What is the difference between the seller selling with full or limited title guarantee?
Full title guarantee= seller owns the entire legal and equitable title
Limited title guarantee= seller has limited knowledge
such as an executor or trustee
Which title guarantee do the SCs assume?
What is required if this isn’t the case?
Full title guarantee; any deviation requires aspecial condition in the contract
Aside from promising to transfer with all knowledge of incumbrances, what does full title guarantee promise that limited title cannot?
Covenants that the land is free from incumbrances except those the seller does not or could not reasonably know about, with statutory limits
Limited covers anything since S acquired
i.e., even before acquiring
What is a ‘contract rate’?
Amount incurred for delay to exchange
most conveyancers using theLaw Society’s rate (currently 4% above Barclays Bank’s base rate)
Can negotiate other rate, sometimes 2-4% above the chosen bank rate
Full price - deposit
What is the difference between holding deposit as agent or stakeholder?
Stakeholder = cannot be released to seller until completion unless toward seller’s new purchase
Agent = allows immediate release to seller
Stakeholder assumed by SCs
Although B needs insurance on exchange, what happens if there is damage but insurance won’t cover it all?
SCs provide that if the buyer cannot recover full insurance proceeds, purchase price reduced accordingly
What is a certificate of title?
Confirms to lender that the property is of good marketable value
Commercial transactions require a more detailed version by CoLondon’s Law Society form
Buyer’s solicitor prepares and addresses it to buyer and lender, or just lender
Law Society and UK Finance is more appropriate for residential transactions
When using formula B for contract exchange, when would I have to alter the formula agreement?
If sending electronically, formula to be varied by agreement
Only permits post, DX, handover
What is the difference between SCs and SCPCs when it comes to holding a deposit as stakeholder?
SCs allow for the deposit to be released and used for a purchase of another home by the seller in England/Wales
Only the amount necessary
SCPCs would need special condition for this
What are the types of VAT under SCPCs?
- VAT - INCLUSIVE 2
- VAT - EXCLUSIVE 1.4
- VAT - EXCLUSIVE but can be added on 2.A
Who pays outgoings during exchange period?
Stuff like council tax
Seller
Assumption that deed is delivered when…
it is signed
