Completion Flashcards
how can completion take place? What is in place to assist this?
Completion in person or by post.
The Law Society Protocol for post.
give an overview of the Law Society Protocol for post completion
o S solicitor acts as B’s solicitor at no cost to B.
o B’s solicitor gives them instructions. Implied undertaking S solicitor will perform instructions.
o S solicitor confirms once complete and documents sent by 1st class or DX.
give an overview of the completion steps
- B’s solicitor sends PP to S’s solicitor. S solicitor releases deposit.
- S dates TR1 and hands over documents etc.
- Lender’s solicitor dates mortgage deed
when does legal title pass?
- Reg land legal title passes once registered with HMLR
- Unreg land legal title passes on completion
what are the possible remedies for delay?
- common law damages
- contractual compensation
- rescission
how are common law damages assessed? Explain this.
using the Hadley v Baxendale principles, i.e.:
o Put party in position had contract been performed
o Reasonably foreseeable consequential loss recoverable (i.e. wasted legal costs, storage costs)
how does the SCS/SCPC affect remedy recovery?
Under SCS/SCPC (NB: not all contracts), no immediate right to terminate / rescind until notice to complete (NTC) served.
can contractual compensation and common law damages both be claimed? Explain.
o Can claim contractual + damages but contractual deducted from award
what is the position regarding contractual compensation under SCS and SCPC?
o SCS B + S can pay compensation
o SCPC only B pays compensation
when can the notice to complete be served and what is the effect of this?
NTC can only be served after completion day. Once served, must complete within 10 working days
No completion = innocent party can rescind and claim damages
simply, what is rescission?
restoring the innocent party to pre-contract position
when is rescission allowed under the SCS/SCPC?
Under SCS/SCPC, allowed where:
Failure to comply with notice; or
Misrepresentation by S which was either: fraudulent/reckless or property is substantially different
what is the effect of rescission?
B at fault seller keep deposit
S at fault seller repay deposit
the innocent party can also claim damages
