Completion

What should the buyer’s solicitor do first regarding the transfer deed before completion?

Draft the transfer deed for the seller’s solicitor’s approval. Pasted text

When should the buyer sign the transfer deed?

If it contains obligations on the buyer, e.g. an indemnity covenant.

What mortgage document must a buyer execute before completion?

The legal charge.

What should the buyer’s solicitor send to the seller’s solicitor before completion?

Requisitions on title.

What searches must the buyer’s solicitor carry out before completion?

Relevant pre-completion searches.

What lender step must the buyer’s solicitor take before completion?

Send the certificate of title and request the mortgage advance in time for completion.

When should mortgage funds usually arrive?

The day before completion.

What financial statement should the buyer receive before completion?

A statement showing the money required to complete.

What tax document should the buyer approve before completion?

The SDLT form.

What must the seller’s solicitor do with the transfer deed before completion?

Approve it and arrange for the seller to execute it.

What must the seller’s solicitor do with requisitions on title?

Reply to them.

What should the seller’s solicitor request from the seller’s lender?

A redemption statement.

What practical step should be taken before completion of a residential sale?

Ask the seller or agent to take final meter readings.

Why must a transfer of land be made by deed?

s 52 LPA 1925 requires it.

Who traditionally drafts the transfer deed?

The buyer’s solicitor.

Can the seller’s solicitor draft the transfer deed?

Yes, including at the same time as the contract.

Which form is normally used to transfer registered land?

A Land Registry transfer form.

What is Form TR1 used for?

Transfer of whole registered freehold or leasehold title.

What is Form TP1 used for?

Transfer of part of a registered title.

What is Form TR5 used for?

Transfer of a portfolio of registered titles, potentially including unregistered land.

What form is usually used in practice for unregistered land?

TR1, although a conveyance or other method may be used.

How does an individual execute a transfer deed?

By signing in the presence of an independent witness.

When is a transfer deed treated as delivered?

When it is dated, usually by the solicitor.

What statutory provision governs company execution of deeds?

s 44 CA 2006.

How may a company execute a deed using its seal?

In accordance with its articles, e.g. by one or two authorised signatories.

How may a company execute a deed without a seal using two officers?

By two directors, or one director and the company secretary.

How may a company execute a deed using one director?

One director signs in the presence of an independent witness.

Can a company deed be signed by an authorised employee?

Yes, where authorised by power of attorney.

What is the first step in agreeing and executing a transfer deed?

Buyer’s solicitor drafts it.

What is the second step in agreeing the transfer deed?

Seller’s solicitor amends or approves it.

What happens once the transfer deed is agreed?

Seller’s solicitor sends the engrossment to the seller for execution.

When does the buyer’s solicitor also send the transfer deed to the buyer for execution?

Only if the buyer needs to execute it.

How are executed transfer deeds normally held before completion?

Executed but undated.

What goes in TR1 Panel 1 for registered land?

The title number(s).

What goes in TR1 Panel 1 for unregistered land?

Nothing; it is left blank.

What goes in TR1 Panel 2?

A brief description of the property, usually its address.

What goes in TR1 Panel 3?

The completion date, inserted on completion.

Why is TR1 Panel 3 left blank before completion?

Dating the deed completes it.

Who is entered in TR1 Panel 4?

The transferor(s), usually the registered proprietor(s).

What evidence may be needed if the seller’s name has changed?

E.g. marriage or civil partnership certificate.

Where is a newly appointed second trustee entered on TR1?

Panel 4.

What additional detail is given in Panel 4 if the transferor is a company?

Its registered company number.

Who is entered in TR1 Panel 5?

The transferee(s).

What is the maximum number of transferees who may be named in TR1 Panel 5?

Four people or companies.

What goes in TR1 Panel 6?

The transferee’s address for service.

What address will a residential buyer often use in Panel 6?

The purchased property’s address.

Can an email address be included in Panel 6?

Yes.

Why is the Panel 6 address important?

Land Registry sends property-related notices there.

What wording appears in TR1 Panel 7?

“The transferor transfers the property to the transferee.”

Can TR1 Panel 7 wording be amended?

No.

What does TR1 Panel 8 deal with?

Consideration.

What is the first Panel 8 consideration option?

Payment of a sum of money.

What is the second Panel 8 consideration option?

No monetary or other valuable consideration, e.g. a gift.

What is the third Panel 8 consideration option?

Other receipts, e.g. property swaps or transfer in satisfaction of a debt.

What does TR1 Panel 9 deal with?

Title guarantee.

What options are given in Panel 9?

Full title guarantee or limited title guarantee.

What if the transferor gives no title guarantee?

Both Panel 9 boxes are left blank.

What does TR1 Panel 10 deal with?

Declaration of trust.

When can TR1 Panel 10 be skipped?

Where sole legal and beneficial title is transferred to one transferee.

What co-ownership options appear in Panel 10?

Beneficial joint tenants or tenants in common.

What can the third option in Panel 10 cover?

Unequal shares or a trust for a third party.

What does TR1 Panel 11 deal with?

Additional provisions.

Give examples of matters included in TR1 Panel 11.

Indemnity covenants, new covenants or easements.

Where may appointment of a second trustee appear in TR1?

Panel 11.

What does TR1 Panel 12 contain?

Execution/attestation clauses.

Who must always execute a TR1?

The transferor.

When must transferees execute a TR1 because of co-ownership?

Where more than one person buys or the transferee holds on trust.

When must transferees execute a TR1 because of obligations?

Where they give an indemnity covenant or another obligation in Panel 11.

How is the transferred land usually identified on a TP1?

By a plan attached and referred to in Panel 3.

What does TP1 Panel 12 commonly deal with?

Rights granted and rights reserved.

What does TR5 Panel 1 contain?

A table listing properties and title numbers where registered.

What is the purpose of pre-completion searches?

To check and protect the buyer’s and lender’s ability to obtain title as contracted.

What do pre-completion searches concern?

The property and the parties.

What Land Registry search is used for the whole of registered land?

OS1.

What search is used for part of registered land?

OS2.

What does an OS1/OS2 search update?

The official copies by revealing changes since the search-from date.

What priority period does an OS1/OS2 search give?

30 working days.

What must the buyer’s solicitor do within the OS priority period?

Submit the application to register the transfer.

What is the effect of applying within the OS priority period?

Buyer’s transfer takes priority over later or even earlier-lodged competing applications.

What is the “search from” date for an OS1 search?

The date of the official copies previously obtained.

When does the 30-working-day priority period begin?

The date the priority search is made.

What happens if an OS search reveals changes since the official copies?

Updated official copies are sent to the searcher.

Can the buyer rely solely on the seller disclosing changes to the title before completion?

No.

Why should the buyer always protect registration with a priority search?

To prevent later charges or applications taking priority.

What pre-completion search is carried out for unregistered land?

Form K15 Land Charges search.

What does a K15 search reveal?

Registered incumbrances or adverse matters against the owner.

What priority period does K15 provide?

15 working days.

How is K15 priority obtained?

By completing within the priority period.

Does the buyer need to search previous owners on K15 immediately before completion?

No, only the seller.

What insolvency search is required where acting for buyer and lender?

Bankruptcy search Form K16 against the buyer.

Why is K16 carried out against the buyer?

To protect the lender.

What insolvency search is used if the buyer is a company?

A company search.

What can a company search reveal before completion?

Pending insolvency or crystallisation of a floating charge.

Do solvency searches have a priority period?

No.

When should solvency searches therefore be carried out?

As late as possible before completion.

Is a bankruptcy search normally carried out against an individual seller?

No.

What searches can generally be relied on instead for an individual seller?

OS1 or the land charges search.

What search should be made against a corporate seller before completion?

A company search immediately before completion.

What are requisitions on title?

Questions the buyer’s solicitor needs answered before completion.

What form is normally used for residential requisitions on title?

Law Society Form TA13.