Property 11

Question 1

What is the consequence of a solicitor missing any of the post-completion deadlines?

Answer 1

Negligence claim

Question 2

What are the duties of the seller’s solicitor post completion?

Answer 2

• Report to client (confirm completion has taken place)* Discharge mortgage if any* Pay estate agent if any when seller approves bill out of net sale proceeds (should be recorded on completion statement)* File Closure following firm’s procedures and render bill on day of completion

Question 3

What are the duties of the buyer’s solicitor post completion?

Answer 3

• Report to client that completion has taken place* Registration of company charge if any with 21 days* Payment of Stamp Duty Land Tax* Registration at HMLR

Question 4

How must completion be reported to clients (both buyer and seller)?

Answer 4

• Call the client to confirm it took place* Follow up with written confirmationSeller should then be reminded to cancel insurance

Question 5

If there are mortgages on the property, what must the seller’s solicitor do?

Answer 5

• Transfer sufficient funds to the lender, in accordance with the mortgage redemption statement, to redeem the mortgage. * Discharge any mortgage(s), using the appropriate HMLR form or method depending on the type of charge and depending on the lender’s instructions. UnregisteredIf the property being sold is unregistered, the original mortgage deed should be sent to the lender, for them to acknowledge receipt of the redemption payment. The mortgage deed will then be sent back to the seller’s solicitor, who should then send the mortgage deed to the buyer’s solicitor to comply with their undertaking to redeem the mortgage.

Question 6

Within what time of completion must the buyer’s solicitor send the Stamp Duty Land Tax Form (SDLT1 form) and pay tax?

Answer 6

Within 14 calendar days of completion, even if no tax is payablePenalties and interest are payable if the return is not filed and SDLT is not paid on time.

Question 7

What is Land Transaction Tax?

Answer 7

The equivalent to SDLT for transactions completing in Wales. It is consistent with the format for SDLT.

Question 8

Within what time of completion must buyer’s solicitor register the title for (1) registered and (2) unregistered property?

Answer 8

Registered: 30 working daysUnregistered: Two months

Question 9

What is the effect of first registration on the title deeds?

Answer 9

They no longer have legal effect and become ‘pre-registration deeds’

Question 10

What additional tasks must be done post-completion where there is a grant of a new lease?

Answer 10

Registration* If the lease is granted for a term of over seven years, the buyer’s solicitor applies to register the lease at HMLR to create a new title for that lease. * If the property has been leased with a mortgage, the new mortgage will be registered at the same time and the tenant’s solicitor must serve notice of mortgage on the landlord after completionManagement Company* If the leasehold property is located in a block to be managed by a management company, the buyer may need to apply for a share in the management company.

Question 11

What 6 additional tasks must be done post-completion where there is as assignment of an existing lease?

Answer 11

• Seller’s solicitor will send the buyer’s solicitor the original lease and original share certificate (if applicable) and the original licence to assign (if applicable)* Buyer’s solicitor will arrange for payment of SDLT* Buyer’s solicitor will serve notice to the landlord of the assignment to the buyer (and notice of any new mortgage created)* Seller’s solicitor will prepare the final service charge adjustment (if retention has been agreed) * Buyer’s solicitor will arrange for registration at HMLR of the transfer of the lease and any new mortgages. * If the seller holds a share in the property’s management company, the seller will provide a signed stock transfer form to transfer their share in that company to the buyer.