Introductory Chapter- Introduction To Freehold Property Transactions Flashcards
What matters must a buyer’s solicitor consider?
- Seller’s right to sell the property
- Whether the property benefits from any rights
- Whether the property is subject to any third party rights
- Will the buyer be able to use the property for the intended purpose
What are the aims of a seller?
- Realise funds from the sale and repay any mortgage
- Effect a legal transfer
- Prepare a contract which accurately reflects the terms
- Ensure that business requirements are met
What are the aims of the buyer?
- Ensure that the seller has the correct title
- Ensure that the contract is accurate
- Ensure that the physical condition is sufficient
- Rights which the property benefits from
- Identify third party rights
- Ensure there are sufficient funds
- Ensure the property meets business requirements
When do the parties become bound?
When they exchange contracts
What happens at the exchange of contracts?
Parties become legally bound
Deposit paid
Date for completion is fixed
Jobs for the sellers solicitor
- Takes instructions
- Obtain details of title
- Draft contract for sale
- Deals with pre-contract enquiries
- Supplies Energy Performance Certificate
- Receives the deposit and exchanges contracts
Jobs for the buyers solicitor
- Takes instructions
- Carries out pre-contract searches and raises with pre-contract enquiries
- Checks sellers title
- Ensures buyer has adequate funds
- Approves draft contract
Jobs for the seller between exchange of contract and completion
- Obtain confirmation about amount left on mortgage
- Approves transfer and arranges execution
- Replies to the Completion Information and Undertakings form
- Receives purchase monies
Jobs for the buyer between exchange of contract and completion
- Draft the transfer
- Send the Completion Information and Undertakings Form
- Requests mortgage funds
- Requests balance of purchase price plus costs of transaction
- Carries out pre-completion searches
- Arranges execution of the Transfer
- Sends balance to seller
Jobs for the seller following completion
- Reports completion to seller
- Sends the signed, dated transfer w/ deeds
- Pays off any lender -Sends form of discharge
- Passes on purchase monies
Jobs for the buyer following completion
- Reports completion
- Receives transfer
- Sends Stamp Duty Land Tax to HMRC
- Registers discharge of mortgage and new mortgage
What is an issue for a buyer?
- Something comes to light which restricts the right of the buyer to deal with the property as they wish
- Buyer retains liability for the seller’s actions
Under s52 LPA 1925 what does a transfer of an interest in land need?
A deed
What do sales of unregistered land need?
Deed of conveyance
- Name seller
- Name buyer
- Set out tenure of the property
- Price of property
- Describe land being sold