Completion Flashcards
What happens at completion?
The balance purchase price is paid to the seller’s solicitor.
Deposit is released if held as stakeholder.
Transfer deed and buyer’s mortgage deed are dated.
Unless amended by SC, time of completion is 2pm. What happens if the funds have not been received by then?
Completion is treated as having taken place on the next working day.
What are the main tasks of the seller’s solicitor post-completion?
Send the redemption monies to any mortgagees.
Send dated transfer deed to buyer’s solicitor.
Complete form DS1/DS3 and send to the relevant mortagagee (registered land).
Send the original legal mortgage back to the mortgage with a request for a vacating receipt.
Send evidence of discharge to the buyer’s solicitor.
What are the main tasks of the buyer’s solicitor post-completion?
Deal with SDLT/LTT.
If buyer is a company and there are mortgages/other charges in favour of a lender, register charges at CH within 21 days.
Register the disposition at HM Land Registry.
By what time should the SDLT return form be submitted?
Within 14 days of completion. To HMRC.
By when and where should the LTT return form (LTR) be completed?
The LTT return must be completed and sent to the WRA within 30 days of completion.
What is the form used to register a disposition of a registered title and when should it be submitted?
AP1. Within priority period of OS1 or OS2 search.
What is the form used to apply for a first registration of unregistered land and when should it be submitted?
FR1. Within 2 months of completion.
What is the significance of a notice to complete?
A notice to complete can be served by the buyer/seller provided they are ready to complete and the time for contractual compensation has passed. A notice makes time of the essence and gives the party in default 10 working days to complete.
When is rescission available to a party?
If notice to complete is not complied with, the party serving the notice has the option to rescind the contract.
Buyer in default: deposit forfeited with accrued interest.
Seller in default: deposit repaid with accrued interest.
What should the buyer’s solicitor obtain from the buyer prior to completion?
Best practice to obtain both the Land Registry fee and any SDLT/LTT before completion.
Buyer’s solicitor must also register their client as the new owner of the property and register any new mortgage over the land.
A solicitor is acting on behalf of a lender. The buyer will charge the property to the lender by way of legal mortgage on completion of the purchase. The lender’s solicitor is carrying out a pre-completion official search of whole (with priority) at land registry (OS1). Who should be named as the applicant on the OS1 search application and why?
The lender so the priority period will protect both the buyer and the lender.
Who executes the transfer deed?
The seller will always execute the transfer deed to transfer the land.
The buyer/buyers do not always have to execute but will do in certain circumstances, e.g. where they make a declaration e.g. co-owners holding the property as tenants in common.
