Completion & Post-Completion Flashcards
What are the 2 ways ‘Completion’ can take place?
(1) In PERSON
(2) by POST
What are the 4 ‘Completion’ Steps? (state who they are between e.g. BS, SS, SL)
(1) TRANSFER BALANCE PURCHASE PRICE (BS to SS)
(2) DATE TRANSFER DEED (e.g. TR1) (SS)
(3) SEND TRANSFER DEED (SS to BS)
(4) REDEEM MORTGAGE (TRANSFER BALANCE EXISTING MORTGAGE (SS to SL)
Under the SC and SCPC, how should the funds on Completion be sent over?
By electronic bank transfer
Under the SC and SCPC, if no completion date is set on exchange of contracts (rare), when will completion take place?
20 working days from EXCHANGE at 2pm
Under the SC and SCPC, if completion takes place after 2pm on the same working day, when will it be deemed to take place?
Next WORKING day
What is the effect of Completion on the Legal Title in:
(a) Registered Land
(b) Unregistered Land
(a) DOES NOT pass until Registration at HM Land Registry
(b) Passes at Completion and triggers Compulsory First Registration
During ‘Completion’ the Mortgage is REDEEMED (when SS transfers £ to Lender).
(1) What is the MAIN ‘Post-completion’ step for the SELLER’s solicitor re any existing Mortgage?
(2) What does this show?
(1) Send ‘Form DS1’ to buyers solicitor
(2) Evidence of Mortgage DISCHARGED
What are the 4 key post-completion steps for the BUYER’s solicitor?
(1) REGISTERED - Register Transfer at LR (AP1)
(2) UNREGISTERED - Register (compulsory) First registration at LR (FR1)
(3) Pay SDLT / LTT
(4) Register the mortgage
In REGISTERED LAND, the transfer must be registered at HM Land Registry for legal title to pass. When must this be done by?
Land Registry Search (OS1/OS2) priority period - 30 working days from date of search
In UNREGISTERED LAND, compulsory first registration must occur when the legal title transfers at completion.
(1) What is the effect of a failure to complete this?
(2) In what time period must this be done?
(1) Legal title pass back to the seller
(2) Within 2 MONTHS of completion
When must the following be paid to HMRC following completion:
(1) SDLT
(2) LTT
(1) Within 14 days of completion
(2) Within 30 days of completion
In REGISTERED LAND, following completion, what steps should the LENDER’S SOLICITOR (OR BUYER’s if representing both) take to register the buyer’s mortgage if the buyer is a COMPANY?
Register charge at Companies House (within 21 days creation charge i.e. completion)
Under the SC and SCPC, if no completion date or time is specified, when will this be?
2pm 20 working days from date of EXCHANGE
What are the 4 remedies for late completion?
(1) Contractual compensation
(2) Common law damages (breach of contract)
(3) Notice to complete
(4) Rescind
Is there an AUTOMATIC right to rescind / terminate the contract by a party in the case of late completion?
NO - a ‘notice to complete’ must be served first
Which party can be made to pay ‘contractual compensation’ for late completion under:
(1) SCs
(2) SCPCs
(1) Buyer OR Seller
(2) ONLY Buyer
What is the formula for calculating ‘contractual compensation’ under the SC and SCPC if defaulting party:
(a) Buyer
(b) Seller
(a) Contract rate x (Balance of purchase price - deposit)
(b) Contract rate x Balance of purchase price
Contract rate - in contract and if not SC/SCPC Barclays Base Rate + 4%
Under SC and SCPC, can a party claim under both ‘contractual compensation’ and ‘common law damages’?
Yes BUT NO ‘double recovery’ - deducted from each other
When is the earliest a ‘Notice to Complete’ can be served?
After contractual date / time of completion (e.g. after 2pm SC/SCPC)
What is the effect of a Party serving a ‘Notice to Complete’?
Time becomes of the ‘ESSENCE’ and completion must occur within 10 WORKING days
If 10 working days has passed since the filing of a ‘Notice to Complete’, is the contract AUTOMATICALLY rescinded?
No - non-defaulting party choice RESCIND or not
Under the SC and SCPC, If the non-defaulting party ‘Rescinds’ the contract, what happens to the DEPOSIT if defaulting party is the:
(a) Seller
(b) Buyer
(a) Pay deposit back to buyer
(b) Seller keeps deposit
