Freehold Transactions

Question 1

What are the key differences between the standard condition on specified encumbrances in SCPC and SCS?

Answer 1

SCS - seller must disclose encumbrances registered at the Land Registry, Land Charges Registry, and Companies House. The onus is on the seller to disclose.
SCPC - buyer is deemed to buy property subject to any searches which would be revealed by a prudent buyer’s searches and enquiries. Onus is on buyer to carry out searches.

Question 2

How is a transfer deed witnessed when an individual is executing the deed?

Answer 2

Must be an independent witness. Witness signs and prints name.

Question 3

How is a transfer deed witnessed when a company is executing a deed?

Answer 3

Options:
1. Company seal attached and signed by two/one director and a company secretary.
2. No company seal, but signed by two directors/one director and a company secretary.
3. Signed by one director and witnessed by an independent witness.
4. Signed by a senior employee who is authorised under a power of attorney.

Question 4

Pre-completion: characteristics of OS1 search.

Answer 4

Confers a priority period of 30 working days.

Question 5

Pre-completion: characteristics of OS2.

Answer 5

Appropriate search for part of title for registered land. Confers a priority period of 30 working days over searches.

Question 6

Pre-completion: characteristics of K15 search.

Answer 6

Land Charges Registry search for unregistered land. Confers a priority period of 15 working days.

Question 7

Pre-completion: characteristics of a K16 search.

Answer 7

Bankruptcy search. If acting for lender, should be carried out against buyer to protect lender. Confers a priority period of 15 working days.

Question 8

Pre-completion: characteristics of a company search.

Answer 8

Should be carried out against seller by buyer if seller is a company, or against buyer by lender if buyer is a company. Gives no priority.

Question 9

When does the buyer’s solicitor need to submit the SDLT return by?

Answer 9

Within 14 days of completion.

Question 10

When does the buyer’s solicitor need to submit the LTT return/pay tax by?

Answer 10

Within 30 days of completion.

Question 11

What form is used to register the new owner of already registered land at the Land Registry?

Answer 11

Form AP1.

Question 12

What will be included in Form AP1?

Answer 12

1. Transfer deed.
2. Certificate of payment of land tax.
3. If needed, form DS1 to discharge seller’s mortgage.
4. Mortgage deed in favour of the buyer’s lender.
5. If applicable, certificate of registration of charge at CH.
6. Other documents as appropriate.

Question 13

In what circumstances will a charge need to be registered at Companies House post completion?

Answer 13

It a charge has been given by a company i.e. if the buyer is a company. Must be done within 21 days of completion.

Question 14

What form is used to register the new owner of previously unregistered land at the Land Registry?

Answer 14

Form FR1.

Question 15

What documents must be included with Form FR1?

Answer 15

1. Same documents as for AP1.
2. Epitome of title and deeds and documents referred to in it.
3. Land Charges searches for the seller and previous owners.