Completion Flashcards

1
Q

When does completion usually occur?

A

Fridays

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2
Q

Where does completion occur?

A

At seller’s office as they hold executed TR1 and receive completion monies

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3
Q

When does seller’s solicitor send transfer deed after completion?

A

They undertake to send asap, and no later than end of working day after completion

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4
Q

Completion steps

A
  1. Buyer’s solicitor received mortgage money and sends required amount to seller’s solicitor
  2. Seller’s solicitor phones buyer’s solicitor when money arrives to confirm completion, dates transfer deed, calls seller to let them know, and estate agent to release keys
  3. Buyer’s solicitor calls buyer to let them know so they can collect keys etc
  4. Seller’s solicitor sends transfer deed etc to buyer’s solicitor, redeems mortgage and sends balance of money (less costs, fees etc) to seller
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5
Q

What happens on failure to complete?

A

Interest starts to accrue

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6
Q

What happens if completion takes place on same day but later than specified time?

A

Deemed as taking place on next working day - interest payable

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7
Q

How many days interest payable if completion takes place at 4pm on Friday rather than 2pm?

A

3 - fri, sat and sun

Interest is calculated per calendar day

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8
Q

How to determine interest if seller is late?

A

Interest payable on purchase price

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9
Q

How to determine interest if buyer is late?

A

Interest is payable on purchase price - deposit

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10
Q

Is it possible to claim for reasonable expenses?

A

Yes - eg hotel, storage etc

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11
Q

Is it possible to claim for common law damages?

A

Yes, but any interest received will be deducted

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12
Q

Effect of serving notice to complete

A

Makes time of the essence - parties must complete within 10 working days

If buyer paid only 5% deposit, the other 5% is immediately payable

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13
Q

Buyer’s remedies if seller fails to complete

A

Demand return on deposit + interest
Claim contractual damages
Possibly claim specific performance

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14
Q

Seller’s remedies if buyer fails to complete

A

Rescind contract
Forfeit deposit plus interest accrued
Resell property
Claim contractual remedies

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