Property Transaction Completion Stage

This set of flashcards covers the procedures, documentation, and financial obligations involved in the completion stage of a property transaction as described in the lecture.

What activities occur during the completion stage of a property transaction?

Drafting and execution of the deed of assignment, payment of balances, handing over of documents to the purchaser, passing of legal interest subject to perfection, and the change of party designations to assignor and assignee.

How do the designations of the parties change during the completion stage?

They change to assignor and assignee.

By whom and where may completion be conducted?

Completion may be conducted by the parties, their agents, or by post, and it is done in the vendor's or purchaser's house or office.

What is a completion statement and who prepares it?

Directly referred to as a financial statement, it is prepared by the solicitors involved in the sale of property as a statement of the financial commitments and obligations of the parties towards the successful completion of the transaction.

What four items should the financial statement contain?

1. The sum being paid or received in respect of the transaction; 2. An accurate and full statement of all disbursements (e.g., to valuers and other professionals); 3. The sum required to redeem any current mortgage; 4. The final amount to be paid before or after completion.

What is the first procedure in the completion process?

The purchaser's solicitor prepares the deed of assignment and sends it to the vendor's solicitor for vetting.

What does the vendor's solicitor do after vetting the document and getting the engrossment?

The vendor's solicitor prepares the completion statement and sends it to the purchaser's solicitor.

What action does the purchaser's solicitor take upon receiving the completion statement?

The purchaser's solicitor forwards a copy to the purchaser and asks for the draft for payment of the balance of the purchase price and professional fees.

Which specific actions take place when the parties and solicitors meet at the vendor's solicitor's office?

Payment of the balance of the purchase price, execution of the deed of assignment by parties and witnesses, distribution of copies, and the handing over of relevant documents to the purchaser's solicitor.

What documents are handed over to the purchaser's solicitor by the vendor's solicitor during the completion meeting?

Executed deed of assignment copies, original title documents, receipt of balance payment, letter of introduction (if there is a tenancy agreement), receipts of payment for all outgoings, and notice of assignment of insurance.

Why does the assignee's solicitor examine the original documents at the end of completion?

To ensure the correctness of information in the copies and that the information corresponds with the original copies, as the title remains until duly perfected.