Completion Flashcards
Pre-completion steps
- Draft transfer deed
- pre-completion searches
- finances are ready
- practical arrangements ready for completion
Transfer Deed Formalities
- in writing
- clear it is a deed
- delivered as a deed
- signed by 2 witnesses
- attest signature
What does a transfer deed do? Who executes?
Passes legal estate in land from seller to buyer - executed by seller unless buyer gives indemnity
How can a deed be executed?
- Company seal
- 1 director + 1 secretary or 2 directors
- 1 authorised director + attesting witness
Types of pre-completion sarches?
- Land Registry search (OS1/OS2) (reg land)
- Land Charges search - K15 (unreg)
- Company search
- Bankruptcy search (K16)
Priority period for Land Registry search?
30 working days
What is a priority period?
After completion, must register new property within priority period or someones wanting to register will take your place
Land Registry Search?
Register new buyer’s title for REGISTERED LAND + check no changes since recieving official copies
- OS1: whole property
- OS2: part of property
- 30 working days priority period + in lender’s name
Land Charges Saerch
Check no new restrictive covenants, bankruptcy or mortgage on unregistered land
* K15 search - 15 working days priority period
Bankruptcy search
- By lender to make sure buyer isnt bankrupt
- K16 search
- buyer is individual
Company Search
- Seller/buyer is company + want to check
- exist
- solvent
- fixed and floating charges granted
- as close to completion as possible - no priority period
Documents send to lender before completion
- certificate of title
- solvency search
- cleared OS1R search
- executed but not signed transfer deed
Process with finances for completion?
- make sure purchase price balance is available
- send to seller electronically + tell its on the way
- seller confirms reciept + date TR1
- buyer date mortgage deed
Completion in person
- buyer goes to seller’s office
- seller has signed transfer deed
3.buyer sends money electronically
4.seller give title doc, signed trasnfer deed, planning permission + insurance
5.release keys to buyer
Completion by post
- buyer sends money to solicitor
- seller confirms reciept
- release keys to buyer
- send docs by post to bueyr
- register buyer as new owner
Effect of completion in registered land?
Legal title passes on registration (beneficial interest until then)
Effect of completion in unregistered land
Legal title immediately passed
Post completion steps?
- Discharge mortage
- Pay SDLT (14 days) or lTT (30 days)
- Get certificate to register
- Add buyer’s title to Land Registry + remove sellers title + new mortgage
- if company - register new mortgage at Companies House
When is completion date?
2pm on 20 working days after contarct date
What if completion date not met?
Moves to next working day
Who pays compensation?
SC: both
SCPC: only buyer
Notice to complete completion date?
10 working days extension
What if seller defaults?
repay deposit to buyer
What if buyer defaults?
Seller keeps deposit
