Pre-completion Flashcards
What are the 5 main steps the BUYER’S SOLICITOR should take pre-completion?
(1) Draft TRANSFER DEED (TR1 / TP1)
(2) Send SC ‘COMPLETION INFORMATION AND UNDERTAKINGS ‘ Form (TA13)
(3) PRE-COMPLETION SEARCHES
(4) ‘CERTIFICATE OF TITLE’ (BS to Lender) & request ‘MORTGAGE ADVANCE’
(5) ‘FINANCIAL STATEMENT’ (BS to B)
(1) What transfer deed is used to transfer the whole of land?
(2) Which transfer deed is used to transfer part of land?
(1) TR1
(2) TP1
Is it compulsory to use a TR1 / TP1 to transfer:
(a) Registered Land
(b) Unregistered Land
(a) Yes
(b) No (but recommended)
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)?
(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 (e.g. buyer = >1 person & as TIC)
What are the 4 options a COMPANY has execute the transfer deed (TR1 / TP1)?
(1) Company Seal (if Articles allow)
(2) 2 Directors
(3) 1 Director + 1 Company Secretary
(4) 1 Director + 1 Witness
Who carries out pre-completion searches and enquiries?
Buyer’s solicitor
What are the 4 key pre-completion searches?
(1) Land Registry Search (OS1/OS2) - REGISTERED land
(2) Land Charges Search (K15) - UNREGISTERED Land
(3) Bankruptcy Search (K16)
(4) Company Search
What are the 3 key reasons a Land Registry Search (OS1/OS2) carried out?
(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 / INTERESTS)
(3) Individual seller BANKRUPT (not Company)
(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?
(a)
(1) OS1
(2) OS2
(b) Registered
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
(a) Title Number
(b) From Date of Official Copies
(c)
(i) Lender
(ii) Buyer
What is generally attached to an OS2 search and what is the exception to this?
(1) Plan
(2) New residential development
If the buyer using a mortgage, the Land Registry Search (OS1/OS2) should be in the name of the lender. Why is this?
Gives both the transfer and mortgage priority
What is the priority period conferred by a Land Registry Search (OS1/OS2)?
30 WORKING days from date of SEARCH
When must the buyer apply to the Land Registry to take the property free from entries / applications made during the ‘priority period’
By 12pm (Noon) on working day 30
What pre-completion search should be carried out if the land is unregistered?
Land Charges Search (K15)
What is the purpose of Land Charges Search (K15)?
Allows the buyer to take the property free of entries made on the Land Charges Register since the date of the first K15 search
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?
(1) CURRENT owner’s name
(2) No need search against PREVIOUS owners
(1) What is the ‘priority period’ in a Land Charges Search (K15)?
(2) What should be done in this period?
(1) 15 WORKING days from the date of RESULT
(2) COMPLETE within 15 WORKING DAYS (from date of result)
If the SELLER is a ‘COMPANY’, what search should be carried out against them to check SOLVENCY
Company Search
If you are Representing the LENDER, what search should be carried out against the BUYER if the Buyer =
(a) Individual (Registered Land)
(b) Individual (Unregistered Land)
(c) Company
(a) ‘Bankruptcy-only’ search (K16)
(b) Add buyer’s name to existing ‘Land Charges Search’ (K15)
(c) Companies Search (at CH)
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?)
‘Completion Information and Undertakings’ Form (TA13)
The ‘COMPLETION INFORMATION AND UNDERTAKINGS’ form (TA13) as well as containing info on the practicalities of completion (e.g. place, method) also contains a key UNDERTAKING. What is this?
UNDERTAKING - seller’s solicitor - REDEEM Existing MORTGAGE on COMPLETION (with the purchase monies)
Pre-Completion, what 2 things must be sent / done from the BUYER’S SOLICITOR to LENDER?
(1) Prepare & Send ‘CERTIFICATE OF TITLE’
(2) Request MORTGAGE ADVANCE
Pre-Completion, a ‘Certificate of Title’ is prepared and sent from the the BUYER’S SOLICITOR to LENDER.
What is the purpose of ‘Certificate of Title’?
Assures Lender ‘SAFE’ to Lend (∴ RELEASE Mortgage Funds on Completion)
(1) Pre-Completion, what is sent from the BUYER’s SOLICITOR to the BUYER?
(2) What does this show?
(a) ‘Financial Statement’
(b) TOTAL AMOUNT Buyer needs to COMPLETE Transaction (e.g. balance purchase fees, legal fees to BS)
