Pre-completion

Question 1

What are the 3 main steps the BUYER’S SOLICITOR should take pre-completion?

Answer 1

(1) Draft TRANSFER DEED (TR1 / TP1)
(2) Send seller’s solicitor ‘COMPLETION INFORMATION AND UNDERTAKINGS FORM’ (TA13)
(3) PRE-COMPLETION SEARCHES

Question 2

(1) What transfer deed is used to transfer the whole of land?

(2) Which transfer deed is used to transfer part of land?

Answer 2

(1) TR1

(2) TP1

Question 3

Is it compulsory to use a TR1 / TP1 to transfer:
(a) Registered Land
(b) Unregistered Land

Answer 3

(a) Yes
(b) No (but recommended)

Question 4

For an INDIVIDUAL:

(1) Will the seller always execute the transfer deed (TR1 / TP1)?

(2) Will a witness always execute the transfer deed (TR1 / TP1)

(3) What are the 2 main circumstances a buyer will execute the transfer deed (TR1 / TP1)?

Answer 4

(1) Yes ( Seller ALWAYS executes & Buyer sometimes)

(2) Yes

(3) Buyer will execute IF:
(a) Giving a COVENANT (e.g. indemnity covenant)
(b) Declaring a BENEFICIAL INTEREST UNDER TRUST

Question 5

What are the 4 options a COMPANY has execute the transfer deed (TR1 / TP1)?

Answer 5

(1) Company Seal (if Articles allow)
(2) 2 Directors
(3) 1 Director + 1 Company Secretary
(4) 1 Director + 1 Witness

Question 6

Who carries out pre-completion searches and enquiries?

Answer 6

Buyer’s solicitor

Question 7

What are the 4 key pre-completion searches?

Answer 7

(1) Land Registry Search (OS1/OS2) - REGISTERED land
(2) Land Charges Search (K15) - UNREGISTERED Land
(3) Bankruptcy Search (K16)
(4) Company Search

Question 8

What are the 3 key reasons a Land Registry Search (OS1/OS2) carried out?

Answer 8

(1) Shows if any ENTRIES (e.g. incumbrances) have been made since the Date of the Official Copies

(2) PRIORITY PERIOD of 30 working days to register the transfer at the Land Registry where it take PRIORITY over other applications

(3) Individual seller BANKRUPT (not Company)

Question 9

(a) What Land Registry Search is used for:
(1) Whole of land
(2) Part of land

(b) Is it used for registered or unregistered land?

Answer 9

(a)
(1) OS1
(2) OS2

(b) Registered

Question 10

For a Land Registry Search (OS1/OS2), what should the:
(a) Search be made against?

(b) From when?

(c) In whose name if:
(i) Buyer using a mortgage
(ii) Buyer NOT using a mortgage

Answer 10

(a) Title Number
(b) From Date of Official Copies
(c)
(i) Lender
(ii) Buyer

Question 11

What is generally attached to an OS2 search and what is the exception to this?

Answer 11

(1) Plan
(2) New residential development

Question 12

If the buyer using a mortgage, the Land Registry Search (OS1/OS2) should be in the name of the lender. Why is this?

Answer 12

Gives both the transfer and mortgage priority

Question 13

What is the priority period conferred by a Land Registry Search (OS1/OS2)?

Answer 13

30 WORKING days from date of SEARCH

Question 14

When must the buyer apply to the Land Registry to take the property free from entries / applications made during the ‘priority period’

Answer 14

By 12pm (Noon) on working day 30

Question 15

What pre-completion search should be carried out if the land is unregistered?

Answer 15

Land Charges Search (K15)

Question 16

What is the purpose of Land Charges Search (K15)?

Answer 16

Allows the buyer to take the property free of entries made on the Land Charges Register since the date of the first K15 search

Question 17

When the Land Charges Search (K15) is carried out:
(1) Against whom should it be carried out?
(2) How does this differ from its use at pre-exchange stage?

Answer 17

(1) CURRENT owner’s name

(2) No need search against PREVIOUS owners

Question 18

What is the ‘priority period’ in a Land Charges Search (K15)?

Answer 18

15 WORKING days from the date of RESULT to COMPLETE

Question 19

What search should be used to check the solvency of an INDIVIDUAL buyer taking out a MORTGAGE for:
(a) Registered Land
(b) Unregistered Land

Answer 19

(a) Bankruptcy-only Search (K16)
(b) Add BUYER’s name to existing Land Charges Search (K15) against seller

Question 20

What search should be used to check the solvency of a COMPANY buyer taking out a MORTGAGE for both Registered and Unregistered Land?

Answer 20

Company Search

Question 21

If the buyer of a property is a COMPANY, what pre-completion search should be carried out by the SELLER’s SOLICITOR?

Answer 21

Company Search

Question 22

What form is sent from the buyer’s solicitor to fill out by the seller’s solicitor to deal with the practicalities of completion (e.g. place, method, how keys will be exchanged?)

Answer 22

Completion information and undertakings

Question 23

The ‘Completion information and undertakings’ form as well as containing info on the practicalities of completion (e.g. place, method) also contains a key UNDERTAKING. What is this?

Answer 23

UNDERTAKING - seller’s solicitor will redeem existing mortgage out of purchase monies on completion