Chapter 9: Pre-Completion

Question 1

What information will a seller’s solicitor require in order to prepare a Completion Statement?

Answer 1

1. An up-to-date redemption figure
2. Estate agent’s fees

Question 2

What is the purpose of a completion statement?

Answer 2

To show the seller how much money they will have after completion

Question 3

What is the Completion Information and Undertakings form?

Answer 3

• Standard protocol form
• Completed by seller’s solicitor
• Provides details of where to send purchase money on completion

Question 4

What information does the Completion Information and Undertakings form contain?

Answer 4

• Details of client account to send money to on completion
• Amount due on completion
• Where keys can be collected for on the day of completion
• Undertaking to pay off mortgage out of sale proceeds and to provide evidence of discharge once received

Question 5

What will the seller execute when freehold property is being sold?

Answer 5

The seller executes a transfer

Question 6

What will the seller execute when a new lease is being granted?

Answer 6

The seller will execute a lease

Question 7

What is the purpose of the purchase deed?

Answer 7

To transfer the legal estate in the property pursuant to the contract entered on exchange

Question 8

Who usually drafts the purchase deed?

Answer 8

The buyer’s solicitor usually drafts the purchase deed. However, in straightforward residential transactions, the transfer deed may be prepared by the seller’s solicitor

Question 9

What are the types of purchase deed used to transfer property?

Answer 9

1. Conveyance (unregistered land -not used any longer)
2. Transfer (registered and unregistered - most common)
3. Assent (used by PRs to transfer to beneficiary)
4. Assignment (used for unregistered leasehold land - rare as TR1 used these days)

Question 10

What are the two types of form used when (1) whole of the land and (2) part of the land in a title is being transferred?

Answer 10

Whole: TR1Form
Part: TP1 Form

Question 11

What is the name for the final version of a lease?

Answer 11

An engrossment

Question 12

An engrossment is prepared in two parts. What are these?

Answer 12

1. The Original - Signed by landlord
2. The Counterpart - Signed by tenant

Question 13

Which pre-completion searches of title must the buyer’s solicitor undertake if land is registered?

Answer 13

An official search with priorirty:
OS1 - Search against whole of property
OS2 - Search against part of property

Question 14

What are the two purposes of an official search with priority?

Answer 14

1. Discover any enteries that may have been added to register
2. Provide buyer with priority period of 30 working days from the date of the search result to submit application for registration

Question 15

If an error is made in the original search certificate, will the buyer be bound by what is on the register?

Answer 15

• The buyer will be bound by what is on the register even if they were not aware of it.
• The buyer may be able to claim and indemnity from HMLR in respect of any loss suffered.

Question 16

Which pre-completion search must the buyer’s solicitor undertake if land is unregistered?

Answer 16

Full land charges search against the full names of the current estate owner / seller for full period of ownership (K15)

Question 17

If also acting for a lender, what searches must be undertaken?

Answer 17

Bankruptcy search of the buyer
Company search of the seller

Question 18

When is a bankruptcy search not required?

Answer 18

If the buyer is a cash buyer, with no lender involved, then no bankruptcy search is needed

Question 19

What priority period does a full land charges search confer?

Answer 19

Confers a priority period of 15 working days from the date of the result within which the transaction must complete

Question 20

What are the priority periods for registered and unregistered title?

Answer 20

Registered - 30 working days to complete AND register

Unregistered - 15 working days to complete

Question 21

If a buyer is financing a purchase via a mortgage, should an OS1/OS2 search be undertaken in the name of the buyer or the lender?

Answer 21

The application should be made in the name of the lender in order to confer priority upon both the buyer and and lender

Question 22

What searches may a buyer’s solicitor repeat in both registered and unregistered titles?

Answer 22

• Bankruptcy search if buyer is obtaining mortgage
• Company search if seller is a company
• Physical inspection of property

Question 23

In the pre-completion stage, the buyer’s solicitor will also prepare a completion statement. What information will this include?

Answer 23

• The sum required to complete
• Sums due e.g. SDLT, legal fees

Question 24

What is the position re service charges?

Answer 24

• Seller pays estimated service charge during tenancy
• On completion, it may become apparent that the seller has underpaid.
• Under the Standard Conditions, the buyer will be responsible for any shortfall.

Question 25

Under SCS and SCPC, when will completion take place?

Answer 25

20 working days after exchange, however completion now commonly occurs much quicker

Question 26

How is the legal estate transferred?

Answer 26

Deed

Question 27

How does an individual execute a deed?

Answer 27

They must have their signature witnessed by an independent witness

Question 28

How can a company execute a deed?

Answer 28

1. Using the company's seal 2. Director and secretary signing or two directors signing 3. Single director signing in the presence of a witness who attests signature

Question 29

If a seller is an individual and selling unregistered land, are additional searches required?

Answer 29

Yes, a bankruptcy search should be undertaken. This is not required in registered land