Pre-completion steps Flashcards
what are the pre-completion steps?
- preparation of transfer deed
- searches
- completion information form
- finances
what is the purpose of the transfer deed?
it transfers the legal estate
who usually prepares the transfer deed?
B’s solicitor
what form does the transfer deed take?
o Reg land = form TR1
o Unreg land = can use form TR1 if transfer triggers 1st registration. Otherwise, use a conveyance (i.e. a bespoke deed)
what are the requirements for a valid deed?
o Clear on the face of it is a deed
o Properly executed
o Must be delivered
how must a deed be executed to the properly executed?
Individual signed in presence of a witness
Company in the name of the company by:
* D + CS or 2 Ds
* 1 D + witness
who executes the transfer deed?
- S always executes deed. B only will if they are entering into obligation (i.e. IC or declaring BI)
what pre-completion searches are carried out?
- title search (reg land)
- land charges search (unreg land)
- buyer’s solvency
- seller’s solvency
why is a HMLR title search carried out?
this shows any new entries against the registered land
it also gives a 30 working day protection period
in whose name is the HMLR title search undertaken?
Search in lender’s name as protects B and lender (otherwise only protects B because charge is registered after B is registered as owner)
what is searched when undertaking a land charges search in relation to unregistered land?
Search against current owners only (bankruptcy search at the same time)
why is a Land Charges search undertaken in unregistered land?
it gives the applicant a 15 working day priority period
what is the priority period?
the applicant has priority over other entries during this time. It effectively freezes the register. Entries lodged in this time not binding so long as transfer takes place by noon on last day of priority period
how is B’s solvency searched?
o Individual bankruptcy search with Land Charges Department
o Company company search
how is S’s solvency searched?
Individual
Reg land: generally unnecessary because if nothing on title regarding bankruptcy and B acting in good faith without notice they take good title
Unreg land: uncovered with title search
Company company search
who completes the completion information form?
Completed by B’s solicitor and sent to S
what information is included in the completion information form?
key arrangements, completion method, document handover, discharge of mortgage
B’s solicitor also requests an undertaking from S solicitor to pay mortgage from completion money and send evidence of this.
what must B’s solicitor do in relation to finances at this stage?
- B’s solicitor sends Financial Statement to client setting out funds needed to complete i.e. PP balance, tax, fees
- B’s solicitor must obtain mortgage advance
