PREP AND Workshop RS8 PDF

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the preparation and workshop tasks for the real estate workshop 8...

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REAL ESTATE (KNOWLEDGE) Unit 8 Guide Completion

PREPARATORY TASK You are a trainee solicitor at Gibson & Weldon LLP (“G&W”). You are currently sitting in the Real Estate Department and your supervising solicitor is Teresa McKillop. Teresa has asked you to assist her in acting for Arcadian Investments Limited (“Arcadian”) on their purchase of Kenulf House, 34-38 Fletton Street, Peterborough PE1 3LR (“Kenulf House”) from Winter Estates Limited (“Winter”). You should assume you have exchanged contracts on the purchase of Kenulf House and that the agreed contractual completion date is the Friday of the week in which you will be attending Unit Workshop 8. The purchase is being funded in part by a mortgage from HRC Private Bank Limited (“HRC”). You act for Arcadian as borrower and HRC is separately represented, but HRC’s solicitor has asked you to conduct the relevant search at the Land Registry on his client’s behalf. In preparation for Unit Workshop 8, please complete the following tasks. 4 THINGS TO DO AFTER EXCHANE AND BEFORE COMPLETION: 1. Money 2. Transfer deed 3. Pre completion searches – OS1 FORM, Company search, request for completion information 4. Liase 7.3.2 of the standard conditions says the buyer is to send the seller the draft transfer. Part 1 Download a TR1 form from the Land Registry section of the website www.gov.uk and read it through in order familiarise yourself with the information required to complete it. Why is it the buyer’s solicitor who drafts the transfer? The seller can reserve the right by contractual condition to prepare the transfer himself – s48(1) of the LPA 1925 If done by the buyer, it is usually prepared shortly after exchange of contract and sent to the seller for his approval with the buyers request for completion information. Have to submit it at least 12 working days before contractual completion date – SC.4.3.2. c4c8ff3552d57c98b0dee83127bbebc1.docx

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Part 2 Title to Kenulf House is registered. You will need to carry out a priority search with Land Registry. The search can be carried out online or by submitting a search application to the relevant Land Registry office. 1.

Download an OS1 form from the Land Registry section of the website www.gov.uk and complete the relevant details for the Kenulf House transaction, paying particular attention to the search from date, the applicant and the and the reason for the application. Bring a hard copy or electronic version of your completed OS1 form to the Unit Workshop.

2.

Carrying out an OS1 search creates a priority period. What is the benefit that this priority period provides? The search result confers on the searcher a priority period of 30 working days from the date of the certificate. This provides protection to the buyer (and lender, if search was made on his behalf) against any subsequent entries which may be placed on the register after the date of the search but before the buyer is registered as proprietor. The searcher will take priority over any entry made during the priority period, provided that completion takes place and a correct application for registration of the transaction is received by the appropriate land registry office by 12 noon on the day when the priority period given by the search expires. 3.

What must be done before the expiry of the priority period to be entitled to that benefit?

4.

What will you do if the OS1R search result reveals an adverse entry on the register that you were not expecting? Need to contact the seller’s solicitor as soon as possible to find out exactly what the entry relates to and seek their confirmation that the entry will be removed on or before completion. Keep the client, his lender and other solicitors involved in the chain of transactions informed of the situation because negotiation of the removal of the charge may cause delay in the completion. This delay will give rise to contractual remedies for breach of contract. Entries protecting a spouses right under the family law act 1996 can be removed on production of the death certificate of the spouse or a decree absolute of divorce.

Part 3 In Unit Workshop 8, you will consider the steps that need to be taken following completion of a transaction, including making an application to register Arcadian as the new owner of Kenulf House.

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1.

Research how much SDLT will be payable on the transfer of Kenulf House to Arcadian.

2.

Precisely what applications will need to be made to the Land Registry? Locate the most recent Land Registry Fee Guide and find out the relevant fee(s).

3.

Find out the fee for registering a charge at Companies House.

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UNIT WORKSHOP TASK 3 Assume that, three days before the agreed completion date for the purchase of Kenulf House, Peterborough, you receive an email from Richard Tilling, Arcadian’s property director, as follows: From: To: Date: Subject:

Richard Tilling Teresa McKillop [three days before the agreed completion date] Kenulf House

Dear Teresa, Thank you for all your work on Kenulf House which I understand is due to complete on Friday. You probably won’t want to hear this, but we’ve just been made an offer to acquire an alternative property closer to the city centre in Peterborough. This alternative property is not only more conveniently located, but we’ve also been offered it for a VERY good price. I’d like to pursue the possibility of acquiring this alternative property instead of Kenulf House. At the same time, I don’t want to lose Kenulf House if the new property falls through. If you could buy me some time to explore this new possibility that would be great, but I am also concerned about the consequences of trying to delay completion of the contract with Winter. Perhaps you could let me have your thoughts. I’d at least like to think about this overnight so if you could reply today, that would be much appreciated! Richard Advise Richard Tilling on behalf of Arcadian. UNIT WORKSHOP TASK 4 Assume that completion of the purchase of Kenulf House took place on the agreed completion date, the Friday of the week in which you are attending Unit Workshop 8. After completion, there are a number of steps that to be taken to ensure that the buyer is registered as the new proprietor of the property. Similarly steps will need to be taken to protect the lender’s mortgage. Strict time limits apply to these steps and it is important to ensure that none of the relevant deadlines are missed. Identify the steps that need to be taken on this transaction. In relation to each of the steps, state: 

The deadline by which the step must be taken



The documents to send

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The documents to come back

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The sum/fee to pay

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The consequences of non-compliance.

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