What is in the completion Stage? What is the acronym?
DDD PPP
Date + Method of Completion
Date the Deeds (B+S)
Documents send to B (S)
Pay remaining price (B)
Pay Estate Agent Commission (S)
Possession Handover (B+S)
What is the gap between exchange and completion?
Whatever is in the contract!
Standard Conditions = 20 working days, after which interest is payable. If synchronised, should be the chain reaction.
What are the methods of completion? List them in order most common to least.
- Completion by Post
- Completion in Person
- Completion by an Agent
These methods vary in terms of convenience and legal implications.
What does Completion by post entail?
- Seller’s Solicitor is appointed as Buyer’s solicitor’s agent
- Buyer Solicitor sends the money to Seller Solicitor
- SS completes and dates transfer deed
- BS will need to date the mortgage deed
- SS will need to dispatch documents to BD
This method is often used for efficiency in transactions.
What is the effect of completion in registered vs unregistered land?
- Unregistered land - Legal title passes on completion
- Registered Land - Legal title passes on registration
The distinction affects how ownership is transferred and recorded.
You’re advising a buyer. Counterparty haven’t completed in time - what steps should you take immediately?
- Protect by placing a Notice on the register
- Unilateral Notice for Registered
- C(iv) Land Charge for Unregistered Land
These steps help secure the buyer’s interest in the property.
What’s the alternative to placing a notice on the register, if one party hasn’t completed?
Lien Protection
Buyer can apply for a lien over the property - so if it is sold, they will get their amount. Seller could apply for a lien over their purchase money.
What next after protecting the transaction for your client through a Notice or Lien?
Serve a Notice to complete.
Time is not of the essence under standard terms until the notice has been served.
How do you serve a notice to complete?
- Serving party has to be ready, able and willing to complete
- Can serve in writing after completion date including:
- Time is now of the essence
- Complete within 10 working days
- Cannot withdraw notice unilaterally
- If not paid already, buyer must pay deposit - up to at least 10%
This process is crucial for enforcing completion timelines.
What extra powers do you gain when making time of the essence in the Agreements?
- Terminate
- Rescind
- Claim damages
Without it, just damages can be claimed.
After serving the notice to complete, the BUYER still doesn’t complete. What would you advise the seller?
- Rescind the contract
- Keep the deposit with interest
- Re-sell the property
- Claim damages
These actions help the seller mitigate losses.
After serving the notice to complete, the SELLER still does not complete. What would you advise the buyer?
- Rescind the contract
- Receive a refund of their deposit with any interest
- Could claim for Specific Performance if a unique property
This protects the buyer’s interests in the transaction.
When we talk about someone being able to claim interest on an uncompleted sale, what would this normally be?
Standard Terms use the Law Society interest rate.
This rate is typically applied to compensate for delays.
When we talk about Damages for an uncompleted sale, what would they look like?
- Buyer defaults? Seller can claim their losses, so if they sell for less - buyer makes up the difference!
- Seller defaults? Buyer could claim for difference in value and wasted costs.
These damages are intended to restore the parties to their original position.
Right to rescind the contract arises after the notice to complete, but when else could it arise in the transaction?
- Defective Title
- Misdescription
- Misrepresentation or mistake
These factors can invalidate the contract and provide grounds for rescission.
