Pre-completion, Completion & Post-completion Flashcards
(33 cards)
Which form is used for the transfer deed for
- Registered land;
- Sale of part
- Unregistered land?
Registered: TR1
Part: TP1
Unregistered: No prescribed form (common to use TR1)
What are the 3 requirements of a valid deed for the transfer of legal estate in land?
- Clear that is a deed
- Signed & witnessed by grantor
- Delivered
Who executes (signs) the transfer deed?
The seller always executes
The buyer executes also if entering into an obligation or making a declaration in the TR1 (eg. giving indemnity cov, declaring beneficial interest under trust)
How will an individual execute the deed?
By signing in presence of attesting witness
What are the 3 ways a company can execute a transfer deed?
a. Affixing company seal in presence of 2 attesting directors
b. Signed by 2 directors
c. Signed by 1 director in presence of attesting witness
What are the 4 pre-completion steps taken by the buyer’s solicitor?
- Draft purchase deed TR1
- Submit completion of information form TA13
- Pre-completion searches
- Mortgage Finance
What is completion of information form TA13 & who submits it?
Submitted by buyer’s solicitor - confirms practical queries (eg. “Where will the keys be available for collection on the day of completion?”) & obtains undertaking from seller’s solicitor that mortgage will be redeemed upon completion
What pre-completion searches will the buyer’s solicitor carry out?
-
OS1 (registered land) → 30 working days priority period
or K15 (unregistered land) → 15 working days priority period - Company search (where buyer company)
- K16 to check buyer’s solvency on behalf of lender
What is the priority period conferred by the pre-completion searches?
Registered: OS1 to Land Reg → 30 working days priority period
Unregistered: K15 to Land Charges Dept → 15 working days priority period
What is the purpose of OS1 and OS2 searches in registered land, and what do they protect?
OS1 and OS2 are pre-completion searches of the title at HM Land Registry:
- OS1 is used when the buyer is acquiring the whole of the registered title.
- OS2 is used when the buyer is acquiring part only of the registered title.
Purpose:
- To check that no new entries (e.g. mortgages, easements, covenants) have been registered since title investigation.
- To give a 30-working-day priority period from the date of the search result (OSR1 or OSR2).
Effect:
- If the application to register the buyer’s interest is submitted before 12 noon on the last day of the priority period, it will take priority over any third-party interests registered after the search date.
Mortgage Purchases:
- The search is conducted in the lender’s name to give joint priority to both buyer and lender.
Q: What is a K15 search in unregistered land, and how does the priority period work?
A K15 search is used for unregistered land to check for any Land Charges registered against the current seller’s name.
Purpose:
- To identify registered equitable interests like restrictive covenants, puisne mortgages, and estate contracts.
- To ensure the buyer does not unknowingly acquire the land subject to such burdens.
Priority Period:
- The result (on Form K18) gives a 15-working-day priority period.
- If completion occurs within this window, any new entries registered after the search date will not bind the buyer.
Timing:
- Usually conducted before exchange.
- If completion is delayed beyond 15 working days, the search must be repeated.
- Only the current seller’s name is searched; no need to search against past owners.
Adverse Entries:
- If any are found, the buyer’s solicitor must resolve them with the seller before proceeding to exchange or completion.
What happens if the OS1, OS2, or K15 priority period expires before registration or completion?
If the priority period expires, the buyer and lender lose their protected position.
Consequences:
- A third party could register an interest (e.g. a new charge or restriction) before the buyer’s application for registry at HM LAND Registry.
- The buyer’s application would no longer take priority and may be delayed or defeated by the new entry.
Action to take:
- The buyer’s solicitor must re-do the OS1/OS2 or K15 search to obtain a new priority period.
- This ensures continued protection before completion or registration.
What are the 4 pre-completion steps taken by the seller’s solicitor?
- Agree purchase deed & have seller sign
- Reply to TA13 (completion information and undertakings form) within 4 days of receipt
- Execute purchase deed i.e, dating the TR1
- Mortgage Redemption (get redemption figure from lender & check that it can be paid off)
What is the effect of completion?
Unregistered: legal title passes to buyer
Registered: legal title does not pass until buyer is registered
What is the process of completion?
- Buyer’s sol sends completion money electronically
- On receipt of completion money, seller’s solicitor completes transaction by dating TR1
What are the 2 methods of completion?
In person or by post
How does completion in person work, and what happens with the transfer deed, title documents, and release of keys?
On the day of completion (in-person):
- All parties have already signed the transfer deed beforehand.
- The buyer’s solicitor sends the completion funds electronically to the seller’s solicitor.
- The solicitors meet (typically at the seller’s solicitor’s office).
On receipt of the completion money, the seller’s solicitor hands over the title documents:
- For registered land: TR1 transfer, official copies of the register, DS1 (mortgage discharge), any indemnity insurance, and agreed documents.
- For unregistered land: TR1, original title deeds showing good root of title, mortgage discharge document (e.g. reconveyance), and other agreed documents.
- The buyer’s solicitor checks the documents to ensure they match the agreement and are in proper form.
- Once confirmed, the seller’s solicitor instructs whoever holds the keys (usually the estate agent) to release them to the buyer.
How does completion by post work?
What 5 steps does the sellers solicitor take when completing the transaction?
Seller’s solicitor acts as agent of buyer’s solicitor - buyer’s sol sets out in writing precisely what seller’s sol is to do
All docs sent by first-class post or document exchange
On receipt of completion money, seller’s solicitor carries out instructions & completes transaction
Instructions the seller’s solicitor carries out to complete the transaction:
-
Date the transfer deed (TR1)
→ This formally transfers ownership from the seller to the buyer. -
Release the executed transfer deed to the buyer’s solicitor
→ This is usually done by sending it via pre-agreed method (e.g. DX or first-class post). -
Send any other original title documents or documents requested
→ E.g. original lease, planning permissions, guarantees, etc. -
Undertake to discharge any existing mortgages or charges
→ And to send evidence of discharge (e.g. DS1 form or equivalent) once available. -
Send a completion receipt
→ Confirming that completion has taken place and funds have been received.
What are the 6 post-completion steps?
- Seller’s solicitor sends executed TR1 to buyer’s solicitor
- Seller’s solicitor redeems mortgage & sends balance of purchase monies to seller (will receive DS1 from lender - sends to buyer’s solicitor)
- Buyer’s solicitor pays SDLT1 within 14 days of completion using SDLT1 (or LTT within 30 days) - will receive SDLT5 / WRA certif as proof tax paid
- If buyer company who has purchased property with aid of mortgage, lenders solicitor registers charge at CH within 21 days of completion
- Buyer’s solicitor sends docs to Land Reg to have buyer registered as registered proprietor
- Once Land Reg have processed, will send Official Copies of the registered title to the buyer’s solicitor, who checks them
What is the time limit for the buyer’s solicitor to pay SDLT / LTT?
SDLT: within 14 days of completion
LTT: within 30 days of completion
What is the effect of failure by the lender’s solicitor to register the mortgage at Companies House if the buyer is a company?
Charge will be void against liquidator/administrator & other creditors
How long does the buyer’s solicitor have to apply for the buyer to be registered as the new owner in:
- Registered land;
- Unregistered land?
Registered: application must be made before expiry of 30 working day priority period conferred by OS1
Unregistered: application must be made within 2 months of completion
What are the 7 documents to be sent to the Land Registry as part of the registration application for registered land?
Form AP1 with:
a. Certified copy of TR1
b. Fee
c. DS1 showing discharge of existing mortgage
d. Mortgage deed
e. SDLT5 / WRA certificate showing have paid SDLT/LTT
f. Form DI (sets out any overriding interests which burden the title)
g. If sellers were T.I.C. & one has died: death certif + Deed of Appt of 2nd trustee
What are the 8 categories of documents to be sent to the Land Registry as part of the registration application for unregistered land?
Forms FR1 + DL with:
a. Certified copy of TR1 or other purchase deed
b. Fee
c. DS1 showing discharge of existing mortgage
d. Mortgage deed
e. SDLT5 / WRA certificate showing have paid SDLT/LTT
f. Form DI (sets out any overriding interests which burden the title)
g. If sellers were T.I.C. & one has died: death certif + Deed of Appt of 2nd trustee
h. Epitome of title & other purchase docs & evidence (searches & enquiries etc.)
