Pre & Post-Completion

Question 1

How must a transfer deed be executed?

Answer 1

a) clear that it is a deed
b) signed by the parties & witnessed
c) be delivered

Question 2

For what 4 reasons should the buyers S make pre-completion searches?

Answer 2

a) to check seller has not encumbered title
b) to check financial circumstances of borrower
c) gain priority
d) to check company has not gone in to liquidation (company)

Question 3

What searches against the title should be made pre-completion for registered land?

Answer 3

Land reg search against the title number (OS1 whole / OS2 part)

Question 4

What will the result of an OS1 or OS2 reveal?

Answer 4

a) any new entries
b) priority period of 30 working days

Question 5

What does the PP from the OS1 or OS2 do?

Answer 5

Provides protection against any subsequent entries if the app is submitted by the last day of the PP

Question 6

Who’s name should the OS1 or OS2 search be in if buying with the aid of a mortgage?

Answer 6

In the name of the lender

Question 7

What searches against the title should be made pre-completion for unregistered land?

Answer 7

K15 search against owners names

Question 8

What is the K15 PP?

Answer 8

15 working days

Question 9

What search to check for the buyers solvency will be completed for registered land?

Answer 9

Bankruptcy search - K16

Question 10

What search to check for the buyers solvency will be completed for unregistered land?

Answer 10

K15 Land Charges Search

Question 11

What search should be made against a company seller?

Answer 11

Company search for
a) solvency
b) fixed / floating charges

Question 12

What search should be made against an individual seller of unregistered land?

Answer 12

K15

Question 13

What search should be made against an individual seller of registered land?

Answer 13

Bankruptcy search

Question 14

What is a completion information form used to confirm (TA13)?

Answer 14

a) arrangements for keys
b) place & method of completion
c) documents to be handed over
d) exact amount payable

Question 15

If the buyer is using a mortgage, what should the lender expect to receive pre-completion?

Answer 15

a) certificate of title
b) solvency search
c) OS1R
d) executed mortgage deed

Question 16

What is the Law Society Code for completion by post?

Answer 16

Documents must be sent by 1st class post

Question 17

When does the legal title pass to the buyer?

Answer 17

a) unregistered - on completion
b) registered - when registered at the Land Reg

Question 18

When does the legal title pass to the buyer?

Answer 18

a) unregistered - on completion
b) registered - when registered at the Land Reg

Question 19

What are the options for the discharge of the sellers mortgage?

Answer 19

a) Land Reg - DS1
b) e-DS1 - Land Reg
c) Electronic Discharge system

Question 20

How soon after completion should SDLT be paid?

Answer 20

14 days
LTT - 30 days

Question 21

How should the charge be registered if the buyer is a company who purchased with a mortgage?

Answer 21

Register charge at Companies House within 21 days of completion

Question 22

How is the buyer registered as the proprietor for registered land?

Answer 22

Land Reg form AP1

Question 23

What should be sent with an application for registered proprietor for registered land?

Answer 23

a) copy of the transfer
b) fee
c) SDLT cert
d) DS1

Question 24

What should additionally be sent with an application for registered proprietor for registered land if the buyer has created a new mortgage?

Answer 24

a) copy of mortgage deed
b) certificate of registration (company)
c) confirmation that the mortgage deed is accurate (company)

Question 25

When should an application for registered proprietor be made?

Answer 25

Before the expiry of the OS1

Question 26

What is the effect of not applying for registered proprietor within the OS1?

Answer 26

The buyer and lender loose the benefit of the PP and take the property subject to any matters registered within that period

Question 27

When must an application for first registration of title be made for unregistered land?

Answer 27

Within 2 months of completion

Question 28

What must accompany an application for first registration?

Answer 28

a) evidence of title b) pre-contract searches c) the contract d) requisitions on title e) search certificates f) transfer deed g) mortgage (old and new) h) SDLT cert

Question 29

If completion is late, how many days do the parties have to complete as per SC and SCPC?

Answer 29

20 working days from the date of the contract

Question 30

When must money be paid?

Answer 30

Before 2pm on the day of completion

Question 31

What are the rules on contractual compensation in the SC & SCPC?

Answer 31

a) SC - applies to both buyer and seller b) SCPC - only buyer can be required to pay

Question 32

How is the amount of contractual compensation calculated?

Answer 32

Balance of purchase price minus deposit paid between contractual & actual completion dates

Question 33

What can be done under common law for failure to complete on contractual completion date?

Answer 33

Claim for breach of contract

Question 34

How are damages assessed for delayed completion?

Answer 34

Hadley v Baxendale - putting C in the position they would have been had the contract been correctly performed

Question 35

How can a notice to complete be served?

Answer 35

a) after contractual completion date & time

Question 36

How long does a notice to complete give the other party?

Answer 36

10 working days - time is of the essence

Question 37

What if a party does not comply with a notice to complete?

Answer 37

C can rescind the contract & forfeit the deposit

Question 38

When may recission be an appropriate remedy?

Answer 38

a) failure to comply with a notice to complete b) misrepresentation

Question 39

When will recission be allowed?

Answer 39

Where sellers error / omission results from recklessness or negligence