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THE CONTRACT AND EXCHANGE, COMPLETION - Coggle Diagram
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COMPLETION
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THE TRANSFER DEED
Buyer’s solicitor’s checklist before completion
- draft the transfer deed
- once approved = arrange for the buyer to sign if it contains indemnity covenants
- send requisitions on title to the seller’s solicitor
- carry out relevant pre-completion searches
- send certificate of title to the lender, and request the loan advance
- send the buyer a statement of money
- Stamp Duty Land Tax form approved by client
Seller’s solicitor’s checklist before completion
- approve the transfer deed + arrange for it to be executed by the seller
- reply to requisitions on title
- request a redemption statement from the seller’s lender
- ask the seller or agent to take final meter readings
Form of the transferA transfer of land must be in the form of a deedRegistered land - Land Registry forms must be used:
- TR1 = transfers the whole of a freehold or leasehold title
- TP1 = transfer of part only of a registered title
- TR5 = transfer of a portfolio of registered titles (and may include unregistered titles
Unregistered land:
- May still be transferred in the form of a conveyance= usual to use the Land Registry form TR1
Completing panels in the TR1Panel 1 – title number
- Unregistered property > Leave this panel blank
Panel 2 – property
- brief description / address
Panel 3 – datePanel 4 – the transferor(s)
- registered proprietor(s) of the property
- If seller’s name is different than when they bought the property = marriage certificate should be provided
- If a second trustee is appointed for a sole surviving tenant in common = their details go here
- If the transferor is a company = registered number should be provided
Panel 5 – the transferee(s)
- Insert the buyer’s full name
Panel 6 – address for service
Panel 7 – the transfer wordingPanel 8 – consideration
- 3 options to choose from: transferee is paying a sum of money for the property / transferee is giving no monetary consideration or anything that has a monetary value / Other receipts – less frequently used
Panel 9 – title guarantee
- boxes for full title guarantee and limited title guarantee
Panel 10 – declaration of trust
- legal and beneficial title are being transferred to a sole transferee, then you can skip this panel
Panel 11 – additional provisions
- indemnity covenant for positive covenants, or new covenants and easements
Panel 12 – execution
- transferor must always execute
- transferee(s) must execute the TR1 if: tenants in common or agree to hold the property on trust for someone else in Panel 10 / providing an indemnity covenant, or any other obligation in Panel 11
Executing the transfer deedIndividual signs the transfer in presence of an independent witness who also signs and prints their full name and address
- delivered = when it is dated
Company > check if has a policy on executing deeds
- Company seal attached + signed by 2 directors, or one director and the company secretary
- No company seal, but signed by 2 directors or one director and the company secretary
- Signed by one company director and witnessed by an independent witness
- Signed by a senior employee (not a director or the company secretary) who is authorised under a power of attorney
Once agreed, seller’s solicitor sends engrossment (final) transfer deed to seller for execution + hold executed but undated transfer deed ready for completion
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REQUISITION ON TITLE
questions that the buyer’s solicitor needs answering before completion
Residential = form of Law Society TA13 aka ‘Completion information and undertakings’
Commercial = firm’s own precedent form, or Commercial Property Standard Enquiries (CPSE) form SCR (Solicitor’s completion requirements)
Content of TA13 (completion information and undertakings)
- Vacant possession = arrangements for collecting the keys / rent to the buyer following completion
- Deeds and documents = unregistered property, asks for a list of deeds and documents to be sent on completion
- Completion = confirmation that completion will take place according to the Law Society’s Code for Completion by Post
- Money = seller’s solicitor’s client account details (to send the money), + exact amount payable on completion
- Mortgages and charges = Asks seller’s solicitor to list any mortgages secured on property + confirm their undertaking to redeem them on completion
- Seller’s solicitor undertakes in Law Society Code for Completion by Post to redeem mortgages against property + lender should discharge charge at the Land Registry electronically or provide a form DS1 which can be produced to Land Registry to discharge the charge
COMPLETION
Balance of the purchase price (after the deposit) paid to the seller + legal title in property passed to buyer + facilitated by the Law Society Code for Completion by PostThe Law Society Code for Completion by Post
- Seller’s solicitor provides various undertakings which the buyer’s solicitor can rely on to know if necessary money is sent, completion will take place / seller's solicitor will return money to buyer’s solicitor
- Buyer’s solicitor has received mortgage advance and balance of money required from client, and sends required amount to seller’s solicitor by bank transfer
- Seller’s solicitor telephones buyer’s solicitor when money arrives to confirm completion + dates transfer deed + calls seller to let them know + estate agent to release keys to the buyer if appropriate
- Buyer’s solicitor calls buyer, who can now collect the keys and physically move into the property
- Seller’s solicitor sends the transfer deed + other agreed deeds and documents to buyer’s solicitor, redeems mortgage, and sends balance of the money to the seller