🏡Property: Completion Flashcards
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Pre completion steps
- Prepare transfer deed
- Pre completion searches
- Make practical arrangements
- Ensure finances in order
Formalities for valid deed for transfer of land
- Clear it’s a deed
-
Signed by parties
* individual: witnessed by independent witness
* company:
a. Co. seal in acc with articles
b. Signed by Dir and Sec OR 2 Dirs provided deed is expressed to be executed by the Co
c. Signed by 1 Dir in presence of witness who attests signature - Delivered
Who executes the transfer deed?
- Seller-always
- Buyer- if entering into an obligation (eg. Indemnity cov) or making declaration (as to beneficial ownership) in TR1
What transfer deed should be used?
- Registered: Land Registry Form TR1
- Unregistered: Best use TR1 not conveyance as will be subject to compulsory first registration
Who prepares the transfer deed?
Conventionally buyers sol
Simple residential transactions-sellers sol and sent to buyer in pre contract package
What should the transfer deed reflect
Terms of contract/title deeds
How should the purchase price be written in the deed?
Figures AND words
Possible add VAT
What pre completion searches could be done if relevant?
- OS1/K15
- If acting for lender: check buyers solvency
- If seller, co: company search
- If seller individual: bankruptcy search
Who carries out pre completion searches
buyers solicitor
When should pre completion searches be done?
As close to completion as possible
Why are pre completion searches done?
- Check seller hasn’t further encumbered title since investigation took place
- Check financial circumstances of borrower (when acting for lender)
- Gain priority for buyer and lender, over anyone else making app before the buyer applies to register the change of ownership at the Land Registry
- If sellers a Co, to check it hasn’t gone into liquidation before the balance of the purchase price is paid over on completion.
How to do pre completion searches in registered land?
Land Registry search against title number to see if new entries made since ‘search from’ date (date official copies produced)
Using:
* form OS1-sale of whole
* formOS2-sale of part (normally also a plan)
How to do pre completion searches in unregistered land
Land charges search on form K15
What form do the results come back on for pre completion searches
Registered: OS1R/OS2R
Unregistered: K18
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What will the OS1 include details of?
- Title number
- Address
- Names of registered proprietors
- Name of applicant
- Reasons for search
What priority period is conferred as a result of an OS1/2 or K15 pre completion search?
OS1/OS2: 30 working days from date of search result
K15:15 working days from result
Effect of the priority period conferred by pre completion searches in registered land
Buyer will take free from such entries if submit application for registration by 12pm on last day of priority period
For registered land, whos name should the search be done in and why
Buyer
UNLESS have mortgage then use name of lender, will confer priority period on buyer and lender
Effect of priority period in unregistered land
Searcher will take free of entries on register between search date/completion date if completion takes place during 15d period
How to check buyers solvency on behalf of lender?
INDIVIDUAL BUYER =apply for land charges search against buyer
* Registered: is a Bankruptcy only search on from K16
* Unregistered: will already be making land charges search against seller so ask name of buyer to be searched against on K15
CO BUYER-Co search (not possible to do bankruptcy land charges search)
Why do a company search against a seller company?
To check seller…
1. Still in existence
2. Solvent
3. Has created any fixed/floating charges
When (in time) should you do a company search and why
As close to completion date as possible as no priority period
On completion day: do phone search at Registry of Winding Up Petitions at Co Court
How/when to do a bankruptcy search against an individual seller?
Unregistered-K15 search
Registered-mostly not considered necessary but can do for high value/if concerned
Why is a bankruptcy search against an individual seller mostly not considered necessary for registered land?
s86(5) LRA 2002 provides where no notice/restriction relating to bankruptcy appears on registered title, a buyer acting in good faith without notice of bankruptcy petition/adjudication will take good title from bankrupt seller even though legal title vested in trustee in bankruptcy