Completion and post-completion-FS Flashcards
(28 cards)
What is the legal effect of completion in a property transaction?
Completion marks the transfer of legal title from the seller to the buyer, signifying the conclusion of the property transaction.
How is the method of completion executed in conveyancing practice?
The transfer documents are dated when the seller receives the purchase price, thereby completing the transaction.
What does the term “completion” also refer to in property law?
It is commonly referred to as closing, indicating the final stage of the transaction when ownership passes.
According to Standard Commercial Property Condition 9.1.1, when should completion take place?
Completion should occur 20 working days after exchange of contracts, unless otherwise agreed.
What does Standard Commercial Property Condition 9.2 specify about the timing of completion funds?
Completion funds must be received before 2pm on the scheduled completion date.
What happens if completion funds are received after 2pm under Standard Commercial Property Conditions?
The completion date is treated as the next working day, and interest for late completion may become payable.
What is the consequence of failing to complete by 2pm under Condition 9.1.2?
Interest becomes payable for late completion, and the transaction is treated as having completed on the next business day.
Does prior notification to the seller excuse late completion under the Standard Conditions?
No. Even if the buyer informs the seller in advance, the failure to complete by 2pm still results in interest being payable.
Under what condition is interest for late completion not payable according to the Standard Conditions?
There is no provision excusing interest based on a grace period such as 24 hours; the deadline is strictly 2pm.
What is the primary post-completion responsibility of the seller’s solicitor in a property transaction?
To deal with the proceeds of sale, including transferring sale funds to the seller and discharging any outstanding mortgage according to professional undertakings.
Why must the seller’s solicitor discharge the mortgage after completion?
To ensure that the lender’s charge is removed from the title register, fulfilling the solicitor’s undertaking to the buyer.
What administrative task should the seller’s solicitor remind the seller to complete after completion?
Notifying the local authority and utility providers of the change in ownership.
What is the buyer’s solicitor’s obligation regarding the seller’s discharged mortgage post-completion?
To confirm that the mortgage charge has been removed and, if applicable, release the seller’s solicitor from their undertaking once satisfied.
What form must the buyer’s solicitor submit to the Land Registry to register a new mortgage charge?
Form CH1, accompanied by a certified copy of the mortgage.
What is the purpose of submitting a Stamp Duty Land Tax (SDLT) return post-completion?
For tax transparency, detailing the transaction and parties involved, and to enable HMRC to issue Form SDLT5, confirming tax compliance.
Within how many days must SDLT be paid following completion?
Within 14 days of the date of completion.
What is Form SDLT5 and its function in post-completion procedure?
It is the stamp duty certificate issued by HMRC as proof that the SDLT return has been submitted and payment made.
What final step must the buyer’s solicitor complete to register the buyer as the legal owner
Submit an application to the Land Registry to register the buyer within the priority period.
What is the “priority period” for Land Registry applications following completion and when does it start?
A period of 30 working days starting from the date of the official search (OS1).
In a property sale where both solicitors adopt the Law Society Code for Completion by Post, what must the seller’s solicitor provide at least five working days before completion?
Replies to the Completion Information and Undertakings Form (TA13), to allow the buyer’s solicitor to prepare for completion in good time.
THIS IS FROM OUP
Three friends buy a house as tenants in common in unequal shares and declare this in the TR1 and a trust deed. What step will HM Land Registry take on registration?
Enter a joint proprietorship restriction in the proprietorship register to reflect the tenancy in common and ensure overreaching on any future sale.
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A couple buy a house forming part of a residential estate subject to a developer’s mortgage. What form is used to discharge the mortgage in respect of just their house?
Form DS3 – used to discharge part of a registered charge, as the house is only part of the land secured by the developer’s mortgage.
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A UK resident property investor buys an additional residential property for £310,000. How much SDLT is payable?
£12,300, calculated at 3% on the first £250,000 (£7,500) and 8% on the remaining £60,000 (£4,800), due to higher rates for additional properties.
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After completion, the buyer’s application to register the transfer and new mortgage is sent to HM Land Registry without the seller’s DS1 to discharge an existing charge. What will the Land Registry do?
Register the transfer and the new mortgage, but leave the existing charge on the register until a DS1 is submitted in a later application.
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