Preparing for Exchange

Question 1

Standard Conditions of Sale apply to what type of properties?

Answer 1

Residential + low value commercial

Question 2

Standard Commercial Property Conditions

Answer 2

High value commercial properties

Question 3

Where to find title number and class for registered land?

Answer 3

Proprietorship Register

Question 4

When must mortgage offer be accepted?

Answer 4

Before exchange of contracts

Question 5

Lender’s requirements?

Answer 5

They want a first legal mortgage
* deed
* registered
* if buyer defaults, lender can sell house

Question 6

What does ‘certificate of title’ show

Answer 6

Property is good and marketable title - approved by Law Society

Question 7

Who gives certificate of title?

Answer 7

Buyers solicitor to lender to show property is good title

Question 8

When is certificate of title given?

Answer 8

Immediately before loan is given

Question 9

Law Society Formula A

Answer 9

• 1 solicitor has both parts of signed contract
• send their signed copy to other side on same day

Question 10

Law Society Formula B

Answer 10

Each solicitor has owned signed copy

common

• agree to exchange over the phone
• send signed copy to other side
• buyer’s S sends deposit cheque same day

Question 11

Law Society Formula C

Answer 11

Residential chain

Question 12

Concequence of exchange of contract?

Answer 12

Binding contract + cannot withdraw
* seller retains legal title until completion
* buyer has beneficial interest
* buyer bears risk of damage - need insurance

Question 13

Pre-exchange preparations?

Answer 13

• Buyer’s solicitor informs lender of good title
• buyer is informed of results of searches + enquiries
• make sure deposit funds in buyer’s account are ready to send to solicitor’s side
• agreed completion date
• contracts signed
• mortgage offer is accepted + terms complied
• Buyer’s insurance is in place after exchange