Pre-completion searches and enquiries Flashcards
What pre-completion search should be carried out for registered land and why?
OS1 or OS2 for a part of land - this confers a priority period of 30 working days in favour of the person searching
What search should be carried out for unregistered land?
Form K15 - this search identifies any incumbrances or adverse matters against the owner/seller.
What is the priority period conferred by the Land Charges Search for unregistered land?
15 working days
This allows the buyer’s transfer to take priority if the transaction is completed within this period.
What happens if B’s solicitor registers the transfer with the Land Registry within the priority period?
B’s transfer will take priority over any other applications
This ensures that B’s ownership is secured against competing claims.
What does the OS1 Search update?
The official copies that B’s solicitor has seen
In whose name should the OS1 search be conducted if there is a mortgage?
In the name of the lender
What should S disclose to B’s solicitor?
Any adverse issues that may have resulted in changes to official copies originally provided - the buyer could have a claim for misrepresentation/breach of contract if they fail to disclose
What is the consequence if B’s solicitor fails to ensure registration is protected by priority at the Land Registry?
Could be expensive
For unregistered land, against whom should the Land Charges Search be conducted at the pre-completion stage?
Against the seller only
When should the land charges search against S be carried out?
Just before completion
When is a solvency search necessary?
When acting for a buyer and lender - A solvency search (K16) is conducted against the buyer to protect the lender.
What should be checked if B is a company?
A company search should be conducted to check for pending insolvency or crystallisation of a floating charge.
What is involved in a personal inspection?
- Checking for overriding interests
- General state and condition
- All relevant fittings are present
- No fixtures have been removed
What are Requisitions on Title?
Requisitions on Title are similar to pre-exchange enquiries but much simpler and cover information necessary for completion.
What is the purpose of Requisitions on Title?
The purpose is to answer questions that B’s solicitor needs before completion.
What form is used for the requisitions in title for Residential Transactions?
Law Society TA13 (Completion Information and Undertakings) is used.
What is the contents of the TA13?
a. Vacant possession - get keeys
b. Deed and docs of unreg land to be sent on completion
c. Confirmation that completion will take place according to the Law Soc’s Code for Completion by Post
d. Money - S’s sol’s client account details
e. Mortgages and charges - ask seller’s sol to list mortgages and confirm the undertaking to redeem on completion
Why can the mortgage not usually be redeemed until after completion?
S will rely on sale proceeds.
What must S’s solicitor do regarding the mortgage?
S’s solicitor undertakes to redeem the mortgage against the property, which it will have already notified to B’s solicitor.
What should happen on the loan being redeemed?
The lender should either discharge the charge at the Land Registry electronically or provide a form DS1 to discharge the charge.
