U4. Completion Flashcards
What is completion?
Completion is Completion of the Transfer Deed.
Who prepares the transfer deed?
The buyers solicitor usualy produces the draft transfer deed.
However, in sale of a part it may be more convenient for the sellers solicitor to draft the transfer and provide in the contract that the transfer will be in the form of an anexed draft.
What happens if a conveyance of land or interest is not made by deed?
It will be void for creating a legal estate
How does the buyers solicitor send the transfer deed to the sellers solicitor?
Either:
- Electronicly
- Sends 2 Hard Copies
What Form does the transfer deed need to take?
In registered land, the HM Land Regisgtry Standard forms must be used.
In unregistered land, they do not need to be used but often are.
What are the 2 Forms of Transfer Deeds and what are they for?
Form TR1 - Whole of the Land
Form TP1 - Part of the Land (P for Part)
What are the 3 requirements for a transfer deed to validly convey the legal estate?
- It must be clear on the face of it that it is a deed
- It must be signed by the parties and delivered
- The Signature needs to be attested by an independent adult witness who should also sign, printing their name, address, and occupation.
Who executes (Signs) the transfer deed?
The Seller Execute the transfer deed alone.
The buyer only also executes if:
- They are entering into covenants (such as an indemnity covenant)
- They are agreeing to any declarations within a trust (ie declaration of trust for co-ownershio
If the buyer is also required to execute (Sign) the transfer deeds, who should sign them first… the buyer or the seller?
The buyer should first execute and then send to the seller to be executed after - known as executed in escrow.
It would be negligent for the sellers solicitor to provide an executed document to the buyer before completion
Why are pre completion searches and enquires undertaken?
Who undertakes them?
The buyers solicitor undertakes them to:
- Confirm information is still up to date
- Ensure the buyer and seller are solvent
What are the 5 pre completion searches and equiries and when are they undertaken?
- Land Registry Search
-Must be undertaken for registered land - Land Charges Search
-Must be undertaken for Unregistered Land - Bankruptcy / Insolvency Searches on Buyer
-Must be undertaken if the buyer is borrowing - Company Search
-Must be undertaken if the seller is a company - Personal Insepction
-Buyer should personally inspect the property. Not compulsory.
What are the 2 purposes for completing a Land Registry Search Pre Completion?
- ‘Updates’ the official copies provided and investigated pre-exchange, to confirm whether any adverse entries (ie incumbrances) have been made to the title since the issue date.
- It provides the buyers solicitor with a thirty working-day priority period to submit the HM Land Registry application to register and transfer. Provided that the application is submitted in time, It will take priority over another submitted applications. (Not submitting in time can be negligence if loss is suffered)
Priority
After the search, the buyer has a 30 day period in which there registration and transfer is prioritised. However, if the solicitor does not register and transfer in time, someone else could take priority.
How many days priority does the buyer get after a Land Registry Search pre-completion?
30 Days
What 2 forms are used for Land Registry Seach Pre Completion and when are they used?
What date should be used?
OS1 Form - Whole of the Land
OS2 - Part of the Land
(Plan must also be submitted with OS2)
In both, the date on the official copies
Whos name should be used when carying out the Land Registry Searches Pre Completion for the buyer if the buyer is borrowing?
The Lenders Name - This will give the buyer and lender the 30 day priority period.
Putting into the buyers name will only protect the buyer.
For Unregistered Land, a Land Registy Search is made pre completion.
Who is it made against, and what does it give?
- The Search is made against the seller only.
- It gives the buyer 15 working day priority to complete the transaction, and if any land charges are registered against the seller within the 15 days they will not be subject to them if completed on time.
What are the 2 diffrent priotisation rules following pre completion searches and enquires?
For Registered Land - The buyer and Lender will have a 30 day priotisation period, in which they will be the pritoised registration.
For Unregistered Land - The Buyer will have 15 days to complete the transaction, and if done so on time will not be subject to any land charges registered against the seller after the date of the search has been completed.
When an individual buyer is borrowing, Bankrputcy pre completion searches must be made against them for the benefit of the lender.
What are the methods the searches can be undertaken by?
Registered Land - Bankruptcy Only Search
Unregistered Land - Bankruptcy only search, or add the buyer to the pre completion land chargers search when searching against the seller
What must be checked in the pre completion searches and enquires if the buyer is a company that is using a lender?
An Insolvency Search must be carried out.
The Articles of association must also be checked to ensure the company has the power to borrow money
When must a company search be carried out in the precompletion stage?
What does it check?
A company search must be carried out if the seller is a company.
The search checks whether the company is in existence, subject to any insolvency proceedings or procedures, and whether it has granted any fixed or floating charges over its assets.
When must an insolvency search be carried out in the precompletion stage?
If the buyer is a company and is borrowing from a lender
When must a Bankruptcy Search be carried out in the Pre completion stage?
if the buyer is an individual and borrowing form a lender
What is the Law Societeys Completion Information and Undertakings?
The Seller must raise pre-completion requisitons on title of the sellers solicitor.
This is usually done by using the Law Societys Conveyancing Protocol Form, Completion Information and Undertakings.
What do the 5 questions relate to for the pre completion requisitions on title if the Law Societys Completion Information and Undertaking Form is used?
○ Q1- Vacant Possessions and Key arrangements
○ Q2 - What deeds and documents will be handed over on completion ○ Q3 - Place and method of completion, with an undertaking to adopt the Law Society's Code for Completion by Post 2019 ○ Q4 - Amount payable on completion and the sellers solicitors bank details
Q5 - Undertakings to redeem or discharge specified listed mortgages on or before completion and to send form DS1, DS3,the Receipted charges, or confirmation that the notice of release or discharge in electronic form has been given to HM Land Registry, and when it is received.
