Pre-completion- FS Flashcards
(17 cards)
When is the transfer deed typically prepared during a property transaction?
It is usually prepared shortly after exchange of contracts and sent to the seller along with a request for completion information.
What form is used for transferring registered land where the whole title is being transferred?
The TR1 form is used for transferring the whole of a registered title.
What form is used when only part of a registered title is being transferred?
The TP1 form is used for the transfer of part of a registered title.
What document format must be used for transferring unregistered land?
The transfer must be completed by deed using traditional conveyancing documents in order to transfer the legal estate.
Who is generally responsible for preparing the draft transfer deed in a conveyancing transaction?
It is normally the buyer’s duty to prepare the transfer deed, unless otherwise agreed in the contract.
Can the seller ever prepare the transfer deed, and under what condition?
: Yes, the seller may reserve the right to prepare the transfer deed if this is explicitly agreed upon in the contract.
What must happen once a draft transfer deed is prepared, regardless of who drafts it?
The other party must agree to the contents of the draft transfer deed before it can be finalized.
According to the Standard Commercial Property Conditions (3rd edition, 2018 revision), when must the buyer send the draft transfer deed to the seller?
Under Condition 7.3.2, the buyer must send the seller a draft transfer at least 12 working days before the completion date.
What is the purpose of carrying out pre-completion searches in conveyancing?
To ensure that there have been no changes to the title register since the last official copies were checked and to verify that the seller is still solvent.
At what stage of the conveyancing process are pre-completion searches carried out?
After exchange of contracts and before completion.
What are the two most common types of pre-completion searches?
The OS1 priority search and the bankruptcy (K16) search.
What is the purpose of the OS1 priority search?
To identify any changes or new entries on the register of title since it was last inspected and to protect the buyer and lender by creating a priority period.
What is the benefit of the priority period created by the OS1 search?
It ensures that no third parties can register competing interests before the buyer and lender have registered their transaction
Which form is used to conduct a bankruptcy search and where is it submitted?
Form K16 is used and is submitted to the Land Charges Department or via the Land Registry Business Portal.
What is the name of the certificate returned after a bankruptcy search is completed?
What is the name of the certificate returned after a bankruptcy search is completed?
Why is it important to confirm the seller is not bankrupt before completion?
Because funds must not be transferred to a bankrupt party, and a trustee in bankruptcy may claim ownership of the property.
What is the best advice to give a client who questions the need for pre-completion searches due to cost?
These searches are essential to confirm the title’s current status, ensure the seller’s solvency, and secure a protected priority period for registration.
