Completion Flashcards
What is the name of the form used to transfer the whole of a registered freehold title?
TR1 (TP1 for transfers of part).
What three criteria make a deed valid in law?
A valid deed must:
● Make it clear on its face that it is intended to be a deed.
● Be signed by the parties.
● Be delivered.
How can a company execute a deed?
A company may execute a deed by:
● Using the company seal in accordance with the articles of association.
● Having it signed by a director and the secretary, or by two directors of the company.
● Having it signed by a single director in the presence of a witness who then attests the signature.
Who executes the transfer deed, and when?
The seller always executes the transfer deed. The buyer only executes it if they are entering into an obligation or making a declaration in the TR1.4 The transfer deed is conventionally completed by the buyer’s solicitor and sent to the seller’s solicitor immediately after the exchange of contracts
What are the four reasons a buyer’s solicitor carries out pre-completion searches?
Pre-completion searches are carried out:
1. To ensure the seller has not further encumbered the title since investigation of title took place.
2. To check the financial circumstances of the borrower when acting for the lender.
3. To gain priority for the buyer, and the lender, over anyone else making an application before the buyer applies to register the change of ownership at the Land Registry.
4. If the seller is a company, to check that the company has not gone into liquidation before the balance of the purchase price is paid over on completion.
What form is used for pre-completion searches on registered land?
Form OS1 is used if the whole property is being sold, and Form OS2 if the sale is of part.
What form is used for pre-completion searches on unregistered land?
Form K15.9
What is a priority period, and how long is it on registered and unregistered land?
A priority period protects the applicant from any subsequent entries placed on the register after the date of the search but before the buyer is registered as proprietor.10 The priority period is 30 working days on registered land and 15 working days on unregistered land.
How do you check for a buyer’s solvency when acting on behalf of the lender?
Apply for a land charges search against the name of the buyer. If the title is registered, use Form K16 for a ‘Bankruptcy only’ search. If the title is unregistered, add the buyer’s name to the K15 form.
What additional search should be carried out if the seller is a company?
A company search to check if the seller is still in existence, is solvent, and has created any fixed or floating charges. This search should be conducted as close as possible to the day of completion, as it has no priority period.
What form is used to agree upon the practicalities for completion?
Completion information form (e.g., TA13 Completion information and undertakings).
What important information relevant to completion is confirmed using this form?
The form confirms:
● 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 upon completion
What undertaking is usually included in the completion information form?
The seller’s solicitor usually undertakes to redeem the mortgage out of the completion money on completion.
What are the two most common methods of completion?
Completion in person and completion by post.
How does completion in person work?
One solicitor (usually the buyer’s) attends the office of the other solicitor. The buyer’s solicitor checks the title documents and, upon receipt of the completion money, the seller’s solicitor hands over the documents and arranges the release of the keys.
