Completion Flashcards
What is the legal requirement for the transfer of a legal estate in land?
Must be executed by deed per s 52 LPA:
- Cleary states that it is a deed;
- Be signed by the parties;
- Be delivered
How does execution of the deed differ between private individuals and companies?
Private individuals: signature must be witnessed by an independent witness
Companies, three ways:
1) Using the company seal in accordance with the articles of association
2) Signed by a director and the secretary, or by 2 directors of the company provided that the deed is expressed to be executed by the company
3) Having it signed by a single director in the presence of a witness who then attests
What must the client’s solicitor do if the client doesn’t intend for their deed to come into force yet?
Solicitor needs to expressly say so in the covering letter when sending the deed
What deed is used to transfer the whole of registered freehold titles?
Form TR1 (TP1 for transfers of part.
How does transfer impact unregistered land?
Triggers first registration so the solicitor will often choose to use a Land Registry transfer form, although it is possible to use a conveyance
What forms are used for pre-completion Land Registry searches for registered land in regard to the search of the title?
Form OS1 is used if the whole property is being sold, and Form OS2 is used if only part of the property is being sold. A plan is typically required for OS2
Show details of the title number, the address of the property, the names of the registered proprietors, the name of the applicant and the reason for the search
What protection does the ‘priority period’ provide after a Land Registry search for OS1 and OS2?
The priority period, lasting 30 working days from the date of the search result, protects the applicant from any new entries on the register between the search and the buyer’s registration as proprietor, provided registration is submitted on time (12 noon on the last day)
Who should be the named applicant in a pre-completion Land Registry title search if a mortgage is involved in the purchase?
The lender should be named as the applicant in the Land Registry search to ensure priority protection for both the buyer and the lender, as the mortgage occurs after the buyer’s purchase
How does the pre-completion title search differ for unregistered land?
Form K15 from the Land Charges department must be used instead. The result of the K15 search appears on Form K18 and provides a priority period of 15 working days
What form is used for a bankruptcy-only land charges search on behalf of lender for buyer’s solvency when the title is registered?
Form K16 is used for a bankruptcy-only land charges search when the property’s title is registered, limiting the search to the bankruptcy register
How is a land charges search for the buyer’s solvency on behalf of lender conducted when the property’s title is unregistered?
If the property’s title is unregistered, the solicitor will include the buyer’s name in the land charges search on form K15, alongside the seller’s name
How can the buyer’s solicitor check for the seller’s solvency when the seller is a company?
By conducting a company search. Where the transaction is of a particularly high value or where there is a reason to be concerned about the solvency or borrower, a telephone search at the Registry of Winding Up Petitions at the Companies Court on the day of completion may be possible
What form is used for a bankruptcy search against an individual seller when dealing with unregistered land?
Form K15 is used to search against the seller as the estate owner in unregistered land, revealing any bankruptcy entries
Is a bankruptcy check usually necessary for an individual seller of registered land?
No, most conveyancing solicitors do not consider it necessary to do a bankruptcy check on an individual seller of registered land, as s 86(5) of the Land Registration Act 2002 protects buyers acting in good faith
Note: buyer must be acting in good faith and have no notice of the bankruptcy petition or adjudication/no notice of the bankruptcy appears on the registered title
What is the purpose of Form TA13?
Sets out the practical arrangements for completion:
- Arrangements for handing over the keys
- The place and method of completion
- The documents to be handed over at completion
- The exact amount payable by the buyer on completion
- Also contains the undertaking the seller’s solicitor gives to redeem the mortgage out of the completion money on completion
