Completion Flashcards
Under the Law Society Code for Completion by Post, when does completion take place?
A. When the buyer signs the mortgage deed
B. When the seller’s solicitor becomes aware that the funds have arrived
C. When the estate agent releases the keys
D. When the buyer collects the keys
B. When the seller’s solicitor becomes aware that the funds have arrived
Explanation: Under Paragraph 11 of the Code, completion occurs when the seller’s solicitor confirms receipt of the funds.
What is the role of the seller’s solicitor under the Code for Completion by Post?
A. They act as agent for the buyer’s mortgage lender
B. They act as agent for the Land Registry
C. They act as agent for the buyer’s solicitor
D. They act as agent for the estate agent
C. They act as agent for the buyer’s solicitor
Explanation: The seller’s solicitor holds documents on behalf of the buyer’s solicitor and undertakes to complete the transaction upon receipt of funds.
What key undertaking does the seller’s solicitor give regarding mortgages under the Code?
A. To remove the charge before completion
B. To delay completion until discharge is complete
C. To redeem the mortgage from completion proceeds
D. To cancel the mortgage application
C. To redeem the mortgage from completion proceeds
Explanation: The seller’s solicitor undertakes to redeem the mortgage after completion using sale proceeds.
Who normally dates the transfer deed on the day of completion?
A. The buyer’s solicitor
B. The estate agent
C. The buyer
D. The seller’s solicitor
D. The seller’s solicitor
Explanation: The seller’s solicitor dates the TR1 transfer deed once funds are received, marking completion.
On completion day, the buyer’s solicitor sends the completion funds but hears nothing from the seller’s solicitor. What should happen next under the Code?
A. Assume completion has taken place
B. Wait for confirmation from the seller’s solicitor that funds are received
C. Instruct the buyer to collect keys
D. Immediately begin registration at Land Registry
B. Wait for confirmation from the seller’s solicitor that funds are received
Explanation: Completion takes place only when the seller’s solicitor confirms receipt.
A buyer pays the full balance on the completion date. The seller’s solicitor confirms completion but delays sending the TR1 deed until three days later. Has the Code been breached?
A. No, it is acceptable to send it anytime after completion
B. Yes, the TR1 must be sent before funds are received
C. Yes, the TR1 must be sent by the end of the next working day after completion
D. No, as long as the buyer has collected the keys
A. No, it is acceptable to send it anytime after completion
Explanation: Although the Code recommends sending the TR1 and other documents by the end of the next working day, this is a best practice rather than a strict breach unless delay causes prejudice. In practical terms, a short delay is tolerated provided the buyer is not adversely affected.
A buyer’s solicitor forgets to send a certificate of title to the lender. The mortgage funds do not arrive in time. What is the most likely consequence?
A. The buyer will be required to pay the full amount in cash
B. Completion will be delayed
C. The seller’s solicitor must provide the funds
D. The Land Registry will refuse to register the sale
A. The buyer will be required to pay the full amount in cash
Explanation: If the mortgage funds are not received in time due to the solicitor’s error, the buyer must fund the transaction themselves or risk breaching the contract. The solicitor should have ensured the lender had the certificate in good time.
On the day of completion, the buyer’s solicitor confirms all funds have been received. The seller’s solicitor refuses to complete because the keys have not yet been released. What is the correct approach?
A. The buyer’s solicitor must release the keys
B. Completion still takes place once funds are received
C. Completion is conditional on key release
D. Seller’s solicitor is not required to complete until notified by the estate agent
B. Completion still takes place once funds are received
Explanation: Completion is triggered by the receipt of funds, not by the release of keys.
Which of the following would most likely be a breach of the Code for Completion by Post?
A. Seller’s solicitor refusing to complete despite receiving funds
B. Buyer sending funds via bank transfer
C. Seller’s solicitor waiting one working day to notify completion
D. Buyer’s solicitor sending mortgage funds a day early
A. Seller’s solicitor refusing to complete despite receiving funds
Explanation: This would clearly breach paragraph 11 of the Code, which requires the seller’s solicitor to complete immediately upon receipt of completion monies. Refusing to do so is a breach of duty.
A buyer’s solicitor receives the executed mortgage deed from their client but forgets to date it. Completion takes place. What is the legal status of the mortgage?
A. The mortgage is invalid
B. The mortgage is not complete until dated
C. The mortgage is automatically registered
D. The seller is responsible for dating the mortgage
B. The mortgage is not complete until dated
Explanation: A deed becomes effective when dated. The buyer’s solicitor should date it once completion occurs.
