PLP: Completion

Question 1

What is the purpose of the transfer deed?

Answer 1

To facilitate the transfer of property ownership from the seller to the buyer.

The transfer deed is a legal document that formalizes the transfer of property rights.

Question 2

What are the main steps for the seller’s solicitor before completion?

Answer 2

• Approve the transfer deed drafted by the buyer’s solicitor
• Arrange for the transfer to be executed by the seller
• Reply to requisitions on title
• Request a redemption statement from the seller’s lender
• Ask for final meter readings in a residential sale

These steps ensure that all legal requirements are met before the property transfer.

Question 3

What is the TR1 form used for?

Answer 3

To transfer the whole of a freehold or leasehold title.

The TR1 is the most common Land Registry transfer form.

Question 4

What does Panel 1 of the TR1 require?

Answer 4

The title number of the registered property or left blank for unregistered property.

This panel identifies the property being transferred.

Question 5

Fill in the blank: The transfer of land must be in the form of a _______.

Answer 5

[deed].

Question 6

What must a buyer’s solicitor do if the buyer is taking a mortgage loan?

Answer 6

Arrange for the buyer to execute the legal charge.

This is necessary to secure the loan against the property being purchased.

Question 7

What information is required in Panel 2 of the TR1?

Answer 7

A brief description of the property, typically the address.

This helps to clearly identify the property being transferred.

Question 8

True or False: The transfer wording in Panel 7 of the TR1 can be amended.

Answer 8

False.

The wording ‘The transferor transfers the property to the transferee’ is standard and cannot be changed.

Question 9

What does Panel 8 of the TR1 address?

Answer 9

The consideration for the transfer, including options for monetary payment or other forms of value.

This panel specifies how the buyer is compensating the seller.

Question 10

What does the execution of the transfer deed require from an individual?

Answer 10

The individual must sign the transfer in the presence of an independent witness who also signs.

This is to ensure the authenticity of the signature.

Question 11

What is the role of the buyer’s solicitor in the execution of the transfer deed?

Answer 11

Draft the transfer deed and arrange for the buyer to sign it after approval.

The buyer’s solicitor ensures all necessary steps are completed for a valid transfer.

Question 12

What does Panel 10 of the TR1 allow for?

Answer 12

Indicates how the transferees hold the property, such as beneficial joint tenants or tenants in common.

This panel clarifies the ownership structure after the transfer.

Question 13

What is required in Panel 12 of the TR1?

Answer 13

Provides space for the attestation clauses that allow the parties to execute the TR1 as a deed.

This is essential for the legal effect of the transfer.

Question 14

What is the purpose of the TP1 form?

Answer 14

Used for the transfer of part of the transferor’s title.

This form is applicable when only a portion of a property is being transferred.

Question 15

What is the significance of the completion date in the TR1?

Answer 15

The date handwritten on completion finalizes the deed and makes it effective.

The deed must be dated to be valid.

Question 16

What options exist for a company executing a transfer deed?

Answer 16

• Company seal attached with signatures
• Signed by two directors or one director and the company secretary
• Signed by one director and witnessed by an independent witness
• Signed by a senior employee authorized under a power of attorney

These options vary based on the company’s articles of association and internal policies.

Question 17

Who typically drafts the transfer deed?

Answer 17

Traditionally, the seller’s solicitor drafts the contract, and the buyer’s solicitor drafts the transfer deed.

This is the standard practice unless otherwise agreed.

Question 18

What should a seller’s solicitor do in response to requisitions on title?

Answer 18

Reply to the requisitions as part of the completion process.

This ensures that any outstanding queries regarding the title are addressed.

Question 19

What is the primary purpose of pre-completion searches?

Answer 19

To check and protect the buyer’s (and lender’s if appropriate) ability to obtain title to the property as per the contract.

Question 20

What are the two main concerns of pre-completion searches?

Answer 20

• The property
• The parties

Question 21

What is the purpose of an OS1 or OS2 search?

Answer 21

To update the official copies and identify any changes made against the title number.

Question 22

What priority period does an OS1 search confer?

Answer 22

30 working days.

Question 23

What happens if the buyer’s solicitor submits the application to register within the priority period?

Answer 23

The buyer’s transfer takes priority over any other application.

Question 24

What is the purpose of a land charges search for unregistered land?

Answer 24

To identify any incumbrances or other adverse matters registered against the owner/seller.

Question 25

What is the priority period for a land charges search?

Answer 25

15 working days.

Question 26

Fill in the blank: The buyer’s solicitor runs the OS1 search from the date they provide to the Land Registry, known as the _______.

Answer 26

[search from date]

Question 27

What must the seller disclose under SCS or SCPC?

Answer 27

Any adverse issues that may have resulted in changes to the official copies originally provided.

Question 28

What can a buyer claim if the seller fails to disclose adverse issues?

Answer 28

* Damages for breach of contract * Misrepresentation * Rescind the contract

Question 29

True or False: A buyer’s solicitor should rely solely on the seller’s disclosure for protection.

Answer 29

False.

Question 30

What is the risk of not carrying out an OS1 search?

Answer 30

It may cost time and money to rectify any entry, leading to potential professional negligence.

Question 31

What happens if the seller dishonestly applies to remortgage the property after the OS1 search?

Answer 31

The buyer’s transfer will take priority unless the buyer fails to register within the priority period.

Question 32

How does the priority work for a land charges search?

Answer 32

Priority is obtained by completing the transaction within the 15 working days.

Question 33

What is the purpose of a bankruptcy search (Form K16)?

Answer 33

To protect the lender by checking the buyer for pending insolvency.

Question 34

What is recommended if the buyer is a company?

Answer 34

Carry out a company search against the buyer.

Question 35

What is the recommendation for a solvency search against the seller?

Answer 35

Not recommended for registered land; included in a land charges search for unregistered land.

Question 36

What type of search is recommended for a seller or buyer that is a company?

Answer 36

A company search.

Question 37

Summarize the key types of searches needed for pre-completion.

Answer 37

* OS1 search for registered land * Updated land charges search for unregistered land * Solvency search against the buyer if relying on a mortgage.

Question 38

What are requisitions on title?

Answer 38

Questions raised by the buyer's solicitor about the title before completion ## Footnote They are similar to pre-exchange enquiries but simpler.

Question 39

What is the historical purpose of requisitions on title?

Answer 39

Specific questions raised by the buyer's solicitor after reviewing the title deeds.

Question 40

What is the common form used for requisitions on title in residential transactions?

Answer 40

Law Society TA13, also known as 'Completion information and undertakings'.

Question 41

What forms may be used for requisitions on title in commercial transactions?

Answer 41

Firm's own precedent form or Commercial Property Standard Enquiries (CPSE) form SCR.

Question 42

What does the TA13 form inquire about regarding vacant possession?

Answer 42

Arrangements for collecting keys and authority for tenant to pay rent to the buyer.

Question 43

What does the TA13 form request for unregistered property?

Answer 43

A list of deeds and documents to be sent on completion.

Question 44

What confirmation does the TA13 form seek regarding completion?

Answer 44

Confirmation that completion will take place according to the Law Society’s Code for Completion by Post.

Question 45

What information does the TA13 form ask for regarding money?

Answer 45

Seller's solicitor’s client account details and the exact amount payable on completion.

Question 46

What does the TA13 form inquire about mortgages and charges?

Answer 46

A list of mortgages secured on the property and confirmation to redeem them on completion.

Question 47

Why does the buyer’s solicitor want the mortgage cleared from the property promptly?

Answer 47

To ensure the buyer’s transfer can be registered.

Question 48

What does the seller's solicitor undertake regarding the mortgage?

Answer 48

To redeem the mortgages against the property as per the Law Society Code for Completion by Post.

Question 49

What should happen when the loan is redeemed?

Answer 49

The lender should discharge the charge at the Land Registry electronically or provide a form DS1.

Question 50

What may the buyer’s solicitor insist on for large value transactions?

Answer 50

An executed but undated DS1 in advance of completion.

Question 51

What is the overall purpose of requisitions on title?

Answer 51

To elicit information necessary for the buyer's solicitor to complete the transaction.

Question 52

What is a key aspect of the replies to requisitions on title?

Answer 52

They contain undertakings and both solicitors should be familiar with the Law Society Code for Completion by Post.

Question 53

What is necessary for the buyer's solicitor to register the buyer's transfer?

Answer 53

The seller's solicitor's undertaking to redeem mortgages against the seller's title.

Question 54

What is the process of completion in property transactions?

Answer 54

The balance of the purchase price is paid to the seller, and legal title is passed to the buyer.

Question 55

When do most residential transactions typically complete?

Answer 55

Most residential transactions still take place on Friday.

Question 56

What does the Law Society Code for Completion by Post allow?

Answer 56

It treats the seller's solicitor as an agent for the buyer's solicitor, avoiding the need for physical attendance.

Question 57

What must the seller's solicitor do immediately after completion?

Answer 57

Hold the transfer deed and other documents to the buyer's solicitor's order.

Question 58

What is the purpose of the completion statement sent by the buyer's solicitor?

Answer 58

To advise the buyer how much money is needed to complete.

Question 59

What is the typical purchase price in the example provided?

Answer 59

£180,000.

Question 60

What is the deposit amount paid at the exchange of contracts in the example?

Answer 60

10% of the purchase price, which is £18,000.

Question 61

What does the buyer rely on for financing in the example?

Answer 61

A mortgage of £140,000.

Question 62

What does Paragraph 5 of the Code require from the seller's solicitor?

Answer 62

To have the authority to receive the purchase money on completion.

Question 63

What must the buyer's solicitor ensure the day before completion?

Answer 63

That enough funds are collected and transmitted to the seller's solicitor.

Question 64

What is a telegraphic transfer often referred to as?

Answer 64

TT.

Question 65

What does the seller's solicitor do once the completion funds are received?

Answer 65

Confirms completion and dates the transfer deed.

Question 66

What is the final action taken by the seller's solicitor after completion?

Answer 66

Sends written confirmation and the executed transfer deed to the buyer's solicitor.

Question 67

Fill in the blank: The completion process is usually carried out by _______.

Answer 67

[post].

Question 68

True or False: Completion is a complex process that often requires in-person meetings.

Answer 68

False.

Question 69

What does the seller's solicitor need to ensure regarding the mortgage on completion?

Answer 69

Authority to receive the sum intended to repay it.

Question 70

What happens to the keys after completion?

Answer 70

The estate agent is called to release the keys to the buyer.

Question 71

What documents must the seller's solicitor send to the buyer's solicitor by the end of the working day after completion?

Answer 71

Written confirmation and the executed transfer and other deeds.

Question 72

What is the post-completion work that the buyer's solicitor needs to do?

Answer 72

Settling Stamp Duty Land Tax and registering the buyer’s title at Land Registry ## Footnote Post-completion work occurs behind the scenes after the seller receives payment and the buyer receives property.

Question 73

What is the deadline for submitting an SDLT return in England?

Answer 73

14 days of completion ## Footnote Failure to submit within this timeframe can lead to penalties.

Question 74

What is the tax applied to property transactions in Wales?

Answer 74

Land Transaction Tax (LTT) ## Footnote LTT has different thresholds and rates compared to SDLT.

Question 75

What is the deadline for submitting an LTT return in Wales?

Answer 75

30 days of completion ## Footnote Similar to SDLT, a late submission can incur penalties.

Question 76

What must be registered at Companies House within 21 days?

Answer 76

A charge given by a company ## Footnote Failure to register within this period results in the charge being void against any liquidator or administrator.

Question 77

What form is used for the application for registration of a registered title?

Answer 77

Form AP1 ## Footnote This form includes details of the application and supporting documents.

Question 78

What documents are needed for a purchase of registered land?

Answer 78

* Transfer deed (e.g., TR1) * SDLT5 or WRA certificate * Form DS1 (if applicable) * Mortgage deed * Other appropriate documents ## Footnote Examples include a death certificate for deceased joint proprietors.

Question 79

What is the difference in the application form for unregistered title?

Answer 79

Form FR1 is used instead of AP1 ## Footnote FR1 includes additional boxes relevant to unregistered title.

Question 80

What is an overriding interest?

Answer 80

An interest that affects the title and must be disclosed ## Footnote For example, a tenant’s occupational tenancy must be disclosed on Form DI.

Question 81

True or False: The Land Registry application must be submitted online for first registrations.

Answer 81

False ## Footnote First registrations must be submitted by post or document exchange.

Question 82

What happens if the Land Registry application is not submitted within 30 working days after the OS1 search?

Answer 82

Priority will be lost ## Footnote A new OS1 search can be submitted to start a new priority period.

Question 83

What is the deadline for submitting an application for unregistered land?

Answer 83

2 months from completion ## Footnote If missed, the transaction is void.

Question 84

What is the result of a successful Land Registry application?

Answer 84

The issuance of new official copies showing the buyer as registered proprietor ## Footnote The lender, if any, is also noted as the proprietor of the legal charge.

Question 85

What is the key definition of a certified copy?

Answer 85

A copy stamped and signed by a solicitor confirming it is a true copy of the original ## Footnote Certified copies are treated as equivalent to original documents for evidential purposes.

Question 86

What is the typical processing time for a transfer of registered land by the Land Registry?

Answer 86

A couple of weeks ## Footnote First registrations of unregistered land may take several months.

Question 87

What must the buyer's solicitor ensure before sending a copy of the Land Registry details to the client?

Answer 87

Check that all details are correct ## Footnote This helps avoid errors in the final documentation.

Question 88

What tasks must the buyer’s solicitor attend to following completion?

Answer 88

* Notify and pay SDLT or LTT * Register charges at Companies House * Submit Land Registry application ## Footnote These tasks are critical to ensure compliance and avoid penalties.