Property 4 - Completion Flashcards
transfer
Must be by deed s52 LPA 1925
make it clear it is a deed, be signed by both parties, be delivered.
Executed by private individual must be witnessed.
Company may
-by seal in accordance with articles
-having it signed by director and secretary or two directors
signed by single director with one witness attestation
On face deed - presumed to be delivered on execution
TR1 transfer document.
TR1
Check title again (could become further incumbered).
Registered - Land Registry search - check new entries from search from date.
OS1 whole
OS2 part
Plan, title number, address, registered proprietors, name of applicant, reasons for search.
Priority period 30 working days from search.
Protection from new entires.
Provided registration 12noon on last day.
If borrowing in name of lender.
Unresgistered -
K15. Results on K18.
Priority period of 15 working days.
Buyer’s solvency for lender
Registered - Land Charges search against buyer, as well as against property title number.
Bankruptcy only (K16).
Unregistered - already doing land charges search against seller - buyer will be added to names on form K15.
Company search if company.
Whether solvent, fixed or floating charges.
Against seller
Unregistered - K15.
Registered - bona fide purchaser without notice, must have been on title.
Practical arrangements for completion
Completion information form;
arrangements for handing keys, place and method of completion, documents to be handed over at completion, exact amount payable by buyer on completion.
Undertaking of seller to redeem mortgage.
Form TA13 asks about charges.
Lender will expect to receive ;
certificate of title
solvency search against borrowers
OS1R in name of lender
Excecuted but not completed mortgage deed.
Buyer will send financial statement (amount forwarded, balance of purchase price, SDLT/LLT due, registration fee, amount oustanding for other disbursements.
Buyer check mortgage advance from lender and balance of purchase price from buyer. Then sent to seller to bank account on Completion information form.
Methods and effects of completion
On receipt seller will complete by dating TR1. Lender will need to date mortgage deed.
Completion in person -
attend office.
Seller will return documents and arrange keys
Completion by post;
Sellers solicitor acts as agent of buyers.
Set out precisely in writing.
Buyer asks seller to do what they would have done.
Contact one done.
Implied undertaking to carry out buyer’s solicitors instructions.
Unregistered - legal title on completion
Registered - on registration at Land Registry as proprietor.
Remedies for delayed completion
Completion SC6.1.1 and SCPC 9.1.1 is 20 working days after date of contract.
Must be paid before 2pm on day of completion. If not treated as taking place next working day.
Contractual compensation -
SC buyer and seller (7.2)
SCPC buyer (10.3)
Contract rate in contract on balance or purchase price less any despot paid for period between contractual completion date and date of actual completion.
Common law damages -
In position would have been had completed.
Reasonably foreseeable consequential loss.
Notice to complete -
After contractual completion time. 10 working days to complete. Can rescind contract after. Seller able to forfeit deposit if buyer defaulted, if not must return.
Recession -
SC and SCPC.
Failed to comply with notice to complete.
Misrepresentation by seller in plan or statement in contract or negotiations.
Only action or omission result from fraud or recklessness or where buyer obliged to accept property differing substantially from what omission led t expect. less serious only entitles to damages.
Post-completion steps
Discharge sellers mortgage - agreed in completion information form.
Once lender received amount will either;
Form DS1 and send to seller for transmission to buyer
Submit e-SS1 electronic discharge through Land Registry portal
Use Electronic Discharge (ED) system which automatically removes charge
If latter two seller sends confirmation
SDLT/LLT -
SDLT - 14 days on receipt of TR1 from seller
LLT - 30 days
Companies house -
21 days if company.
Land Registry Applications
Registered;
AP1. If DS1 used must apply for mortgage to be removed.
Sent with certified copy of transfer, along with fee and SDLT/LLT certificate and DS1 if used.
D1 sets out overriding interests
If new mortgage
Certified copy of mortgage deed
Companies House certificate of registration (if company) and confirmation that enclosed deed same as Companies House (solcitors/lenders confirmation).
Application made before expiry of pointy period. Failure lose priority period.
Unregistered land;
Within two months on Form FR1.Application form and fee accompanied sent to Land Resgitry.
Documents must be listed in duplicate on form DL.
Chronological sequence on form DL
-documents which formed evidence of title
-buyer’s pre-contract searches and enquiries relating to the title with their replies
-contract, requisition on title with replies
-all pre-completion search certificates
-transfer deed
-seller’s mortgage duly receipted
-SDLT/LTT certificate
-Form D!
If new mortgage documents willl be required together with original.
Form D1 setting out interests that burden the title.
AP1 and FR1 over property value of £5,000 must disclose conveyancors identity.
Process application for registration and insertt buyer as new registered proprietor and lender as new proprietor of the charge.
Forward official copies of entries on Register known as Title Information Documents to buyer’s solicitor
