SGS 3 Flashcards
(31 cards)
Pre-exchange steps for buyer: completion date
Take instruction from buyer as to when it wants to complete; check that buyer has agreed completion date with seller, such that seller’s solicitor is aware
Pre-exchange steps for buyer: contract
- Take instructions from buyer confirming that the buyer wants to exchange
- Agree and finalise form of contract with seller’s solicitor
- Hold signed, undated contract in readiness for exchange
Pre-exchange steps for buyer: finances
- Deposit held in buyer’s solicitor’s client account in cleared funds
- Deposit sent to seller’s solicitor to be held to order pending exchange
- Send draft certificate of title to lender’s solicitors and obtain their approval, which confirms that the money will be available on day of completion
- Send draft financial statement to buyer to ensure that they have sufficient funds to complete
Pre-exchange steps for seller: completion date
- take instructions from seller as to when it wants to complete
- check that seller has agreed completion date with buyer, such that buyer’s solicitor is also aware
Pre exchange steps for seller: contract
- Take instructions from seller, confirming that buyer wants to exchange
- Agree and finalise the form of the contract with buyer’s solicitor
- Hold signed, undated (add on exchange) contract in readiness for exchange
Pre-exchange steps for seller: finances
- Obtain provisional redemption figure from existing lender to ensure that the proceeds of sale will be sufficient to pay off mortgage
- Hold deposit to buyer’s solicitors order, if sent by electronic transfer (SCPC 3.2.2)
Where is the procedure for exchange found?
Formula B
Where does the risk lie between exchange and completion?
SCPC 8.1 - buyers risk from date of contract
THe buyer must be advised to get insurance cover in place from the time of exchange
What if the buyer wants to occupy before completion?
Should be as licensee. Specific arrangement should be negotiated and included as special condition in the contract
Pre-completion steps for buyer:
COMP
- CIUF
- OS1 search
- Money
- Purchase deed
what does the buyer have to do with the CIUF?
send to seller’s solicitor in good time, soon after exchange (doesnt have to be in standard form).
What does CIUF contain?
location for completion, list of documents to be sent to buyer’s solicitor after completion, balance due, seller’s solicitor’s undertaking to forward purchase monies to bank and forward DS1 immediately, location of keys, confirmation that there are no changes to CPSEs
What does the buyer have to do pre completion re the OS1 search?
- two or three days before completion
- confirm information has not changed since the ‘search from’ date in the official copy
- Prioirty period of 30 working days, freezing the register
- on morning of completion, also conduct solvency searches
What is the bankruptcy search form?
K16
What does the buyer have to do pre completion re money?
- send signed, dated, final certificate of title to lender on morning of completion
- send final financial statement to buyer
What does the buyer have to do pre-completion re the TR1
arrange for engrossed TR1 to be executed by the buyer if entering into new covenants, giving seller indemnity covenant, or declaring a trust
What are the pre-completion steps for seller?
CMP
- CIUF
- Money
- Purchase deed
What does the seller have to do pre-completion re the CIUF?
reply to buyer’s solicitor within 4 working days (SCPC 7.3.1)
What does the seller have to do pre-completion re the money?
- send completion statement to buyer’s solicitor
- obtain final redemption figure from seller’s lender and check that it is less than sale proceeds
- send final financial statement to seller
What does the seller have to do re the purchase deed pre completion?
arrange for engrossed TR1 to be executed by the seller
What is the completion process for the buyer?
CMP
- CIUF: check that seller has provided satisfactory anwers and that seller’s solicitor’s undertaking has been given
- Money: send completion monies to seller’s solicitor’s client account; get mortgage documentation signed
- purchase deed (TR1): ensure that signed, updated copy is held by seller’s solicitor on morning of completion
What is the completion process for the seller?
COMP
- CIUF: check that it contains seller’s solicitors undertaking to remit funds required to redeem the charge and to forward DS1 within short specified time frame
- ORganise documents to be sent to buyer’s solicitor after completion (executed, dated TR1, original title deeds, originals of planning permission etc, receipts for payment of apportionments for any chattels purchased separately)
- Money: send completion moneys to seller’s lender immediately to redeem charge, send seller balance of sale proceeds
- Purchase deed: date the signed copy
When must completion occur by?
by 2pm on the completion date (SCpc 9.1.2)
What if completion doesn’t happen on time?
The seller can
- claim contractual compensation for each day of delay (SCPC 10.3.1 and 10.3.2)
- claim common law damages for breach of contract in respect of any additional loss of conractual compensation not sufficient (SCPC 10.3.3)
- serve notice to complete at any time after specified completion time (SCPC 9.8.1)
