Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Property Pratice > Completion > Flashcards

Completion Flashcards

1
Q

What are pre-completion steps?

A

Must inform clients that exchange as taken place and comply with undertakings on phone

Prepare for transfer deed
Pre-completion seraches
Making. Practical arrangements for completion

Ensuring finances are in order for completion

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is the traditional completion time after exchange of contracts?

A

4 weeks , but usually less becuase they want to do it quickly

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What does s 52 of LPA state?

A

That the transfer of legal estate in land must be by deed,

Must be clear that it is a deed
Be signed by parties
Be delivered

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What are the 3 ways that a company may execute a deed?

A

Using company seal in accordance with articles of association

Having it signed by a director and secretary, or by 2 directors of company, provided it is expressed to be executed by the company

Haivng it signed by a SINGLE director in the presence of a witness, who then attests to the signature

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is the form for transfer deed?

A

TR1

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What are pre-completion searches?

A

Carried out by buyers solicitor, as close to completion date as possible.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What are the 4 reasons why pre-completion searches must be carried out?

A

To make sure the seller has not further encumbered the title since investigation of title took place

To check the financial circumstnaces of borrower when acting for lender

To gain profit for buyer and lender, over anyone else making an applicaiton before the buyer applies to register the change of onewrhsip at the land registry

If seller is a company, to check that the company has not gone into liquidation before the acne of purchase price is paid over on completion

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What pre-completion searches of the title should be carried out?

A

A way of updating the title position to check that nothing has changed

Registered: land registry search, OS1, results will be on OS1R.

Unregistered: K15 search, the results will be on K18.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is a priority period for registered and how long is it for

A

This is 30 days from the search result. It provides protection to the applicant against any subsequent entries which may be placed on the register after the date of the search.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is a priority period for unregistered land?

A

15 working days from teh date of the result.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is the result form for pre-completion searches of unregistered land?

A

K18

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is the fee for pre-completion seraches for registered and unregistered?

A

Registered: standard fee for each search

Unregistered: fee for each NAME SEARCHED

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What should the buyer solicitor search against during a pre-completion search in registered and unregistered land?

A

Registered land: title number

Unregistered land: owners name

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is K16 used for

A

The lender can check the bankruptcy on the buyer (borrower).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is a company search for?

A

Reveal if seller is stil in existence, if it is Solent, and if it has created any fixed or floating charges.

No priorityperiod.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What form must be filled out for a bankruptcy search against an INDIVIDUAL SELLER?

A

K15 for unregistered.

Registered0 dont need to do it usually, provided that there is no notice or restriction on the registered title.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What are the practical arrangements for completion?

A

TA13 completion information and undertakings

Buyers solicitor sends tos elders solicitor to complete.

Arranges for keys
Place and method of completion
Documetns to be handed over on completion
Exact amount payable by buyer on completion

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What will the lender expect to receive for completion, if the buyer is financing the purchase with aid of mortgage?

A

Certificate of title confirming prperty is adequate securit
Solvency search against borrowers
Clear OS1R in the name of the lender
An executed but not completed mortgage deed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What is a financial statement for completion and why is it needed

A

Buyers solicitor will need to send a financial statement to client, advising client of funds needed to complete.

Statement will show amount to be forwarded by buyer to slicitor, and include balance of purchase price, any SDLT, registration fee, amount outstanding on any disbursements etc.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

How is money exchanged during completion?

A

Usually arrange for completion money to be sent electronically (SC and SCPC), held in the name of the conveyancer at a learning bank.

On receipt of money, sellers solicitor will complete transaction by dating TR1. Lenders solicitor will also need to date mortgage deed.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What are the 2 common ways to complete a property sale and chase transaction?

A

Completion in person

Completion by post

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What is completion in person?

A

Requires one solicitor (buyer) to attend the office of the other.

All parts of transfer should already be executed by parties in anticipation, and will be the sellers solicitor since the seller usually executes transfer last.

Buyers solicitor will chec any title documetns etc.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What is completion by post?

A

Unreliability is an issue.
Therefore, Code for Completion by Post, which relies on undertakings given by solicitors

24
Q

What is the Law Society’s Code for Completion by Post?

A

Involves seller solicitor acting as the agent of the buyers solicitor for the purpose of carrying out completion procedure.

Buyers solicitor set out in writing precisely what sellers solicitor ist o do n their behalf.

Buyers solicitor is as king sellers solicitor to do whatever it is they would have done, if they could have attended the completion in person.

On receiving the completion money, the sellers solicitor will THEN carry out instructions, and completion has taken place. Documetns are sent to buyers solicitor by 1st class of DX

25
Q

What ist he effect of completion?

A

Depends on if registered or un.

Unregistered: legal title passes to buyer in completion

Registered: legal title doesnt pass until buyer is registered at land registry.

26
Q

What are the 3 post-completion steps?

A

Discharge of sellers mortgage
SDLT/LTT
Registration of new charge at companies house (if company)
Land registry application

27
Q

Once the lender has received the amount required to redeem the mortgage from sellers solicitor, what 3 things can the do?

A

Complete land registry form DS1, and send it to the sellers solicitor for onward transmission to buyers solicitor

Submit an e_DS1 electronic discharge through land registry portal

Use electronic discharge (ED) syste, sending an electronic message to land registry whcih autmaotclaly removes the charge from the register

28
Q

When must SDLT/LTT be paid and how?

A

Sellers soicitor wll send TR1 to buyers solicitor who must then arrange for any SDLT to be paid.

Paid to HMRC within 14 days for SDLT and 30 days fort LTT> to welsh revenue authority.

SDLT5 form will be sent back as proof.

29
Q

How long does the buyer company have to register charge at companies house after completion?

A

If buyer is company and has purchased prperty with aid of mortgage, will have to register this within 21 days of creation, to ensure constructive notice is given to ther credtors.

ABSOLUTE itme limit

30
Q

How is the buyer registered as proprietor?

A

AP1. Certificate copy of transfer should be submitted, along with fee, SDLT certificate and DS1(mortgage removal).

31
Q

what additional documetns must the buyer send to be registered proprietor if they have a mortgage

A

Certified copy of mortgage deed

If company, certificed copy of certification of registration from companies house

If buyer is a compnay, solicitors written confirmation that the enclosed certificate copy mortgage deed is the same as the one filed at compay house

32
Q

What is the form FR1 used for

A

Applicaiton of first registration from an unregistered house.

33
Q

When must a FR 1 be made?

A

Within 3 months of the completion of the transaction.

34
Q

What documents are needed when first registering an unregistered house ?

A

All documetns that form evidence of title
All buyers pre-contract searches
Contract
Requisitions on title with replies
Pre-completion search certificates
Transfer deed
Mortgage
SDLT
Form DI (if mortgage is taken off)

35
Q

What is the remedy for delayed completioN?

A

SC and SCPC, 20 working days after date of contract.

2 pm

Provide for compensation to be paid, but SC and SCPC is differnet - Sc both the buyer and seller can be asked to pay this.

SCPC 0 ONLY the buyer can be asked to pay compensation.

36
Q

How is contractual compensation for delayed completion calculated?

A

Calculated at Contract Rate specified in contract, on the balance of the purchase price, less ay deposit paid, for the period between the contractual completion date and the date of actual completion.

37
Q

What are common law damages for delayed completioN?

A

Failure to complete on contractual completion date is breac of contract, and seller could claim under normal contract rules.

Puttingclaimant in position would have been in had the contract been awarded property (wasted legal costs, furniture in storage, rent of another property etc)

38
Q

What is notice to complete when there is delay in completioN?

A

Can only be served AFTEr contractual completion time on teh contractual completion date.

Makes time of the ESSENCE, and gives the other party 10 working days to complete.

If defualtingparty fails, then the party who serves the notice can RESCIND the contract.

If contract is rescinded, and defaultingpart was buyer, seller is able to FORFEIT the deposit and claim damages.

39
Q

What are the 2 circumstances where rescission is allowed for delayed completion?

A

Failure of notice to complete

Where there has been a misrepresentation by the seller in a plan or statement in teh contract. ONLy if resulted from fraud or recklessness.

40
Q

What are the main tasks that solicitor must act in the pre-completion stage?

A

Preparation of the transfer deed

Pre-completion searches

Making practical arrangements for completion

Ensure finances are in order.

41
Q

What is panel 1 and 2 on a TR1?

A

The title number and address of the property

42
Q

What is panel 3 of the TR1?

A

The transfer will only be dated UPON COMPLETION

43
Q

What is panel 4 and 5 of the TR1?

A

The names of the parties should be checked against the details in the contract.

44
Q

What is panel 6 of the TR1?

A

The buyer is buying this property to live in , and will want communications to go to their new address, not old address. If property is tenanted, the buyer may want communications sent to another address - such as a registered office

45
Q

What is panel 7 of the TR1?

A

Operative part of the deed. Should NOT be amended

46
Q

What is panel 8 of the TR1?

A

Purchase price.
Written in FIGURES and WORDS.
VAT?

47
Q

What is panel 9 of the TR1?

A

Front page of contract - seller has stated they are selling with FULL title guarantee.

48
Q

What is panel 10 of the TR1?

A

There is only one buyer, so none of these boxes apply.

Purpose of this is for co0owners to declare how they are going to hold the equitable interest in teh property - as tenants in common or joint.

49
Q

What is panel 11 of the TR1?

A

Indemnity covenant to observe the covenants in the chagres register. This is provided for in the contract by SC 4.6.4. Seller will remain liable on restrictive covenants potentially.

50
Q

What is panel 12 of the TR1?

A

Signature of the seller, being an individual, must be witnessed

Buyer should also execute the transfer as they a re entering into an indemnity covenant

51
Q

Does a company search have a priority period?

A

NO! Therefore, you have to carry it out as CLOSE as possible to the day of completion.

52
Q

What is a WRA certificate?

A

The HMRC will reproduce a SDLT 5 form in response to SDLT.

The WRA wll return a WRA certificate, as proof that LTT has been paid.

53
Q

What is the difference in SC and SCPC for contractual compensation if completion is delayed?

A

SC - both buyer and seller can be asked to pay this compensation

SCPC - ONLY the buyer can be required to pay compensation.

54
Q

How do you calculate compensation rate?

A

Purchase price LESS deposit

TIMES by contract rate

DIVIDED by 365 (a year)

TIMES the amount of dates of delay in completion

55
Q

When should you serve a notice to complete?

A

When it appears that the delay in completion is not likely to be resolved quickly.

Property Pratice (10 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions