W5 Requisitions on Title Flashcards
If the seller has a mortgage over the whole of a registered property being sold, which one of the following is recommended form of undertaking for the seller’s solicitor to provide in respect of the mortgage?
(a) To undertake forthwith to pay the lender the money required to redeem the mortgage and to forward the receipted mortgage immediately to the buyer’s solicitor.
(b) To undertake forthwith to pay the lender the money required to redeem the mortgage and to forward Form DS1 immediately to the buyer’s solicitor.
(c) To undertake forthwith to pay the lender the money required to redeem the mortgage and to forward Form DS1 to the buyer’s solicitor as soon as the seller’s solicitor receives it from the lender.
(d) To undertake to pay the completion monies to the lender and to forward Form DS1 to the buyer’s solicitor as soon as the seller’s solicitor receives it from the lender.
(e) To undertake to discharge the mortgage and to forward Form DS1 to the buyer’s solicitor as soon as the seller’s solicitor receives it from the lender.
Answer (c)
This is the Law Society’s recommended form of seller’s solicitor’s undertaking re: the seller’s mortgage / charge.
The seller’s solicitor is not able to discharge the mortgage as only the seller’s lender can do that.
The seller’s solicitor will need to pay the money required to redeem the mortgage to the seller’s lender. This is likely to be paid out of the completion monies but it is the redemption amount and not the amount of the completion monies that must be paid over.
In registered land the seller’s solicitor will receive a Form DS1 from the lender discharging the mortgage, a receipted mortgage is used in unregistered land to show a mortgage has been discharged.
The seller’s solicitor cannot forward the receipted mortgage or DS1 until they receive it from the seller’s solicitor so they cannot undertake to send it immediately.
Which one of the following is the most accurate statement regarding the Completion Information and Undertakings Form?
(a) The Completion Information and Undertakings Form asks for details of the bank account to send the completion monies to.
(b) The Law Society’s Form TA13 must be used as the Completion Information and Undertakings Form.
(c) The Completion Information and Undertakings Form is sent by the seller’s solicitor to the buyer’s solicitor.
(d) The seller completes and returns the Completion Information and Undertakings Form.
Answer (a)
The Completion Information and Undertakings Form is sent by the buyer’s solicitor to the seller’s solicitor to obtain information about completion.
Form TA13 is one example of the Completion Information and Undertakings Form. Firms can use their own in house version.
The Completion Information and Undertakings Form is completed by the seller’s solicitor and signed by the seller’s solicitor. This is important as only a solicitor can give an enforceable undertaking and the Completion Information and Undertakings Form requests an undertaking in respect of the seller’s mortgage / charge.
Which one of the following is the most accurate summary of pre-completion requisitions on title?
(a) They are enquiries sent to the Land Registry regarding the title being bought.
(b) They are questions on the entries in the registers of title of the property.
(c) They are undertakings which the seller’s solicitor has to provide before completion.
(d) They ask for key information regarding completion and deal with relevant undertakings required from the seller’s solicitor.
Answer (d)
Questions on the registers of title are asked pre-exchange in the title investigation stage.
Whilst the pre-completion requisitions on title deal with undertakings they also ask for practical information regarding completion.
Requisitions on title are questions asked of the seller’s solicitor regarding practical information for completion and dealing with relevant undertakings required from the seller’s solicitor.
