Overview

Question 1

What are the different stages of a conveyancing transaction?

Answer 1

1. Pre-Market
2. Pre-Contract
3. Exchange of Contracts
4. Pre-Completion
5. Completion
6. Post-Completion

Question 2

When must a seller obtain and produce an Energy Performance Certificate? What does it do?

Answer 2

Before a property is marketed.

It gives the buyer details of the energy efficiency of the property.

Question 3

What does an estate agent do?

Answer 3

Markets and sells the property for the seller.

Once a buyer is found, the estate agent will negotiate the price to be paid for the property between seller + buyer.

The agent will then send a ‘memorandum of sale’ outlining the agreement and providing information on the solicitors acting for seller and buyer

Question 4

When is there a ‘chain’ of transactions?

Answer 4

If there are more than 2 parties buying + selling a property

Question 5

What does the pre-contract part of the transaction cover?

Answer 5

The period from the time the solicitor takes instructions at the beginning of the matter to the exchange of contracts.

Question 6

How long does the pre-contract stage typically last?

Answer 6

Usually takes 4-6 weeks to conclude.

Question 7

What do solicitors do during the pre-contract stage?

Answer 7

Solicitors for the seller and the buyer will take detailed instructions from their clients about their requirements for the transaction

Question 8

What is ‘synchronising’?

Answer 8

If a client is selling one house + buying another, with the intention of moving from one house to the other on the same day, the solicitor will be ‘synchronising’ the transactions

Question 9

What are some key issues covered by buyer’s and seller’s solicitors at the outset?

Answer 9

1. Sending a client care letter to the client
2. Identifying the client through documentation, and
3. Addressing any money laundering requirements

Question 10

When will the seller’s solicitor obtain a copy of the seller’s title, or obtain the title deeds?

Answer 10

At the pre-contract stage

Question 11

How will the seller’s solicitor access copies of the seller’s title if the land is registered?

Answer 11

The solicitor will download the seller’s title from the Her Majesty’s Land Registry (HMLR) portal.

From this website the solicitor can download registers of title, title plans, and documents referred to in the registers

Question 12

How will the seller’s solicitor gain information about the seller’s title if the land is unregistered?

Answer 12

The seller’s solicitor must obtain the title deeds.

If the property is in mortgage, the lender will hold the original title deeds + the seller’s solicitor will have to write to the lender requesting the release of the unregistered deeds.

Question 13

What will the seller’s solicitor need to give if wanting the title deeds from the mortgage lender?

Answer 13

The seller’s solicitor will have to give the lender an undertaking to retain the deeds pending redemption of the mortgage.

Question 14

Who drafts the contract and contract package?

Answer 14

The seller’s solicitor will draft the contract + send the contract package to the buyer’s solicitor.

Question 15

What will the contract package include?

Answer 15

1. The draft contract in duplicate
2. The Property Information Form (‘PIF’) and Fittings and Contents Form (F&C), both completed by the seller,
3. A copy of the seller’s title (or epitome of title if the title is unregistered), and any other relevant title documents, and title plan, and
4. Any guarantees or planning permissions

Question 16

What will the buyer’s solicitor do upon receipt of the contract package?

Answer 16

The buyer’s solicitor submits the pre-contract searches and investigates the seller’s title to determine if there are any issues affecting the property.

If any questions arise as a result of the search results or title investigation, the solicitor will ‘raise enquiries’ with the seller’s solicitor.

Question 17

What does determining how the buyer is financing the transaction potentially involve for the buyer’s solicitor?

Answer 17

Might mean carrying out appropriate due diligence checks (e.g., to see if any action is needed regarding money laundering laws) if the buyer is putting cash towards the property purchase.

Question 18

What is exchange of contracts?

Answer 18

The point at which the matter becomes legally binding

Question 19

How do solicitors usually exchange contracts?

Answer 19

To ensure that all parties stick to their commitments, the solicitors usually exchange contracts on the telephone using the Law Society’s formulae for exchange of contracts.

Question 20

What does each solicitor do upon exchange?

Answer 20

Inserts into the contract the date of the exchange and the completion date

Question 21

What interest does the buyer have in the property following exchange?

Answer 21

Equitable interest in the property passes to the buyer

Question 22

How long does the pre-completion stage last?

Answer 22

Typically lasts 1-2 weeks, although it is possible for exchange and completion to happen on the same day (a ‘simultaneous’ exchange + completion).

Question 23

What form does the buyer’s solicitor draft during the pre-completion stage?

Answer 23

Buyer’s solicitor will draft the transfer for the seller’s solicitor to approve, although sometimes the seller will prepare.

Question 24

What is the transfer document?

Answer 24

Document that transfers the ownership of the property from the seller to the buyer on completion.

Most often a transfer of whole is required using form TR1.

If the seller is only selling part of the land - transfer of part is prepared using form TP1.

Question 25

What must the seller’s solicitor ensure re the transfer?

Answer 25

Must ensure that the transfer is signed by the seller before completion

Question 26

When might the buyer need to sign the transfer?

Answer 26

Buyer may need to sign if the transfer includes covenants by the buyer or if there is more than 1 buyer

Question 27

What is a Completion Information and Undertakings form?

Answer 27

Seller’s solicitor will complete and return to the buyer’s solicitor.

Form gives the buyer’s solicitor practical information about completion, such as the seller’s solicitor’s bank account details.

Also provides the undertaking(s) to redeem the seller’s mortgage(s) out of the sale proceeds on completion

Question 28

What will the seller’s solicitor do in the pre-completion stage if there is a mortgage?

Answer 28

If the seller has a mortgage, the seller’s solicitor will obtain an up-to-date redemption figure for the mortgage, obtain details of the amount of the estate agent’s commission, and prepare a completion statement for the seller, itemising any related costs

Question 29

What will the buyer’s solicitor do if the buyer is obtaining a mortgage in the pre-completion stage?

Answer 29

The buyer’s solicitor will submit the Certificate of Title to the lender to request access to the loan funds, or ‘drawdown’, of the mortgage advance upon completion.

Typically this must be sent to the lender between 5 and 7 days before completion

Question 30

What pre-completion searches will the buyer’s solicitor submit?

Answer 30

1. Bankruptcy search against the buyer on behalf of the lender if obtaining a mortgage.
2. Registered land - Official Search with priority on form OS1.

Question 31

What does an Official Search with priority do?

Answer 31

Search will update the official copies provided by the seller’s solicitor with the contract package + indicate if there are any new entries on the seller’s register of title.

Search result also provides a 30-working-day priority period within which the buyer’s solicitor must complete and register the transfer to the buyer with HMLR.

During the ‘priority period’ any application for an entry made in the register is held until the buyer’s priority period expires

Question 32

What will the seller’s solicitor do post-completion?

Answer 32

Redeem the seller’s mortgage(s) (if any), in accordance with the undertaking given on the Completion Information and Undertakings form.

Once the seller’s solicitor has sent to the buyer’s solicitor evidence of removal of the mortgage(s), the seller’s solicitor will request a release from the undertaking.

Question 33

What does the buyer’s solicitor do post-completion?

Answer 33

Buyer’s solicitor submits the Stamp Duty Land Tax (SDLT) form online if SDLT is payable.
This must be done within 14 days of completion.

The buyer’s solicitor also submits the application to register the transfer to the buyer (and the buyer’s mortgage, if any) within the OS1 priority period.