SELLER - ACTING FOR A MORTGAGE LENDER Flashcards
WHAT MUST THE SELLER’S SOLICITOR DO IF THE SELLER HAS A MORTGAGE ON THE PROPERTY?
They will have to redeem it or pay it off before transferring an acceptable title to the would-be buyer
WHAT WILL THE SELLER’S SOLICITOR SAY IN FORM TA13 ABOUT MORTGAGE DISCHARGE?
Whether the loan is to be paid off prior to completion or whether an undertaking will be given to discharge the loan (usual).
Such a reply constitutes a binding undertaking.
IN REGISTERED LAND, HOW WILL IT BE PROVED THAT THE LOAN IS FULLY REPAID?
Form DS1 will be sealed by the lender.
WHAT DOES THE SELLER’S SOLICITOR DO ON THE DAY OF COMPLETION?
The seller’s solicitor should forward the redemption money and form DS1 to the building society for the mortgage to be redeemed and so form DS1 can be executed by the lender
WHAT DOES THE SELLER’S SOLICITOR DO WITH THE EXECUTED FORM DS1?
It should be sent on to the buyer’s solicitor who should be asked to confirm that the seller’s solicitor’s undertaking has been discharged
WHAT ARE THE TWO METHODS OF DISCHARGING MORTGAGES?
- Electronic discharge (ED)
- E-DS1
HOW DOES THE ELECTRONIC DISCHARGE (ED) METHOD OF DISCHARGING MORTGAGES WORK?
HOW DOES THE E-DS1 METHOD OF DISCHARGING MORTGAGES WORK?
This is a machine-to-machine system allowing lenders to transmit a discharge electronically directly to the Land Registry’s computer system when the mortgage account is closed. The system will make several automated checks and will cancel the charge entries automatically.
HOW DOES THE E-DS1 METHOD OF DISCHARGING MORTGAGES WORK?
The e-DS1 application is made by the lender and will be generated automatically. Once the lender has submitted the e-DS1, it will receive an electronic message confirming that it has been received and the lender can then inform the solicitor the charge has been discharged.
WHEN WILL THE LAND REGISTRY CANCEL THE MORTGAGE ENTRY ON THE REGISTER?
Provided the Land Registry receives a correctly sealed DS1, or evidence of electronic discharge by ED or e-DS1, it will cancel the entries and updated official copies will confirm the discharge.
