should also be mentioned in the transferor section other than the proprietor?

A

Second trustee appointed for sole surviving tenant in common

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9
Q

What should be mentioned in the transferor section where it is a company?

A

CRN

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10
Q

What is the max number of transferees?

A

4

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11
Q

What are the types of consideration?

A

a) paying a sum of money for the property – the figure is inserted
b) no monetary consideration
c) Other receipts eg parties swap properties or paying off debt

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12
Q

Who must execute a transfer?

A

Transferor

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13
Q

When must a transferee execute a TR1?

A
  • they are tenants in common or agree to hold the property on trust for someone else
  • they are providing an indemnity covenant or any other obligation
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14
Q

How should an individual execute the transfer?

A

signs the transfer in the presence of an independent witness who also signs and prints their full name and address

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15
Q

When is a transfer considered delivered?

A

when it is dated, usually by the transferor’s solicitor.

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16
Q

What are the options for a company executing the transfer?

A
  • Company seal attached, and signed by two directors, or one director and the company secretary
  • No company seal, but signed by two directors or one director and the company secretary
  • Signed by one company director and witnessed by an independent witness
  • Signed by a senior employee (not a director or the company secretary) who is authorised under a power of attorney
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17
Q

What precompletion search is carried out for registered land?

A

search with priority (OS1/OS2)

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18
Q

What does the OS1 do?

A

updates Office copies initially provided + identifies any changes that have been made

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19
Q

What is the OS1 priority period?

A

30 working days

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20
Q

What precompletion search is carried out for unregistered land?

A

land charges search of the Land Charges Registry (Form K15).

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21
Q

What does the K15 do?

A

identifies any incumbrances or other adverse matters registered against the owner/seller

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22
Q

What is the K15 priority period?

A

15 working days

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23
Q

What types of application does the K15 take priority over?

A

other applications lodged before, if lodged within priority period

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24
Q

When is the search from date?

A

the date of the original office copies sent

25
Q

What precompletion search is carried out when acting for a buyer and lender?

A

Bankruptcy search (K16)

26
Q

What is the priority period for a K16?

A

15 Working days

27
Q

What precompletion search is carried out when acting for a company buyer and lender OR if the seller is a company?

A

company search

28
Q

What is the priority period for a company search?

A

none

29
Q

What form is used for requisitions on title for residential transactions?

A

Law Society TA13

30
Q

What form is used for requisitions on title for commercial transactions?

A

own precedent/CPSE Solicitor’s completion requirements

31
Q

What are the five parts of the TA13?

A

1 Vacant possession
2 Deeds and documents
3 Completion
4 Money
5 Mortgages and charges

32
Q

What does vacant possession address?

A

arrangements for collecting the keys
rent-paying tenant – asks for authority for tenant to pay rent to buyer following completion

33
Q

What does deeds and documents address?

A

Unregistered property - asks for a list of deeds and documents to be sent on completion

34
Q

What does completion address?

A

confirmation that completion will take place according to the Law Society’s Code for Completion by Post

35
Q

What does money address?

A

Asks for client account details + exact amount payable on completion

36
Q

What does mortgages and charges address?

A

Asks the seller’s solicitor to list any mortgages secured on the property and confirm their undertaking to redeem them on completion.

37
Q

What does the seller’s solicitors undertakings require them to do?

A

redeem the mortgage
forward form of discharge to buyer’s solicitor

38
Q

Who discharges a mortgage and how?

A

Lender
Electronically at Land Registry or
Form DS1

39
Q

What happens on completion?

A
  • balance of the purchase price (ie, after the deposit) being paid to the seller,
  • legal title in the property being passed to the buyer.
40
Q

after completion, how does the seller’s solicitor hold the transfer deed and documents?

A

to the buyer’s solicitor’s order

41
Q

When does the seller’s solicitor send written confirmation/undertake to send transfer deed and other documents?

A

As soon as possible, and no later than the end of the working day after completion

42
Q

What does seller’s failure to complete mean?

A

seller’s solicitor is unable to date an executed transfer

43
Q

What does buyer’s failure to complete mean?

A

means that the seller’s solicitor has:
* not received the money needed to complete from the buyer’s solicitor or
* has received the money, but the buyer instructs the buyer’s solicitor not to release it to the seller’s solicitor

44
Q

What is the party who fails to complete known as?

A

Defaulting party

45
Q

What happens If either party fails to complete by time/date in contract?

A

obliged to pay interest for each day’s delay

46
Q

What interest rate is used for default?

A

specified in the contract
None = Law Society interest rate (S 1.1.1(e))

47
Q

What common law damages can be claimed for default?

A

damages for the buyer’s losses

48
Q

What is recission?

A

contract is set aside and the parties are put back in pre contract position

49
Q

Can a non-defaulting party apply for recission automatically and why?

A

No - time is not of the essence

50
Q

How can a party make time of the essence?

A

Serve notice to complete

51
Q

When must parties complete if a notice to complete is served?

A

Within 10 working days

52
Q

What is the time to complete under standard contracts?

A

2pm

53
Q

What happens if a notice to complete is served and it the buyer defaulting had not paid the full 10% deposit?

A

Must make up 10% without delay

54
Q

When does the 10 days (notice to complete) start?

A

first day being day after notice served

55
Q

Who is bound by a notice to complete?

A

Both parties

56
Q

Can a notice to complete be withdrawn?

A

Only with agreement of both parties

57
Q

What are the seller’s remedies for failure to complete?

A
  • may rescind the contract, and
  • forfeit the deposit and any interest accrued on it
  • resell the property and any contents included in it
  • claim contractual damages
58
Q

What are the buyer’s remedies for failure to complete?

A
  • may rescind the contract, and
  • demand return of the deposit with any interest accrued on it
  • claim contractual damages or even specific performance

Property Practice (11 decks)

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