Property law 5 - Pre-completion

Question 1

Who drafts the transfer deed?

Answer 1

Buyer

Question 2

A transfer of land must be made in the form of a deed - true or false?

Answer 2

True

Question 3

If there is a second trustee appointed for the sole surviving tenant, what details should be included on TR1?

Answer 3

Their details (no death certificate needs to be provided)

Question 4

What happens if the seller has a different name due to marriage

Answer 4

The new name should be added and a copy of the marriage certificate sent

Question 5

Which forms must be used for the transfer of registered land?

Answer 5

Land Registry forms must be used:

TR1 - whole of freehold or leasehold land
TP1 - part of a registered title
TR5 - portfolio of titles (including unregistered titles)

Question 6

Transfers of Unregistered land must use Land registry forms - True/False?

Answer 6

False - Unregistered land may be transferred in the form of a conveyance - but often LR forms are used.

Question 7

When should the date on Form TR1 be filled in?

Answer 7

On completion - it has the effect of completing the deed

Question 8

What is the maximum number of transferees that can be entered onto TR1?

Answer 8

4 people or companies

Question 9

Must the transferor always execute the TR1?

Answer 9

Yes

Question 10

When must transferees (the people buying the property) execute a TR1

Answer 10

• If they are tenants in common or hold the property on trust for someone else (panel 10).
• they are providing an indemnity covenant or any other obligation (panel 11).

Question 11

Does an individual need an independent witness to the deed and, if so, how many?

Answer 11

Yes - 1

Question 12

How can a company execute a deed?

Answer 12

• Company seal attached and signed by 2 directors or 1 director and company secretary
• No Company seal but signed by 2 directors or 1 director and company secretary
• Singed by 1 company director and witnessed by an independent witness
• Signed by a senior employee who is authorised under a power of attorney

Question 13

How are pre-completion searches carried out on Registered land?

Answer 13

The buyer carries out a search with priority at the Land Registry against the title number.

Question 14

What is the priority period for a search with priority carried out on REGESTERED land?

Answer 14

30 working days from the search result.

Question 15

How are pre-completion searches carried out on Unregistered land?

Answer 15

The buyer carried out a ‘land charges search’ of the Land Charges Registry.

Question 16

What is the priority period for a search with priority carried out on UNREGESTERED land?

Answer 16

15 working days from the search result

Question 17

What is the effect of the priority period?

Answer 17

The buyer’s transfer will take priority over any other applications, even if they were lodged before the buyer’s transfer.

Question 18

When acting for buyer and lender What searches must the solicitor carry out on behalf of the lender?

Answer 18

Solvency Search against the buyer

Question 19

What is the priority period of a solvency search?

Answer 19

15 working days from the search result

Question 20

Must a solvency search be carried out against the seller?

Answer 20

No. The OS1 gives the information for registered land, and the land charges search for unregistered land.

Question 21

How does the buyer get comfort that the seller will pay-off their mortgage?

Answer 21

The Sellor’s solicitor undertakes to REDEEM the mortgage.

Note: they’re not undertaking to discharge the charge as only the lender can do that.

Question 22

What is the purpose of the Completion Information and Undertakings Form?

Answer 22

It is sent by the buyer to the seller to obtain information about completion.

Question 23

Who completes and signs the Completion Information and Undertakings Form?

Answer 23

The seller’s solicitor.

Question 24

When should the seller undertake to send the transfer deed and other deeds and documents to the buyer’s solicitor?

Answer 24

As soon as possible, and no later than the end of the working day after completion.

Question 25

Can the “Law Society’s Code for Completion by Post” be used for residential/commercial or both

Answer 25

Both

Question 26

Is the Law Society’s Code for Completion by Post manditory?

Answer 26

No

Question 27

How does completion occur under Law Society’s Code for Completion by Post?

Answer 27

The seller’s solicitors to act as agent for the buyer’s solicitors. Completion occurs at the seller’s solicitor’s office as they hold the executed TR1 (which they sign) and receive the completion monies.

Question 28

What undertakings are made by the seller under The Code?

Answer 28

• The Seller’s Solicitor undertakes:

(i) to receive the purchase money on completion; and

(ii) on completion, to pay the mortgage off;

• The Seller’s Solicitor will complete upon receipt of the money
• As soon as possible after completion and in any event by the end of the working day following completion, send written confirmation that completion has taken place …

and the [executed transfer and other deeds and documents]

Question 29

What undertakings are made by the buyer under The Code?

Answer 29

• The buyer’s solicitor will use reasonable endeavours to get the cash to transmit to the Seller’s Solicitor on or behalf the completion date.
• immediately upon becoming aware of their receipt, the Seller’s Solicitor will report to the buyer’s solicitor that the funds have been received.

Question 30

What are the requirements of a deed?

Answer 30

• must state it’s a deed
• signed and delivered
• signature needs to be attested 1 person