4): Pre-Completion Steps Relevant to a Freehold And/Or Leasehold Property Transaction Flashcards
(28 cards)
Who prepares the transfer document and when must it be sent?
Usually prepared by buyer’s solicitor.
Must be sent to seller 12 working days before completion.
What are key requirements for a valid transfer of legal estate?
Must be a deed:
State it’s a deed.
must be signed by parties.
delivered.
Must comply with HMLR Form TR1 (registered land).
In unregistered land, form is agreed between parties.
Who signs the transfer document and when does the buyer sign?
Seller must always sign.
Buyer signs only if covenant/declaration is made on buyer’s behalf.
What additional documents may need to accompany the deed?
Plans should be attached and signed where required.
What are the deed execution formalities for an individual?
Signed by the individual.
In the presence of a witness who attests signature.
Must be delivered as a deed.
How can a company validly execute a deed?
By affixing common seal; OR
By signatures of either:
Two authorised signatories; OR
One director, attested by a witness.
Who may (and may not) act as a witness to a deed?
Cannot be a party to the deed.
May be:
Spouse, civil partner, or cohabitee.
Solicitor or adviser on the matter.
Only individuals may witness — companies cannot.
Relatives discouraged for best practice.
Acceptable for an employee/director of the company to witness signing.
Why must pre-completion searches be done close to completion?
Confirm earlier info is still valid.
Ensure no new encumbrances added.
Identify adverse entries requiring seller’s undertaking to remove.
ALL LAND: What is the purpose of a Companies House search?
Verify existence, capacity, and authority of company buyer/seller.
Done online at Companies House.
ALL LAND: What does a Companies Court search check?
Look for winding-up petitions or insolvency proceedings.
Done via telephone to Registry of Winding Up.
ALL LAND: When is a Bankruptcy Only Search required and how is it done?
When acting for lender: check buyer/borrower/guarantors
Via Land Charges Dept, using Form K16.
ALL LAND: When should the Local Search be repeated and what does it involve?
If more than 3 months have passed since original search.
Submit Forms LLC1, CON29, and optionally CON290.
Note: No priority protection is conferred.
UNREGISTERED: What is the Land Charges Search for unregistered land?
Search for easements, mortgages, estate contracts, covenants, home rights.
Also includes bankruptcy index check.
Use Form K15 (search) → Form K18 (result).
UNREGISTERED: Why is an updated Land Charges Search important?
Ensures 15-day priority period hasn’t expired.
Confirms no new adverse entries since original search.
REGISTERED: What is an Official Search with Priority?
Alerts buyer to register changes since prior search.
Protects buyer/lender from entries made after the search but before registration.
Gives 30-day priority to register the disposition.
REGISTERED: What is an Official Search with Priority?
Alerts buyer to register changes since prior search.
Protects buyer/lender from entries made after the search but before registration.
Gives 30-day priority to register the disposition.
REGISTERED: Which forms are used for Official Search with Priority?
Form OS1 – Whole title.
Form OS2 – Part title.
Result = Form OSR2.
REGISTERED: What if the property is unregistered but pending first registration?
Apply for official search with priority against the pending title.
Similar to OS1/OS2 procedure and offers the same protection.
What are the buyer’s solicitor’s key pre-completion steps?
Conduct pre-completion searches.
Check seller’s completion statement (amount due, apportionments).
Prepare buyer’s completion statement, inc. SDLT, fees, etc.
Request loan funds from lender if applicable.
What are requisitions on title and when must they be raised?
Buyer’s solicitor raises requisitions with seller’s.
Must be raised within 6 working days of becoming aware of issue (unless varied).
What are the buyer’s solicitor’s duties regarding the transfer?
Draft transfer deed.
After approval, prepare engrossments.
Send 1 signed duplicate to seller’s solicitor.
Arrange execution of the other by buyer.
What if acting for incoming lender?
Arrange execution of mortgage deed.
Ensure it’s dated only on completion.
What are the seller’s solicitor’s early pre-completion steps?
Request redemption statement from lender (incl. daily interest if delayed).
Prepare seller’s completion statement and send to buyer’s solicitor.
What must seller’s solicitor do regarding the transfer deed?
Approve the draft transfer prepared by buyer’s solicitor.
