What is included in the Pre-Completion Stage? What’s the acronym?
- Financial Statement (S)
- Obtain Funds for Completion (B)
- Redemption Statement from existing lender (S)
- Deeds Signed - T
- Completion Statement for Buyer (S)
- Inspection Pre-Completion (B)
- Requisition (B)
- Certificate of Title to Lender
- Undertaking to discharge existing Mortgage (S)
- Searches (B)
The acronym is FORD CIRCUS.
What are the relevant searches for registered and unregistered property?
- Registered Property: OS1 Land Registry Search
- Unregistered Property: K15 Land Charges Search
These searches are necessary for conferring priority protection.
Registered Land OS1 search: Against who, how long is priority, and what outcome?
- Against the Title
- 30 working days priority
- Search certificate, notification of other entries/pending entries
This search ensures that the title is clear and free from issues.
Unregistered Land K15 search: Against who, how long is priority, and what outcome?
- Against the SELLER and PREVIOUS OWNER’s NAMES
- Priority Period: 15 days
- Outcome: Certificate that can be used when registering
This search does not include pre-1926 interests.
What are the other relevant fact-specific searches before completion?
- Company Search
- Bankruptcy Search
- Pre-Exchange Searches
- Power of Attorney
These searches ensure that the seller is capable of completing the transaction.
What are pre-completion requisitions?
- Set of questions raised by buyer’s solicitor to seller’s solicitor
- Standard form TA13 used
- Any changes since last time asked
- Time & Place of Completion
- Mode of Payment
- Financial Summary of amount due
- Documents to be shared
These requisitions clarify details before completion.
If the property has an existing mortgage, what should be given/gained?
An undertaking to discharge
This is given once redemption figures are obtained from the mortgagee.
Will there be any engagement with the Transfer Deed pre-completion?
Yes, it will be executed by the seller and left undated
This ensures that the deed is ready for completion.
What form would be used for a whole transfer?
TR1
This form is used for full transfers of property.
What form would be used for a part transfer?
TP1
This form is used for partial transfers of property.
What form would be used if being sold by a Personal Representative?
- AS1 for Full
- AS3 for Part
These forms are specific to sales by personal representatives.
What form is used if being sold by a mortgagee?
- TR2 for Full
- TP2 for Part
These forms are specific to sales by mortgagees.
If a Seller has an obligation to give vacant possession, what does that mean?
Make the property available for physical and legal occupation
This includes undisturbed enjoyment and is implied unless there is an irremovable obstacle known to the buyer.
If vacant possession isn’t given, what could be the remedy?
- Specific Performance + Damages
- Rescission + Deposit recovered and Damages
- Complete and Claim Damages
Remedies depend on the situation and the contract terms.
If the Seller dies after exchange, but before completion - what happens to the contract?
Contract remains binding between buyer and deceased’s estate
The personal representative is bound to complete the contract.
If the Seller dies after exchange, but before completion - practically, what should the buyer expect?
- Delay in completion
- Need for a grant of representation
- Likely a technical breach on the agreed completion date
The buyer may seek compensation or damages.
If your client (buyer) asks how they can speed up things after the seller has died, what do we recommend?
- Ask the PR to apply for an Expedited or Limited grant
- Agree on a new reasonable date for completion
- Ask for a licence to occupy in the meantime
These steps can help facilitate the process.
Who does the risk sit with between exchange and completion?
The Buyer
It is crucial for the buyer to insure the property during this period.
If the property becomes damaged between exchange and completion, where do we turn for recovery?
- Insurance
- Seller’s fault (breach of duty)
- Third party if they damaged the property
Recovery options depend on the circumstances of the damage.
If the client doesn’t have the money on the completion date, what will happen?
- Cannot complete
- Seller can charge interest at the contract rate
- Buyer may have to pay compensation for costs incurred
- Seller may serve notice to complete
This can lead to retention of deposit and claims for damages.
How can we help a client that won’t have the money to complete on the agreed day?
- Ask to postpone the completion date
- Seek bridging finance
- Use monies from the related sale
These options can provide temporary solutions for funding.
