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Property Practice > Completion > Flashcards

Completion Flashcards

1
Q

Who executes the transfer deed?

A

The seller
The buyer only also executes it if he is entering into an obligation (eg. giving indemnity)

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2
Q

How must the transfer of the legal estate be done?

A

By deed

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3
Q

3 ways for a company to execute a deed

A
  1. using the company seal according to its Articles
  2. signed by director + secretary, or 2 directors
  3. signed by 1 director in the presence of a witness who attests it
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4
Q

When is the deed dated?

A

Upon completion (when completion funds are received by the seller’s solicitor)

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5
Q

Which deeds (forms) are used to transfer the whole and part of the property?

A

Whole property: TR1
Part of property: TP1

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6
Q

Who typically makes the deed?

A

Buyer’s solicitor- sends it to seller’s solicitor after the exchange of contracts

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7
Q

Who will make the deed in a simple residential transaction?

A

The seller’s solicitor- sends it to the buyer’s solicitor in the pre-exchange package

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8
Q

Pre-completion searches

A
  • searches of title
  • checking the buyer’s solvency on behalf of the lender
  • company search if seller is company
  • bankruptcy search against individual seller?
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9
Q

Which form is used for the search of title in registered land?

A

OS1 (or OS2 if only part of property being sold)

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10
Q

What is the effect of an OS1 search?

A

It reveals new entries and gives the applicant a 30 working day priority period (30 days from date of result)

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11
Q

What is the effect of the priority period?

A

It protects the buyer from any subsequent entries before he becomes the proprietor

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12
Q

Whose name should the OS1 search be done in?

A

The buyer’s
BUT: if buyer using a mortgage, should use the lender’s (gives them both priority)

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13
Q

Which form is used for the search of title in unregistered land?

A

K15

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14
Q

How long is the priority period the K15 search confers?

A

15 working days

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15
Q

Whose name should the K15 search be carried out against?

A

Seller’s

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16
Q

What is the OS1 form search done against?

A

Title number

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17
Q

How to check the buyer’s solvency on the lender’s behalf in registered land?

A

“bankruptcy only” land charges search against buyer’s name (K16 form)

18
Q

How to check the buyer’s solvency on the lender’s behalf in unregistered land?

A

Add the buyer’s name to be searched against on the K15 form

19
Q

What priority period does the company search if the seller is a company confer?

A

None
So, check immediately before completion (can do it by phone at Registry of Winding up Petitions at Companies Court on the day)

20
Q

How would the seller’s bankruptcy be revealed in registered and unregistered land?

A

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)

21
Q

What is the “completion information form”?

A

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

22
Q

What does the lender expect to receive before releasing the mortgage balance?

A
  • certificate of title
  • solvency search against B
  • clear OS1R in lender’s name
  • executed (but NOT completed) mortgage deed
23
Q

Buyer’s solicitor must send the buyer a Financial Statement listing the funds needed for completion:

A
  • balance of purchase price
  • and SDLT/LTT due
  • registration fee
  • any other disbursements (eg. solicitor’s fees)
24
Q

How must the completion money be paid under the SC and SCPC default?

A

By direct transfer/electronic means in cleared funds from an account held in the name of a conveyancer at a clearing bank

25
Q

2 methods of completion:

A
  1. in person
  2. by post
26
Q

What does the Law Society’s Code of Completion by Post entail?

A

Seller’s solicitor acts as agent of the buyer’s solicitor
No cost to buyer
Buyer’s solicitor instructs seller’s solicitor what to do, and seller’s solicitor gives implied undertaking to carry out the instructions
Documents to be sent by 1st class post/DX

27
Q

When does legal title pass in registered and unregistered land?

A

Registered: when the buyer is registered as proprietor at the Land Registry
Unregistered: upon completion

28
Q

What is the deadline for paying SDLT and LTT?

A

SDLT: 14 days after completion
LTT: 30 days after completion

29
Q

Deadline for registering a charge at Companies House (if buyer is a company using a mortgage)

A

21 days after completion

If not, the charge is void!

30
Q

Which form is used to register the buyer as proprietor, and the lender’s charge, at the Land Registry?

A

AP1

31
Q

Which forms should be submitted alongside the AP1 (land is registered)?

A
  • certified copy of transfer
  • fee
  • SDLT/LTT certificate
  • DS1 form (proof of discharge of seller’s mortgage)
  • form DI (sets out overriding interests burdening the title to stop them being overriding)
32
Q

Documents that must be submitted to the Land Registry when the buyer is creating a new mortgage:

A
  • certified copy of mortgage deed,
  • certified copy of Companies House registration certificate (if buyer is a company)
  • lender’s written confirmation that the mortgage deed is the same one as filed at Companies house (if buyer is a company)
33
Q

What does the Land Registry send when the buyer is registered as proprietor?

A

Title Information Document (TID)
It’s evidence of title (not proof)

34
Q

Default completion date in SC and SCPC

A

20 working days after date of contract

35
Q

What time must the money be paid on the day of completion?

A

By 2pm (unless parties agreed otherwise)

36
Q

Who can pay contractual compensation under SC and SCPC?

A

SC: buyer and seller
SCPC: only the buyer

37
Q

What is the rate of contractual compensation?

A

The contract rate in the contract on the balance of the purchase price for the period of delay
Usually Law Society’s rate from time to time (4% above Barclay’s rate- so, currently it’s 9%)

38
Q

What damages might the innocent party get if the other fails to complete on the completion date?

A

So that it’s restored into a position as if contract performed correctly
Losses flowing from breach, and any reasonably foreseeable consequential losses

39
Q

What is the effect of a notice to complete?

A

It makes time of the essence
Other party has 10 working days to complete
If fails, serving party can rescind the contract

40
Q

When can the contract be rescinded?

A
  • notice to complete not complied with
  • seller made a misrepresentation that was fraudulent/reckless/would make the buyer accept a property substantially different to what was expected)
41
Q

Summary of forms needed before/during completion in registered land:

A
  • AP1 (register as proprietor)
  • TR1 (transfer deed)
  • OS1 (search of title)
  • K16 (bankruptcy search of buyer)
42
Q

Summary of forms needed before/during completion in unregistered land:

A
  • AP1 (register as proprietor)
  • TR1 (transfer deed)
  • K15 (search of title and parties’ solvency)

Property Practice (5 decks)

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