Freehold conveyancing process – (1) Preliminary matters Flashcards
What should a solicitor send to the client at the beginning?
A client care letter outlining services and costs.
What identification must a solicitor obtain from the client?
Identification documentation and carry out due diligence.
What should the buyer be advised to do regarding property inspection?
To have a surveyor conduct a physical inspection of the property.
What tax advice should a seller receive?
Advice regarding capital gains tax.
What must the seller provide to the buyer?
A valid energy performance certificate.
What is the seller’s solicitor’s role in title investigation?
To investigate the seller’s title and resolve any defects in the title.
What must the seller’s solicitor confirm with the seller?
The land being sold through a title map.
What figure should the seller’s solicitor request from the lender?
An indicative redemption figure on the mortgage.
What does the contract package include?
A draft contract, property information form, fitting and contents form, copy of the seller’s title, title map, guarantees or planning permissions, and any latent defects or burdens.
What are the three parts of a residential contract?
(i) Particulars of Sale, (ii) Standard Conditions of Sale, (iii) Special Conditions of Sale.
What does the deposit usually amount to upon exchange?
10% of the purchase price.
What happens to risk and insurance at exchange?
Risk passes to the buyer on exchange; they should insure the property.
What are the consequences if the property is damaged after exchange?
The buyer is still obliged to proceed with the transaction.
What should the buyer’s solicitor do upon receipt of the contract package?
Investigate title and resolve any issues through pre-contract enquiries.
How can defects in title be resolved?
Through a deed of variation or deed of rectification; if not possible, indemnity insurance may be purchased.
