Taking Instructions Flashcards
Stages of sale/ purchase of registered freehold property
- Pre exchange: due diligence and anyone can walk away
- Exchange of contracts: legally bound, pay deposit and buyer has equitable interest
- Pre-completion: prepare docs and agree transfer of money and mortgage payoff
- Completions: transfer docs and pay money
- Post completion: SDLT and register
When is ownership of freehold land legally transferred
When it is registered
How do you prove legal ownership for unregistered land
Undisturbed possession for a long time and deeds
What is done during the pre- contract stage
Draft contract and terms of sale
Evidence of legal title and raise requisitions to this
Searches
What happens at the post-contract stage
Draft deed of transfer (B to S) Raise requisitions Mortgage deed, legal ownership and bankruptcy search Put in funds Check amount of redemption payment
What is a redemption payment
Amount to pay off mortgage
What goes in the deed of transfer
The same as is in the contract. Contract sets out what they will do and deed does it
What happens during the post completion stage
Pay off mortgage and send receipt to buyer as evidence
Stamp duty within 30 days of transfer and send proof to HMRC with a land transaction return
Cannot register until SD paid
Are contact races allowed
Yes but inform all possible buyers immediately
Who wins a contract race
Whoever exchanges contracts first
Can a solicitor act for more than one possible buyer in a contact race
No unless they are commercial and are competing for same objective
Can you act for buyer and seller
No, although rarely there might be a substantially common interest
What is recovering the tax
When input tax is deducted from output tax and the rest is account for to HMRC
Not on exempt transactions, only on taxable supplies
What is taxed? Residential property
Sale of greenfield sites - exempt
Construction and civil engineering works- zero rate for residential and standard rate for commercial
Legal and professional services - standard rate
Sale or lease of new houses- zero rate
What is taxed? Commercial property
Sale of new freehold property (within three years) - standard rate
Sale of old freehold property - exempt
Older than three years- option
Grant or assignment of lease- option
