Property 10 Flashcards
What happens on completion?
- Buyer’s solicitor sends the balance of the purchase money due to the seller to complete the matter. * Sellers move out of the property that they are selling and, usually, the buyer collects the keys from the estate agent and moves in.
What are the three methods by which completion can take place, and what should these not be confused with?
- Personal attendance2. Agent3. Post (most common)**Not to be confused with the three Ps by which exchange can occur: person, post, phone.
What happens when completion takes place by personal attendance?
- Buyer’s solicitor attends the seller’s solicitors’ offices in person. * The method of payment is normally a banker’s draft* The buyer’s solicitor takes physical possession of the deeds.This method is rare in practice.
What happens when completion takes place by agent?
Buyer’s solicitor appoints a local firm to attend to completion at the seller’s solicitor’s office. This method is also rare in practice.
What happens when completion takes place by post?
The seller’s solicitor acts as the buyer’s agent upon completion and posts all relevant deeds and documents to the buyer after completion has taken place and money has been received. Usual method
Is it possible to complete by phone?
No. Although the solictors will speak on the phone to confirm completion and release of the keys, this is not the point at which completion takes place and is thus not a ‘method’ of completion
What is the Code for Completion by Post?
A code established by the Law Society that may be adopted by solicitors. * It relies on undertakings by both the seller’s and the buyer’s solicitors (e.g. to send deeds or redeem charges), so it must be taken seriously and complied with where followed. * If the parties have adopted the Protocol, they must follow the Code for Completion by Post.
What are the 9 key steps of the Code for Completion by Post?
- Parties agree in advance to adopt it (implied agreement if using Protocol).* Seller’s solicitor gives a warranty that they act for the true seller of the property. * Seller’s solicitor must confirm in writing which mortgages are to be redeemed on completion. * Completion monies will be sent by a bank transfer of cash. * Buyer’s solicitor must provide the seller’s solicitor with a list of those deeds/documents to be marked as ‘examined’ (copies of documents in the epitome of title that will be examined against the originals). * If they will be unable to comply with the Code, seller’s solicitor must provide a statement to this effect to buyer’s solicitor before 4pm on the day before completion. * Seller’s solicitor must consider the undertaking to discharge mortgages carefully and list only those that they can discharge. * Seller’s solicitor must agree to complete the transfer documents upon receipt of the sum required to complete and confirm the date and time of completion to the buyer’s solicitor and to whomever holds the keys. This confirmation must be given by telephone, fax, or email as soon as possible after completion. Seller’s solicitor must also agree to send the executed transfer document (typically a TR1) and any other relevant documents to the buyer’s solicitor. These documents must be sent by first class post or document exchange as soon as possible, but in no event later than the end of the working day following completion. * Once deeds are posted to the buyer’s solicitor, they are held at the risk of the buyer.
Under the Code for Completion by Post, when must the executed transfer document and any other relevant documents be sent to the buyer’s solicitor?
By first class post or document exchange as soon as possible, but in no event later than the end of the working day following completion.
When does title pass in (1) registered and (2) unregistered land?
Registered: On completionUnregistered: When purchaser becomes registered at the Land Registry
What does ‘merger on completion’ mean and what does it mean for the buyer?
On completion, the contract merges with the purchase deed, meaning the buyer can no longer sue on contract terms (unless the contract provides it will not merge on completion)
What is the position in the Standard Conditions of Sale regarding merger on completion?
The Conditions contain a ‘non-merger clause’ that states that completion will not cancel liability to perform any outstanding obligation under the contract (e.g. a contract term by the seller to give vacant possession). If the outstanding obligation is not performed, the buyer may still sue on this term under contract due to this clause.
