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SQE Property Practice > 5.1 Pre-Completion and Completion > Flashcards

5.1 Pre-Completion and Completion Flashcards

1
Q

When a 2nd trustee is appointed to accompany a sole surviving TinC, does a separate deed of appointment need to be provided with the TR1?

A

No. The actual appointment is made within the TR1/transfer deed itself.

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2
Q

What is the priority period of an OS1/2 search?

A

30 WORKING days

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3
Q

When acting for the buyer’s lender, what solvency searches would be required?

A

K16 on the individual BUYER to protect the lender.
(buyer might also carry out on individual seller)

Company search on BUYER if company

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4
Q

What solvency search may the Buyer’s sols carry out immediately before completion, if the seller is a company?

A

Company search on a seller company.

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5
Q

Why should the timing of a Company Search be immediately before completion?

A

A company Search confers NO PRIORITY PERIOD.

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6
Q

What is the priority period of a K16 bankruptcy search on individuals?

A

15 WORKING DAYS

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7
Q

Both K16 bankruptcy searches and K15 CLC searches are carried out by which organisation/provider?

A

Central Land Charges Department

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8
Q

K16 is what kind of search?

A

Bankruptcy search on individuals for REGISTERED land.

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9
Q

K15 is what kind of search?

A

Priority search for individuals, including incumbrances/adverse matter and bankruptcy in UNREGISTERED land.

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10
Q

Is a K16 bankruptcy search required on individual sellers of registered land?

A

No, NEVER, as the OS1 result would reveal any bankruptcy.

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11
Q

Summarise the pre-completion solvency/Priority searches:

*OS1/2 - against the seller’s r_________ t____
*K_ _ bankruptcy search on individual b____ when acting for L_____
*K_ _ on seller’s names in UR land
*C_____ search on b____ if acting for L_____
*C_____ search on ______ if acting for _____

A

*OS1/2 - against the seller’s REGISTERED TITLE
*K16 bankruptcy search on individual BUYER when acting for LENDER (registered land)
*K15 on seller’s names in UR land
*COMPANY search on BUYER if acting for LENDER
*COMPANY search on SELLER if acting for BUYER

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12
Q

Would it be right for the seller to undertake to discharge their mortgage on completion?

A

No, the seller can only undertake to pay the required completion monies to the lender in order to REDEEM their mortgage and the FORWARD THE DS1 to the buyer’s sols once received from lender.

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13
Q

Who sends and requests the other side to complete the Completion Information and Undertakings Form?

A

The buyer sends the form for the seller to complete and return before completion.

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14
Q

RESI = TA13 Completion Information and Undertakings Form

Commercial = ?

A

CPSE form SCR (Solicitor’s Completion Requirements)

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15
Q

What information is in the Completion Information and Undertakings form…about VACANT POSSESSION

A

How to collect keys and asking for authority for T to pay rent to buyer.

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16
Q

What information is in the Completion Information and Undertakings form…about DEEDS AND DOCUMENTS

A

If UR, list of originals to send on completion.

17
Q

What information is in the Completion Information and Undertakings form…about COMPLETION

A

Confirmation that the Law Society’s Code for Completion by Post will be used (sets out expectations and undertakings)

18
Q

What information is in the Completion Information and Undertakings form…about MONEY

A

Asks for seller’s client account details for paying completion moneys, as well as confirmation of final amount payable.

19
Q

What information is in the Completion Information and Undertakings form…about MORTGAGES AND CHARGES

A

Asks seller’s sols to list mortgages and give undertaking to redeem on completion.

20
Q

What will the buyer need to sign before completion, if they are giving in indemnity covenant?

A

The transfer deed

21
Q

What will the buyer need to sign before completion if they are getting a mortgage?

A

mortgage deed

22
Q

Why is completion deemed to take place at the seller’s sols’ office? (Law Society Code for Completion by Post)

A

As that is where the TR1 will be dated and where they receive completion monies.

23
Q

The non-defaulting party can claim contractual compensation for each day that….

A

completion does not take place by 2pm

24
Q

Contractual Compensation can only be claimed for delayed completion once what takes place?

A

Completion - SCS compensation is for DELAYED completion, so completion actually needs to occur.

25
Q

For contractual compensation, if the SELLER is the defaulting party, the seller pays interest on what amount?

A

The full purchase price.

26
Q

For contractual compensation, if the BUYER is the defaulting party, the buyer pays interest on what figure?

A

The purchase price less the deposit

27
Q

What is the effect of the non-defaulting party serving a Notice to Complete?

A

Makes TIME OF THE ESSENCE and completion must take place within 10 WORKING days following service of notice.

28
Q

If completion does not take place within the 10 working days of the Notice and the non-defaulting party rescinds, can they claim compensation/contractual interest?

A

No, as completion will not have taken place at all.

29
Q

As compensation/contractual interest is no longer an option for the non-defaulting party after rescission, what other remedy could they seek?

A

Contractual damages

30
Q

What must the buyer do, as the defaulting party, if less than a 10% deposit was paid on exchange?

A

Top up the deposit to 10% in the event a Notice to Complete is served.

31
Q

What is the position re who can claim Contractual COMPENSATION under the SCS?

A

It can be claimed by EITHER party if completion occurs after the contractual date.

32
Q

What is the position re who can claim Contractual COMPENSATION under the SCPCs?

A

Only the SELLER can claim,

33
Q

What does ‘no double recovery mean’?

A

If the defaulting party were to claim contractual DAMAGES, any contractual COMPENSATION/INTEREST already awarded must be deducted from the total damages awarded.

34
Q

If completion does not take place in the 10 working days after the notice is served, what happens to the deposit?

A

SELLER’s remedy - keeps buyer’s deposit + INTEREST
BUYER’s remedy - demands deposit back + interest

35
Q

SELLER’s remedies for failure to complete after serving a notice:
*R_________
*Keep d______ plus i_______
*R_____ property and c_______
*Claim C__________ D______

A

*RESCISSION
*Keep DEPOSIT plus INTEREST
*RESELL property and CONTENTS
*Claim CONTRACTUAL DAMAGES

36
Q

BUYER’s remedies for failure to complete after serving a notice:
*R_________
*Demand return of d______ plus i_______
*Claim C__________ D______
*Seek an order for S_______ P__________

A

*RESCISSION
*Demand return of DEPOSIT plus INTEREST
*Claim CONTRACTUAL DAMAGES
*Seek an order for SPECIFIC PERFORMANCE

37
Q

Is rescission automatic after expiry of the 10 working day notice period?

A

No

SQE Property Practice (16 decks)

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