Completion Flashcards
Who executes the transfer deed?
The seller
The buyer only also executes it if he is entering into an obligation (eg. giving indemnity)
How must the transfer of the legal estate be done?
By deed
3 ways for a company to execute a deed
- using the company seal according to its Articles
- signed by director + secretary, or 2 directors
- signed by 1 director in the presence of a witness who attests it
When is the deed dated?
Upon completion (when completion funds are received by the seller’s solicitor)
Which deeds (forms) are used to transfer the whole and part of the property?
Whole property: TR1
Part of property: TP1
Who typically makes the deed?
Buyer’s solicitor- sends it to seller’s solicitor after the exchange of contracts
Who will make the deed in a simple residential transaction?
The seller’s solicitor- sends it to the buyer’s solicitor in the pre-exchange package
Pre-completion searches
- searches of title
- checking the buyer’s solvency on behalf of the lender
- company search if seller is company
- bankruptcy search against individual seller?
Which form is used for the search of title in registered land?
OS1 (or OS2 if only part of property being sold)
What is the effect of an OS1 search?
It reveals new entries and gives the applicant a 30 working day priority period (30 days from date of result)
What is the effect of the priority period?
It protects the buyer from any subsequent entries before he becomes the proprietor
Whose name should the OS1 search be done in?
The buyer’s
BUT: if buyer using a mortgage, should use the lender’s (gives them both priority)
Which form is used for the search of title in unregistered land?
K15
How long is the priority period the K15 search confers?
15 working days
Whose name should the K15 search be carried out against?
Seller’s
What is the OS1 form search done against?
Title number
How to check the buyer’s solvency on the lender’s behalf in registered land?
“bankruptcy only” land charges search against buyer’s name (K16 form)
How to check the buyer’s solvency on the lender’s behalf in unregistered land?
Add the buyer’s name to be searched against on the K15 form
What priority period does the company search if the seller is a company confer?
None
So, check immediately before completion (can do it by phone at Registry of Winding up Petitions at Companies Court on the day)
How would the seller’s bankruptcy be revealed in registered and unregistered land?
Registered: no need to reveal it, as if there’s no notice on the register, buyer for value in good faith without notice takes good title (but can use K16 bankruptcy search to confirm)
Unregistered: K15 search against seller would reveal it (already done to check title)
What is the “completion information form”?
It’s sent by the buyer’s solicitor to the seller’s solicitor for filling in
Seller uses it to confirm closing information:
- handing over keys
- outstanding balance left to pay
- place + method of completion
- documents to hand over at completion
What does the lender expect to receive before releasing the mortgage balance?
- certificate of title
- solvency search against B
- clear OS1R in lender’s name
- executed (but NOT completed) mortgage deed
Buyer’s solicitor must send the buyer a Financial Statement listing the funds needed for completion:
- balance of purchase price
- and SDLT/LTT due
- registration fee
- any other disbursements (eg. solicitor’s fees)
How must the completion money be paid under the SC and SCPC default?
By direct transfer/electronic means in cleared funds from an account held in the name of a conveyancer at a clearing bank
