DUE DILIGENCE FORMS

Question 1

What is the E-DS1 form?

Answer 1

Sent to discharge the whole mortgage.

Question 2

What is the DS3?

Answer 2

Mortgagee releases the plot from the registered charge.

Question 3

What is the DS1?

Answer 3

Used to cancel the registered charge and the mortgagee will require security over the remaining part of ht eland. Discharge of a mortgage. Lender completes the form sends it to the seller’s solicitor for onward transmission to the buyer’s solicitor.

Question 4

When would a vacating receipt be used?

Answer 4

only used for unregistered land to discharge mortgages in the unregistered system.

Question 5

What is a K15?

Answer 5

Land charges search against the seller for the whole period of their ownership. Not necessary to search against previous estate owners as the land charges search in the epitome of title would have been carried out and no entries can be registered against them once they parted with the property.

Question 6

What is the priority period conferred by K15?

Answer 6

15 working days.

Question 7

What is the K16?

Answer 7

Bankruptcy only search - will not reveal entries against the seller’s name.

Question 8

What is the priority period conferred by K16?

Answer 8

There is no priority period.

Question 9

What is the FR1?

Answer 9

Solicitor applying for first registration of an unregistered title.
The solicitor should send the completed land registry form PLUS the appropriate fee PLUS accompanying documentation - certified copies of original documents can be submitted with the application to land registry but such copies are not mandatory - must all be sent to the land registry within 2 months of completion.

Question 10

Within what time limit should the solicitor send the appropriate documents to the land registry for first registration of an unregistered title?

Answer 10

Within 2 months of completion.

Question 11

What is TID (title information document)?

Answer 11

Document issued by the Land Registry following first completion.

Question 12

What is TA13?

Answer 12

Completion information and requisitions form - details of whereabouts of the keys to the property, an undertaking given by the seller’s solicitors to redeem the mortgage and confirmation of the exact amount required to complete the purchase.

Question 13

What is the OS1? (prior to completion)

Answer 13

Prior to completion - check whether there have been any changes to title and to provide a priority period - 30 working days from the search result.
If buyer is financing with a mortgage it should ALWAYS be in the name of the lender.

Question 14

What is the priority period for the OS1 search?

Answer 14

30 working days from the date of the search result.

Question 15

If buyer is financing with a mortgage - who should the OS1 be in the name of and why?

Answer 15

The lender - so the priority period will protect both the buyer and lender.

Question 16

When should a company search be completed?

Answer 16

If the seller is a company - to check that the seller is not insolvent.

Question 17

What is the SDLT1 and when should it be paid?

Answer 17

Stamp duty land tax form - send to HMRC within 14 days.

Question 18

What is SDLT payable upon?

Answer 18

The total purchase price PLUS VAT.

Question 19

CLLS Certificate of Title - who is it submitted to?

Answer 19

The lender.

Question 20

AP1 + certified copy of transfer - who is it sent to?

Answer 20

Submitted to land registry when registering the new owner as the new registered proprietor of th eproeprty.

Question 21

What is the OS1R?

Answer 21

Land registry search result.

Question 22

When is the deadline for registration of a charge at Companies House?

Answer 22

21 days after completion

Question 23

What does the priority period mean?

Answer 23

If an application to register is not received by the Land Registry before 12 noon on the last day of the priority period, priority is lost to any prior applicants.
BASO: if you don’t actually register before 12 non on the last day of the priority period - you can’t say interests made during the priority period no longer stand.

Question 24

Who executes the transfer deed?

Answer 24

ALWAYS THE SELLER.

Question 25

Which searches and enquiries are relevant to every property?

Answer 25

• Survey and personal inspection
• The local search
• Water and drainage search
• Pre-contract enquiries of the seller.
• Environmental searches
• Flood search

Question 26

What is the purpose of a valuation?

Answer 26

Assesses whether the property is adequate security for the loan and it will not necessarily tell the borrower much about the state of the structure of the property.

Lender will always require the borrower to pay for a valuation.

Question 27

What is a full structural survey?

Answer 27

It provides a detailed commentary on the structure.

Question 28

What makes up the local search?

Answer 28

• The local land charges search - LLC1
• The standard enquiries - CON29
• Optional enquiries - CON29O

Question 29

What is the point in a local land charges search?

Answer 29

Form LLC1 - provides details of any financial charges or restrictions on land that have been imposed by public authorities under statute - e.g., planning consents, tree preservation orders and conservation area designation orders.

Question 30

What are the standard enquiries?

Answer 30

Raised on form CON29 - reveal information such as planning permissions, and any restrictions on permitted development (such as an Article 4 direction) - whether the land has been designated as contaminated land etc - also raises questions of liability for road repair.

Question 31

What are the optional enquiries?

Answer 31

Form CON29O - depends on the locality of the property - raised in a separate CON29O form and cover a range of diverse matters including environmental and pollution notices and rights over common land.

Question 32

What does the local search cover?

Answer 32

ONLY the property itself and NOT adjoining land.

Question 33

To who and what form do you use to do a water and drainage search?

Answer 33

To the statutory undertaker - usually a water company.

CONF29DW (residential)
CommercialDW (commercial)

Question 34

What is the purpose of the water and drainage forms?

Answer 34

Main purpose is to establish whether the drains and sewers serving the property are ‘adopted’ and therefore the responsibility of the statutory undertaker rather than the owner of the property.
The search will reveal whether or not the property is connected a public sewer for both foul and surface water drainage and whether the property is connected to a public water supply.
If the property does not drain into a public sewer, the buyer will be liable for the costs of maintaining the drains and sewers and the buyer will be liable for the costs of maintaining the drains and sewers and may be liable for the costs of bringing them up to adoption standard if the water authority decides to adopt them.

Question 35

What are pre-contract enquiries of the seller?

Answer 35

Questions the seller is required to answer.

They are a standard questionnaire that most solicitors acting for a buyer would raise at the pre-contract stage of the transaction.

E.g., any disputes with the property, any third parties occupying the property, compliance with any covenants contained within the title, any planning permissions issues about boundary maintenance etc.

Question 36

Which search will reveal a tree preservation order?

Answer 36

Local land charge - LLC1 result.