Pre-completion, Completion & Post-completion Flashcards
Which form is used for the transfer deed for
- Registered land;
- Sale of part
- Unregistered land?
Registered: TR1
Part: TP1
Unregistered: No prescribed form (common to use TR1)
What are the 3 requirements of a valid deed for the transfer of legal estate in land?
- Clear that is a deed
- Signed & witnessed by grantor
- Delivered
Who executes the transfer deed?
The seller always executes
The buyer executes also if entering into an obligation or making a declaration in the TR1 (eg. giving indemnity cov, declaring beneficial interest under trust)
How will an individual execute the deed?
By signing in presence of attesting witness
What are the 3 ways a company can execute a transfer deed?
a. Affixing company seal in presence of 2 attesting directors
b. Signed by 2 directors
c. Signed by 1 director in presence of attesting witness
What are the 4 pre-completion steps taken by the buyer’s solicitor?
- Draft purchase deed
- Submit completion of information form TA13
- Pre-completion searches
- Mortgage Finance
What is completion of information form TA13 & who submits it?
Submitted by buyer’s solicitor - confirms practical queries (eg. keys) & obtains undertaking from seller’s solicitor that mortgage will be redeemed upon completion
What pre-completion searches will the buyer’s solicitor carry out?
-
OS1 (registered land) → 30 working days priority period
or K15 (unregistered land) → 15 working days priority period - Company search (where buyer company)
- K16 to check buyer’s solvency on behalf of lender
What is the priority period conferred by the pre-completion searches?
Registered: OS1 to Land Reg → 30 working days priority period
Unregistered: K15 to Land Charges Dept → 15 working days priority period
What are the 4 pre-completion steps taken by the seller’s solicitor?
- Agree purchase deed & have seller sign
- Reply to TA13 within 4 days of receipt
- Execute purchase deed
- Mortgage Redemption (get redemption figure from lender & check that it can be paid off)
What is the effect of completion?
Unregistered: legal title passes to buyer
Registered: legal title does not pass until buyer is registered
What is the process of completion?
- Buyer’s sol sends completion money electronically
- On receipt of completion money, seller’s solicitor completes transaction by dating TR1
What are the 2 methods of completion?
In person or by post
How does completion in person work?
All parts of transfer already executed & buyer’s sol has arranged for completion money to be sent electronically
The two sols meet - seller’s sol hands over title docs in return for receiving completion £ & buyer’s sol checks these
Seller’s sol arranges for release of keys by whoever is holding them
How does completion by post work?
Seller’s solicitor acts as agent of buyer’s solicitor - buyer’s sol sets out in writing precisely what seller’s sol is to do
All docs sent by first-class post or document exchange
On receipt of completion money, seller’s solicitor carries out instructions & completes transaction
What are the 6 post-completion steps?
- Seller’s solicitor sends TR1 to buyer’s solicitor
- Seller’s solicitor redeems mortgage & sends balance of purchase monies to seller (will receive DS1 from lender - sends to buyer’s solicitor)
- Buyer’s solicitor pays SDLT1 within 14 days of completion using SDLT1 (or LTT within 30 days) - will receive SDLT5 / WRA certif as proof tax paid
- If buyer company who has purchased property with aid of mortgage, lenders solicitor registers charge at CH within 21 days of completion
- Buyer’s solicitor sends docs to Land Reg to have buyer registered as registered proprietor
- Once Land Reg have processed, will send Official Copies to buyer’s solicitor, who checks them
What is the time limit for the buyer’s solicitor to pay SDLT / LTT?
SDLT: within 14 days of completion
LTT: within 30 days of completion
What is the effect of failure by the lender’s solicitor to register the mortgage at Companies House if the buyer is a company?
Charge will be void against liquidator/administrator & other creditors
How long does the buyer’s solicitor have to apply for the buyer to be registered in
- Registered land;
- Unregistered land?
Registered: application must be made before expiry of 30 working day priority period conferred by OS1
Unregistered: application must be made within 2 months of completion
What are the 7 documents to be sent to the Land Registry as part of the registration application for registered land?
Form AP1 with:
a. Certified copy of TR1
b. Fee
c. DS1 showing discharge of existing mortgage
d. Mortgage deed
e. SDLT5 / WRA certificate showing have paid SDLT/LTT
f. Form DI (sets out any overriding interests which burden the title)
g. If sellers were T.I.C. & one has died: death certif + Deed of Appt of 2nd trustee
What are the 8 categories of documents to be sent to the Land Registry as part of the registration application for unregistered land?
Forms FR1 + DL with:
a. Certified copy of TR1 or other purchase deed
b. Fee
c. DS1 showing discharge of existing mortgage
d. Mortgage deed
e. SDLT5 / WRA certificate showing have paid SDLT/LTT
f. Form DI (sets out any overriding interests which burden the title)
g. If sellers were T.I.C. & one has died: death certif + Deed of Appt of 2nd trustee
h. Epitome of title & other purchase docs & evidence (searches & enquiries etc.)
If the contract doesn’t specify, what is the completion date?
20 working days after exchange
If the contract doesn’t specify, when must the parties pay money due on the completion date?
2pm
If this is missed - completion deemed to have taken place on the next working day
What are the 4 possible remedies for delayed completion?
- Contractual compensation
- Common law damages
- Notice to complete
- Rescission (not immediate right!)
Who is liable for to pay contractual compensation if there is a delay in completion?
SC: both buyer & seller are liable for compensation for delay
SCPC: only buyer is liable
How is contractual compensation for delayed completion calculated?
Calculated daily at the contract rate specified in the contract for the period between contractual & actual completion dates (including day transaction was supposed to complete, but not day it was actually completed)
(Balance of purchase price less any deposit paid if defaulting party is buyer x contract rate) / 365
What common law damages are available if completion is delayed?
Failure to complete = breach of contract → damages to put claimant in position they would have been in had the contract been correctly performed
Nb. if seller has received any contractual compensation, this will be deducted from the damages
When can a Notice to Complete be served?
After contractual completion time only
What is the effect of a Notice to Complete?
Gives other party 10 working days to complete (starting on day after notice served)
If fail to do so, party who served:
- May rescind contract
- If buyer was defaulting party, seller can keep deposit
- If seller defaulting party, must repay deposit
- Claim damages
When is rescission permitted as a result of delayed completion?
Only when notice to complete has been served + seller’s error/omission results from fraud or recklessness / buyer would be obliged to accept property differing substantially from what they had been led to expect (ie. misrepresentation)
