LPC Law Notes > Cambridge And Oxilp And College Of Law LPC Law Notes > Property Law and Practice Notes

Pre Completion, Completion And Post Completion Diagram Notes

This is a sample of our (approximately) 16 page long Pre Completion, Completion And Post Completion Diagram notes, which we sell as part of the Property Law and Practice Notes collection, a Distinction package written at Cambridge And Oxilp And College Of Law in 2016 that contains (approximately) 450 pages of notes across 126 different documents.

Learn more about our Property Law and Practice Notes

The original file is a 'Word (Doc)' whilst this sample is a 'PDF' representation of said file. This means that the formatting here may have errors. The original document you'll receive on purchase should have more polished formatting.

Pre Completion, Completion And Post Completion Diagram Revision

The following is a plain text extract of the PDF sample above, taken from our Property Law and Practice Notes. This text version has had its formatting removed so pay attention to its contents alone rather than its presentation. The version you download will have its original formatting intact and so will be much prettier to look at.

Pre-Completion Steps

1) Report exchange

Buyer's solicitor

Reports that exchange has taken place to the buyer

2) Drafting the transfer

Buyer's solicitor

1) Drafts the transfer - Standard Commercial Property Conditions 6.3.2 / Standard Conditions for Sale 4.3.2


Sends it to the seller's solicitor for approval


The transfer must be done by deed to transfer the legal estate to the buyer - s.52 LPA 1925

Registered land Forms


TR1 (for the transfer of the whole of the land)


TP1 (for the transfer of part of the land)


TR5 (for the transfer of a portfolio of reg. titles)

Unregistered land Forms


No prescribed form of wording


TR1 - Is often used

Seller's solicitor

3) Submitting a Completion Information form Is used to obtain practical information about the completion arrangements so it can run smoothly.

Approves / amends the transfer deed


Once approved the transfer from will be sent to the buyer's solicitor


Buyer's solicitor will then forward the final version an "engrossment" back to the seller's solicitor

Buyer's solicitor

1) Sends the Completion Information to the seller's solicitor Either:


TA13 - Law Society's Transaction form


'In house' form - The tailored form used by the buyer's solicitor's firm

Seller's solicitor

1) Sends the Completion Information form back including: SCPC 6.3.1 / SCS 4.3.1


Must be done within 4 working days after receiving the questions from the buyer's solicitor

1) An Undertaking to discharge outstanding mortgages 1) An undertaking confirming that any outstanding mortgages will be repaid (discharged) prior to, on or affer completion.

2) Seller's completion statement Seller's completion statement setting out the balance of funds outstanding and required for completion

3) Seller's solicitor's bank details So the buyer's solicitor knows where to send the completion money

4) Details of where the keys for the property can be collected Will also be details of how the title deeds will be sent to the buyer

4) Financial arrangements

Buyer's solicitor

1) Sends his own client (the buyer) a financial statement


States the sum due from the buyer to complete including:

2) Sorts out, confirms and obtains the funding from:


The funds will have to have cleared through the solicitor's accounts so will need to be sent in advance

1) The lender (mortagee)


Will need to send to the lender the Certificate of Title (if not already done)


Will need to advise the bank of the completion date to request funds in time for completion


Mortgage deed will have to be drafted then signed by buyer

2) The buyer themselves


Might be through personal savings or from company profits both of which may have notice periods

Seller's solicitor

1) Sends a Completion Statement to the buyer's solicitor


This shows the total amount due from the buyer on completion and how this sum is made up.

2) Sends his own client (the seller) a financial statement showing both a bill of costs and the amount due to the seller

5) Pre-completion searches

Buyer's solicitor

Registered land

1) Checks if further entries have been made to the Official Register


Is a Land Registry search using the form - OS1


For sale of part of the land, the form used is an OS2


Checks to see if further entries since the date of the official copies (the "search from date") which were supplied at the beginning of the transaction

If the buyer is using a mortgage, the search is made in the name of the lender


This gives protection to the borrower

2) The buyer's solicitor carries out solvency searches on the buyer only where he is acting for both the buyer and the lender


When the buyer and lender are separately represented, the lender's solicitor will do these searches

The buyer is a company buying with a bank loan - Company search on buyer


Will establish if the company is still in existence

The search gives the searcher a 30 day priority period


The buyer takes priority over any other applications made during the priority period


If the priority period expires with no completion any third parties interests that were tried to be registered during the period will take effect immediately on expiration of the period.


If the priority period expires, the buyer must do another search to get a new priority period

The buyer is an individual buying with a bank loan - Bankruptcy search on buyer


Form used is a - K16


Done at the Central Land Charges Department

3) The buyer's solicitor carries out solvency searches on the seller

The seller is a corporate seller whether or not a lender is involved- Company search


As a seller's floating charges and pending solvency will not be revealed on the land registry title.


Not strictly necessary but done in practice

The seller is an individual


No requirement to carry out a separate bankruptcy search


It would already have shown up as the seller's trustee in bankruptcy would be noted on the seller's registered title, which would be shown up by the OS1 search.

Unregistered land

1) Updates / checks the CLC search


Is a search to investigate land charges using form K15

If the buyer is using a mortgage, the search is made in the lender's name


This gives protection to the borrower

The search gives the searcher a 15 working day protection period


The buyer must complete the purchase within 15 working days

2) The buyer's solicitor carries out solvency searches on the buyer only where he is acting for both the buyer and the lender


When the buyer and lender are separately represented, the lender's solicitor will do these searches

The buyer is a company buying with a bank loan - Company search


Will establish if the company is still in existence

3) The buyer's solicitor carries out solvency searches on the seller

The seller is a corporate seller whether or not a lender is involved - Perform a Company search


As a seller's floating charges and pending solvency will not be revealed by the CLC searches


Not strictly necessary but done in practice

The buyer is an individual buying with a bank loan - Bankruptcy search


Form used is a - K16


Done at the Central Land Charges Department

The seller is an individual - No requirement to carry out a separate bankruptcy search


It would already have shown up on the K15 CLC searches

Execution of the Transfer

1) Execution of the Transfer (TR1 / TP1 /
TR5)

Parties

1) MAY get his client to execute the Transfer


Buyer will execute if: 1) Entering into new covenants or an indemnity covenant 2) Declaring a trust (co-ownership)

Seller's solicitor

How to execute

Buyer's solicitor

1) WILL get his client to execute the Transfer

1) Execution by individuals


Must: o Indicate clearly that it is a deed o Be signed in the presence of a witness o Be delivered

2) Execution by companies


S.44 (1) and (2) Companies Act 2006 - The company can execute the deed either by: o Two authorised signatories (with or without a company seal as stipulated by the company's articles); or o By a director of the company in the presence of an independent witness

3) Execution by foreign companies


The solicitor acting for the foreign company should check with counsel in the relevant jurisdiction to verify the company has power to enter into a deed and how to validly execute the deed

Timing

Deal with the TR1 (or other transfer document) well in advance of completion


A company may have internal procedures to follow before signing a document


Signatories may not be immediately available

****************************End Of Sample*****************************

Buy the full version of these notes or essay plans and more in our Property Law and Practice Notes.

Related Property Law And Practice Samples: