Workshop 7 - Pre-completion searches and drafting transfers

Question 1

Who prepares transfer?

Answer 1

It is normally the buyer’s duty to prepare the transfer, but the Seller may, s 48(1) LPA 1925, reserve right by contractual condition to prepare transfer himself.

Question 2

When should draft transfer be submitted?

Answer 2

SC 4.3.2 (SCPC 6.3.2) - buyer required to submit draft transfer to seller at least 12 working days before contractual completion date.

Question 3

The form of the transfer

Answer 3

 Transfer must be a deed to transfer the legal estate in the land to the buyer (LPA 1925, s 52).
 The transfer puts into effect the terms of the contract and so must reflect its terms.
 Registered land (freehold)
 form of transfer is prescribed by rules under LRA 2002 and, subject to permitted variations.
 Land Registry forms (eg TR1 ) can be used as the basis in straightforward transactions.

Question 4

The form of transfer for unregistered land

Answer 4

 No prescribed form of wording exists for a conveyance of unregistered land.
 Buyer free to choose wording, subject to seller’s approval and accurately reflects the terms.
 Transaction will lead to an application for first registration of title after completion, instead of using a traditional conveyance the buyer will usually prepare a Land Registry transfer.

Question 5

Pre-completion searches to be made

Answer 5

(a) for registered land, search against title number at the Land Registry;
(b) for unregistered land, including an unregistered reversion to a lease, search at the Land Charges Department against names of estate owners of the land;

Question 6

Pre-completion searches - the Land Registry

Answer 6

 Aim is ascertain if further entries made on register of title to the property since the date of the official copies supplied prior to exchange.
 Search of whole title
 Form OS1.
 details of title number, brief description of its situation, and names of registered proprietors.
 The applicant’s name must also be given, together with his reason for making the search.
 If acting for buyer and lender, search application should be completed in name of lender.
 If this is done, separate search in the buyer’s name is unnecessary as buyer is protected
 search made on behalf of the buyer will not protect a lender.
 An official certificate of search made on this form confers on the searcher a priority period of 30 working days from the date of the certificate.

Question 7

Pre-completion searches - the Land Charges Department

Answer 7

K 15
 Official certificate of search
 Official certificate of search conclusive provided that the search has been correctly made, ie it extends over the whole period of the title supplied by the seller and has been made:
 (a) against the correct names of the estate owners for this period;
 (b) against the correct county or former county; and
 (c) for the correct periods of ownership of each estate owner.

Question 8

Pre-completion searches - Local Land Charges and enquiries to be repeated if:

Answer 8

 (a) there is to be a period of two months or more between exchange of contracts and completion, and the search has not been covered by insurance or replaced by insurance; or
 (b) information received by the buyer’s solicitor suggests a further search may be advisable in order to guard against a recently entered adverse entry on the register; or
 (c) the contract was conditional on the satisfactory results of later searches.

Question 9

Result of searches: Unexpected entries

Answer 9

 If an unexpected entry (other than a Class D(ii) entry protecting restrictive covenants, which cannot generally be removed) is revealed by the search result, the buyer’s solicitor should:
 (a) find out exactly what the entry relates to;
 (b) if the entry appears adversely to affect the property, contact the seller’s solicitor as soon as possible to seek his confirmation that the entry will be removed on or before completion;
 (c) in the case of a Land Charges Department search, apply for an official copy of the entry using Form K19;
 (d) keep the client, his lender and, subject to the duty of confidentiality, other solicitors involved in the chain of transactions informed of the situation.
 if the seller is unable or unwilling to remove an entry which the contract did not make the sale subject to, this will also be a breach of contract.

Question 10

Priority period - registered land

Answer 10

 An official certificate of search issued by Land Registry for Form OS1 gives a priority period to the searcher of 30 working days from the date of the search.

Question 11

Priority period - unregistered land

Answer 11

 Official certificate of search issued by Land Charges Department gives a priority period of 15 working days from date of the certificate, searcher will take free of any entries made on the register between the date of the search and the date of completion.