SGS 4

Question 1

What are the four post completion steps?

Answer 1

Register Buyer’s Charge

Pay SDLT

Register: discharge of seller’s charge; transfer; buyers’ charge at Land Registry

Question 2

What form and timing is required to register buyer’s charge at Companies House?

Answer 2

MR01

21 days from day after creation of charge

Question 3

What form and timing is required to pay SDLT?

Answer 3

SDLT1

within 14 days of ‘effective date’ (completion)

Question 4

What forms are required to register discharge of seller’s charge; transfer; buyers’ charge

Answer 4

AP1
Certified copies of: DS1; TR1; Charge; Certificate of Registration of Charge; SDLT5; Change of name Certificate for Seller
+ Fee

Question 5

How long does one have to register: discharge of seller’s charge; transfer; buyers’ charge ?

Answer 5

Priority period of OS1 search (30 working days from date of OS1 search result.)

Question 6

Consequences of failure to register buyer’s mortgage at Companies House?

Answer 6

Lender’s security void against other creditors.

Loan repayable on demand

Negligence

Can’t register Transfer at Land Reg without Certificate of Registration from Companies House

Question 7

Consequences of failure to pay SDLT?

Answer 7

Penalty

Interest for late payment

Cannot register Transfer at LR without SDLT5 acknowledgement.

Question 8

Consequences of failure to register: discharge of seller’s charge; transfer; buyers’ charge at Land Registry?

Answer 8

Third party interests may obtain priority even if created after completion (if registered in meantime).

Buyer is only beneficial owner until registration.

Question 9

What remedies are available to seller if BUYER does not complete on time?

Answer 9

Contractual compensation: SCPC 10.3.1-10.3.2 (only available if buyer in default, if seller is, buyer must sue to recover losses)

Common law damages claim

Notice to complete and rescission

NB (is misrepresentation under SCPC 9.8 relevant)?

Question 10

Timing for contractual compensation under SCPC 10.3.1?

Answer 10

Compensation payable for all days from and including the contractual completion date, NOT just working days. Do not include day of actual completion provided money received by 2pm (SCPC 9.1.2).

NB if money received after 2pm deemed received the next WORKING day.

Question 11

When can a notice to complete be served?

Answer 11

Check 9.8 - after completion date has passed.

Makes time of the essence and gives 10 working days to complete.

Question 12

What is of note concerning rescission?

Answer 12

contractual right to compensation is lost since, on rescission, the contract itself is at an end.
If seller is defaulting party, buyer entitled to repayment of deposit + accrued interest.

Question 13

Whose name must be inserted in the TR1 if there were two co-owners selling, one of whom has died and they owned as:
Joint Tenants
Tenants in Common

Answer 13

Survivor’s name alone (survivorship rules)

surviving TiC and second trustee appointed.

Question 14

Who only sometimes executes the TR1 and when is this the case?

Answer 14

The transferee (buyer). 
e.g. if entering into a new covenant. 
Making a declaration of trust.

Question 15

What would be included in panel 11 if a second trustee was appointed due to sale by a sole surviving TiC?

Answer 15

‘For the purpose of giving valid receipt for the purchase price [NAME OF SOLE PROPRIETOR] in exercise of power under s.36(6) TA 1925 appoints [NAME OF ADDITIONAL TRUSTEE] to be trustee of the Property with the Current Trustee.

Question 16

Execution clause for individuals?

Answer 16

Signed as  deed and delivered by 
[name] 
in the presence of:
signature of witness 
name 
address
occupation

Question 17

Execution clause for LLPs?

Answer 17

Executed as a deed by [name of LLP] acting by two members
Signature [member]

signature [member]

Question 18

Does the buyer’s solicitor need to give any undertakings at completion?

Answer 18

Yes, give undertakings to lender that they will date the security documentation on completion and register the security and purchase at Companies House and Land Registry as appropriate.

Question 19

What is the purpose of the OS1?

Answer 19

Priority search freezes register and highlights any new entries on official copies since search from (date of OC’s buyer’s solicitor investigated title with).

Made in name of lender but automatically protects buyer with 30 working day priority period.

Question 20

What is the difference between the ‘search from date’ and the priority period?

Answer 20

Search from is date of official copies that you investigated title with (OS search checks for any further entries since this date)

Priority period is 30 working days from date of OS search.