1
Q
Completion: how long after exchange of contracts?
A
Traditional approach:
- four weeks after exchange of contracts
Now:
- two weeks is common
In some cases, completion takes place on the same day (‘simultaneous exchange and completion’)
2
Q
Pre-completion stage: main tasks of solicitor at this stage?
A
The main tasks of the solicitors in the pre-completion stage are:
- Preparation of the transfer deed
- Pre-completion searches
- Making practical arrangements for completion
- Ensuring the finances are in order for completion
3
Q
Transfer of legal estate in land: in what form?
A
Section 52 of the Law of Property Act 1925 states that the transfer of a legal estate in land must be by deed
4
Q
Deed: formalities?
A
To be valid in law a deed must:
- make it clear that it is a deed
- be signed by the parties
- be delivered.
It is not longer compulsory to have the deed sealed.
5
Q
Deed: formalities?
What additional requirement is deed is executed by a private individual?
A
signature must be witnessed by an independent witness
to counter any potential allegation of undue influence
[see panel 12 in the example transfer deed TR1]
6
Q
Deed: formalities?
How may a company execute the deed?
A
A company may execute a deed in one of three ways:
(i) using company seal in accordance with articles of association
(ii) having it signed by a director and the secretary, OR by two directors of the company
- provided that
- the deed is expressed to be executed by the company
(iii) having it signed by a single director
- in the presence of a witness
- who then attests that signature
7
Q
Deed: who will execute the transfer deed?
A
seller will always execute the transfer deed in order to transfer the land
buyer will also do so if the buyer is entering into an obligation or making a declaration in the TR1
- e.g., if buyer is entering into an indemnity covenant.
8
Q
Deed: when is it deemed to have been delivered?
A
a document which makes it clear on its face that it is intended to be a deed is presumed to have been delivered on execution
presumption can be rebutted by contrarry intention
thus, if client signed the transfer does not intend it to come into force YET
their solicitor needs to expressly say so in the covering letter when sending the deed
9
Q
Deed: what transfer deed is used for transfer of registered freehold?
A
whole of registered freehold title: Land Registry Form TR1
part of registered freehold title: Land Registry Form TP1
10
Q
fer
Deed: what transfer deed is used for transfer of unregistered freehold?
A
If the land is unregistered, it will be subject to compulsory first registration
Thus, solicitors will often choose to use a Land Registry transfer form
BUT: possible to use a conveyance
11
Q
Transfer deed: who completes?
A
Conventional
- transfer deed is completed by the buyer’s solicitor
- sent to the seller’s solicitor for agreement immediately after exchange of contracts
Straightforward residential transactions
- may be prepared by the seller’s solicitor
- sent to the buyer’s solicitor in the pre-exchange package
12
Q
Transfer deed: what terms must it reflect?
A
The transfer deed must reflect the terms of the contract and the title deeds
13
Q
TR1 form: contents
A
Panel [1] and [3] title number and the address of the property
Panel [3] date of completion
- only be dated upon completion
Panel [4] name of transferor
Panel [5] transferee for entry in the register
Panel [6] transferee’s intended address(es) for service for entry in the register
Panel [7] statement that “The transferor transfers the property to the transferee”
- operative part of the deed and it should not be amended
Panel [8] consideration
Panel [9] whether the transferor transfers with full or limited title guarantee
Panel [10] declaration of trust [if more than one transferee]
Panel [11] indemnity covenant [if necessary]
Panel [12] execution [“signed as a deed by”]
- remember: buyer may also have to execute
- remember: signature must be witnessed if signed by private individual
14
Q
TR1: Completion
When will the date of completion be inserted on the TR1 form?
A
only be dated upon completion
15
Q
TR1: Title number and addresss
What should this information be checked against?
A
details in the contract and the official copies
16
Q
TR1: Transferor and Transferee for entry in the register
What should names of parties be checked against?
A
names of parties should be checked against the details in the contract
in the case of the transferor, against the official copies
17
Q
TR1: Transferor and Transferee for entry in the register
What additioanl information should be provided for overseas companies?
A
(a) Territory of incorporation
(b) Registered number in the United Kingdom including any prefix
18
Q
TR1: Transferor and Transferee for entry in the register
What additional information should be provided for UK incorporated companies/LLPs?
A
Registered number of company or limited liability partnership including any prefix
19
Q
TR1: transferee’s intended address(es) for service for entry in the register
What address will be provided?
A
If buyer is buying property to live in
- will wish communications to go to their new address
If property will be tenanted
- buyer may want communications sent to another address
- e.g., registered office in the case of a company
20
Q
TR1: what should be listed under consideration?
A
[1] If transferor has received from the transferee for the property a sum of money
- this box must be ticked and
- must list the purchase price
- in both letters AND numbers
[2] If transfer is not for money or anything that has a monetary value
- this box must be ticked
[3] “Insert other receipt as appropriate:”
21
Q
TR1: if there is more than one transferee, then one must be included?
A
A declaration of trust under which it is stated whether they are to hold the property
- on trust for themselves as joint tenants
- on trust for themselves as tenants in common OR
- on trust.
22
Q
TR1:
In contract sole seller was Philippa Porter
But in special condition stated that prior to completion seller would appoint another person to act as trustee
Philippa appointed Farouq Patel, the solicitor acting for the seller, as the second trustee
How would Farouq Patel appear on TR1?
[Engage Task 1]
A
[1] He would be listed as a Transferor
[2] It would be added that “Phillipa Porter sells with full title guarantee and Farouq Patel sells with no title guarantee”
23
Q
Pre-completion searches: purpose?
A
Carried out for four reasons
- To make sure the seller has not further encumbered title since investigation of title took place
- To check the financial circumstances of the borrower when acting for the lender
- To gain priority for the buyer, and the lender
- If the seller is a company, to check that the company has not gone into liquidation
24
Q
Pre-completion searches: by who and when?
A
In general, buyer’s solicitor
Should be made as close to completion date as possible
25
Pre-completion search of the title: ***purpose?***
***possible for the title to be further encumbered*** by the seller ***between investigation of title and completion***
26
Pre-completion search of title: ***how is it made for registered land?***
Land Registry search should be ***made against the title number***
* ***to see whether new*** entries been made ***from the 'search from' date***
* ***date on which*** the ***official copies were produced***
***Form OS1***
* used if the whole property is being sold
***Form OS2***
* if the sale is of part only
* a ***plan will ordinarily need to accompany*** a ***request for an OS2***
27
OS1 and OS2: ***how will results of the search be set out?***
The results of the search will be set out in ***Form OS1R or an OS2R as appropriate.***
28
OS1 and OS2: ***what will results of search reveal?***
result will reveal ***any new entry made since the ‘search from’ date***
29
OS1 and OS2: ***effect of search result?***
It ***confers on the applicant a ‘priority period’***
* ***30 working days*** from the ***date of the search result***
Priority period
* provides ***protection*** to the applicant ***against any subsequent entries***
* placed on the register ***after the date of the search but before the buyer is registered*** as proprietor
Applicant will ***take free*** from any such entries
* as long as they ***submit application*** for registration
* ***by 12 noon on the last day of the priority period***
30
OS1 and OS2: ***in whose name should Land Registry search be made?***
If the ***buyer is financing the purchase of the property with the aid of a mortgage***
* the application should be in the ***name of the lender***
* ***NOT the buyer***
This ***confers priority upon***
* ***both*** the buyer ***and the lender***
A ***search made on behalf of the buyer*** will ***not protect the lender***
31
OS1: ***content?***
The application will give
details of the ***title number***
the ***address of the property***
the ***names of the registered proprietors***
the ***fee payment method***
* cheque or direct debit
the ***search from*** date
the ***name*** of the ***applicant*** and
the ***reason*** for the search [***tick the relevant box***]
* an intention to ***purchase*** the property
* an intention to ***lease*** the property
* or intention to ***charge*** the property
32
OS1
Atkins are to purchase a registered freehold property
Atkings are taking out a mortgage with the Co-operative Bank to help fund the purchase of Pinewood House.
***Who is the applicant and what is the reason for the application?***
Applicant: the Co-operative Bank
Reason for application: ***take a registered charge***
33
Pre-completion search of title: ***how is it made for unregistered land?***
A ***land charges search against owners’ names***
* ***not necessary*** to search ***against the names of the previous*** estate owners
This is ***made on a form K15***
34
K15: ***result/effect of a K15 search?***
***Result*** of a K15 search
* will ***be on form K18***
* ***confers a priority period of 15 working days*** from the date of the result
The ***applicant will take free***
* of any entires made on register between date of search and the date of completion
* ***provided*** that ***completion takes place during the 15 working day period***
35
Pre-completion search: ***what if they show adverse entries?***
***In most cases will not***
If this is not the case, ***matter must be taken up with the seller immediately***
36
Checking for buyer’s solvency on behalf of lender: ***why?***
the ***financial circumstances of the buyer*** are ***important to the lender***
37
Checking for buyer’s solvency on behalf of lender: ***how (if buyer is an individual)?***
Apply
* on ***behalf of the lender***
* for a ***land charges search against the buyer***
***Registered***
* solicitor will apply for a land charges search against the name of the buyer
* ***special land charges search*** (known as a ‘Bankruptcy only’ search) ***using a form K16***
* K16 ***limits the search to the bankruptcy register*** at the Land Charges Departmen
***Unregistered***
* solicitor will ***already be making a land charges search*** against the seller
* thus, will ***add name of buyer to name(s) to be searched against on form K15***
38
Checking for buyer’s solvency on behalf of lender: ***how (if buyer is an company)?***
not possible to do a bankruptcy land charges search against it
a ***company search will need to be carried out***
39
If the ***seller is a company, what additional search is necessary?***
Solicitor acting for the buyer should ***carry out a further company search***
40
Company search against a company seller: ***what will it reveal?***
A company search ***will reveal whether***
* the seller is ***still in existence***
* it is ***solvent***, and
* it ***has created any fixed or floating charge***
41
Company search against a company seller: ***what is its priority period?***
Has ***NO priority period***
Thus, ***should be carried out as close as possible to the day of completion*** so it reveals the latest information
42
Bankruptcy search against an individual seller: ***when is it not necessary?***
In the ***case of registered land***
* ***most conveyancing solicitors do not consider it necessary***
* to do a bankruptcy check on an individual seller
Why?
* Per ***the Land Registration Act 2002***
* where ***no notice or restriction relating to the bankruptcy appears*** on the registered title
* a ***buyer for value acting in good faith without notice*** of the bankruptcy petition or adjudication
* will ***take good title from the bankrupt seller***
BUT: ***can be done*** where the transaction is for a particularly high value or there is reason to be concerned
43
Bankruptcy search against an individual seller: ***how?***
***Unregistered*** land
* a ***Form K15 search against the seller*** as estate owner will reveal any entries relating to bankruptcy
***Registered*** land (in general, not regarded as necessary)
* a ***special land charges search*** (known as a ‘Bankruptcy only’) search ***using a form K16***
* ***against the name of the seller***
44
Practical arrangements for completion: ***how do buyer and seller agree?***
Use ***a ‘completion information form’***
The ***buyer’s solicitor sends to the seller’s solicitor for them to complete***
45
Practical arrangements for completion: ***content of a ‘completion information form’?***
There are ***different version of these forms***
* ***most commonly*** used for ***residential properties*** is
* ***Form TA13*** Completion information and undertakings
[i] this ***asks the seller to confirm*** important information relevant to completion, including:
* ***arrangements for handing over the keys***
* the ***place and method of completion***
* the ***documents to be handed over at completion***
* the ***exact amount payable by the buyer on completion***
[ii] form ***also contains***
* ***undertaking the seller’s solicitor gives*** to ***redeem the mortgage***
* ***out of the completion money on completion***
46
Ensuring the finances are in order for completion:
***What steps are required (concerning the finances) to allow completion to take place?***
[1] ***If the buyer is financing*** purchase ***with the aid of a mortgage***
* ***before releasing the mortgage advance***
* a ***lender will expect to receive four documents*** [other flashcard]
[2] The ***buyer’s solicitor will send a Financial Statement to the client***
* advising the client of the funds needed to complete
[3] The ***buyer’s solicitor should ensure they have received*** both
* the ***mortgage advance*** from the lender and
* ***balance of the purchase price*** from the buyer client.
[4] ***The balance*** of the purchase price should ***then be sent to the seller’s solicitor***
* to bank account specified in replies to Completion information form
[5] ***The buyer's solicitor should notify the seller’s solicitor*** that the money is on its way
[6] ***Once the money has been received***
* seller’s solicitor will contact buyer's solicitor
* ***completion will take place***
47
Ensuring the finances are in order for completion: ***what four items will lender expect to receive before releasing the mortgage advance?***
***a certificate of title*** to confirm that the property is adequate security for the loan being advanced
a ***solvency search against the borrowers***
a ***clear OS1R in the name of the lender***
an ***executed but not completed mortgage deed***
48
Completion: ***what steps take place at completion?***
[1] The ***buyer’s solicitor will***
* ***send the balance of the purchase price*** and
* ***release the deposit paid on exchange to the seller***
[2] ***On receipt*** of the completion money, the ***seller’s solicitor will***
* ***complete*** the transaction ***by dating the TR1***
[3] Once the TR1 has been dated
* the ***lender’s solicitor will need to date the mortgage deed***
49
Completion: ***why must lender's solicitor date mortgage deed AFTER the TR1 has been dated?***
***technically, buyer does not own property until then***
so would not be in a position to grant a mortgage over it
50
Completion: ***how will completion money be sent by buyer's solicitor?***
The buyer’s solicitor will ***usually arrange*** for the completion money to be ***sent electronically***
***SC 6.7 and SCPC 9.7*** require
* completion money to be ***paid by direct transfer/electronic means***
* in ***cleared funds***
* ***from an account held in the name of a conveyancer*** at a ***clearing bank***
51
Completion in person: ***methods of completion?***
The ***two most common*** ways to complete a property sale and purchase transaction are
* in ***person*** or
* by ***post***.
52
Explain completion ***by person***
1. One solicitor [in general buyer's] ***attends office of other solicitor***
2. All parts of transfer ***should already been executed in anticipation:*** usually be with the seller’s solicitor since the seller normally executes the transfer last.
3. The ***buyer’s solicitor will usually arrange for the completion money to be sent electronically***.
4. At ***completion meeting the Buyer’s solicitor will check any title documents*** against the evidence of title previously sent to them
5. In ***return for receiving completion money, seller’s solicitor will hand over title documents and other*** documents relating to the property (e.g., planning permissions)
6. ***Seller’s solicitor will then arrange for the release of the keys*** to the property
53
Explain completion ***by post***
Biggest worry with post is that it is ***unreliable***..
Thus, ***Law Society introduced*** a Code for Completion by Post
***Relies on undertakings given by the solicitors*** involved in order to be effective.
54
Law Society ***Code for Completion by Post***
Relies on ***undertakings.***
***Seller’s solicitor acting as the agent of the buyer’s solicitor***
* at no cost to buyer
* important for ***buyer’s solicitor to set out in writing precisely***
* what ***seller’s solicitor is to do on their behalf***.
***On receiving the completion money***,
* seller’s solicitor will ***then carry out the instructions and complete*** the transaction.
* then ***contact the buyer’s solicitor to inform them*** completion has taken place.
***The documents*** which
* ***would have been handed over to the buyer’s solicitor*** are instead ***sent***
* by ***first-class post*** or ***document exchange***.
55
Completion: ***effect?***
***Unregistered*** land
* ***legal title passes*** to the buyer on completion
***Registered land***
* legal title ***does not pass to the buyer until the buyer is registered*** at the Land Registry as proprietor
56
Post-completin: ***what post-completion steps must be carried out?***
1. ***Discharge of the seller’s mortgage***
2. Payment of ***SDLT/LTT***
3. Registration of the ***new charge at Companies House*** (if buyer is a company)
4. ***Land Registry application(s)***
57
Post-completion: ***how to discharge seller's mortgage?***
***[1] Lender must receive money*** required to redeem
* ***arrangements*** for the discharge will have ***been agreed using the completion information form***
* Option 1: ***often, buyer will agreed*** to allow ***seller's solicitor to discharge after completion*** using money received
* Option 2: ***alternatively, seller’s solicitor may ask*** buyer’s solicitor to ***send amount*** required to redeem ***direct to lender*** + ***send balance to seller’s solicitor***
[2] Once lender has received ***they will either***
* ***complete Land Registry form DS1*** and ***send it to the seller’s solicitor for onward transmission*** to buyer’s solicitor; or
* ***submit an e-DS1 electronic discharge*** through the Land Registry portal; or
* ***use the Electronic Discharge (ED) system***, sending an electronic message to the Land Registry which automatically removes the charge from the register
58
Post-completin: ***how to discharge seller's mortgage?***
***Difference*** between ***ED, e-DS1 and DS1 form***
If lender has completed ***Land Registry form DS1***
* seller’s solicitor wiill ***transmit it onward to the buyer’s solicitor***
If ***ED or e-DS1 system*** is used
* seller’s solicitor will ***not be sending a DS1 form to the buyer’s solicitor***
* seller’s solicitor ***will send the buyer’s solicitor confirmation***
* that ***notice of release or discharge in electronic form has been given*** to the Land Registry
59
Post-completion: ***when and who to pay SDLT/LTT to?***
The ***buyer’s solicitor*** must then for any SDLT (England) or LTT (Wales) to be paid
***SDLT must be paid to HMRC within 14 days*** of completion
***LTT must be paid to the Welsh Revenue Authority*** (‘WRA’) within ***30 days of completion***
60
Post-completion: ***how to pay SDLT/LTT to?***
***Payment + tax return*** must be sent to relevant authority
Either ***online or using a paper application***
Tax return
* ***SDLT1*** in England
* ***Land Transaction Return*** in Wales
61
Post-completion: ***what will HMRC and WRA provide after receipt of payment?***
HMRC will produce an ***SDLT5 form***
WRA will return a ***WRA certificate***
This is proof the tax has been duly paid.
62
Post-completion: ***what is consequence of failure to pay SDLT/LTT?***
1. can lead to ***fines***
2. ***application to the Land Registry to register*** the buyer as the new registered proprietor ***will be rejected without SDLT5/WRA certificate***
63
Post-completion: ***when must charge be registered at companies house and by whom?***
When
* ***buyer is a company*** AND
* has ***purchased with aid of a mortgage***
***Then lender's solicitor will have to register charge*** at Companies House
* ***within 21 days of its creation (ie at completion)*** to ensure constructive notice of it is given to other creditors
***Time limit is absolute***
* ***can only be extended*** with a ***court order***
64
Post-completion: ***if necessary to register charge at Companies House, what is consequence of failure to do so?***
Renders ***charge void against***
* a ***liquidator or administrator*** of the borrower and
* the ***borrower’s other creditors***
65
Land Registry application: ***when?***
***Once SDLT/LTT has been paid***
And, ***if relevant, the charge registered at Companies House***
66
Land Registry application: ***who must apply?***
***Buyer's solicitor:***
* need to apply to have the ***buyer registered as the registered proprietor*** of the land in the title
***Lender's solicitor*** (may also be acting for buyer):
* needs to ***apply to register the charge***
67
Land Registry application: ***what form must be used for registered land?***
***Applications*** to have
* ***buyer registered*** as registered proprietor of the land
* ***lender registered*** as registered proprietor of the charge
* ***if a DS1*** has been used, buyer's application to have the ***mortgage to be discharged***
Can be ***made on the AP1 form***
68
Land Registry application: ***what must accompany the AP1 form?***
***General:***
* A certified copy of the transfer (not the original)
* Fee
* SDLT/LTT certificate
* DS1 (if used)
* Form DI (other flashcard)
***If buyer has created a new mortgage:***
* certified ***copy of the mortgage deed***
* if the ***buyer is a company, certified copy of the certificate of registration*** issued by Companies House
* if ***buyer is a company, solicitor’s/lender’s written confirmation*** that enclosed ***certified copy mortgage deed is same as one filed*** at Companies House and to which certificate of registration relates
69
Land Registry application: ***what is Form DI?***
An applicant for registration must complete Form DI ***setting out any overriding interests that burden the title***
These will then be ***entered on the register*** and ***thus cease to be overriding.***
70
Land Registry application: ***by when must the AP1 application(s) be made?***
***before the expiry of the priority period of the OS1 search***
otherwise, buyer and lender will lose the benefit of the priority period
71
Land Registry application: ***what form must be used for unregisted land and by when?***
An ***application for first registration of title*** must be made
* ***within two months of completion*** of the transaction
* on ***Form FR1***
This ***must be sent to Land Registry with fee*** and ***documents*** listed on other flashcard
72
Land Registry application: ***on what form will documents accompanying application for first registration be listed?***
Must be listed in ***duplicate on form DL*** [one copy will be returned to the applicant’s solicitor]
The documents should be ***numbered in chronological sequence on form DL***
73
Land Registry application: ***what documents should be included on form DL and why?***
The ***Registrar needs to investigate title*** on an application for first registration
* to ***decide which class of title can be allocated*** to the title.
These ***include following documents as are relevant***
* all the ***documents which formed the evidence of title supplied by the seller’s solicitor***
* all the ***buyer’s pre-contract searches and enquiries relating to the title*** with their ***replies***
* the contract
* ***requisitions on title with their replies*** [I believe refer to certain responses providedon TA13]
* all pre-completion search certificates
* the transfer deed
* the ***seller’s mortgage, duly receipted***
* SDLT/LTT certificate
* Form DI (other flashcard)
***If If there is a new mortgage***
* ***same*** documents required as for ***registered land***
* except: ***original mortgage deed required***
74
Land Registry application: ***are certificed copies of deed s and documents accomapnying application for first registration he sufficient?***
***No***, Registry now reverted to its previous practice of ***requiring the original deeds and documents***
75
Land Registry Forms ***AP1, DS2 and FR1***
What ***information must applicant provide where the parties ARE represented by a conveyancer?***
Require the applicant to ***give details of the conveyancer acting for each party***
76
Land Registry Forms ***AP1, DS2 and FR1***
What ***information must applicant provide where a party is NOT represented by a conveyancer?***
Where
* a ***party is not represented*** and
* the ***value of the property is £6,000 or more*** in value
Must provide ***evidence of that party’s identity***.
77
Land Registry application(s): ***how will Land Registry process application?***
[1] will ***insert***
* the ***buyer as the new registered*** proprietor and
* the ***lender as the new registered*** proprietor of the charge.
[2] ***then will forward a Title Information Document*** (or ‘TID’) to the ***buyer’s solicitor***
* this is an official copy of the entries on the register
* ***not strictly a document of title, but it is for the buyer to keep as evidence*** that it is the new owner.
78
Land Registry application(s): ***how should parties deal with TID?***
[1] The ***buyer and lenders solicitor(s) should check it***
* to ensure the transfer and mortgage has been correctly registered.
[2] Once been checked, the ***buyer’s solicitor will need to deal with safe custody*** of the TID and any other papers.
* if property bought with aid of mortgage, ***lender should be asked if it wishes to retain them***
79
Remedies for delayed completion: ***what is date of completion?***
In ***general***
* exchanged contract will contain the ***date that parties agree***
If ***does not***
* SC 6.1.1 and SCPC 9.1.1 provide that the completion date is ***20 working days after the date of the contract***
80
Remedies for delayed completion: ***by when must money due of completion be paid on day of completion?***
Per both sets of standard conditions, ***before 2pm on the day of completion***
The parties ***can agree to vary***: check ***pre-printed special condition 5***
12 noon is sometimes substituted for 2pm when there is a chain of transactions
81
Remedies for delayed completion: ***calculation of compensation?***
[i] calculated at the ***Contract rate specified in the contract***
[ii] on the ***balance of the purchase price***
* ***less any deposit*** paid ***if the defaulting*** party was the ***buyer***
[iii] for the ***period*** between
* the ***contractual completion*** date and
* the date of ***actual completion***
Tje ***compensation calculated as a daily rate*** so can be multiplied
82
Remedies for delayed completion: ***when is compensation payable?***
payable ***on completion***
83
Remedies for delayed completion: ***how are common law damages assessed?***
assessed under Hadley v Baxendale
***putting the claimant***
* in the ***position it would have been*** in
* ***had*** the contract been ***correctly performed***
damages will be ***awarded for lossses***
* ***naturally flowing*** from the breach
* any ***reasonably foreseeable consequential loss***: e.g., wasted legal costs
84
Remedies for delayed completion:
***Can the innoccent party claim common law damages even if received contractual compensation?***
***Yes***
BUT: contractual compensation the innocent party receives ***will be deducted from the contractual damages***
85
Remedies for delayed completion:
***When can a notice to complete be served?***
notice to complete can ***only be served after the contractual completion date***
86
Remedies for delayed completion:
***What is effect of serving notice to complete?***
Once served, it ***gives defaulting party 10 working days to complete***
***If*** the defaulting party ***fails to do so***
* the ***party who served*** the notice to complete
* ***can rescind*** the contract but is ***not obliged*** to do so
87
Remedies for delayed completion:
***Effect of rescission?***
Tthe contract is rescinded and the ***defaulting party*** was the ***buyer***
* the seller is ***able to forfeit the deposit***
The defaulting party was the ***seller***
* the seller ***must repay the deposit*** to the buyer
The ***non-defaulting*** party
* ***can also claim damages***
* for any losses they suffer as a result of other’s default
88
Remedies for delayed completion:
***When is rescission available?***
Contracts ***incorporating the SC and the SCPC***
* provide for ***rescission in specified circumstances***
* one example: party has failed to comply with a notice to complete
* ***misrepresentation by seller*** in a plan or statement in contract, or in ***negotiations leading up to the contract***
However, ***rescission for such*** misrepresentation ***only be allowed where***
[1] the ***seller’s error*** or ***omission***
* results ***from fraud or recklessness***, or
[2] the ***buyer would be obliged to accept a property differing substantially***
* in quantity, quality or tenure
* from what ***error or omission had led them to expect***.
Less ***serious misrepresentations***
* ***only*** entitle the buyer to ***damages.***
89
You act for an individual who bought an ***unregistered freehold*** house in Shropshire for £450,000 with the aid of a mortgage with Barclays Bank plc. The root of title was a conveyance to the seller dated 22 November 1987. The seller had a mortgage with Principality Building Society and you now have the vacating receipt for this. This mortgage and the 1987 conveyance were the only documents listed on the Epitome.
***Please list the documents needed for your Land Registry applications.***
* Form FR1
* The signed transfer deed (TR1)
* Signed mortgage
* SDLT5 certificate of payment
* Principality mortgage with vacating receipt endorsed
* Conveyance of 22 November 1987 to the seller
* All land charges search results for the title to the subject property
* All other searches (both pre-contract and pre-completion) and pre-contract enquires with replies
* The original contract
* Requisitions on title with replies
* Form DL (list of all deeds and documents)
90
You have been instructed to act for first time buyers Levi and Sarah Atkin on their purchase of a freehold property, Pinewood House.
One of the registered proprietors, Peter, died.
Surving registered proprietor has appointed Farouq Patel as the second trustee
Seller's solicitor has provided you with a copy of deed of appointment.
After completion, ***what additional documents would be necessary*** when making Land Registry application ***to have the buyer registered as the registered proprietor?***
Certified copies of
Peter’s ***Death Certificate***
***Deed of Appointment*** of the second trustee
Property Practice
flashcards
Decks in class (11)
# Cards
-
The Key Elements and Structure of a Freehold Property Transaction48
-
Investigation of Title33
-
Pre-contract Searches and Enquiries18
-
Preparation for and Exchange of Contracts79
-
Completion90
-
Structure and Content of a Lease63
-
Procedural Steps for the Grant of a Lease or Underlease17
-
Procedural Steps for the Assignment of a Lease20
-
Lease Termination and Security of Tenure under a Business Lease36
-
SBAQs14
-
Remedies for Breach of Leasehold Covenants (Land Law Chapter 6)6
