PP 5 - Completion Flashcards
What is the purpose of a TR1 form in a property transaction?
It transfers the whole of registered/unregistered land and records key info (title, parties, address, signatures, etc.)
What are key sections of the TR1 form?
- Title number
- Property address
- Date (added on completion)
- Parties, consideration, title guarantee, execution, trust declarations, indemnities
When must the transferee sign the TR1?
- If holding as tenants in common
- Acting as trustee
- Providing indemnity covenants or other obligations
What are TP1 and TR5 forms used for?
- TP1: Transfer of part of registered land (includes plan)
- TR5: Transfer of multiple properties
What must the buyer’s solicitor do before completion?
- Finalise TR1
- Requisitions on title
- Pre-completion searches
- Certificate of title to lender
- Statement to client
- Send SDLT form for approval
What must the seller’s solicitor do before completion?
- Approve TR1 & have seller sign
- Respond to requisitions
- Request mortgage redemption statement
- Final meter readings (residential)
- Hold executed but undated TR1
What is the purpose of pre-completion searches?
To check for any new charges or issues since exchange and secure priority over third-party claims.
What forms are used in pre-completion searches?
- OS1/OS2: Registered land (creates 30 working day priority)
- K15: Unregistered land (15 working day priority)
What are solvency searches?
- K16 Bankruptcy Search: Buyer
- Company search (if party is a company)
- Seller’s bankruptcy = covered by OS1 or Land Charges search
What happens if an OS1 is not done?
Buyer may lose priority if seller fraudulently registers other charges.
What is the purpose of requisitions on title?
To confirm final logistics and money arrangements before completion.
What form is used for requisitions in residential sales?
TA13 (Completion Information & Undertakings)
What key details are covered in TA13?
- Vacant possession
- Completion logistics
- Final payment details
- Mortgage redemption undertakings
How are commercial requisitions usually handled?
Using firm’s precedent or CPSE SCR form
What does the seller’s solicitor undertake regarding mortgage redemption?
To redeem and provide electronic discharge or DS1 form post-completion
How is the purchase price typically paid?
By telegraphic transfer (TT) to the seller’s solicitor
What is the Code for Completion by Post?
Protocol that treats the seller’s solicitor as agent for the buyer to complete without meeting
Is written authority required to complete after exchange?
No, it is implied from exchange
What should be done post-completion?
- File memo of exchange
- Send/receive deeds
- Buyer arranges registration
- Lender sent certificate of title
Who is the defaulting party in a delayed completion?
The party who fails to complete (e.g., fails to pay/send documents)
What are the consequences under SCS for late completion?
- Interest payable daily
- Seller: full purchase price
- Buyer: purchase price minus deposit
How is delay interest calculated?
Balance × Interest Rate × (Days Late / 365)
E.g., £180,000 × 4.1% × (1/365) = £20.22/day
Can a party rescind immediately if the other fails to complete?
No — must serve a Notice to Complete to make time of the essence (10 working days deadline)
What are the seller’s remedies if the buyer defaults?
- Rescind contract
- Forfeit deposit
- Resell
- Claim damages
What are the buyer’s remedies if the seller defaults?
- Rescind
- Recover deposit
- Claim damages
- Seek specific performance
What’s the order of steps in practical completion day?
- Buyer’s solicitor sends funds
- Seller’s solicitor confirms receipt, dates TR1
- Buyer’s solicitor informs client, arranges keys
- Seller’s solicitor sends TR1 & documents, redeems mortgage
