Completion Flashcards
What are the main pre-completion steps for the solicitor?
- Comply with any undertakings given in the course of telephone exchange (sending the signed contract to the other side);
- prepare transfer deed;
- pre-completion searches;
- making practical arrangements for completion;
- ensuring finances are in order for completion
Who executes the transfer deed on completion?
Always: The seller
Sometimes: The seller AND buyer where the buyer (i) is creating a trust on the property (co-owners); (ii) is imposing a positive covenant on the property
What are the pre-completion searches of title in registered land? How long should the parties complete after the search?
Form OS1 (for whole); Form OS2 (for part).
Provides a priority period of 30 working days from the search result, so completion should be finalised in that timeframe.
The search is done to ensure: (i) the property hasn’t been encumbered since the last search; and (ii) no further incumbrances can be placed on the property
What are the pre-completion searches of title in unregistered land? How long should the parties complete after the search?
Form K15; confers a priority period of 15 working days and ensures there were no encumbrances on the sellers name since the last check and that no further encumbrances can be added within the priority period conferred.
When would a solicitor check the buyer’s solvency? What form would they use?
When acting for the lender.
Form K16 is used in the name of the lender (if an individual) to search for adverse bankruptcy orders against the buyer.
A companies house search is used if the buyer is a company.
How do the parties arrange practical aspects of completion? E.g. handing over keys, documents to be handed over, amount payable etc.
Residential properties: Form TA13 completion information and undertakings.
What are the requirements for completion by post under the code?
- Seller’s solicitor acts as agent for the buyer’s solicitor (at no cost);
- Buyer’s solicitor sets out exactly what is to be done’
- Seller’s solicitor will carry out instructions to complete the transaction;
- Seller’s solicitor should then contact the buyer’s solicitor when completion has taken place;
- Documents sent by first class post or DX
What are the main post-completion steps?
Discharge Seller’s mortgage:
- Via DS1 to send to SS to forward to BS;
- Via e-DS1 to electronically discharge; or
- Via ED to send an e-message to the land registry to discharge mortgage.
SDLT/LTT
- SDLT within 14 days of completion/ effective completion (30 days for LTT)
Registration of new charge at companies house
- If there is a mortgage and the buyer is a company, must be registered within 21 days (Starting the day after creation) to have legal effect
What land registry applications are used upon completion in registered land?
AP1: To have the buyer (and maybe lender) registered as a registered proprietor
Submitted with a copy of transfer, fee, SDLT/LTT certificate and the DS1 (if used)
DI: To set out overriding interests burdening the title
What land registry applications are used upon completion in unregistered land?
FR1: Made within 2 months of completion
Remedies for delayed completion: SC
If paid after 2 pm, it is considered the next working day - unless the time has been changed by the parties.
Under the SC, the buyer and seller is liable for contractual compensation under the interest rate stated in the contract.
Common law compensation could be used, i.e. if one of the parties had to stay in a hotel for delay.
Remedies for delayed completion: SCPC
Same as the SC with one distinction: The seller doesn’t have to pay contractual damages, just common law damages.
How can completion be forced after extensive delay?
By serving a notice to complete, gives a party 10 working days to complete if the position was changed to 5%.
At that point, the buyer is required by the standard conditions to make their deposit up to 10%.
If no completion has taken place, the party who served the notice can rescind the contract.
