Completion Flashcards
When does completion usually occur?
Fridays
Where does completion occur?
At seller’s office as they hold executed TR1 and receive completion monies
When does seller’s solicitor send transfer deed after completion?
They undertake to send asap, and no later than end of working day after completion
Completion steps
- Buyer’s solicitor received mortgage money and sends required amount to seller’s solicitor
- 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
- Buyer’s solicitor calls buyer to let them know so they can collect keys etc
- Seller’s solicitor sends transfer deed etc to buyer’s solicitor, redeems mortgage and sends balance of money (less costs, fees etc) to seller
What happens on failure to complete?
Interest starts to accrue
What happens if completion takes place on same day but later than specified time?
Deemed as taking place on next working day - interest payable
How many days interest payable if completion takes place at 4pm on Friday rather than 2pm?
3 - fri, sat and sun
Interest is calculated per calendar day
How to determine interest if seller is late?
Interest payable on purchase price
How to determine interest if buyer is late?
Interest is payable on purchase price - deposit
Is it possible to claim for reasonable expenses?
Yes - eg hotel, storage etc
Is it possible to claim for common law damages?
Yes, but any interest received will be deducted
Effect of serving notice to complete
Makes time of the essence - parties must complete within 10 working days
If buyer paid only 5% deposit, the other 5% is immediately payable
Buyer’s remedies if seller fails to complete
Demand return on deposit + interest
Claim contractual damages
Possibly claim specific performance
Seller’s remedies if buyer fails to complete
Rescind contract
Forfeit deposit plus interest accrued
Resell property
Claim contractual remedies
