Residential transactions: Acting for the seller Flashcards
Pre-exchange
Taking instructions (S.P.T.T)
What are the areas to be covered by the seller’s solicitor when taking initial instructions?
Seller’s solicitor needs to cover the following details when taking instructions from the client:
Situation (S) - Property (P) - Third Parties (T) - Transaction (T): S. P. T. T
Seller situation:
- Seller’s current address and residence
- Seller’s family: single / married, children
- Ownership of property and co-ownership details
- Are they going to buy another property
Property details:
- Details of property (freehold/leasehold, residential / commercial)
- Price of property
- Mortgage information
- Price for fittings and contents
- Planning considerations
Third parties:
- Other co-owners (if relevant)
- Occupants
- Buyers details and solicitors
- Lender - indicative mortgage redemption / deeds
- Estate agent
Transaction details:
- Whether a chain;
- Costs - estimate
Pre-exchange
Who should the seller’s solicitor correspond with after taking initial instructions?
The seller’s solicitor should write to:
1) Client:
Acknowledge / confirm instructions
Client care letter
Costs plus VAT and disbursements, and
Property Information Form and Fittings and Contents Form (if protocol)
2) Buyer’s solicitor (if known)
Notify your involvement / contact to follow
3) Mortgagee
Request deeds if title unregistered (undertaking to be given); and
Request indicative redemption figure
4) Estate agents
Request copy of sale particulars (memorandum of sale) and details of buyer’s solicitor if needed
Pre-exchange
What searches should the seller’s solicitor carry out after taking initial instructions?
The seller should also make these applications:
Registered land: official copies, or
Unregistered land: K15 search against seller if under protocol (Land Charges search)
Pre-exchange
What initial actions should the seller’s solicitor do at pre-exchange stage?
Seller - initial actions
The seller’s solicitor should send to the buyer’s solicitor:
1) Draft contract x 2
2) Title
- Unregistered - epitome of title, and
- Registered - official copies and title plan, and
3) If protocol is being used, Property Information Form, Fittings and Contents Form and other documents for the “pre-contract package”
Pre-exchange
What secondary actions should the seller’s solicitor do at pre-exchange stage?
Seller - secondary actions
The seller’s solicitor should:
1) Reply to pre-contract enquiries
2) Ensure the contract is signed (and amended, where required) and
3) Obtain authority to exchange
Exchange of contracts
What actions should the seller’s solicitor do at exchange?
Seller:
1) Is it Formula A, B or C?
2) Memorandum of exchange, and
3) Send buyer your client’s signed contract to comply with undertaking given
Post-exchange
What initial actions must the seller’s solicitor do immediately after exchange?
Seller - initial actions
The seller’s solicitor should:
1) Answer the Completion Information and Undertakings form (TA13)
2) Approve the draft transfer and return it to the buyer
3) Prepare the completion statement and send it to the buyer, and
4) Send the bill to the client
Post-exchange
What secondary actions must the seller’s solicitor do after exchange?
Seller - secondary actions
The seller’s solicitor should:
1) Obtain the client’s signature to the transfer: and
2) Hold the transfer pending completion
What happens at completion?
The seller and the buyer will use the agreed method of completion:
- Law Society Code for Completion by Post (2019)
- Physical completion at the seller’s solicitor’s offices, or
- Agent used by the buyer
Post-completion
What should the seller’s solicitor do immediately after completion?
The seller’s solicitor should:
1) Inform:
- Client - ask them to release the keys, if they hold them
- Agent - ask them to release the keys, if they hold them, and
- Buyer’s solicitor, if Code for Completion by Post (2019) has been used - send documents
2) Redeem the mortgage:
- Registered - Form DS1 should be sent to the lender, or
- Unregistered - receipted mortgage
- Send the account to the client, and bill if not already done
- Pay the estate agent, and
- Send the buyer DS1 confirmation / receipted mortgage on receipt from the mortgagee
